MIRA
INFORM REPORT
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Report Date : |
12.03.2014 |
IDENTIFICATION DETAILS
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Name : |
ZTT INTERNATIONAL LTD. |
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Registered Office : |
No. 6 Zhong Tian Road, Economic & Technological Development Zone, Jiangsu Province 226009 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
11.11.2010 |
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Com. Reg. No.: |
320691000060507 |
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Legal Form : |
One-Person Limited
Liabilities Company |
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Line of Business : |
Importing and exporting commodities and technology;
domestic trade; developing and manufacturing cable products and equipment;
and storage. |
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No. of Employees : |
175 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
ZTT INTERNATIONAL
LTD.
NO. 6 ZHONG TIAN
ROAD, ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONE, JIANGSU PROVINCE 226009 PR
CHINA
TEL: 86 (0)
513-83599669/83599721/83599470
FAX: 86 (0)
513-83599670
***Note: SC’s current
address should be the heading one, while the (
EXECUTIVE SUMMARY
Date of Registration : november 11, 2010
REGISTRATION NO. : 320691000060507
LEGAL FORM : one-person Limited liabilities company
CHIEF EXECUTIVE : xue jiping
(LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 100,000,000
staff :
175
BUSINESS CATEGORY :
trading
Revenue :
CNY 580,713,000 (AS OF
DEC. 31, 2012)
EQUITIES :
CNY 112,051,000 (AS OF
DEC. 31, 2012)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.10 = 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 one-person limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 320691000060507 on November 11, 2010.
SC’s Organization
Code Certificate No.: 56433850-9
SC’s registered
capital: cny 100,000,000
SC’s paid-in
capital: cny 100,000,000
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) |
% of Shareholding |
|
Jiangsu Zhongtian Technology Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Xue Jiping |
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Director |
Xue Chi |
|
Qu Zhi |
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Tong Jiangbing |
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|
Gao Hongshi |
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Supervisor |
Gong Jun |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Jiangsu Zhongtian Technology Co., Ltd. 100
=====================
Date of Registration: February 9, 1996
Registration No.: 320000000013986
Legal Form: Shares
Limited Company
Legal Representative: Xue Jiping
Registered Capital: CNY 704,504,000
Jiangsu Zhongtian Technology Co., Ltd. listed in Shanghai Stock Exchange in October 2002 with the stock number of 600522.
Address: Economic & Technological Development Zone, Jiangsu Province
Tel: 86 (0) 513-83599505
Fax: 86 (0) 513-83599504
MANAGEMENT
Xue Jiping,
Legal Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Gender: M
ID# 320623195103184530
Age: 62
Senior Economist
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general manager
Also working in Jiangsu Zhongtian Technology Co., Ltd. as legal representative
Director
-----------
Xue Chi ID#320623197901204531
Qu Zhi ID#210219197509214311
Tong Jiangbing ID#320622197411182791
Gao Hongshi ID#320624196504082018
Supervisor
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Gong Jun ID#320623198202137012
BUSINESS OPERATION
SC’s registered business scope includes importing and exporting commodities and technology; domestic trade; developing and manufacturing cable products and equipment; and storage.
SC is mainly engaged in international trade.
SC’s products mainly include: optical fiber, optical cable, submarine cable, etc.
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly U.S.A., Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
American Wire Group
Mishawaka Utilities Inc.
*Major Supplier:
============
Jiangsu Zhongtian Technology Co., Ltd.
Staff & Office:
--------------------------
SC is known to have approx. 175 staff at present.
SC rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
Zhongtian Hitachi Fiber Optic Cable Co., Ltd.
Zhongtian Technology Optical Fiber Co., Ltd.
Jiangsu Zhongtian Technology Investment Management Co., Ltd.
Nantong Zhongtian Jiangdong Property Co., Ltd.
Shanghai Zhongtian Aluminum Wire Co., Ltd.
Technologies Submarine Optic Fiber Cable Co., Ltd.
Zhongtian Hitachi Radio Frequency Cable Co., Ltd.
Guangdong Zhongtian Technology Optical Cable Co., Ltd.
Zhongtian Technology (Shenyang) Optical Cable Co., Ltd.
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:
Bank of Communications
AC#: N/a
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31, 2011 |
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50,367 |
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Accounts receivable |
98,958 |
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Advances to suppliers |
0 |
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Other receivable |
14,165 |
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Inventory |
498 |
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Non-current assets within one year |
0 |
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Other current assets |
11,026 |
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------------------ |
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Current assets |
175,014 |
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Fixed assets |
234 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
875 |
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------------------ |
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Total assets |
176,123 |
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============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
24,418 |
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Advances from clients |
46,926 |
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Other payable |
71 |
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Other current liabilities |
-1,230 |
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------------------ |
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Current liabilities |
70,185 |
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Non-current liabilities |
0 |
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Total liabilities |
70,185 |
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Equities |
105,938 |
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------------------ |
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Total liabilities & equities |
176,123 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2011 |
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Revenue |
271,256 |
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Cost of sales |
226,702 |
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Sales expense |
32,043 |
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Management expense |
240 |
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Finance expense |
-148 |
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Profit before tax |
8,108 |
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Less: profit tax |
2,170 |
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5,938 |
Financial Summary
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Unit: CNY’000 |
As of Dec. 31, 2012 |
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Total assets |
322,051 |
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Total liabilities |
210,000 |
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Equities |
112,051 |
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Revenue |
580,713 |
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Profits |
6,113 |
Important Ratios
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
2.49 |
-- |
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*Quick ratio |
2.49 |
-- |
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*Liabilities to assets |
0.40 |
0.65 |
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*Net profit margin (%) |
2.19 |
1.05 |
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*Return on total assets (%) |
3.37 |
1.90 |
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*Inventory / Revenue ×365 |
1 day |
-- |
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*Accounts receivable/ Revenue ×365 |
134 days |
-- |
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* Revenue/Total assets |
1.54 |
1.80 |
|
* Cost of sales / Revenue |
0.84 |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of sales is average in 2011, comparing with its revenue.
LIQUIDITY: FAIRLY
GOOD
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears small in 2011.
The accounts receivable of SC appears large in 2011.
SC has no short-term loans in 2011.
SC’s revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable 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.60.70 |
|
|
1 |
Rs.100.97 |
|
Euro |
1 |
Rs.84.16 |
INFORMATION DETAILS
|
Report
Prepared by : |
NNA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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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 |
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<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.