MIRA
INFORM REPORT
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Report Date : |
26.07.2007 |
IDENTIFICATION DETAILS
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Name : |
TPI POLENE PUBLIC COMPANY LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1987 |
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Com. Reg. No.: |
0107537000564 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturer and distributor
of Low Density
Poly Ethylene [LDPE]
plastic resin. |
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 : |
Slow |
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Litigation : |
Exists |
name
TPI POLENE PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS :
SATHORN,
TELEPHONE : [66] 2213-1039,
2285-5090
FAX : [66] 2213-1035,
2213-1038, 2213-1012
WEB ADDRESS : http://www.tpipolene.com
EMAIL
ADDRESS : wmasters@tpipolene.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1987
REGISTRATION NO. : 0107537000564 [Former : BOR. MOR. JOR. 303]
CAPITAL REGISTERED : BHT. 24,815,000,000
CAPITAL PAID-UP : BHT. 20,190,000,000
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
PRACHAI LEOPHAIRATANA, THAI
CHIEF EXECUTIVE
OFFICER
NO. OF
STAFF : 3,320
LINES OF
BUSINESS : PLASTIC
RESIN & CEMENT
PRODUCTS
MANUFACTURER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on September
24, 1987 as
a private limited
company under the
registered name “Polene Co.,
Ltd.” by a
Thai groups, in
order to manufacture
plastic resin &
cement products for local
market. On October
24, 1989, the
name was changed
to “TPI Polene Co.,
Ltd.”
The subject was
listed on the
Stock Exchange of
Thailand on November
20, 1990, and converted
into public limited
company under the
name TPI POLENE
PUBLIC COMPANY LIMITED
on February 17,
1994. It currently
employs 3,320 staff.
The subject is
the
The subject currently
is under the
rehabilitate plan.
Awards and Standards
Concrete Business
-
ISO
14001 Certification for
Quality Management Systems in
the Environmental
Protection, from
Bureau Veritas Quality International
-
TIS/ISO
9002 Certification for Manufacture, Installation and Service
Standard, from ISO
Standard Institute [TIS]
LDPE/EVA Business
-
ISO 9001:2000 Certification for the entire
production process, from
ISO Standard Institute
[TPS]
-
TIS 18001
Certification for Occupational
Health and Safety
Management from the
Management System Certification
Institute [
The subject’s registered address is 25/56 Chan Tadmai Rd., Tungmahamek, Sathorn, Bangkok 10120, and this is the company’s current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality
|
Age
|
|
Mrs. Orapin Leophairatana |
|
Thai |
60 |
|
Mr. Manus Suksamarn |
|
Thai |
72 |
|
Pol. Gen. Charnchit Peanlert |
|
Thai |
63 |
|
Mr. Prachai Leophairatana |
[x] |
Thai |
63 |
|
Mr. Prateep Leophairatana |
[x] |
Thai |
61 |
|
Mr. Pramual Leophairatana |
[x] |
Thai |
58 |
|
Mr. Prayad Leophairatana |
[x] |
Thai |
56 |
|
Mr. Kamol Eiamsakulrat |
|
Thai |
89 |
|
Mr. Chawin Eiamsopana |
[x] |
Thai |
65 |
|
Mr. Chainarong Taepaisitpong |
[x] |
Thai |
65 |
|
Mr. Kitti Wongchringtrong |
[x] |
Thai |
52 |
|
Mr. Visit Noiphand |
|
Thai |
74 |
|
Mrs. Boonsri Leophairatana |
[x] |
Thai |
85 |
|
Ms. Sujitra Techanavakul |
[x] |
Thai |
83 |
|
Mrs. Narasri Weivanichkul |
|
Thai |
74 |
AUTHORIZED PERSON
Two of the
mentioned directors [x]
can jointly sign
on behalf of
the subject with
the company’s affixed.
MANAGEMENT
Mr. Prachai
Leophairatana is the
Chief Executive Officer.
He is Thai
nationality with the age
of 63 years
old.
