MIRA INFORM REPORT

 

 

Report No. :

325096

Report Date :

08.06.2015

 

IDENTIFICATION DETAILS

 

Name :

ANDRITZ (CHINA) LTD.

 

 

Registered Office :

No. 9 Tianbao Road, West City Industry Zone, Chancheng District Foshan, Guangdong Province 528000 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

09.02.2002

 

 

Com. Reg. No.:

440600400007905

 

 

Legal Form :

Wholly Foreign-Owned Enterprise

 

 

Line of Business :

Manufacturing, developing and selling complete equipment, single machine and parts for environment protection, industry solid liquid separation, animal and fish feed manufacturing; pulp paper-making, steel treatment, water power, power transmission and distribution, automatic excitation protection governor, driving system, thermal power, nuclear power, water supplying and irrigation, chemical industry; supplying technology support services, after sales services and engineering installing; wholesaling and acting as a commission agency (excluding auction) of the above products, importing and exporting (excluding those limited or prohibited by the state; in accordance with the related regulations and license; excluding those specially managed).

 

 

No. of Employees :

1,010

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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, 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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 2014 more than 274 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.

 

Source : CIA

 


Company Name & address

 

ANDRITZ (CHINA) LTD.

NO. 9 TIANBAO ROAD, WEST CITY INDUSTRY ZONE, CHANCHENG DISTRICT

FOSHAN, GUANGDONG PROVINCE 528000 PR CHINA

TEL: 86 (0) 757-82100836/82023581/82969262

FAX: 86 (0) 757-82969206

 

 

EXECUTIVE SUMMARY

 

Date of Registration                     : FEBRUARY 9, 2002

REGISTRATION NO.                              : 440600400007905

LEGAL FORM                                       : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE                               : Thomas Schmitz (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL                         : eur 22,208,736

staff                                                  : 1,010

BUSINESS CATEGORY                         : manufacturing & DEVELOPING & trading

REVENUE                                            : CNY 1,325,120,000 (FROM JAN. 1, 2014 TO JUN. 30, 2014)

EQUITIES                                             : CNY 1,028,230,000 (AS OF JUN. 30, 2014)

WEBSITE                                              : www.andritz.com

E-MAIL                                                 : N/A

PAYMENT                                            : AVERAGE

MARKET CONDITION                            : competitive

FINANCIAL CONDITION                         : fairly stable

OPERATIONAL TREND                         : fairly steady

GENERAL REPUTATION                       : AVERAGE

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 wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 440600400007905 on February 9, 2002.

 

SC’s Organization Code Certificate No.: 73413677-5

 

SC’s registered capital: EUR 22,208,736

 

SC’s paid-in capital: EUR 22,208,736

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

2003-03

Legal Representative

Franz Hofmann

Friedrich Papst

Registered Capital

EUR 550,000

EUR 2,100,000

2004-10

Registered Capital

EUR 2,100,000

EUR 5,900,000

2004-07

Registration No.

001979

002234

2008

Registered Capital

EUR 5,900,000

EUR 15,900,000

Registration No.

002234

440600400007905

2013

Registered Capital

EUR 15,900,000

EUR 22,208,736

2014

Legal Representative

Friedrich Papst

Thomas Schmitz

2014-2

Shareholder (s) (% of Shgareholding)

Andritz AG (Austria) 100%

Andritz AG (Austria) 76%

Andritz Hydro GmbH (Austria) 24%

--

Company Name

Foshan Andritz Technologies Co., Ltd.

Andritz (China) Ltd.

 

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Andritz AG (Austria)

76

Andritz Hydro GmbH (Austria)

24

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative and General Manager

Thomas Schmitz

Chairman

Humbert Koefler

Director

Christian Dubois

Friedrich Papst

Michael Pichler

Wolfgang Lashofer

Harald Heber

Hidde Frankena

Supervisor

Manfred Kandler

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                              % of Shareholding

 

Andritz AG (Austria)                                                       76

 

Andritz Hydro GmbH (Austria)                                        24

 

Andritz AG (Austria)

-------------------------

The ANDRITZ GROUP is a globally leading supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and solid/liquid separation in the municipal and industrial sectors. In addition, ANDRITZ offers technologies for certain other sectors including automation, the production of animal feed and biomass pellets, pumps, machinery for nonwovens and plastic films, steam boiler plants, biomass boilers and gasification plants for energy generation, flue gas cleaning plants, plants for the production of panelboards (MDF), thermal sludge utilization, and biomass torrefaction plants.

Add.: Stattegger Strasse 18, 8045 Graz, Austria

Web: www.andritz.com

Tel: +43 (316) 6902 0

 

Andritz Hydro GmbH (Austria)

------------------------------------------

ANDRITZ HYDRO is a global supplier of electro-mechanical systems and services (“water to wire”) for hydropower plants and one of the leaders in the world market for hydraulic power generation.

