MIRA
INFORM REPORT
|
Report Date : |
23.08.2014 |
IDENTIFICATION DETAILS
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Name : |
ZTE CORPORATION
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Registered Office : |
Zte Plaza,
No. 55 South Keji Road, Hi-Tech Industrial Park, Nanshan District, Shenzhen,
Guangdong Province 518057 Pr |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
11.11.1997 |
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Com. Reg. No.: |
440301103852869 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing cell-type communication system, multimedia communication system, and transmitting system; developing and manufacturing equipment of mobile communication, satellite communication, and micro-wave communication, Beep-Pager, computer software, hardware, closed circuit television, micro-wave communication, automation system of signal, message processing system of computer, supervisory system of process, and warning system; and the technological design, development, consultation, and service of wired and wireless communication projects, including railway, orbit traffic of subway, highway, mines, port, dock, and airport, and purchasing and selling electronic equipment, microelectronic devices. |
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No. of Employees : |
69,093 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.
|
Source
: CIA |
Company name & address
ZTE CORPORATION
ZTE PLAZA, NO. 55 SOUTH KEJI
ROAD, HI-TECH INDUSTRIAL PARK
NANSHAN DISTRICT, SHENZHEN,
GUANGDONG PROVINCE 518057 PR CHINA
TEL: 86 (0) 755-26770282/26770000
FAX: 86 (0) 755-26770286
EXECUTIVE SUMMARY
Date of Registration : NOVEMBER 11, 1997
REGISTRATION NO. : 440301103852869
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
HOU
WEIGUI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 3,437,541,000
staff : 69,093
BUSINESS CATEGORY :
manufacturing & TRADING
REVENUE :
CNY 19,052,749,000
(CONSOLIDATED, JAN. 1 2014 TO MAR. 31, 2014)
EQUITIES :
CNY 24,422,489,000 (CONSOLIDATED, AS OF MAR. 31, 2014)
WEBSITE : www.zte.com.cn
E-MAIL :
fengjianxiong@zte.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : GOOD
EXCHANGE RATE :
CNY 6.20 = 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.: 440301103852869 on November 11, 1997.
SC’s Organization Code Certificate No.:
27939873-X
SC’s Tax No.: 44030127939873X
SC’s registered capital: CNY 3,437,541,000
SC’s paid-in capital: CNY 3,437,541,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2009 |
Registered No. |
4403011015176 |
440301103852869 |
|
2011 |
Registered Capital |
CNY 2,866,731,684 |
CNY 3,440,078,020 |
|
-- |
Registered Capital |
CNY 3,440,078,020 |
CNY 3,437,541,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of Mar. 31, 2014) |
% of Shareholding |
|
Shenzhen ZTE New Communication Equipment Co., Ltd. |
30.78 |
|
HKSCC Nominees Limited (Hong Kong) |
18.28 |
|
Citic Trust Co., Ltd.- Financial management 06 |
1.69 |
|
China Life Insurance (Group) Company-Traditional-General Insurance
Products |
1.18 |
|
Hunan Nantian Group Co., Ltd. |
1.09 |
|
Agricultural Bank of China-Dacheng Innovation Grow Hybrid Securities Investment
Funds (LOF) (LOF) |
0.93 |
|
China Life Insurance Company Limited- Bonus-Individual Bonus |
0.90 |
|
China Life Insurance Company Limited-Traditional-Common Insurance
Products 005L-CT001 |
0.66 |
|
China Minsheng Banking-Yinhua Shenzheng No. 100 Security Investment
Fund |
0.60 |
|
The National Social Security Fund 113# |
0.52 |
|
Other Shareholders |
43.37 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Hou Weigui |
|
CEO |
Shi Lirong |
|
Vice Chairman |
Zhang Jianheng |
|
Xie Weiliang |
RECENT
DEVELOPMENT
SC was listed in Shenzhen Stock Exchange Market with the code of
In December 2004, SC was successfully listed on the Main Board of The
Stock Exchange in Hong Kong with the code of 763.
2012
ZTE continuedindustry leadership in next-generation PON technology.
ZTE presented its first smartphone “Skate” under own brand in Germany.
ZTE launchedindustry first TD-LTE Pico Base Station at MWC 2012.
ZTE reachedwireless network expansion agreement with Etisalat Misr.
ZTE, Telefonica jointly launched ‘Call Me Now’ service in Venezuela.
ZTE joinedglobal IT leaders on Cloud Computing Standards Study Group.