Mr. Prayad
Leophairatana is the
President.
He is Thai
nationality with the age
of 56 years
old.
Mr. Prateep Leophairatana is the
President - LDPE
Business.
He is Thai nationality with the age of 61 years old.
Mr. Pramual
Leophairatana is the
President - LDPE
Business.
He is Thai
nationality with the age
of 58 years
old.
Mrs. Orapin Leophairatana is
the Senior Vice
President.
She is Thai nationality with the age of 60 years old.
Mr. Prasert
Ittimakin is the
Senior Vice President
- Account & Finance
Division.
He is Thai
nationality.
Ms. Jularat
Danwattanachai is the
Vice President -
Account & Finance Department.
She is Thai nationality.
Mr. Anugoon
Piyapakom is the
Assistant Vice President
- Account Department.
He is Thai
nationality.
Mr. Pongsak
Yiengsakun is the
Assistant Vice President
- Finance Department.
He is Thai nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
and distributor of
Low Density Poly
Ethylene [LDPE] plastic
resin for use
in the production
of plastic bags,
sheets for agriculture,
artificial flowers, water
pipes and wrapping; as
well as Ethylene
Vinyl Acetate [EVA]
which is the
copolymer between LDPE
and Vinyl Acetate
Monomer and Plastic
Resin.
The subject is
also a manufacturer
of powder cement
and pellet cement
products.
BRAND NAME
“TPI”
TRADEMARK
“TPIPL”
PRODUCTION
LDPE : 158,000
tons per year
EVA : 73,000
tons per year
Power Cement :
9,000,000 tons per year
Pellet Cement :
6,882,768 tons per
year
IMPORT [COUNTRIES]
90% of raw material is purchased from local suppliers, the remaining 10% including machinery and spare parts are imported from United States of America, Singapore, Indonesia, Germany and other European countries.
MAJOR SUPPLIERS
|
Name |
Country |
Products |
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Krupp Polysius GmbH |
|
Machinery |
|
IRPC Public Co., Ltd.
|
|
Chemical |
|
Uhde GmbH |
|
Machinery |
SALES [LOCAL]
90% of
the products is
sold locally via
TPI Concrete Co.,
Ltd., and the
remaining 10% is
exported to Malaysia, Singapore, Korea,
Philippines, Taiwan, Japan, Hong
Kong, Republic of
China, Vietnam and Laos.
SUBSIDIARIES &
AFFILIATED COMPANIES
|
Company |
Type
of Business |
% of Investment |
|
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Subsidiaries: |
|
|
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TPI Concrete Co., Ltd. |
Manufacturing and distribution of
ready mixed- concrete |
99.99 |
|
Company |
Type
of Business |
% of Investment |
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Associated Companies: |
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Thai Nitrate Co.,
Ltd. |
Manufacturing and distribution of ammonium
nitrate and
nitric acid |
40.00 |
|
Thai Special Steel
Industry Public Co., Ltd. |
Manufacturing of wire
rod & steel |
29.77 |
|
Mondo Thai Co.,
Ltd. |
Development land as
a residential estate |
28.75 |
|
TPI Life Insurance
Co., Ltd. |
Life Insurance |
25.00 |
LITIGATIONS
Bankruptcy and
Receivership
On August 21,
2000, the Central
Bankruptcy Court has
ordered the Company
to enter into
business rehabilitation and
appointed the Company
to be the
Planner according to
the lawsuit red
case no. 627/2543. As
a result of
such Court order,
the power and
duties in managing
the business and
asset of the
company’s directors, including
all legal rights
of the company’s
shareholders shall be
vested in the Planner according to
Article 90/59 of
Bankruptcy Act B.E.
2483.
On February
9, 2001, the
Court approved the
rehabilitation plan and
assigned the Company
to be the
Plan Administrator. As a
result of such
Court order, the
power and duties
of the Planner
shall be vested
in the Plan Administrator
according to Article
90/59 of Bankruptcy
Act B.E. 2483.
