MIRA
INFORM REPORT
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Report Date : |
19.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
SINOCHEM TIANJIN CORPORATION |
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Registered Office : |
No. 58 Nanjing Road, Tianjin, 340042 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Apr. 19, 1982 |
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Com. Reg. No.: |
1200001000756 |
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Legal Form : |
State Owned Enterprise |
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Line of Business : |
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 : |
usd 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SINOCHEM TIANJIN CORPORATION
NO. 58 NANJING ROAD,
TIANJIN, 340042 PR CHINA
58
TEL: 86 (0) 22-23146260
FAX: 86 (0) 22-23146261
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 19, 1982
REGISTRATION NO. : 1200001000756
REGISTERED LEGAL FORM : STATE OWNED
ENTERPRISE
STAFF STRENGTH :
260
REGISTERED CAPITAL : CNY 106,952,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 1,313,530,000 (AS OF DEC.
31, 2006)
EQUITIES :
cny 110,510,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY 7.25= 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 Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 19, 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 scope includes importing and exporting various goods and technology (excluding commodities under state-unified operation and commodities operated by the state-designated
companies); domestic goods and materials supplying and selling.
SC is mainly
engaged in international trade.
Mr. Wang Fei has
been general manager of SC since 1999.
SC is known
to have approx. 260 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 Tianjin. Our checks reveal that SC owns the
total premise about 3,000 square meters.
http://www.sinochemtianjin.com.
The design is professional and the content is well organized. At present it is
in Chinese Version.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sinochem Corporation 100
As one of the key state-owned enterprises
under the supervision of SASAC (State-owned Assets Supervision and Administration
Commission of the State Council), Sinochem Corporation has been named to
“Fortune Global 500” for 17 times, ranking the 299th in 2007.
Since 1998, Sinochem Corporation has been
exploring the strategic transformation centering on agriculture, energy,
chemicals, finance and real estate in line with development of the nation’s
market economy. In the agricultural sector, Sinochem Corporation is now China’s
largest fertilizer provider, manufacturing, distributing and marketing all
varieties of the fertilizers. It also enjoys the leading status in R&D,
manufacturing and distribution of pesticide as well as seed breeding and
processing. Covering 80% of China’s arable land, its distribution network
delivers quality and “green” agricultural inputs and services to the Chinese
farmers. A leading force to safeguard China’s agricultural security, Sinochem
plays a vibrant role in promoting the nation’s agricultural growth and raising
the peasants’ income.
Address:F6-12 Central Tower, Chemsunny World
Trade Center, 28 Fuxingmennei, Beijing, China
Tel0086-10-59568888
Fax0086-10-59568890
l
General Manager:
Mr. Wang Fei, 49 years old with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
Before 1999 Worked
in SC as manager.
1999 to present
Working in SC as general manager.
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Vice General Manager:
Mr. Wang Jianqiang, 47 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s): Before 1999 Worked in SC as department manager.
From 1999 to present Working in SC as vice general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: dye, chemical and pharmaceutical products, rubber products,
agriculture chemical products and ships.
SC sources its
materials 70% from domestic market, and 30% from the overseas market, mainly
European countries. SC sells 30% of its products in domestic market, and 70% to
the overseas market, mainly Southeast Asia, American and European countries.
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, L/C and Credit of 30-60 days.
*Major Client:
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SINOCHEM International Oil Company
*Major Supplier:
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Lion Brothers Co., Ltd
SC is known to have 4 subsidiaries in China as following.
Sinochem Tianjin Corp. Shenzhen Company
SHENYANG CENKEY CHEMICAL CO., LTD.
Sinochem Pharmaceutical (Tianjin) Co., Ltd.
Sinochem Tianjin Binhai Logistic Corporation
SC is also known to have representative offices in USA, Netherlands,
Japan and Egypt, etc.
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’s suppliers declined to make any comments.
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.
Commercial Bank of China Donghai Sub-branch
AC#30891020100099831
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 |
25,420 |
11,660 |
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Inventory |
146,510 |
110,430 |
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Accounts
receivable |
144,290 |
153,470 |
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Bills payable |
20,180 |
35,710 |
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Advances to
suppliers |
46,830 |
96,640 |
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Other
receivables |
24,420 |
35,180 |
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Other current
assets |
7,220 |
35,600 |
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------------------ |
------------------ |
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Current assets |
414,870 |
478,690 |
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Fixed assets net
value |
10,450 |
9,830 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
35,200 |
45,200 |
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Other assets |
0 |
0 |
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------------------ |
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Total assets |
460,520 |
533,720 |
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============= |
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Short loans |
37,050 |
87,090 |
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Accounts payable |
118,010 |
102,740 |
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Bills payable |
142,240 |
107,420 |
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Advances from
clients |
56,210 |
75,000 |
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Taxes payable |
-14,940 |
-1,910 |
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Salaries payable |
0 |
0 |
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Other payable |
4,550 |
6,910 |
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Other current
liabilities |
13,310 |
21,570 |
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Current
liabilities |
356,430 |
398,820 |
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Long term
liabilities |
24,910 |
24,390 |
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------------------ |
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Total
liabilities |
381,340 |
423,210 |
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Equities |
79,180 |
110,510 |
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------------------ |
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Total
liabilities & equities |
460,520 |
533,720 |
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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 |
1,586,580 |
1,313,530 |
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Cost of goods
sold |
1,507,400 |
1,205,080 |
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Sales expense |
36,470 |
38,510 |
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Management expense |
18,060 |
15,590 |
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Finance expense |
12,650 |
13,270 |
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Investment
income |
8,010 |
10,100 |
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Other income |
170 |
310 |
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Profit before
tax |
33,700 |
38,430 |
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Less: profit tax |
4,520 |
7,650 |
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Profits |
29,180 |
30,780 |
Important Ratios
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2005 |
2006 |
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*Current ratio |
1.16 |
1.20 |
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*Quick ratio |
0.75 |
0.92 |
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*Liabilities
to assets |
0.83 |
0.79 |
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*Net profit
margin (%) |
1.83 |
2.28 |
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*Return on
total assets (%) |
6.30 |
5.63 |
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*Inventory
/Turnover ×365 |
34days |
31days |
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*Accounts
receivable/Turnover ×365 |
33days |
43days |
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*Turnover/Total
assets |
3.45 |
2.46 |
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* Cost of
goods sold/Turnover |
0.95 |
0.92 |
PROFITABILITY: FAIRLY
GOOD
l
The turnover of SC appears fairly good, though it decreased in 2006.
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SC’s net profit margin is average 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 fairly high in 2005 and 2006, 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 fair level in 2005 but in a normal
level in 2006.
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The accounts receivable of SC is average.
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The inventory of SC is average.
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The short loans of SC are average.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is well-known in its industry with stable financial conditions. Over
the past 26 years, SC has made a stable growth with fairly good profit. A
credit line up to USD 1,000,000 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%)