Add: Dr.Karl-Widdmann-Strasse 5, 8160 Weiz, Austria

Phone: +43 (3172) 606 2212

 

 

MANAGEMENT

 

Thomas Schmitz, Legal Representative and General Manager

-------------------------------------------------------------------------------

Gender: M

Qualification: University

Working experience (s):

 

At present, working in SC as legal representative and general manager

 

Humbert Koefler, Chairman

------------------------------------

Gender: M

Qualification: University

Working experience (s):

 

At present, working in SC as chairman

 

Director

-----------

Christian Dubois

Friedrich Papst

Michael Pichler

Wolfgang Lashofer

Harald Heber

Hidde Frankena

 

Supervisor

--------------

Manfred Kandler

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing, developing and selling complete equipment, single machine and parts for environment protection, industry solid liquid separation, animal and fish feed manufacturing; pulp paper-making, steel treatment, water power, power transmission and distribution, automatic excitation protection governor, driving system, thermal power, nuclear power, water supplying and irrigation, chemical industry; supplying technology support services, after sales services and engineering installing; wholesaling and acting as a commission agency (excluding auction) of the above products, importing and exporting (excluding those limited or prohibited by the state; in accordance with the related regulations and license; excluding those specially managed).

 

SC is mainly engaged in manufacturing, developing and selling equipment and parts for environment protection, industry solid liquid separation, animal and fish feed manufacturing; pulp paper-making, steel treatment, water power, power transmission and distribution, automatic excitation protection governor, driving system, thermal power, nuclear power, etc.

 

SC’s products mainly include: equipment and parts for environment protection, industry solid liquid separation, animal and fish feed manufacturing; pulp paper-making, steel treatment, water power, power transmission and distribution, automatic excitation protection governor, driving system, thermal power, nuclear power, etc.

 

SC sources its materials 70% from domestic market, and 30% from overseas market. SC sells 40% of its products in domestic market, and 60% to overseas market.

 

The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.

 

*Major Clients*

-------------------

Andritz Inc.

Georgia World Congress Center

 

Staff & Office:

--------------------------

SC is known to have approx. 1,010 staff at present.

 

SC owns an area as its operating office and factory, but the detailed information is unknown.

 

 

RELATED COMPANY

 

Andritz (Wuxi) Nonwoven Technology Co. Ltd.

Date of Registration: 1997-01-31

Registration No.: 320200400005392

Legal Form: Wholly Foreign-Owned Enterprise

Registered Capital: USD 3,250,000

Legal Representative: Lukas Andreas

 

Andritz-Wolfensberger Special Alloy Foundry Co. Ltd.

Date of Registration: 2006-06-08

Registration No.: 440600400006197

Registered Capital: EUR 6,303,000

Legal Representative: Manfred Woergoetter

 

KMPT Service & Trade (Shanghai) Co. Ltd.

Date of Registration: 2009-7-13

Registration No.: 310000400601848

Legal Form: Wholly Foreign-Owned Enterprise

Registered Capital: EUR 110,000

Legal Representative: Gottfried Schmoelzer

 

 

SC is known to have the following branches:

 

Andritz (China) Ltd. Beijing Branch

 

Andritz (China) Ltd. Shanghai Branch

 

Andritz (China) Ltd. Hangzhou Branch

 

 

 

 

 

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

 

Ping An Bank Foshan Dali Sub-branch

 

AC#: 11000667840901

 

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2013

Cash

1,386,450

Notes receivable

111,890

Accounts receivable

790,830

Advances to suppliers

60,270

Other receivable

17,210

Inventory

340,010

Prepaid expenses

0

Other current assets

0

 

------------------

Current assets

2,706,660

Held-to-maturity investment

160,000

Long-term investment

87,700

Fixed assets

218,850

Construction in progress

28,980

Intangible assets

15,020

Long-term prepaid expenses

0

Deferred income tax assets

122,230

Other non-current assets

0

 

------------------

Total assets

3,339,440

 

=============

Short-term loans

0

Notes payable

0

Accounts payable

407,490

Payroll payable

103,270

Taxes payable

4,490

Advances from clients

1,025,070

Other payable

524,690

Accrued expenses

0

Other current liabilities

359,650

 

------------------

Current liabilities

2,424,660

Non-current liabilities

0

 

------------------

Total liabilities

2,424,660

Equities

914,780

 

------------------

Total liabilities & equities

3,339,440

 

=============

 

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2013

Revenue

2,814,070

     Cost of sales

2,066,220

     Taxes and surcharges

20,590

     Sales expense

167,090

     Management expense

315,230

     Finance expense

-11,050

Investment income

3,450

Profit before tax

285,650

Less: profit tax

43,090

Profits

242,560

 

Financial Summary

Unit: CNY’000

As of Jun. 30, 2014

Total assets

3,945,810

 

-------------

Total liabilities

2,917,580

Equities

1,028,230

 

-------------

 

From Jan. 1, 2014 to Jun. 30, 2014

Revenue

1,325,120

Profits

113,450

 

Important Ratios

=============

 

As of Dec. 31, 2013

As of Jun. 30, 2014

*Current ratio

1.12

--

*Quick ratio

0.98

--

*Liabilities to assets

0.73

0.74

*Net profit margin (%)

8.62

8.56

*Return on total assets (%)

7.26

2.88

*Inventory / Revenue ×365

45 days

--

*Accounts receivable / Revenue ×365

103 days

--

*Revenue / Total assets

0.84

0.34

*Cost of sales / Revenue

0.73

--

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: AVERAGE

The revenue of SC appears fairly good in its line.

SC’s net profit margin is fairly good.

SC’s return on total assets is fairly good.

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 appears average.

The accounts receivable of SC appears large.

SC has no short-term loans.

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 low.

 

Overall financial condition of the SC: Fairly Stable.

 

 

CONCLUSIONS

 

SC is considered medium-sized in its line with fairly stable financial conditions.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.90

UK Pound

1

Rs.71.82

Euro

1

Rs.97.97

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

               

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.