Operating
Performance and Financial
Summary
In 2006, the
company and subsidiaries
earned the income
from selling of Bht.
22,630 million, an
increase of 5.86%
from Bht. 21,304
million in 2005. This
revenue mainly come
from selling of
cement, plastic resin
and concrete whose
selling price was
driven higher comparing
to the previous
year.
Total revenue of
the company has
increased from Bht.
22,871 million in 2005 to
Bht. 26,324 million
in 2006 or
an increase of
13.12%. This is
mainly due to
an increase in
selling and gain
from exchange rate
for the amount of
Bht. 1,792 million.
Cost of sale
in 2006 was
driven higher from the same
period of 2005
resulted in a
decrease in the
fundamental profit from 26.85%
in 2005 to
23.42% in 2006.
This was mainly due
to an increase
of the production
cost. The company
has profit from
normal operation at Bht.
1,544 million in
2006, an increase
of Bht. 20.72%
from Bht. 1,279
million in 2005,
and net profit
of Bht. 2,780
million in 2006
[net profit per
share at Bht.
2.27] an increase
of Bht. 82.65% comparing to
net profit of
Bht. 1,522 million in
2005 [net profit
per share at
Bht. 1.93] This
was mainly because
in 2006 there was
an increase in
the gain of
exchange rate and
a decrease in
interest payment burden.
This was because
the company has
made the repayment
of the principal debt to
creditors according to
the debt restructuring
agreement at the
amount of Bht.
13,726 million in
2006.
In 2006,
the Company possessed
total assets of
Bht. 68,458 million,
decreasing from the same
period of 2005
by 3.17% from
Bht. 70,699 million.
The Company’s total
debt reduced from
Bht. 34,806 million
to Bht. 19,314
million at the
end of 2005
and 2006 respectively
or a decrease of
Bht. 15,492 million
or 44.51%. This
was because the
Company had made
repayment of principal
debt to the
creditors according to
the debt restructuring
agreement at the
amount of Bht.
13,726 million in
2006. Due to this,
the financial debt
according to the
debt restructuring agreement
in term of
principal debt burden
was reduced from
Bht. 25,206 million
at the end
of 2005 to
Bht. 10,129 million
at the end of
2006.
At the end of
2006, the financial
debt burden at the
amount of Bht.
10,129 million according to
the debt restructuring
agreement must be
made repayment within
December 31, 2007.
At present, the
company is in
the middle of
negotiating for a
new low to
settle all the financial
debt [refinance] and
the proceed is
anticipated to complete
within 2007.
At present, the
company is under
the debt rehabilitation plan.
The Company acts
as a Plan
Administrator by receiving
the approval from
creditors and was
assigned by the
Central Bankruptcy Court.
The Rehabilitation Plan
of the Company
1.
To find the
capital for at
least US$ 180 million
in cash in
order to repurchase
the debt at discount
price. However, the
company has already
completed this process.
2.
To find the
capital of another
US$ 90 million
[an increase from
US$ 180 million in no.
1] to
be used for
repayment of the
construction of cement
factory - project no.
4 which the
company has already
made investment of
Bht. 3,000 million
in some part,
in order to
complete the project.
At present, such
project is under
feasibility study of investment and
source of investment
according to the
debt restructuring agreement.
3.
To be able
to pay accrued
interest on loan
and outstanding guarantee
fee at the
end of November
30, 1999. At
present, the Company has
completed this process.
4.
To enable the
Company and TPI
Concrete Co., Ltd.
to extend the
debt repayment period
in order to
settle the whole
debt. At present,
the debt repayment
period has been
extended for another
1 year ended
at December 31,
2007.
5.
To enable the
Company to rehabilitate
the organization and
be back to
normal operation as
soon as possible
in order to
compete and operate
the business in
the long run.
