MIRA
INFORM REPORT
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Report Date : |
20th
January, 2007 |
IDENTIFICATION DETAILS
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Name : |
SINOCHEM
NINGBO LTD. |
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Registered Office : |
9-12/F, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
11.11.1993 |
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Com. Reg. No.: |
3302001000032 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in international trade. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
SINOCHEM NINGBO LTD.
9-12/F, NO.
TEL : 86 (0) 574-87348868/87260203
FAX : 86 (0) 574-87366775
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 11, 1993
REGISTRATION NO. :
3302001000032
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
180
REGISTERED CAPITAL : CNY
50,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 2,529,810,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 227,470,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.77= US$1 AS OF 2007-01-19
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY- China Yuan Ren Min Bi
SC was registered as a limited liabilities
company at local Municipal Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license) on Nov. 11, 1993.
Company Status: Limited liabilities co. This form of
business in PR China is defined as a legal person. Shareholders bear
limited liability to the extent of shareholding, and the co. is liable for
its debts only to extent of its total assets. The characteristics of this
form of co. are as follows: Upon the
establishment of the co., an investment certificate is issued to the each
of shareholders. The board of
directors is comprised of three to thirteen members. The minimum
registered capital for a co. is listed as follows: -manufacturing
co. : CNY 500,000.00 -trading
&wholesaling co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy &
service co. : CNY 100,000.00 Shareholders may
take their capital contributions in cash or by means of tangible assets or
intangible assets such as industrial property and non-patented technology. Cash contributed by
all shareholders must account for at least 50% of the registered capital
while contribution by intangible assets must not exceed 20% of the
registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co
SC’s registered
business scope includes importing and exporting various goods and technology
and acting as agent for it; wholesaling and retailing medication, insecticide,
chemical products and electric machinery.
SC is mainly engaged
in international trade.
Mr. Pan Zhengyi has been chairman of SC since 2002. SC owns
about 180 staff.
SC is currently operating at the above stated address, and
this address houses its operating office in the commercial zone of Ningbo. Our
checks reveal that SC owns the total premise about 4,000 square meters.
http://www.sinochem-nb.com.
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail：nbchem@sinochem-nb.com
SC was firstly established as the Ningbo City Chemical &
Medicine and Health Products Import and Export Co., Ltd. in 1987, which was
renamed as SINOCHEM NINGBO Import & Export Corp affiliated to SINOCHEM
Corporation in 1993.
SC has been awarded the certificates of ISO9001, ISO14001 and
OHSAS18001 by TUV.
MAIN
SHAREHOLDERS:
Name % of
Shareholding
Sinochem Corporation 51
Shareholder’s Union of Staff 49
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Established in 1950, Sinochem
Corporation (a.k.a. Sinochem) is a key state-owned enterprise under the direct
control of the State-owned Assets Supervision and Administration Commission of
the State Council. Its predecessor is China National Chemicals Import &
Export Corporation.
It is one of
It has two listed branches, i.e.
“Sinochem Hong Kong Holding” in Hong Kong (Code: 0297) and “ Sinochem Intl” in
Address:
Post code：100045
Tel: 0086-10-88078888
Fax: 0086-10-88078890
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Chairman:
Mr. Pan Zhengyi (潘正义), 53 years old with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2002 to present Working in SC as
chairman.
Once worked in Sinochem Plastic Corporation as vice general manager;
Sinochem Japan Corporation as general manager; china National Chemical
Importing and Exporting Corporation as manager of managing department and
assistant of CEO.
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General Manager:
Mr. Lv Huajun (吕华君), 46 years old with
university education. He is currently responsible for the daily management of
SC.
Working Experience(s):
From 2002 to present Working in SC as general manager.
Also working in Sinochem Ningbo Chemicals Co.,
Ltd as chairman.
SC is mainly engaged
in international trade.
SC’s main products and brands:
Brand of Sining
Products in medicine
raw materials, intermediate, fine chemicals, medicine and veterinary medicine,
etc. Sining has been growing to be a world-known brand, especially in Asia,
Brand of Trivers
Main products of fine
chemicals such as colors and fuels, and the intermediates.