ZTE attainedglobal No.1 PCT patent filings spot.
ZTE and Hi
ZTE achieved breakthrough in 400Gb &1Tb optical transmission during
field trial in Western Europe.
ZTE unveiledworld-first multi-application
ZTE partnered with KPN Group Belgium to deploy packet switched core
network.
ZTE won Best Broadband Partnership at Broadband InfoVision Awards.
ZTE became the 4th biggest smartphone manufacturer in the world during
the third quarter of 2012.
ZTE launchedinnovative energy saving solutions for LTE networks.
ZTE’s GoTa was accepted by ITU reporton the ITU conference in Geneva.
ZTE helped China Mobile Hong Kong to launch the world first converged
TD-LTE / LTE FDD network.
2011
SD held 235 LTE essential patents, 7% of all LTE essential patents
declared on the IPR online database of the European Telecommunications
Standards Institute (as of 30 November 2010).
SD reached No. 3 spot for global market growth.
SC No. 2 worldwide in international patent applications in 2010, topped
PCT patent applications in Q1 2011.
SC deployed LTE/DC-HSPA+ national network for Hutchison
CTIA recognized SC with 2011 emerging technology awards.
SC delivered world's first LTE TDD/FDD dual-mode infrastructure
equipment to Hi
SC was selected for first batch of China TD-LTE trial network
construction.
SC and P1 successfully demonstrated the ability for WiMAX and TD-LTE to
co-exist on the same network, making SC the first company in the industry to
successfully test this revolutionary technology.
SC, Qualcomm completed industry's first CDMA2000 1x advanced IOT test.
DiGi appointed SC to deploy 5,000 LTE-ready sites.
SC and Sri Lanka‘s Mobitel carried out the first successful
SC unveiled proprietary cloud computing operating system “Co Cloud“ and
announced the completion of the Nanjing Cloud-Computing Centre.
SC and Cell C announced Africa’s first 42Mbps DC-HSPA+ 900MHz commercial
network.
SC ZXR10 T8000 router passed MEF tests.
SC awarded Optical Vendor of the Year and IPTV Vendor of the Year by
Frost & Sullivan.
SC and India’s Sistema signed an MOU, outlining principles and strategic
direction for future cooperation between the two corporations. The signing
ceremony was attended by the presidents of India and China.
SC shipped 60 million terminal products, including 35 million handsets
in the first half of 2011.
SC unveiled world’s first commercial LTE micro base station.
SC achieved world’s first TD-LTE and
SC set world record with first WDM Tbit ULH transmission in beyond
SC debuted first TD-LTE multi-mode dual standby smart terminal at
Shenzhen Universiade 2011.
SC completed industry’s first interoperability test between
FDD-LTE/TD-LTE and GSM/UMTS.
SC’s President Shi Lirong was named one of the most powerful executives
in the annual Global Telecoms Business Magazine Power 100.
2010
President Hu Jintao visited SC booth at "Expo on Emerging
Industries of Strategic Importance" in Shenzhen, giving great concern to
TD-LTE deployment.
SC’s Chairman Mr. Hou Weigui was selected as one of the
"Outstanding Innovation Persons" among the "Top 30 Elites during
the 30-Year Development of Shenzhen Special Economic Zone".
SC was awarded two Glod China Patent Awards recognized by the World
Intellectual Property Organization (WIPO) and State Intellectual Property
Office of P.R. China (SIPO). SC had an accumulated patent applications of 30,000.
SC was awarded the Best Investor Prize 2010 by the Greater Paris
Investment Agency, recognising the company for its contribution to the Greater
Paris region.
SC and CSL were awarded the LTE Infrastructure Innovation award as part
of the Global Telecoms Business Innovation Awards 2010.
Telenor commissioned SC to build Hungary's first LTE-ready network. SC
would deploy over 6,000 base stations including LTE eNodeBs throughout the
country.
SC and Telefonica deployed Spain's first WiMAX 802.16e network for
residential and enterprise market.
SC helped UCell launch
SC launched the industry's first “xPON+EoC” solution, enabling quick
convergence of the three networks.
SC topped the global CDMA market with a 30% market share.
SC ranked second in the world in terms of market access of broadband
products.
SC announced that it's one of the top 3 GSM equipment vendors in the
industry in terms of carrier frequency.
SC was ranked third in the global optical networking (ON) industry by
sales revenue.
SC overtook Alcatel-Lucent to become the 4th largest firm in the
industry, by wireless carrier frequency.