Schedule of Debt
Repayment to Creditors
according to Debt
Restructuring Agreement
|
Date |
Debt Repayment |
|
|
|
|
March 31, 2007 |
Debt Repayment of
US$ 10 million |
|
June 30, 2007 |
Debt Repayment of
US$ 10 million |
|
December 31, 2007 |
Debt Repayment of
the Outstanding Amount |
Interest Rate under
Debt Restructuring Agreement
|
Currency |
2000 -
2002 |
2003 -
2004 |
2005 -
2007 |
|
|
|
|
|
|
Baht |
MLR |
MLR +
0.5% |
MLR +
1.5% |
|
Foreign Currency |
LIBOR +
1.5% |
LIBOR + 2% |
LIBOR + 3% |
Other Conditions
The Company cannot
pay dividend to
the shareholders until
after December 31,
2004 or after
the company has
made debt repayment
to creditors at
85% of the
outstanding debt according
to debt restructuring
agreement. In addition,
the Company must
have retained earning
and dividend payment
must not exceed
30% of cash
reserve.
In case of
selling secured assets
at that time
or non-perfect security
[later is mortgaged
to secured creditor].
Cash obtained from
selling these assets
must be made
repayment to secured
creditors. The excess
is to be
made to non-secured
creditors according to
the proportion.
The Company is
able to maintain
cash liquidity in
its operation at
least Bht. 1,600
million during the
plan.
The creditor is
able to transfer
total debt by
having the debt
transferee to commit
and follow according
to the debt
restructuring agreement.
The Company as
the Plan Administrator
must proceed the
Company and TPI
Concrete Co., Ltd.
to comply and
follow the debt
restructuring agreement and other
related issues as
agreed under debt
restructuring agreement.
Change and Development
during 2006
May 11 : The
Company has invested in
ordinary share of
Nitrate Thai Co.,
Ltd., which
is the leader
in manufacturing and distributing
ammonia
nitrate and nitric
acid for the
number of 468,750 shares
with total investment
of Bht. 97
million.
June : The
Company has settled
the debt repayment
for the amount
of
Bht. 1,429.44
million or US$
36 million according
to the debt
restructuring agreement.
August 21 : The Company
has succeeded in
gathering the capital
for the
amount Bht.
12,176.50 million by
selling an increase
of ordinary
shares to
existing shareholder in the ratio
of 1 existing
ordinary
share :
1 new ordinary
share for the
amount of 807.50
million
shares at
the price of
Bht. 10 per share
accounted for total
of
Bht.
8,075 million, and
by selling an
increase of ordinary
share capital to
specific person for
the amount of 404.00
million shares at the price
of Bht. 10.15
per share accounted
for the total amount
of Bht. 4,100.60
million.
August 23 : The increase
of share capital
for the amount of
Bht. 11,500
million has
been repaid to creditors
for a principal
debt in
advance according
to debt restructuring
agreement. This resulted
in
a decrease in
debt under debt
restructuring agreement significantly.
October 27 : The Company
has paid dividend
for the operating performance
of
the first
half of the
year 2006 to
shareholders at Bht.
0.25 per
share for
the total amount
of Bht. 504.75
million.
October 27 : The Company
has made repayment
to creditors for the
principal
debt
in advance according
to debt restructuring
agreement at Bht.
193.63 million or
US$ 5 million.
November 17 :
Trist Rating Co.,
Ltd. has made
revision for the
credit rating of
the Company from
“BBB-” stable to
“BBB” stable.
November 29 :
The Company and
its subsidiary has
made petition to the
Central
Bankruptcy
Court to extend
the timing of
the Rehabilitation Plan
for
another one year
ended as at
December 31, 2007.
On
December
12, 2006, the
Court has made
approval to the
Company
to
extend the timing
of the rehabilitation plan
of the Company
and
Subsidiary for another
one year until
December 31, 2007.
December 29 :
The Company has
made repayment to
creditors for the
principal
debt in
advance under debt
restructuring agreement at the
amount
of
Bht. 577.37 million or US$ 15
million.
Others
The subject has
several litigations in
relation to its
normal course of
business operation, but
the management believes
that it would not have significant
affect on the
company’s business.
CREDIT
Purchasing terms are
by cash or
on the credits
term of 30-90
days.
