MIRA
INFORM REPORT
|
Report Date : |
17.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
CANNY ELEVATOR CO., LTD. |
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Registered Office : |
No. 888 Kangli Road, Fenhu Economic Development Zone
Wujiang, Jiangsu Province 215213 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
03.11.1997 |
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Com. Reg. No.: |
320500000046392 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject engaged in manufacturing and selling elevators, escalators, moving walkways. |
|
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No. of Employees : |
2,569 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed,
centrally planned system to a more market-oriented one that plays a major
global role - in 2010 China became the world''s largest exporter. Reforms began
with the phasing out of collectivized agriculture, and expanded to include the
gradual liberalization of prices, fiscal decentralization, increased autonomy
for state enterprises, creation of a diversified banking system, development of
stock markets, rapid growth of the private sector, and opening to foreign trade
and investment. China has implemented reforms in a gradualist fashion. In
recent years, China has renewed its support for state-owned enterprises in
sectors it considers important to "economic security," explicitly
looking to foster globally competitive national champions. After keeping its
currency tightly linked to the US dollar for years, in July 2005 China revalued
its currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2012 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China''s
agricultural and industrial output each exceed those of the US; China is second
to the US in the value of services it produces. Still, per capita income is
below the world average. The Chinese government faces numerous economic
challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy''s rapid transformation. Economic
development has progressed further in coastal provinces than in the interior,
and by 2011 more than 250 million migrant workers and their dependents had
relocated to urban areas to find work. One consequence of population control
policy is that China is now one of the most rapidly aging countries in the
world. Deterioration in the environment - notably air pollution, soil erosion,
and the steady fall of the water table, especially in the North - is another
long-term problem. China continues to lose arable land because of erosion and
economic development. The Chinese government is seeking to add energy
production capacity from sources other than coal and oil, focusing on nuclear
and alternative energy development. In 2010-11, China faced high inflation
resulting largely from its credit-fueled stimulus program. Some tightening
measures appear to have controlled inflation, but GDP growth consequently
slowed to under 8% for 2012. An economic slowdown in Europe contributed to
China''s, and is expected to further drag Chinese growth in 2013. Debt overhang
from the stimulus program, particularly among local governments, and a property
price bubble challenge policy makers currently. The government''s 12th
Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms
and the need to increase domestic consumption in order to make the economy less
dependent on exports in the future. However, China has made only marginal
progress toward these rebalancing goals.
Source
: CIA
Company name and address
CANNY ELEVATOR CO., LTD.
NO. 888 KANGLI ROAD, FENHU ECONOMIC DEVELOPMENT ZONE
WUJIANG, JIANGSU PROVINCE 215213 PR CHINA
TEL: 86 (0) 512-63290000/63297851
FAX: 86 (0) 512-63293938/63299709
EXECUTIVE SUMMARY
Date of Registration : november 3, 1997
REGISTRATION NO. : 320500000046392
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 380,670,000
staff :
2,569
BUSINESS CATEGORY : manufacturing
REVENUE :
CNY 1,823,337,000 (CONSOLIDATED, AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,632,868,000 (CONSOLIDATED, AS OF DEC. 31, 2012)
WEBSITE : www.canny-elevator.com
E-MAIL : dongmiban@canny-elevator.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE :
CNY 6.14 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 320500000046392
on November 3, 1997.
SC’s Organization Code Certificate No.:
72419007-3
SC’s registered capital: CNY 380,670,000
SC’s paid-in capital: CNY 380,670,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (as
of March 31, 2013) |
% of Shareholding |
|
Wang Youlin |
46.55 |
|
Suzhou Weichen Investment &
Development Co., Ltd. |
4.11 |
|
Li Baoqing |
2.87 |
|
National Social Security Fund 109
Portfolio |
2.34 |
|
Haitong Securities Co., Ltd.-Customer
Credit Collateral Securities Trading Account |
1.87 |
|
Agricultural Bank of China-Guotai Jinniu
Innovative Growth Stock Securities Investment Fund |
1.52 |
|
Haitong Securities Co., Ltd.-Agreed to
Repurchase Special Account |
1.44 |
|
Bank of China-Gongyin Ruixin Core Value
Equity Securities Investment Fund |
1.29 |
|
China Construction Bank-Morgan Stanley
Huaxin Zhuoyue Growth Stock Securities Investment Fund |
1.26 |
|
Zhu Kuishun |
1.16 |
|
Other Shareholders |
35.59 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Wang Youlin |
|
Deputy General Manager |
Chen Jinyun |
|
Liu Zhantao |
|
|
Gu Xingsheng |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange with the code of
002367.