SC recorded 200 million terminal shipments, ranking the first in China.
2009
SC showcased various next-generation integrated end-to-end LTE solutions
at the Mobile World Congress Barcelona 2009.
SC and CSL announced availability of the world's first SDR-based HSPA+
commercial network with a high-speed wireless download of up to 21Mbps.
SC Chariman Mr. Hou Weigui won Yuan Baohua Enterprise Management Gold
Award.
SC launched world's first symmetrical
SC and Qualcomm collaborated to boost WCDMA system capacity and
performance.
SC was chosen to provide full scale, future-proof network for Promonte,
part of the Telenor Group.
SC was named “World's Best CDMA Equipment Manufacturer
SHAREHOLDER
CHART & BACKGROUND
Name % of Shareholding
(As of As of Mar. 31, 2014)
---------------------------------
Shenzhen ZTE New Communication Equipment Co., Ltd. 30.78
HKSCC Nominees Limited (Hong Kong) 18.28
Citic Trust Co., Ltd.- Financial management 06 1.69
China Life Insurance (Group) Company-Traditional-General Insurance
Products 1.18
Hunan Nantian Group Co., Ltd. 1.09
Agricultural Bank of China-Dacheng Innovation Grow Hybrid Securities
Investment Funds (LOF) 0.93
China Life Insurance Company Limited-Traditional-Common Insurance
Products-
China Minsheng Banking-Yinhua Shenzheng No. 100 Security Investment Fund 0.60
The National Social Security Fund 113# 0.52
Other Shareholders 43.37
Shenzhen ZTE New Communication Equipment Co., Ltd.
=============================================
Date of Registration: April 29, 1993
Registration No.: 440301103272414
Legal Form: Limited Liabilities
Company
Chief Executive: Xie Weiliang谢伟良
Registered Capital: CNY 100,000,000
HKSCC Nominees Limited
=======================
Date of Registration: May 14, 1991
Registration No.: 0309729
Legal Form: Private
Hunan Nantian Group Co., Ltd.
==========================
Date of Registration: May 8, 1997
Registration No.: 430000000040851
Legal Form: One-person Limited
Liability Company
Chief Executive: Huang Zhang
Registered Capital: CNY 110,000,000
MANAGEMENT
Hou Weigui, Legal
Representative and Chairman
----------------------------------------------------------------------------
Gender: M
Age: 74
Qualification: University
Working experience (s):
At present, working in SC as legal representative and chairman
Also working in Shenzhen ZTE New Communication Equipment Co., Ltd. as
vice-chairman
Shi Lirong, CEO
----------------------------------
Gender: F
Age: 50
Qualification: University
Working experience (s):
At present, working in SC as CEO
Also working in Shenzhen ZTE New Communication Equipment Co., Ltd. as
director
Zhang Jianheng,
Vice Chairman
------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Xie Weiliang, Vice
Chairman
-------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing cell-type
communication system, multimedia communication system, and transmitting system;
developing and manufacturing equipment of mobile communication, satellite communication,
and micro-wave communication, Beep-Pager, computer software, hardware, closed
circuit television, micro-wave communication, automation system of signal,
message processing system of computer, supervisory system of process, and
warning system; and the technological design, development, consultation, and
service of wired and wireless communication projects, including railway, orbit
traffic of subway, highway, mines, port, dock, and airport, and purchasing and
selling electronic equipment, microelectronic devices (excluding the products
privileged, prohibited or franchised), undertaking overseas and relative
projects, and international bidding
projects in China, also importing and exporting equipment and material needed
by the above overseas projects, providing labor service for overseas projects,
and technological development, purchase and sales of electronic system; and
import and export business, in addition, professional contract of
telecommunication projects; leasing its own houses.
SC is mainly engaged in manufacturing and selling wireless products,
network products and terminal products.
Brand: ZTE
SC’s products mainly include: IC product, IT product, supervisory system
and mobile telephone
SC sources its materials 70% from domestic market, and 30% from the
overseas market. SC sells 40% of its products in domestic market, and 60% to
the overseas market, mainly in Pakistan and India.
The buying terms of SC include T/T, L/C and Credit of 30-90 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Research and
Development
=======================
With more than 33% of its workforce dedicated to R&D and with 10% of
its annual revenues channeled to this field, SC has established 15 R&D centers
and Institutes across North America, Europe and Asia.