Imports are by
L/C at sight
or T/T on
negotiated term.
Selling terms are
by cash or
on the credits
term of 30-60
days.
Exports are against
L/C at sight
or T/T on
negotiated term.
BUSINESS TRANSACTIONS
The products
are sold to
local customers by
cash and credit,
with the maximum
credit given at
60 days, while
exports are against L/C
at sight or T/T on
negotiated term. The subject
is not found
to have problem
on both accounts
receivable and account payable.
BANKING
Bangkok Bank
Public Co., Ltd.
[Head Office
:
Krung Thai
Bank Public Co.,
Ltd.
[Head Office
:
The Siam
Commercial Bank Public
Co., Ltd.
[Head Office
:
Deutsche Bank
AG
[
The Hongkong
& Shanghai Banking
Corporation
[Bangkok Branch
: 968 Hong
Kong Bank Bldg.,
Rama IV Rd.,
Silom, Bangrak, Bangkok
10500]
EMPLOYMENT
The subject employs
approximately 3,320 staff,
consists of :
Cement Business :
3,000 staff
PVC Resin Business : 320 staff
Total 3,320 staff
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. It is
located in a prime commercial
area.
The Cement Plant
is located at
299 Mitrapap Rd.,
TPI Polene Industrial
Complex, A. Kleangkoy,
Saraburi 18110. Tel.: [66]
36 339-036-40, 36
339-111-175. Premised located on
1,280,000 sqm. of
area.
The LDPE Plant
is located at
299 Moo 5,
T. Cheang-Noen, A.
Muang, Rayong 21000.
Tel.: [66] 38
611-333. Premised locate
on 68,000sqm. of
area.
COMMENT
The subject
reported its net
profit in the
first quarter of
2007 was 769
million baht. Six months
net profit rose
to 1.65 billion
baht from 1.47
billion baht in the
same period of
last year. Sales
in the second
quarter rose 10%
to 5.9 billion
baht and the
gross margin improved
slightly to 24.39%
from 24.26%. The
quarter included a
119.1 million baht gain
from foreign exchange,
up from 99
million baht, down
70% from last
year.
The subject is
doing good business
despite overall economic
slowdown.
FINANCIAL INFORMATION
The capital was registered at
Bht. 100,000, divided into 1,000
shares of Bht. 100
each.
The capital was
increased later as
followings:
Bht. 1,200,000,000 on
February 10, 1990
Bht. 1,350,000,000 on September 7, 1990
Bht. 1,450,000,000 on
July 23, 1991
Bht. 1,933,333,330 on
January 15, 1993
Bht. 2,700,000,000 in
1996
Bht. 5,307,000,000 in
1997
The latest registered
was increased to
Bht. 24,815,000,000 divided
into 2,481,500,000 shares
of Bht. 10 each
with the capital
paid-up of Bht.
20,190,000,000.
MAIN SHAREHOLDERS
: [as at
January 15,
2007] at
Bht. 20,190,000,000 of
capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Thai Petrochemical Industrial
Co., Ltd. |
302,269,816 |
14.97 |
|
Leophairatana Enterprises Co.,
Ltd. |
161,913,997 |
8.02 |
|
TPI Holding Co.,
Ltd. |
126,271,084 |
6.25 |
|
Mr. Pakorn Leophairatana |
86,085,581 |
4.26 |
|
Mr. Prayad Leophairatana |
84,452,274 |
4.18 |
|
Mrs. Boonsri Leophairatana |
82,138,536 |
4.07 |
|
Mr. Pramual Leophairatana |
80,890,000 |
4.01 |
|
Nortrust Nominees Limited-Northern Trust
|
78,761,202 |
3.90 |
|
Bangkok Bank Public
Co., Ltd. |
65,769,324 |
3.26 |
|
Others |
1,412,948,186 |
47.08 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.
Mr. Nirand Leelamethawat
No. 2316
KPMG Phoomchai Audit
Ltd.
