MIRA
INFORM REPORT
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Report Date : |
23.05.2007 |
IDENTIFICATION DETAILS
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Name : |
SINOCHEM HEBEI CORPORATION |
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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 : |
September 7, 1982 |
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Com. Reg. No.: |
1300001400542 |
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Legal Form : |
State-Owned |
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Line of Business : |
Importing
and exporting petroleum, chemicals, medicine and plastics.
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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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Maximum Credit Limit : |
Up To USD 800,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SINOCHEM HEBEI CORPORATION
TEL : 86 (0) 311-85028631
FAX : 86 (0) 311-85028180
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER 7, 1982
REGISTRATION NO. : 1300001400542
REGISTERED LEGAL FORM : STATE-OWNED
STAFF STRENGTH : 200
REGISTERED CAPITAL : CNY
116,550,000
BUSINESS LINE : TRADING
TURNOVER : cny 809,730,000 (AS OF DEC. 31, 2006)
EQUITIES : cny 118,200,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY
7.65 = US$1 AS OF 2007-5-23
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a state-owned enterprise at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on September 7, 1982.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered business scopes include import and export of various goods
and technologies; including crude oil, oil, tungstenic acid, chemical
fertilizer and rubber; excluding the goods prohibited or limited by the
country; processing and compensation trades; management of barter trade,
carrying trade; wholesaling carbofuran, DDVP, corrosion products, compressed gas, liquefied gas, combustible solid,
spontaneous combustible articles and other poisonous products; trading of steel
and pig iron; processing and packing products, storage, import & export
consulting services and real estate management.
SC is mainly
engaged in importing and exporting petroleum, chemicals, medicine and plastics.
Mr. Yao Xuejun has been legal representative and chairman of SC since
March of 2006.
SC owns
approximately 200 staff at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the commercial zone of Shijiazhuang.
Our checks reveal that SC owns the total premise about 15,000 square meters.
http://www.sinochemhebei.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: hebei@sinochem.com
SC’s former name was Sinochem Hebei Import & Export
Corporation. In March 2006, the
company’s name was changed to the present one.
SC’s former chairman was Mr. Xu Zhenghui, and the registered capital was
CNY 86,780,000. In March 2006, the registered capital was increased to CNY 116,550,000,
and Mr. Xu Zhenghui was taken place by Mr. Yao Xuejun.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sinochem Corporation.
100
=================
Established in 1950, Sinochem Corporation 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.
Sinochem’s core business is as follows:
petroleum, fertilizer, trade, distribution and logistics of chemicals, crude
oil; overseas oil & gas exploitation and production, chemical mining &
washing, fertilizer & chemicals production.
l
Legal representative and general manager:
Mr. Yao Xuejun, 44 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From March 2003 to present Working
in SC as chairman and general manager.
SC is mainly engaged in importing and exporting
petroleum, chemicals, medicine and plastics.
SC is an integrated
service provider with oil, chemicals, pharmaceuticals, pesticide, plastics,
food, garment and textiles, hardware and metals as the core business, and
concurrently functioning domestic trade, research and development (R&D),
production, warehousing, international logistics and real estate management as
well.
SC
sources its materials 30% from domestic market, and 70% from
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 Suppliers:
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Xinji Runchang Chemical Co., Ltd.
Yuci Jintai Barium Salt Chemical Co., Ltd.
*Major Customers:
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Anqiu Xinli Chemical Co., Ltd.
Baoshan Iron & Steel Co., Ltd.
SC is known to have the following subsidiaries:
Sinochem Hebei Qinhuangdao Corporation.
Hebei
Jinpeng International Transport Agency Co., Ltd.
Hebei
Sinochem Fuheng Co., Ltd
Sinochem
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 did not
provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
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#：00112808091001
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
15,680 |
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Inventory |
34,190 |
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Accounts
receivable |
75,770 |
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Advances to
suppliers |
21,850 |
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Other
receivables |
122,490 |
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Prepaid expenses |
1,520 |
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A receivable tax
rebate of export |
12,860 |
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Other current
assets |
6,640 |
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Current assets |
291,000 |
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Fixed assets |
101,300 |
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Fixed assets net
value |
75,850 |
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Projects under
construction |
20 |
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Long term
investment |
144,130 |
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Other assets |
840 |
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Total assets |
511,840 |
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Short loans |
41,440 |
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Accounts payable |
42,560 |
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Other payable |
176,350 |
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Notes payable |
87,880 |
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Taxes payable |
6,020 |
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Accrued payroll |
4,570 |
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Accrued expenses |
6,770 |
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Advances from
customers |
26,150 |
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Other current
liabilities |
900 |
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Current
liabilities |
392,640 |
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Long term
liabilities |
1,000 |
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Total
liabilities |
393,640 |
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Equities |
118,200 |
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Total
liabilities & equities |
511,840 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
809,730 |
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Cost of goods
sold |
736,160 |
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Add:
Income from other operations |
2,970 |
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Sales expense |
42,750 |
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Management expense |
22,330 |
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Finance expense |
9,370 |
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Profit before
tax |
28,790 |
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Less: profit tax |
9,060 |
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Profits |
19,730 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.74 |
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*Quick ratio |
0.65 |
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*Liabilities
to assets |
0.77 |
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*Net profit
margin (%) |
2.44 |
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*Return on
total assets (%) |
3.85 |
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*Fixed
assets/Total assets |
0.15 |
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*Inventory
/Turnover ×365 |
15days |
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*Accounts
receivable/Turnover ×365 |
34days |
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*Turnover/Total
assets |
1.58 |
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* Cost of
goods sold/Turnover |
0.91 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair
level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in an average
level.
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The accounts receivable of SC is maintained in an
average level.
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SC’s short-term loan is in an average level.
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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 average.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial conditions.
A credit line up to USD 800,000 would appear to be within SC’s capacities upon
a periodical review basis.
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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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%)