International standards such as CMM and CMMI are strictly applied across
all SC’s R&D management processes. Using these scientific management
mechanisms and shared technology platforms, SC has standardized its R&D
processes, shortened R&D periods, reduced costs, optimized design flows and
guaranteed the performance of new products.
SC's commitment to innovation ensures that its products stay at the
leading edge of modern communications technology.
By the end of 2007, SC had applied for around 12,000 national or
international patents, 90% out of which were innovation patents with associated
intellectual property rights.
In 2000, SC launched the world's first CDMA mobile phone with detachable
SIM card. In 2004, SC launched the world's first CDMA-based digital trunking
technology - GoTa (Global open Trunking architecture system) which included
many technologies based on ZTE-owned intellectual property.
As a leading global provider of telecommunications equipment and network
solutions, SC plays an important role in the international telecoms community.
SC is an active member of more than 50 international standardization
organizations and forums.
SC holds the position of Co-chairman in two ITU-T working groups and
Editor of ITU-T standards including NGN, optical transmission and network
security. As a member of 3GPP, SC has edited three standards involving
SC has established strategic cooperation agreements with leading
telecoms giants such as Portugal Telecom, France Telecom, Alcatel, Ericsson and
Nortel in NGN and mobile systems, with Hutchison in
SC has also established joint laboratory partnerships with Texas
Instruments, Intel, Agere Systems, HHNEC, IBM, Microsoft (China), Qualcomm,
Huahong NEC and Tsinghua University. The company has undertaken technological
research alliance projects with 50 academic institutions throughout China,
where SC is also a fully fledged member of the China Communications
Standardization Association (CCSA).
*Major Suppliers:
=============
Shenzhen ZTE New Communication Equipment Co., Ltd.
MOBI Antenna Technologies (Shenzhen) Co., Limited
Shenzhen Decang Technology Co., Ltd.
*Major Customers:
==============
Shenzhen ZTE Information & Technology Co., Ltd.
Microkore Semiconductor Co., Ltd.
Nationz Technologies Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 69,093
staff at present.
SC owns an area as its operating office & factory of approx.
4,600,000 sq. meters at the heading address.
RELATED
COMPANY
SC is known to
have the following subsidiaries:
Shenzhen ZTE Kangxun Electronics Co., Ltd.
Shenzhen ZTE Software Co., Ltd.
ZTE (H.K.) Limited
Shenzhen ZTE Communication Technology Service Co., Ltd.
ZTE Telecom India Private Limited
Nanjing ZTE Soft Technology Co., Ltd.
Shenzhen Changfei Investment Co., Ltd.
Shenzhen ZTE Communication Co., Ltd.
Wuxi Zhongxing Optoelectronics Technology Co., Ltd.
Anhui Wantong Post and Telecommunications Co., Ltd.
Shenzhen ZTE Jixun Communication Co., Ltd.
Shanghai ZTE Technologies Ltd.
Xi’an ZTE New Soft Co., Ltd.
Wanaag Communications Limited
Kaznurtel Limited Liability Company
ZTE Istanbul Trading Ltd.
ZTE Hrvatska D.O.O.
ZTE Corporation Bulgaria Ltd.
ZTE Deutschland GmbH
ZTE POLAND Sp. Zo. o.
Newinfo Holdings Limited
ZTE Canada Inc.
ZTE Netherlands B.V.
Congo-Chine Telecom International Network (CCTNET)
ZTE Ghana Limited
PAYMENT
Overall payment appraisal: ( )
Excellent ( ) Good
(X) Average ( ) Fair
( ) Poor ( )
Not yet 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: A
trade enquiry currently conducted with SC's supplier(s) reveal the following:
Shenzhen Decang Technology Co., Ltd.