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2006 & 2005
were:
ASSETS
[In Thousand
Baht]
|
Current Assets |
2006 |
2005 |
|
|
|
|
|
Cash & Cash
Equivalents |
264,286 |
170,106 |
|
Current Investments |
- |
484,934 |
|
Trade Accts. Receivable |
1,270,513 |
1,384,169 |
|
Short-term Loans to
Related Party |
288,374 |
- |
|
Advances to Related Parties |
12,884 |
112,228 |
|
Inventories |
5,212,262 |
4,855,569 |
|
Deposits for Debt
Repurchase |
327,209 |
368,356 |
|
Court Deposits for
Debt Repurchase |
2,778,829 |
2,778,829 |
|
Other Current Assets
|
477,075 |
419,144 |
|
|
|
|
|
Total Current
Assets |
10,631,432 |
10,573,335 |
|
Investments Accounted for
Using the Equity
Method |
2,014,571 |
1,659,861 |
|
Long-term Investments in
Related Parties |
150,370 |
806,042 |
|
Other Long-term Investments |
410,558 |
93,316 |
|
Receivable & Advance
to Related Parties |
822,209 |
822,209 |
|
Property, Plant &
Equipment |
53,113,665 |
54,983,608 |
|
Intangible Assets |
412,224 |
439,222 |
|
Other Non-current Assets |
761,706 |
779,446 |
|
Total Assets
|
68,316,735 |
70,157,039 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[In Thousand
Baht]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institutions |
287,579 |
537,778 |
|
Trade Accts. Payable |
1,507,228 |
1,291,733 |
|
Current Portion of
Long-term Liabilities under
Debt Restructuring |
9,537,167 |
2,869,864 |
|
Long-term Liabilities under
Debt Restructuring under Consideration by
the Court |
3,810,876 |
4,288,055 |
|
Short-term Loans from
Related Party |
1,565 |
1,575 |
|
Advances from Related
Parties |
5,503 |
9,444 |
|
Accrued Interest Payable
under the Master Restructuring Agreement |
1,473,820 |
1,298,212 |
|
Accrued Default Interest
Payable Amortized within One
Year |
489,124 |
587,775 |
|
Other Current Liabilities |
1,497,416 |
1,060,639 |
|
|
|
|
|
Total Current
Liabilities |
18,610,278 |
11,945,075 |
|
Long-term Liabilities under
Debt Restructuring |
- |
21,219,516 |
|
Accrued Default Interest
Payable |
- |
550,490 |
|
Provision for Staff
Retirement Benefits |
42,149 |
39,515 |
|
Other Non-current Liabilities |
520,646 |
509,245 |
|
Total Liabilities |
19,173,073 |
34,263,841 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
[In Thousand
Baht]
|
|
2006 |
2005 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized Share
Capital |
24,815,000 |
24,815,000 |
|
|
|
|
|
Issued &
Paid-up Share Capital |
20,190,000 |
8,075,000 |
|
Reserves Share Premium |
60,600 |
- |
|
Surplus on
Disposals of Company’s
Shares Held by
a Subsidiary |
185 |
2,568 |
|
Surplus on
Assets Revaluation |
26,703,875 |
27,855,739 |
|
Surplus on
Shareholding Changes in
Group |
52,943 |
52,943 |
|
Revaluation Surplus [Deficit] on
Available- for-Sale Securities - Company |
[143,652] |
[106,923] |
|
- Associated
Company |
7,088 |
7,235 |
|
Unappropriated Retained Earnings |
2,632,763 |
351,919 |
|
Company’s Share Held
by a Subsidiary |
[360,140] |
[345,283] |
Total Shareholders’ Equity
|
49,143,662 |
35,893,198 |
|
Total
Liabilities & Shareholders' Equity |
68,316,735 |
70,157,039 |
PROFIT &
LOSS ACCOUNT
[In Thousand
Baht]
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Revenues from Sales
of Goods |
20,024,927 |
19,261,537 |
|
Delivery Income |
1,192,790 |
1,089,673 |
|
Other Income |
816,025 |
611,941 |
|
Share of Profits from