Brand of Climatic
Products for camping,
hunting, gardening and beach games.
Brands of Carstech
Products of all sorts
of fittings and parts.
Brand of Transteknic
Products including
engine system, steering system, braking system, body, and electrical system.
SC sources its
materials 70% from domestic market, 30% from the overseas market, mainly from
European and American Countries. SC sells 30% of its products in domestic
market and 70% to European and American Countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-90
days. The payment terms of SC include T/T, Check, L/C and Credit of 30-90 days.
*Major Supplier:
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Sinochem Ningbo Chemicals Co., Ltd.
SC is known to have 4 subsidiaries as following,
Ø
Sinochem Ningbo Chemicals Co., Ltd.
Ø
Sinochem Ningbo Medical Products Co., Ltd.
Ø Ninghua International Trade Co., Ltd.
Ø Ningbo Kehua Technology Development Co., Ltd.
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 : SC
refused to release any information of its suppliers and the trade reference was
not available.
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.
Bank of
AC#：810060097508091001
Relationship:
Balance Sheet
Unit: CNY’000
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As of
Dec. 31, 2004 |
As of
Dec. 31, 2005 |
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Cash & bank |
25,580 |
9,970 |
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Inventory |
147,760 |
77,840 |
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Accounts receivable |
278,090 |
305,990 |
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Account payable
advance |
74,240 |
31,920 |
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Other Accounts
receivable |
20,040 |
207,130 |
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Other current
assets |
266,910 |
37,580 |
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Current assets |
812,620 |
670,430 |
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Fixed assets net
value |
16,280 |
19,410 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
163,920 |
114,100 |
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Other assets |
860 |
800 |
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Total assets |
993,680 |
804,740 |
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Short loans |
0 |
66,550 |
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Accounts payable |
219,410 |
180,080 |
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Account receivable
advance |
123,630 |
36,970 |
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Other Accounts payable |
215,250 |
44,480 |
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Other current
liabilities |
277,800 |
249,190 |
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Current liabilities |
836,090 |
577,270 |
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Long term
liabilities |
0 |
0 |
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Other liabilities |
0 |
0 |
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Total liabilities |
836,090 |
577,270 |
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Equities |
157,590 |
227,470 |
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Total liabilities
& equities |
993,680 |
804,740 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
2,368,860 |
2,529,810 |
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Cost of goods sold |
2,189,940 |
2,265,130 |
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Sales expense |
62,780 |
84,000 |
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Management expense |
62,000 |
76,730 |
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Finance expense |
-5,410 |
-2,280 |
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Profit before tax |
95,800 |
108,400 |
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Less: profit tax |
21,470 |
37,240 |
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Profits |
74,330 |
71,160 |
Important Ratios
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2004 |
2005 |
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*Current
ratio |
0.97 |
1.17 |
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*Quick
ratio |
0.80 |
1.03 |
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*Liabilities
to assets |
0.84 |
0.72 |
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*Net
profit margin (%) |
4.04 |
2.81 |
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*Return
on total assets (%) |
9.64 |
8.84 |
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*Fixed
assets/Total assets |
0.02 |
0.02 |
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*Inventory
/Turnover ×365 |
23days |
11days |
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*Accounts
receivable/Turnover ×365 |
43days |
44days |
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*Turnover/Total
assets |
2.38 |
3.14 |
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*
Cost of goods sold/Turnover |
0.92 |
0.90 |
PROFITABILITY: AVERAGE
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The turnover of SC appears fairly good in 2004 and 2005.
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SC’s net profit margin is fairly good in 2004 and 2005.
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SC’s return on total assets is fairly good in 2004 and 2005.
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SC’s cost of goods sold is average, comparing with its
turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC is average.
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The accounts receivable of SC is average.
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SC’s turnover is in a fairly good level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is low.
Overall financial condition of
the SC: Stable
SC is considered medium-sized in its line with stable financial
conditions. A credit line up to USD1,000,000 appears to be within SC’s
capacities.
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 |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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