MIRA
INFORM REPORT
|
Report Date : |
04.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
TIANJIN BOHAI
CHEMICAL INDUSTRIES IMP & EXP CORPORATION |
|
|
|
|
Registered Office : |
Room 1108, Titic Building, No.157 Dagubei Road,
Heping District, Tianjin, 300040 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
06.09.1981 |
|
|
|
|
Com. Reg. No.: |
120101000019864 |
|
|
|
|
Legal Form : |
State-Owned Enterprise |
|
|
|
|
Line of Business : |
Selling Chemical Products. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
Maximum Credit Limit : |
USD 90,000 |
|
|
|
|
Status : |
Small Company |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
TIANJIN BOHAI
CHEMICAL INDUSTRIES IMP & EXP CORPORATION
ROOM 1108, TITIC BUILDING, NO.157 DAGUBEI
ROAD,
HEPING DISTRICT, TIANJIN, 300040 PR CHINA
TEL: 0086-22-23313565 FAX:
0086-022-23310502
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 6, 1981
REGISTRATION NO. :
120101000019864
REGISTERED LEGAL FORM :
STATE-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. WANG CHUNSHENG (CHAIRMAN)
STAFF STRENGTH :
15
REGISTERED CAPITAL : CNY 6,127,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 541,277,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 6,255,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 90,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.85 = USD 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 State-owned
enterprise at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Sep. 6, 1981.
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 wholesaling (consigned storage) agriculture
zinc phosphide, sodium dichromate, Sodium Chloride, methyl parathion,
methamidophos, parathion, Malathion, methomyl, decamethrin, Bromadiolone,
thiodan, low flashpoint liquid, intermediate flashpoint liquid, high flashpoint
liquid, flammable solid, substances flammable when wetted, oxidzing substances
and organic peroxides, poisonous substances, acidic corrosives substances,
alkalinous corrosives substances and other corrosives (excluding supervised or poisonous chemicals) (validity
period as of 18th December 2010); light industry, building
materials, steel, timber and mechanical electrical appliances; economic
information enquiry (excluding agency service); importing and
exporting commodities and technologies, excluding export commodities limited or prohibited by the state; processing with
imported materials, processing with imported samples, assemblying with imported
parts, and compensation trade in agreement; counter trade & transit trade (in accordance with relative regulations as
to the specially operated items).
SC is mainly
engaged in selling chemical products.
Mr. Wang Chunsheng
is legal representative and chairman of SC at present.
SC is known to have approx. 15 employees 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
rents the total premise, but SC’s accountant refused to release the gross area
of the premise.
http://www.bohaichemical.com/
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-Mail: inquiry@bohaichemical.com
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 INDUSTRY GROUP CORP. 100
l
Legal representative and chairman:
Mr. Wang Chunsheng, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman and legal representative.
SC is mainly
engaged in selling chemical products.
SC’s products mainly include: Maleic Anhydride, Humate Acid,
Hydroxyethylidene 1,1-Diphosphonic Acid (HEDPA), trichloroacetaldehyde ,
Stannous Chloride, Sodium Sulphate Anhydrous, Aluminum Phosphide,
1,2,4-Trichlorobenzene and Plastic Strape Tape.
SC sources its merchandises 30% from the overseas market and 70% from
domestic market. SC sells 20% of its merchandises in domestic market, and 80%
to overseas market.
The buying terms of SC include Check, L/C, 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 known
to invest in the following companies:
Tianjin
City Commercial Bank
Investment
Capital: CNY 270,000
China National Chemical Construction Corporation Tianjin Imp & Exp
Co., Ltd.
Investment Capital: CNY 1,500,000
Registration number: 1201011192354
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.
China Everbright
Bank Tianjin Jiefang Road Sub-branch
AC#6287-303-001248
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
|
Cash & bank |
20,041 |
19,362 |
|
Bills receivable |
0 |
0 |
|
Accounts
receivable |
17,028 |
32,132 |
|
Other
receivables |
2,957 |
2,437 |
|
Advances to
suppliers |
7,218 |
59 |
|
A receivable tax
rebate of export |
14,082 |
10,929 |
|
Inventory |
13,917 |
15,041 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
75,243 |
79,960 |
|
Fixed assets |
475 |
706 |
|
Fixed assets net
value |
475 |
706 |
|
Projects under
construction |
0 |
0 |
|
Long term
investment |
1,779 |
1,778 |
|
Other assets |
855 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
78,352 |
82,444 |
|
|
============= |
============= |
|
Short loans |
6,000 |
8,500 |
|
Bills payable |
0 |
0 |
|
Accounts payable |
54,389 |
61,349 |
|
Welfare payable |
2 |
7 |
|
Advances from clients |
7,645 |
1,558 |
|
Accrued payroll |
0 |
0 |
|
Tax payable |
-2,635 |
-2,117 |
|
Other payable |
7,165 |
6,890 |
|
Surcharge
payable |
1 |
2 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
72,567 |
76,189 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
72,567 |
76,189 |
|
Equities |
5,785 |
6,255 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
78,352 |
82,444 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
|
Turnover |
385,769 |
541,277 |
|
Cost of goods
sold |
358,390 |
508,466 |
|
Sales expense |
24,598 |
28,940 |
|
Management expense |
2,031 |
3,023 |
|
Finance expense |
269 |
327 |
|
Investment
income |
20 |
20 |
|
Profit before
tax |
-60 |
481 |
|
Less: profit tax |
0 |
11 |
|
Profits |
-60 |
470 |
Important Ratios
=============
|
|
as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
|
*Current ratio |
1.04 |
1.05 |
|
*Quick ratio |
0.85 |
0.85 |
|
*Liabilities
to assets |
0.93 |
0.92 |
|
*Net profit
margin (%) |
-0.02 |
0.09 |
|
*Return on
total assets (%) |
-0.08 |
0.57 |
|
*Inventory /Turnover
×365 |
14 days |
11 days |
|
*Accounts
receivable/Turnover ×365 |
17 days |
22 days |
|
*Turnover/Total
assets |
4.92 |
6.57 |
|
* Cost of
goods sold/Turnover |
0.93 |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line, and it increased in
2006.
l
SC’s net profit margin is fair in 2005 and average in 2006.
l
SC’s return on total assets is fair in 2005 and average in 2006.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory conversion period of SC appears average.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line up to USD 90,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.21 |
|
UK Pound |
1 |
Rs.85.72 |
|
Euro |
1 |
Rs.67.92 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)