Investments accounted for using the
Equity Method |
333,139 |
75,781 |
|
Gain on Foreign
Exchange |
1,756,358 |
- |
|
Total Revenues
|
24,123,239 |
21,037,932 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Sales
of Goods |
15,287,548 |
13,956,103 |
|
Selling & Administrative Expenses |
4,396,254 |
4,249,490 |
|
Loss on Foreign
Exchange |
- |
171,470 |
|
Loss on Impairment
of Investments [Reversal] |
- |
[758,708] |
|
Loss on Disposal
of Investments |
61,848 |
433,888 |
|
Total Expenses |
19,745,650 |
18,052,243 |
|
|
|
|
|
Profit / [Loss] before
Interest Expenses &
Income Tax |
4,377,589 |
2,986,689 |
|
Interest Expenses under
the Master Restructuring Agreement |
[1,061,075] |
[1,541,073] |
|
Income Tax |
[536,474] |
- |
|
|
|
|
|
Net Profit / [Loss] from
Ordinary Activities |
2,780,040 |
1,445,616 |
|
Extraordinary Items - Gain on Debt Repurchase |
- |
75,896 |
|
|
|
|
|
Net Profit / [Loss] |
2,780,040 |
1,521,512 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
4.26 |
|
|
Operating Profit |
50.34 |
|
|
Net Profit |
82.72 |
|
|
Fixed Assets |
[3.40] |
|
|
Total Assets |
[2.62] |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
72.05 |
68.58 |
|
Operating Profit Margin |
20.92 |
13.92 |
|
S & A
Expenses |
20.72 |
20.88 |
|
Other Revenues |
13.69 |
3.37 |
|
Net Profit Margin |
13.10 |
7.48 |
Net Sales was
increased by 4.26%,
Operating Profit was
increased by 50.34%,
Net Profit was
increased by 82.72%,
Fixed Assets was
decreased by 3.40%,
Total Assets was
decreased by 2.62%.
Compare each cost
with sales, Cost of
Good Sold was
increased from 68.58%
to 72.05%, Operating
Profit Margin was
increased from 13.92%
to 20.92%, S
& A Expenses
was decreased from
20.88% to 20.72%,
Other Revenues was
increased from 3.37%
to 13.69%, Net
Profit Margin was
increased from 7.48%
to 13.10%.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
0.57 |
0.89 |
|
Quick-Assets Ratio |
0.10 |
0.18 |
Current Ratio was
decreased from 0.89
to 0.57, show
Current Assets can
not cover Current
Liabilities, Liquidity Ratio
of the company
was not good, Quick-Assets Ratio
was decreased from
0.18 to 0.10,
capacity to pay
Short Term Loan
was not good
too, because Current
Assets without Inventory
can not cover
Current Liabilities.
Leverage
|
Leverage |
2006 |
2005 |
|
D/E Ratio |
0.39 |
0.95 |
D/E Ratio was
decreased from 0.95
to 0.39, show
the company had
fund from Equity
more than fund
from Loan, investment
risked of the
company is low.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
0.40 |
0.37 |
|
Total Assets Turnover |
0.31 |
0.29 |
|
Return on Assets |
4.07 |
2.17 |
|
Return on Equity |
5.66 |
4.24 |
|
Day's Payable |
25.57 |
22.85 |
|
Day’s Inventories |
88.44 |
85.89 |
|
Day’s Receivables |
21.56 |
24.49 |
Fixed Assets Turnover
was increased from
0.37 times to
0.40 times, Total
Assets Turnover was
increased from 0.29
times to 0.31
times, show the
company could use
Assets so efficiently,
Return on Assets
was increased from
2.17 to 4.07,
Return on Equity
was increased from
4.24 to 5.66,
capacity to use
Assets to make
profit was good.
Day's Payable was
increased from 23
days to 26
days, and Day’s
Inventories was increased
from 86 days
to 89 days,
while Day’s Receivables
was decreased from
25 days to
22 days.
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)