MIRA
INFORM REPORT
|
Report Date : |
26.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
XIZI OTIS ELEVATOR CO., LTD. |
|
|
|
|
Registered Office : |
No. 28 Jiuhuan Road, Jianggan Economic Park Zone, Hangzhou Zhejiang
Province 310019 Pr |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
12.03.1997 |
|
|
|
|
Com. Reg. No.: |
330100400019078 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing and selling elevators, escalators
and parts. |
|
|
|
|
No. of Employees : |
4,035 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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
XIZI OTIS ELEVATOR CO., LTD.
NO. 28 JIUHUAN ROAD, JIANGGAN ECONOMIC PARK ZONE, HANGZHOU ZHEJIANG
PROVINCE 310019 PR CHINA
TEL: 86 (0) 571-85140888/81600684
FAX: 86 (0) 571-85147888
EXECUTIVE SUMMARY
Date of Registration : march 12, 1997
REGISTRATION NO. : 330100400019078
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
CHIEF EXECUTIVE :
chen xiaxin (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 35,000,000
staff :
4,035
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 7,363,049,000 (AS OF DEC. 31,
2012)
EQUITIES : CNY 1,642,189,000 (AS OF DEC. 31, 2012)
WEBSITE : www.xiziotis.com
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.08 = 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 Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 330100400019078
on March 12, 1997.
SC’s Organization Code Certificate No.:
60913862-4
SC’s Tax No.: 330104609138624
SC’s registered capital: USD 35,000,000
SC’s paid-in capital: USD 35,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2001-11-30 |
% of shareholding |
Xizi Elevator Group Co., Ltd.
70% Otis Far East Holdings Ltd. 30% |
Xizi Elevator Group Co., Ltd. 20% Otis Far East Holdings Ltd. 80% |
|
2004-8-27 |
Company’s Name |
Hangzhou Xizi Otis Elevator Co., Ltd. |
Xizi Otis Elevator Co., Ltd. |
|
2007-3-8 |
Legal representative |
Wang Shuifu |
Chen Xiaxin |
|
2008-4-11 |
Registration
No. |
002763 |
330100400019078 |
|
Shareholders |
Xizi Elevator Group Co., Ltd.
20% Otis Far East Holdings Ltd. 80% |
Otis Elevator ( Xizi Elevator Group Co., Ltd. 20% |
|
|
-- |
Registered Capital |
USD 15,000,000 |
USD 35,000,000 |
Current Co search indicates SC’s shareholders
& chief executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Otis Elevator ( |
80 |
|
Xizi Elevator Group Co., Ltd. |
20 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Chen Xiaxin |
|
General Manager |
Zhang Weicong张 |
|
Vice Chairman |
Thomas Rodney Vining |
|
Director |
Suthaharanvelauthapillai |
|
Wang Shuifu王水福 |
|
|
AleksandrReznik |
|
|
PhilpAnthonyLILUE |
|
|
WilliamHERICKSON |
|
|
Tiong Suk Cheing |
|
|
Jeffrey Michael Ricapito |
|
|
Zheng Peiming郑 |
RECENT DEVELOPMENT
Honors:
Listed as 2009 Annual International Energy-saving and
Environment-protecting (
Elected in Top100 Chinese Influence over the Global Environmental
Protection and New Energy Industry
National Award of Customer Satisfaction in Elevator Products Quality
Evaluation Inspection for the Seventh Consecutive Time
Honor of “Customer Satisfactory Service” in National Elevator Customer
Satisfaction Evaluation
Group Member Unit of Zhejiang Association for Quality
Won the honor of “Serving the Beijing Olympics and Keep the Subway
Smooth”
2008 Unit with Prominent Contribution in the Elevator Safety Protection
Work for the 2008 Beijing Olympics and Paralympics by Beijing Bureau of Quality
and Technical Supervision
Xizi Otis Elevator’s Wireless Control System won the Annual Best Design
Award of Fortune
Etc.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Otis Elevator (China) Investment Co., Ltd. (U.S.A) 80
Xizi Elevator Group Co., Ltd. 20
Otis Elevator
(China) Investment Co., Ltd.
-----------------------------------------
Date of Registration: June 1, 1998
Registration No.: 120000400002151
Legal Form: Chinese-Foreign
Equity Joint Venture Enterprise
Chief Executive: Cao Lizhi
Registered Capital: CNY 144,365,000
Address: No. 443 South Jiefang Road, Hexi District, Tianjin
Tel: 86 022-28101188
Xizi Elevator
Group Co., Ltd.