SHAREHOLDER CHART &
BACKGROUND
Name
(As of March 31, 2013) % of Shareholding
Wang Youlin 46.55
Suzhou Weichen Investment & Development
Co., Ltd. 4.11
Li Baoqing 2.87
National Social Security Fund 109 Portfolio 2.34
Haitong Securities Co., Ltd.-Customer Credit
Collateral Securities Trading Account 1.87
Agricultural Bank of China-Guotai Jinniu
Innovative Growth Stock Securities
Investment Fund 1.52
Haitong Securities Co., Ltd.-Agreed to
Repurchase Special Account 1.44
Bank of China-Gongyin Ruixin Core Value
Equity Securities Investment Fund 1.29
China Construction Bank-Morgan Stanley
Huaxin Zhuoyue Growth Stock
Securities Investment Fund 1.26
Zhu Kuishun 1.16
Other Shareholders 35.59
MANAGEMENT
Wang
Youlin , Legal Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative,
chairman and general manager
Chen Jinyun , Deputy
General Manager
---------------------------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø
Qualification:
University
Ø
Working
experience (s):
From 2007 to present, working in SC as deputy general
manager
Also working in Suzhou Xinda Escalator Accessories
Co., Ltd. as general manager
Liu Zhantao , Deputy
General Manager
---------------------------------------------------------------
Ø
Gender: M
Ø
Age: 43
Ø
Qualification:
Postgraduate
Ø
Working
experience (s):
From 2007 to present, working in SC as deputy general
manager
Gu Xingsheng , Deputy
General Manager
----------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
Qualification:
University
Ø
Working
experience (s):
From 2007 present, working in SC as deputy
general manager
Also working in Zhongshan Guangdu
Electromechanical Co., Ltd. as general manager
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing, processing and selling elevators,
escalators, moving walkways, installation, repair and maintenance of above
products, manufacturing, processing and selling parking equipment, electronic
control equipment, optical equipment and complete sets of accessories, operating
and acting as an agent of importing and exporting various kinds of commodities
and technology, excluding the goods forbidden by the government.
SC is mainly
engaged in manufacturing and selling elevators, escalators, moving walkways.
Brand: 
SC’s products mainly include: elevators,
escalators, moving walkways.
SC sources its materials 100% from domestic market. SC sells 65% of its products in domestic market, and 35% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Chengde Meishen Garments Co., Ltd.
Suzhou Xinda Escalator Accessories Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 2,569 staff
at present.
SC rents an area
as its operating office & factory of approx. 280,000 sq. meters at the
heading address.
RELATED COMPANY
SC is known to
have the following subsidiaries:
Suzhou
Xinda Escalator Accessories Co., Ltd.
Zhongshan
Guangdu Electromechanical Co., Ltd.
Chengdu
Canny Elevator Co., Ltd.
Suzhou
Xinlicheng Electronic Control System Co., Ltd.
Suzhou
Canny Transportation Services Co., Ltd.
Suzhou
Benyi Electromechanical Co., Ltd.
Guangzhou
Guangdu Escalator Accessories Co., Ltd.
Jiangsu
Yueli Elevator Co., Ltd.
Jiangsu
Yueli Elevator Installation Engineering Co., Ltd.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment and our debt collection record concerning
SC.
Trade payment experience: SC did not
provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
Delinquent payment record: None in our
database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
BANKING
The bank
information of SC is not filed in SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
1,056,603 |
996,812 |
|
|
Notes receivable |
5,641 |
11,337 |
|
Accounts
receivable |
167,257 |
196,804 |
|
Advances to
suppliers |
125,485 |
212,341 |
|
Interest
receivable |
0 |
0 |
|
Other receivable |
19,217 |
20,008 |
|
Inventory |
531,985 |
538,711 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,906,188 |
1,976,013 |
|
Long-term equity
investment |
0 |
50 |
|
Fixed assets |
338,032 |
449,034 |
|
Construction in
progress |
58,892 |
53,619 |
|
Intangible
assets |
90,539 |
154,179 |
|
Goodwill |
0 |
1,565 |
|
Long-term
prepaid expenses |
523 |
300 |
|
Deferred income
tax assets |
8,623 |
11,382 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
2,402,797 |
2,646,142 |
|
|
============= |
============= |
|
Short-term loans |
0 |
4,000 |
|
Held for trading
financial liabilities |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
295,568 |
320,177 |
|
Advances from
clients |
533,608 |
566,707 |
|
Payroll payable |
23,277 |
28,271 |
|
Tax payable |
20,606 |
25,800 |
|
Interest payable |
0 |
2,567 |
|
Other payable |
14,953 |
43,866 |
|
Other current
liabilities |
375 |
2 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
888,387 |
991,390 |
|
Non-current
liabilities |
18,089 |
21,884 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
906,476 |
1,013,274 |
|
Equities |
1,496,321 |
1,632,868 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,402,797 |
2,646,142 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Revenue |
1,602,737 |
1,823,337 |
|
Cost of sales |
1,228,328 |
1,323,583 |
|
Taxes and surcharges |
7,778 |
8,938 |
|
Sales expense |
106,986 |
155,996 |
|
Management expense |
104,397 |
136,403 |
|
Finance expense |
-17,289 |
-23,230 |
|
Investment
income |
84 |
0 |
|
Non-operating
income |
18,843 |
11,946 |
|
Non-operating expense |
6,775 |
7,134 |
|
Profit before
tax |
178,715 |
222,769 |
|
Less: profit tax |
27,613 |
35,790 |
|
Profits |
151,102 |
186,979 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
2.15 |
1.99 |
|
*Quick ratio |
1.55 |
1.45 |
|
*Liabilities
to assets |
0.38 |
0.38 |
|
*Net profit
margin (%) |
9.43 |
10.25 |
|
*Return on
total assets (%) |
6.29 |
7.07 |
|
*Inventory /
Revenue ×365 |
122 days |
108 days |
|
*Accounts receivable/
Revenue ×365 |
39 days |
40 days |
|
*
Revenue/Total assets |
0.67 |
0.69 |
|
* Cost of
sales / Revenue |
0.77 |
0.73 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears good in its line.
l
SC’s net profit margin is fairly good in both
years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears large in both years.
l
The accounts receivable of SC appears average in
both years.
l
SC’s short-term loans appear small in 2012.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions. The large amount of inventory may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.