3decades

MIRA INFORM REPORT

Report No. :	506832
Report Date :	30.04.2018

IDENTIFICATION DETAILS

Name :	ZTT INTERNATIONAL LTD.

Registered Office :	No. 6 Zhong Tian Road, Economic & Technical Development Zone, Nantong, Jiangsu Province 226009 Pr

Country :	China

Financials (as on) :	30.06.2017

Date of Incorporation :	11.11.2010

Unified Social Credit Code :	91320691564338509P

Legal Form :	One-Person Limited Liabilities Company

Line of Business :	Subject registered business scope includes importing and exporting commodities and technology; domestic trade; developing and manufacturing cable products and equipment; and storage.

No. of Employees :	304

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating

Explanation

Rating Comments

A+

Low Risk

Business dealings permissible with low risk of default

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

China

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.

After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.

The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.

The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.

Source : CIA

Company name & address

COMPANY NAME	ZTT INTERNATIONAL LTD.
CURRENT ADDRESS/ REGISTERED ADDRESS	NO. 6 ZHONG TIAN ROAD, ECONOMIC & TECHNICAL DEVELOPMENT ZONE, NANTONG, JIANGSU PROVINCE 226009 PR CHINA
TEL. NO.	86 (0) 513-83599668/83599669/83599721/83599470
FAX NO.	86 (0) 513-83599670

EXECUTIVE SUMMARY

Date of Registration : november 11, 2010

UNIFIED SOCIAL CREDIT CODE : 91320691564338509P

LEGAL FORM : ONE-PERSON LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : xue jiping (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 100,000,000

staff : 304

BUSINESS CATEGORY : trading

REVENUE : CNY 645,120,000 (FROM JAN. 1, 2017 TO JUN. 30, 2017)

EQUITIES : CNY 154,670,000 (AS OF JUN. 30, 2017)

WEBSITE : N/A

E-MAIL : N/A

PAYMENT : Regular

MARKET CONDITION : competitive

FINANCIAL CONDITION : fairly stable

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

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 Unified Social Credit Code: 91320691564338509P.

SC’s Import and Export Enterprise Code: 3200564338509

SC’s registered capital: cny 100,000,000

SC’s paid-in capital: cny 100,000,000

Registration Change Record:-

Date

Change of Contents

Before the change

After the change

Registration No./

Unified Social Credit Code

320691000060507

91320691564338509P

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
Director	Xue Chi
	Qu Zhi
	Tong Jiangbing
	Gao Hongshi
Supervisor	Xue Xiaoyan

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

Unified Social Credit Code: 91320600138670947L

Legal Form: Shares Limited Company

Legal Representative: Xue Jiping

Registered Capital: CNY 3,066,072,521

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

Nationality: China

ID# 320623195103184530

Age: 67

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

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

Xue Xiaoyan

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 products 100% from domestic market, mainly Jiangsu. SC sells 20% of its products in domestic market, and 80% 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.

Mva Power Usa Inc.

Sssi International Inc.

*Major Supplier*

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

Jiangsu Zhongtian Technology Co., Ltd.

Staff & Office:

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

SC is known to have approx. 304 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 Nantong Economic Technology Development Zone Sub-branch

AC#: 326008605018170049258

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2016
Cash	184,810
Notes receivable	0
Accounts receivable	495,910
Advances to suppliers	38,510
Other receivable	1,750
Inventory	39,000
Non-current assets within one year	0
Other current assets	50,480
	------------------
Current assets	810,460
Fixed assets	590
Construction in progress	0
Intangible assets	2,390
Long-term investment	22,090
Deferred income tax assets	4,390
Other non-current assets	0
	------------------
Total assets	839,920
	=============
Short-term loans	50,000
Notes payable	50,000
Accounts payable	487,610
Welfares payable	24,850
Taxes payable	-350
Interest payable	170
Advances from clients	67,360
Other payable	6,130
Other current liabilities	0
	------------------
Current liabilities	685,770
Non-current liabilities	0
	------------------
Total liabilities	685,770
Equities	154,150
	------------------
Total liabilities & equities	839,920
	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2016
Revenue	1,418,080
Cost of sales	1,246,650
Sales expense	152,180
Management expense	1,440
Finance expense	-3,850
Asset impairment loss	4,240
Non-operating income	3,990
Non-operating expense	10
Profit before tax	21,400
Less: profit tax	5,860
Profits	15,540

Financial Summary

Unit: CNY’000	As of Jun. 30, 2017
Total assets	1,299,180
	-------------
Total liabilities	1,144,510
Equities	154,670
	-------------
Unit: CNY’000	From Jan. 1, 2017 to Jun. 30, 2017
Revenue	645,120
Profits	510

Important Ratios

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

	As of Dec. 31, 2016	As of Jun. 30, 2017
*Current ratio	1.18	--
*Quick ratio	1.12	--
*Liabilities to assets	0.82	0.88
*Net profit margin (%)	1.10	0.08
*Return on total assets (%)	1.85	0.04
*Inventory / Revenue ×365	11 days	--
*Accounts receivable / Revenue ×365	128 days	--
*Revenue / Total assets	1.69	0.50
*Cost of sales / Revenue	0.88	--

FINANCIAL COMMENTS

PROFITABILITY: FAIRLY GOOD

The revenue of SC appears fairly good in its line.

SC’s net profit margin is average.

SC’s return on total assets is average.

SC’s cost of sales 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 fairly good level.

The inventory of SC appears average.

The accounts receivable of SC appears large.

SC’s short-term loans are in an average level.

SC’s revenue is in a fairly good 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. Taking into consideration of SC’s good background, general performance, reputation as well as market conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.78
UK Pound	1	INR 92.89
Euro	1	INR 80.74
CNY	1	INR 10.51

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.