-----------------------------------------
Date of Registration: August 31, 1999
Registration No.: 330104000016372
Legal Form: Limited Liabilities
Company
Chief Executive: Wang Shuifu
Registered Capital: CNY 800,000,000
MANAGEMENT
Chen Xiaxin, Legal
Representative and Chairman
----------------------------------------------------------------------------
Gender: M
Age: 51
ID# 330104196205151916
Qualification: University
Working experience
(s):
At present, working in SC as legal representative and chairman
Also working in Hangzhou Xizi Trust Technology Co., Ltd. and Hangzhou
Xizi Forvorda Electrical Co., Ltd. as legal representative
Zhang Weicong,
General Manager
--------------------------------------------------------
Gender: M
Nationality: UK
Passport No.: 761053578
Qualification: University
Working experience (s):
At present, working in SC as general manager
Thomas Rodney
Vining, Vice Chairman
----------------------------------------------------
Gender: M
Nationality: USA
Passport No.: 442065561
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Director
-----------
Suthaharanvelauthapillai Passport
No. 483731759
Wang Shuifu ID#
330104550210191
AleksandrReznik Passport
No. 712245926
PhilpAnthonyLILUE Passport
No. 710714019
WilliamHERICKSON Passport
No. 215209188
Tiong Suk Cheing Passport
No. K18969861
Jeffrey Michael Ricapito Passport
No. 420992093
Zheng Peiming郑 ID# 310104196712070498
BUSINESS OPERATION
SC’s registered business scope includes researching, designing, manufacturing elevators, escalators, moving walkways
and related equipment & accessories (validity period as of November
30, 2013); selling its own products;
providing installation, repair, maintenance, transformation and technical
consulting services; wholesaling, importing & exporting,
acting as a commission agency (excluding auction) of the same kind products of
the above and supplying related technology services for the same kind products;
in accordance with the related regulations and
license.
SC is mainly engaged in manufacturing and selling elevators, escalators
and parts.
Brand: XIZI OTIS.
SC’s products mainly include: gear-less passenger elevator series,
residential elevator series, machine room-less passenger elevator series,
freight elevator series, gear passenger elevator series, hydraulic elevator
series, sightseeing elevator series, automatic escalator series, medical use
series, and automatic walkway series.
SC sources its materials 60% from domestic market, and 40% from overseas market, mainly U.S.A. and Europe. SC sells 82% of its products in domestic market, and 18% to overseas market, mainly U.S.A. and Southeast Asian market.
The import & export status of SC in 2012 is as follows,
|
Country |
Amount of Exports (USD) |
Amount of Imports (USD) |
|
Russia |
240,000,000 |
-- |
|
Brazil |
100,000,000 |
-- |
|
Hong Kong |
50,000,000 |
-- |
|
Malaysia |
30,000,000 |
-- |
|
India |
60,000,000 |
-- |
|
Cambodia |
30,000,000 |
-- |
|
Turkey |
80,000,000 |
-- |
|
Mexico |
70,000,000 |
-- |
|
Uruguay |
90,000,000 |
-- |
|
Thailand |
60,000,000 |
-- |
|
Etc. |
||
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Wuhan Sanjiang Spaceflight Real Estate Development Co., Ltd.
Wuhan Zhenghe Industry Co., Ltd.
*Major Supplier:
============
Otis Elevator Co. (U.S.A.)
Staff &
Office:
--------------------------
SC is known to have approx. 4,035
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is known to have a subsidiary and 26 branches at present, and the
following are the major ones.
Xizi Otis (Chongqing) Elevator Co., Ltd.
---------------------------------------------
Date of Registration: February 27, 2007
Registration No.: 500903000040423
Legal Form: One-person Limited
Liabilities Company
Chief Executive: Wai Chung Cheung
Registered Capital: CNY 40,716,039
Xizi Otis Elevator Co., Ltd. Ningbo Branch
Xizi Otis Elevator Co., Ltd. Hangzhou Branch
Xizi Otis Elevator Co., Ltd. Zhejiang Branch
Xizi Otis Elevator Co., Ltd. Beijing Branch
Xizi Otis Elevator Co., Ltd. Shanghai Branch
Xizi Otis Elevator Co., Ltd. Jiangsu Branch
Xizi Otis Elevator Co., Ltd. Suzhou Branch
Xizi Otis Elevator Co., Ltd. Wuhan Branch
Xizi Otis Elevator Co., Ltd. Guangzhou Branch
Xizi Otis Elevator Co., Ltd. Shenzhen Branch
Xizi Otis Elevator Co., Ltd. Tianjin Branch
Xizi Otis Elevator Co., Ltd. Wenzhou Branch
Xizi Otis Elevator Co., Ltd. Jiaxing Branch
Etc.
