MIRA
INFORM REPORT
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Report Date : |
25.05.2007 |
IDENTIFICATION DETAILS
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Name : |
SINOCHEM INTERNATIONAL CORPORATION |
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Registered Office : |
18-19/F |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Dec. 14, 1998 |
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Com. Reg. No.: |
3100001006949 |
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Legal Form : |
Shares Limited 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 : |
Up To usd 20,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SINOCHEM INTERNATIONAL CORPORATION
18-19/F
PUDONG NEW DISTRICT,
TEL:
021-50498899 /50475048 /50470725
FAX:
021-50470206 /50490909
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 14, 1998
REGISTRATION NO. : 3100001006949
REGISTERED LEGAL FORM : shares limited company
STAFF STRENGTH :
2,716
REGISTERED CAPITAL : cny 1,257,693,750
BUSINESS LINE :
international trade
TURNOVER :
cny 15,420,123,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 3,031,952,000
(AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STRONG
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.67= US$1 AS OF 2007-5-24
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 shares limited company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 14, 1998.
Company Status: Shares limited co. This form of business in PR China
is defined as a legal person. Its registered capital is divided into shares
of equal par value and the co. raises capital by issuing share certificates
by promotion or by public offer. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to the
extent of its total assets. The characteristics of the shares limited co.
are as follows: The establishment of the co.
requires at least five promoters and at least three of them must be PR-
China controlled legal persons. Natural person can not be allowed to serve
as promoters. The minimum registered capital
of a co. is CNY 10M. while that of the co. with foreign investment is RMB
30M. The total capital of a co. which propose to apply for publicly listed
must not less than CNY 50M. The board of directors must
consist of an odd number of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within three
years of the offer. Directors can not transfer the shares they hold in the
co. during their terms of office. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scopes include importing & exporting commodities and technology excluding commodity exported under state-unified operation and commodities operated to import by state - designated companies; processing with imported materials, processing with imported samples, assemblying with imported parts, and compensation trade in agreement, counter trade, carrying trade; selling feeds, cotton, hemp, domestic animal products, textile, garments, daily-use articles, paper pulp, paper products, hardware, household appliance, chemical materials, mineral products, rock oil products(excluding product oil), grease, coal, building materials, ferrous metal materials, machinery, electronic device, automobiles(excluding car), motorcycles and spare parts; storage transportation services; program investment; wholesale of the cereal & oil and its products; trade of agriculture products such as fertilizer, agricultural film, pesticide, and the relative consultation services, technical exchange, technical development.
SC is mainly
engaged in international trade.
Mr.
Luo Dongjiang has been chairman of SC since 1996. SC owns about 2,716 staff at
present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. Our checks reveal that SC
owns the total premise about 10,000 square meters.
http://www.sinochemintl.com The design
is professional and the content is well organized. At present the web is in
both Chinese and English versions.
E-mail: intl@sinochem.com
SC’s former name was Sinochem International Trading Co., Ltd., and in
November 2004, its name was changed to the present one.
SC is a listed company in Shanghai Stock Exchange Market (Code: 600500)
MAIN SHAREHOLDERS:
Name % of Shareholding
SinoChem Group Corp 63.71
South Security Investment Fund 4.72
Tianyuan Security Investment Fund 0.96
China National Petroleum Sales Corp. 0.62
China National Cereals, Oils & Foodstuffs Import & Export Group
Corporation 0.34
PING AN INSURANCE (GROUP) COMPANY OF
Yinhua Security Investment Fund 0.48
Xingye Global Security Investment Fund 0.38
COFCO Limited 0.34
Jin Lingmei 0.19
Other shareholders
27.19
SinoChem Group Corp
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.
Sinochem is one of
Address：SInochem Tower，A2 Fuxingmenwai Dajie Beijing，China
Tel：0086-10-88078888
Fax：0086-10-88078890
l
Chairman:
Mr. Luo Dongjiang, born in 1954, university
education (graduated from
Working Experience(s):
Has ever acted as general manager of Plan Department China Chemical Import & Export Corp; general manager of Sinochem International Rubber Co, vice general manager of China Foreign Trust Co., Ltd and vice general manager of China National Chemical Import & Export Corp.
December.2004 to present Working in SC as chairman.
l
General Manager:
Mr. Xu Weihui in his 30’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2001 to 2002 Worked in SC vice general manager.
From 2002 to 2003 Worked in SC as director and vice general manager.
From 2003 to 2005 Worked in Sinochem Hebei Import and Export Corp as general manager.
From 2005 to present Working in SC as general manager.
SC is mainly
engaged in international trade.
SC’s products mainly
include: Chemicals products, Rubber products, Metallurgy and Energy products.
SC sources its
materials 80% from domestic market, and 20% from international market, mainly
from
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, Check, L/C and Credit of 30-60 days.