Products sold: mobile phone connector
Date account opened: Since 2006
to present
Line of credit: N/A
Terms: N/A
Average monthly sales: N/A
Current balance: N/A
Rating Key: 3
Payment record keys:
1 = Prompt: Payment made before the credit period expires
2 = As agreed terms: Payment made upon due date
3 = Slightly slow but acceptable: Payment made 5 to 20 days beyond
agreed terms
4 = Slow: Payment made 16 to 45 days beyond agreed terms
5 = Poor: Payment made over 45 days beyond agreed terms
6 = No comment: Account is newly opened & record is not yet
established
Note: In some instances, payment beyond terms can be the result of disputes
over merchandise, lost invoices, disputed accounts
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:
China Construction Bank Shenzhen Branch
AC#: 006002630033847
China Development Bank Shenzhen Branch
AC#: 44301560040310230000
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Mar. 31, 2014 |
|
20,903,035 |
18,506,981 |
|
|
Trading
financial assets |
217,454 |
158,490 |
|
Notes receivable |
3,500,671 |
3,287,656 |
|
Accounts receivable |
21,393,257 |
26,476,524 |
|
Accounts Receivable Factoring |
3,338,801 |
3,390,926 |
|
Advances to suppliers |
751,405 |
794,528 |
|
Other receivable |
1,729,163 |
2,250,041 |
|
Inventory |
12,434,352 |
14,453,663 |
|
Contract receivable |
12,137,144 |
9,430,887 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
76,405,282 |
78,749,696 |
|
Financial assets available for sale |
1,630,271 |
1,616,158 |
|
Long-term receivables |
366,762 |
368,303 |
|
Long-term accounts receivable factoring |
2,311,525 |
2,402,552 |
|
Long term equity investment |
478,037 |
478,228 |
|
Investment real estate |
1,855,246 |
1,855,246 |
|
Fixed assets |
7,449,476 |
7,348,232 |
|
Construction in progress |
177,423 |
221,693 |
|
Intangible assets |
1,236,755 |
1,249,582 |
|
Development expenditure |
2,932,148 |
3,079,085 |
|
Long-term prepaid expenses |
70,942 |
68,307 |
|
Deferred income tax assets |
1,353,033 |
1,377,827 |
|
Other non-current assets |
3,812,597 |
3,766,865 |
|
|
------------------ |
------------------ |
|
Total assets |
100,079,497 |
102,581,774 |
|
|
============= |
============= |
|
Short-term loans |
12,589,032 |
12,867,848 |
|
Trading financial liabilities |
0 |
0 |
|
Notes payable |
8,498,021 |
9,522,227 |
|
Accounts payable |
16,492,534 |
16,970,454 |
|
Contract payable |
3,682,564 |
3,387,269 |
|
Advances from clients |
2,776,366 |
3,184,671 |
|
Payroll payable |
2,462,006 |
2,743,308 |
|
Taxes payable |
-1,251,859 |
-780,524 |
|
Dividends payable |
34,963 |
34,963 |
|
Other payable |
8,478,144 |
7,896,785 |
|
Other current liabilities |
7,209,034 |
7,381,260 |
|
|
------------------ |
------------------ |
|
Current liabilities |
60,970,805 |
63,208,261 |
|
Non-current liabilities |
15,483,003 |
14,951,024 |
|
|
------------------ |
------------------ |
|
Total liabilities |
76,453,808 |
78,159,285 |
|
Equities |
23,625,689 |
24,422,489 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
100,079,497 |
102,581,774 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
Jan. 1, 2014 to
Mar. 31, 2014 |
|
Revenue |
75,233,724 |
19,052,749 |
|
Cost of sales |
53,125,904 |
12,661,695 |
|
Business Taxes and Surcharges |
1,079,532 |
273,362 |
|
Sales expense |
10,003,850 |
2,438,910 |
|
Management expense |
2,202,267 |
554,737 |
|
R&D expenses |
7,383,892 |
1,978,762 |
|
Finance expense |
2,460,303 |
207,524 |
|
Assets Devaluation |
1,589,486 |
584,955 |
|
Investment income |
914,406 |
22,172 |
|
Non-operating income |
3,465,428 |
724,493 |
|
Non-operating expense |
144,491 |
18,564 |
|
Profit before tax |
1,827,843 |
771,577 |
|
Less: profit tax |
394,207 |
144,252 |
|
1,433,636 |
627,325 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Mar. 31, 2014 |
|
*Current ratio |
1.25 |
1.25 |
|
*Quick ratio |
1.05 |
1.02 |
|
*Liabilities to assets |
0.76 |
0.76 |
|
*Net profit margin (%) |
1.91 |
3.29 |
|
*Return on total assets (%) |
1.43 |
0.61 |
|
*Inventory / Revenue ×365/90 |
61 days |
69 days |
|
*Accounts receivable/ Revenue ×365/90 |
104 days |
126 days |
|
*Revenue / Total assets |
0.75 |
0.19 |
|
*Cost of sales / Revenue |
0.71 |
0.66 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appears large.
The short-term loans of SC appear average.
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. The large amount of accounts receivable may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.44 |
|
UK Pound |
1 |
Rs.100.24 |
|
Euro |
1 |
Rs.80.35 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
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.