MIRA
INFORM REPORT
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Report Date : |
08.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
SINOCHEM JIANGSU CORPORATION |
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Registered Office : |
27-28/F Shangmao Century Plaza, No. 49, Zhongshan South Road, Nanjing
, Jiangsu Province 210005 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
30.12.1992 |
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Com. Reg. No.: |
3200001100945 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Importing and Exporting Chemical Products |
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 : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME & ADDRESS
SINOCHEM JIANGSU CORPORATION
27-28/F Shangmao Century Plaza, No. 49, Zhongshan South Road, Nanjing ,
Jiangsu Province
210005 PR CHINA
TEL: 86 (0) 25-86890816
FAX: 86 (0) 25-86890766
EXECUTIVE SUMMARY
INCORPORATION DATE : december 30, 1992
REGISTRATION NO. : 3200001100945
REGISTERED LEGAL FORM : State-owned enterprise
CHIEF EXECUTIVE :
MR. gu linmin (general manager)
STAFF STRENGTH :
181
REGISTERED CAPITAL : CNY50,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 2,137,470,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 88,990,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : FAIRLY good
EXCHANGE RATE :
CNY 7.20 = 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 Ren Min Bi
SC was registered as a state-owned enterprise at local provincial
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on December 30, 1992.
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 scope includes importing and exporting commodity
& technology, excluding the goods limited or forbidden by the government;
processing with imported materials, processing with imported samples,
assemblying with imported parts, and compensation trade in agreement; operating
counter trade & transiting trade.
SC is mainly engaged in importing and exporting chemical products.
Mr. Gu Linmin has been general manager of SC since 2004.
SC is known to have approx. 181 staff members at
present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Nanjing. Our checks
reveal that SC owns the total premise about 2,000 square meters.
http://www.sinochemjiangsu.com
The design is professional and the content is well organized. At present the
web site is in both Chinese and English versions.
E-mail: info@sinochemjiangsu.com
SC has got the certificate of ISO9002.
SC former registered capital was CNY 33,076,000, and it was changed to
CNY 50,000,000 in November of 2004.
SC’s former legal representative and general manager was He Shujun, and
he was taken place by Gu Linmin in June of 2004.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Sinochem Corporation 100
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
China’s earliest qualifiers of Global 500. In 2006, it was named to the list
for the 16th year, ranking the 304th.
Address：Sinochem Tower, A2 Fuxingmenwai Dajie, Beijing
Post code：100045
Tel：0086-10-88078888
Fax：0086-10-88078890
General Manager:
Mr. Gu Linmin , 47 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working in SC as general manager.
Assistant Manager:
Mr. Wang Shujie , 45 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1992 to present Working in SC as assistant manager
SC is mainly engaged in importing and exporting chemical products.
SC’s products mainly include: fine chemical products, and chemical raw
materials.
SC sources its materials 100% from domestic market, mainly Jiangsu and
Sichuan province. SC sells 100% of its products to overseas market, mainly
India, USA and European countries.
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’s suppliers include:
Sichuan Zhenghua Pharmaceutical Co., Ltd.
Huai’an Feiyang Titanium Dioxide Co., Ltd
SC is known to have the following subsidiaries at present:
Jiangsu Tianzhi Chemical Co., Ltd.
Shanghai Suhua International Trade 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
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 China
AC#：044138090010000202
Relationship: Normal.
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 |
88,430 |
42,070 |
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Inventory |
73,680 |
144,850 |
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Accounts receivable |
250,510 |
308,780 |
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Other Accounts receivable |
7,250 |
8,400 |
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To be apportioned expense |
1,620 |
0 |
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Accounts payable advance |
19,100 |
30,730 |
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Other current assets |
25,550 |
32,460 |
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Current assets |
466,140 |
567,290 |
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Fixed assets |
4,940 |
5,600 |
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Long term investment |
14,330 |
23,010 |
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Other assets |
2,950 |
2,210 |
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Total assets |
488,360 |
598,110 |
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Short loans |
123,470 |
87,700 |
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Accounts payable |
79,750 |
109,880 |
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Other Accounts payable |
14,580 |
2,670 |
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Salaries payable |
7,760 |
10,290 |
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Welfares payable |
620 |
1,540 |
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Taxes payable |
-1,810 |
9,630 |
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Withdraw the expenses in advance |
0 |
0 |
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Accounts receivable in advance |
15,360 |
17,970 |
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Other current liabilities |
168,220 |
269,440 |
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Current liabilities |
407,950 |
509,120 |
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Long term liabilities |
0 |
0 |
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Other liabilities |
0 |
0 |
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------------------ |
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Total liabilities |
407,950 |
509,120 |
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Equities |
80,410 |
88,990 |
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Total liabilities & equities |
488,360 |
598,110 |
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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 |
1,852,270 |
2,137,470 |
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Cost of goods sold |
1,737,890 |
1,985,490 |
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Sales expense |
40,860 |
63,190 |
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Management expense |
40,230 |
37,730 |
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Finance expense |
7,810 |
143,850 |
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Profit before tax |
29,500 |
41,740 |
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Less: profit tax |
10,110 |
14,710 |
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Profits |
19,390 |
27,030 |
Important Ratios
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As of Dec. 31,
2005 |
As of Dec. 31,
2006 |
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*Current ratio |
1.14 |
1.11 |
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*Quick ratio |
0.96 |
0.83 |
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*Liabilities to assets |
0.84 |
0.85 |
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*Net profit margin (%) |
1.05 |
1.26 |
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*Return on total assets (%) |
3.97 |
4.52 |
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*Inventory /Turnover ×365 |
15 days |
25 days |
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*Accounts receivable/Turnover ×365 |
49 days |
53 days |
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*Turnover/Total assets |
3.79 |
3.57 |
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*Cost of goods sold/Turnover |
0.94 |
0.93 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in its line and it was increased
in 2006.
SC’s net profit margin is average in 2005 and 2006.
SC’s return on total assets is fairly good in 2005 and 2006.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in an average level.
SC’s quick ratio is maintained in an acceptable level.
The inventory of SC is maintained in a normal level.
The accounts receivable of SC is maintained in an acceptable level.
The short-term loan of SC appears
LARGE.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is average.
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 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. |
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%)