MIRA
INFORM REPORT
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Report Date : |
23.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
TIANJIN DAGU
CHEMICAL co., ltd. |
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Registered Office : |
No.1 Xinghua Road,
Tanggu Distrcit, Tianjin, 300455 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
Dec. 20, 2000. |
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Com. Reg. No.: |
1200001001718 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing
and selling chemical products. |
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 700,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
TIANJIN DAGU
CHEMICAL co., ltd.
NO.1 XINGHUA ROAD, TANGGU DISTRCIT,
TIANJIN, 300455 PR CHINA
TEL: 86 (0) 22-25393966
FAX: 86 (0) 22-25391991
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 20, 2000.
REGISTRATION NO. : 1200001001718
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
3,800
REGISTERED CAPITAL : CNY 655,510,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 4,099,638,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 1,137,524,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 700,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.41 =US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a share limited company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Dec. 20, 2000.
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 CNY 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 manufacturing and selling of chemical products (Follow the
official document No.0323), plastic products, building materials; common
vehicle transportation; storage (Follow the official document No. 0207);
manufacturing chemical device, selling steel; leasing of self-owned houses; import and export business(excluding specific
provisions).
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Xiao Weiguo has been chairman of SC since 2000.
SC owns
approximately 3,800 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Tianjin. Our checks reveal that SC
owns the total premise about 2,820,000 square meters.
http://www.daguchem.com The
design is professional and the content is well organized. At present it is in
both Chinese and English version.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tianjin Bohai Chemical Co., Ltd. 44.32
China Cinda Asset Management Corporation 21.36
Tianjin International Investment Co., Ltd.
18.30
Tianjin Bohai Group Finance Co., Ltd. 12.97
China 13th Chemical Construction
Company 1.53
Tianjin Shenghua Construction Engineering
Co., Ltd. 0.76
Tianjin Dagu Chemical Plant Construction
& Erection Engineering Company 0.76
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Chairman:
Mr. Xiao Weiguo, in his 50’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as chairman.
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General Manager:
Mr. Tang Jiyan, in his 40’s 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.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products mainly include: caustic soda, PVC resin, pesticide, epoxy propane,
synthetic hydrochloric acid, liquid chlorine and special-shaped plastics of
doors and windows processing on the basis of electrolyzing sodium chloride.
SC sources its materials 100% from domestic
market, mainly from Tianjin. SC sells 80% of its products in domestic market,
and 20% to the overseas market, mainly to Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
SC is
not known to have any subsidiary at present.
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.
Industrial &
Commercial Bank of China
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Accounts
receivable |
44,330 |
37,861 |
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Current assets |
784,776 |
845,448 |
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Fixed assets |
1,525,172 |
1,723,924 |
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Total assets |
2,502,980 |
3,327,206 |
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Total
liabilities |
1,627,919 |
2,189,682 |
Income statement
Unit: CNY’000
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Turnover |
3,551,143 |
4,099,638 |
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Cost of goods
sold |
2,987,185 |
3,513,458 |
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Sales expense |
14,674 |
16,942 |
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Management
expense |
299,695 |
347,145 |
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Finance expense |
56,748 |
46,673 |
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Profits |
72,000 |
155,245 |
Important Ratios
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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*Liabilities
to assets |
0.65 |
0.66 |
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*Net profit
margin (%) |
2.03 |
3.79 |
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*Return on
total assets (%) |
2.88 |
4.67 |
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*Fixed
assets/Total assets |
0.61 |
0.52 |
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*Accounts receivable/Turnover ×365 |
5days |
3days |
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*Turnover/Total
assets |
1.42 |
1.23 |
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* Cost of
goods sold/Turnover |
0.84 |
0.86 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in 2005.
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SC’s net profit margin is average in 2005.
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SC’s return on total assets is average in 2005.
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SC’s cost of goods sold is fair, comparing with its turnover.
LIQUIDITY: AVERAGE
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The accounts receivable of SC is average.
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SC’s turnover is in a fair 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 low.
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 700,000 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. |
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%)