*Major Clients:
============
DOW, BP, SHELL, EXXONMOBILE, CHEVRON, BASF,
BAYER, SK,
Company name SC’s
shareholding (%)
Hainan Sinochem Shipping Co., Ltd. 95
Sinochem International Storage &
Transportation
Manzhouli Sinochem International Trading Co.,
Ltd. 99.68
Sinochem Xingzhong Petroleum Transfer &
Transportation (Zhoushan)
Sinochem Xingyuan Petroleum Storage (Zhoushan)
Shanxi Sinochem Huanda Industry Co., Ltd. 50.9
Sinochem International Yuhang Macromolecule
Material R & D Co., Ltd. 99.5
Sinochem International Taicang Xingguo
Industry Co., Ltd. 100
Sinochem International Taicang Xingnuo
Industry Co., Ltd. 100
Sinochem International Taicang Xingkai
Industry Co., Ltd. 100
Sinochem International (
Sinochem International FZE 100
Sinochem International (Overseas) Pte Ltd. 100
Shanghai Aoxing International Shipping
Management Co., Ltd. 48.45
Sinochem Oriental Industry Co., Ltd. 91.75
SC is also known to have about 20 offices around
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#: N/A
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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Cash & bank |
943,039 |
833,786 |
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Accounts
receivable |
826,397 |
1,087,320 |
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Accounts payable
advance |
593,971 |
712,583 |
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Bills receivable
|
51,901 |
93,245 |
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Other receivables |
100,916 |
90,200 |
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Inventory |
963,891 |
1,239,673 |
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Other current
assets |
46,552 |
48,089 |
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------------------ |
------------------ |
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Current assets |
3,526,667 |
4,104,896 |
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Fixed assets net
value |
1,381,836 |
2,066,009 |
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Projects under
construction |
635,310 |
918,071 |
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Long term
investment |
730,447 |
778,322 |
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Other assets |
68,053 |
71,397 |
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Total assets |
6,342,313 |
7,938,695 |
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============= |
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Short loans |
364,114 |
452,327 |
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Accounts payable |
837,089 |
1,171,046 |
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Accounts
receivable advance |
460,019 |
376,085 |
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Bills payable |
495,359 |
547,133 |
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Taxes payable |
10,477 |
-10,651 |
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Salaries payable |
43,628 |
27,114 |
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Other payable |
244,608 |
220,456 |
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Accrued expenses |
26,786 |
24,747 |
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Long term
liabilities due within one year |
94,126 |
24,796 |
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Other current
liabilities |
38,410 |
72,182 |
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Current
liabilities |
2,614,616 |
2,905,235 |
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Long term
liabilities |
169,531 |
1,338,453 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
2,784,147 |
4,243,688 |
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Minority
Shareholders’ equity |
465,909 |
663,055 |
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Equities |
3,092,257 |
3,031,952 |
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------------------ |
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Total
liabilities & equities |
6,342,313 |
7,938,695 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2005 |
As of Dec. 31,
2006 |
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Turnover |
15,911,394 |
15,420,123 |
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Cost of goods
sold |
14,614,434 |
14,475,279 |
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Sales expense |
371,790 |
324,418 |
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Management expense |
231,029 |
194,485 |
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Finance expense |
36,417 |
81,034 |
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Profit before tax |
845,481 |
540,304 |
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Minority
Shareholders’ profit and loss |
52,522 |
88,176 |
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Less: profit tax |
81,451 |
68,432 |
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Profits |
711,508 |
383,696 |
Important Ratios
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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*Current ratio |
1.35 |
1.41 |
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*Quick ratio |
0.98 |
0.99 |
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*Liabilities
to assets |
0.44 |
0.53 |
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*Net profit
margin (%) |
4.47 |
2.48 |
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*Return on
total assets (%) |
11.21 |
4.82 |
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*Fixed
assets/Total assets |
0.22 |
0.26 |
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*Inventory
/Turnover ×365 |
22days |
29days |
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*Accounts
receivable/Turnover ×365 |
19days |
26days |
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*Turnover/Total
assets |
2.51 |
1.94 |
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* Cost of
goods sold/Turnover |
0.92 |
0.94 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in 2005 and
2006.
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SC’s net profit margin is fairly good in 2005 and
2006.
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SC’s return on total assets is fairly good in 2005
and 2006.
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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 in 2005 and 2006.
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SC’s quick ratio is maintained in a normal level in
2005 and 2006.
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The accounts receivable of SC is fairly large in
2006.
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The inventory of SC is fairly large in 2006.
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The short term loan of SC is fair.
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SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Strong.
SC is well-known in its industry with strong financial conditions. Over
the past 9 years, SC has made a stable growth with acceptable profit. A credit
line up to USD 20,000,000 would appear 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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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%)