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’s suppliers
declined to make any comments.
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
Basic Bank:
Industrial and Commercial Bank of China Jiefang Road Sub-branch
AC#: 1202020709016208188
Agricultural Bank of China Hangzhou Sub-branch
AC#: 015401040000047
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
2,515,047 |
3,177,565 |
2,671,555 |
|
|
Notes receivable |
101,949 |
88,606 |
76,065 |
|
Accounts receivable |
569,548 |
862,307 |
1,013,852 |
|
Advances to suppliers |
17,698 |
17,683 |
10,611 |
|
Other receivable |
32,854 |
41,744 |
37,373 |
|
Inventory |
264,809 |
359,539 |
415,058 |
|
Deferred expenses |
2,039 |
3,332 |
3,861 |
|
Other current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
3,503,944 |
4,550,776 |
4,228,375 |
|
Long-term investment |
0 |
40,979 |
33,406 |
|
Fixed assets |
171,045 |
160,441 |
148,086 |
|
Construction in progress |
2,694 |
6,924 |
22,802 |
|
Intangible assets |
19,446 |
21,897 |
18,635 |
|
Long-term prepaid expenses |
260 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
42,427 |
41,710 |
77,285 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
3,739,816 |
4,822,727 |
4,528,589 |
|
|
============= |
============= |
============= |
|
Short-term loans |
0 |
0 |
0 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
856,953 |
1,529,794 |
1,071,432 |
|
Wages payable |
73,037 |
87,266 |
84,756 |
|
Taxes payable |
119,820 |
234,414 |
158,811 |
|
Advances from clients |
935,772 |
965,703 |
1,092,767 |
|
Other payable |
134,987 |
289,875 |
180,206 |
|
Accrued expenses |
243,447 |
196,031 |
221,197 |
|
Other current liabilities |
44,466 |
59,394 |
76,234 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
2,408,482 |
3,362,477 |
2,885,403 |
|
Non-current liabilities |
0 |
2,529 |
997 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
2,408,482 |
3,365,006 |
2,886,400 |
|
Equities |
1,331,334 |
1,457,721 |
1,642,189 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
3,739,816 |
4,822,727 |
4,528,589 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Revenue |
5,934,196 |
7,021,194 |
7,363,049 |
|
Cost of sales |
4,169,189 |
4,918,591 |
5,144,918 |
|
Taxes and surcharges |
13,941 |
15,370 |
20,168 |
|
Sales expense |
297,245 |
315,616 |
333,252 |
|
Management expense |
149,496 |
167,755 |
180,840 |
|
Finance expense |
-37,819 |
-81,717 |
-78,899 |
|
Income from investments |
0 |
0 |
-7,573 |
|
Non-business income |
4,623 |
10,801 |
6,749 |
|
Non-business expenditure |
886 |
885 |
633 |
|
Profit before tax |
1,345,881 |
1,715,182 |
1,774,240 |
|
Less: profit tax |
352,660 |
432,942 |
433,846 |
|
993,221 |
1,282,240 |
1,340,394 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.45 |
1.35 |
1.47 |
|
*Quick ratio |
1.34 |
1.25 |
1.32 |
|
*Liabilities to assets |
0.64 |
0.70 |
0.64 |
|
*Net profit margin (%) |
16.74 |
18.26 |
18.20 |
|
*Return on total assets (%) |
26.56 |
26.59 |
29.60 |
|
*Inventory / Revenue ×365 |
16 days |
19 days |
21 days |
|
*Accounts receivable/ Revenue ×365 |
35 days |
45 days |
51 days |
|
* Revenue/Total assets |
1.59 |
1.46 |
1.63 |
|
* Cost of sales / Revenue |
0.70 |
0.70 |
0.70 |
FINANCIAL COMMENTS
PROFITABILITY: FAIRLY GOOD
The revenue of SC appears good in its line.
SC’s net profit margin is fairly good in three years.
SC’s return on total assets is good in three years.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIRLY GOOD
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loans in three years.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of SC is average.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.63 |
|
|
1 |
Rs.99.94 |
|
Euro |
1 |
Rs.85.14 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.