MIRA
INFORM REPORT
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Report Date : |
29.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
INNER MANGOLIA
SANLIAN CHEMICALS CORPO. LTD. |
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Registered Office : |
No.1 Huagong Road, Hohhot, Inner Mangolia, 010030 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
17.04. 1998 |
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Com. Reg. No.: |
150000000004191 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Producing and Selling 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 : |
USD 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
INNER MANGOLIA SANLIAN
CHEMICALS CORPO. LTD.
NO.1 HUAGONG ROAD, HOHHOT, INNER MANGOLIA,
010030 PR CHINA
TEL: 0086-471-3968441 FAX:
0086-471-3962455
EXECUTIVE SUMMARY
INCORPORATION DATE :
APR. 17, 1998
REGISTRATION NO. :
150000000004191
REGISTERED LEGAL FORM : SHARES
LIMITED CO.
CHIEF EXECUTIVE :
MR. PEI DENGTAI (CHAIRMAN)
STAFF STRENGTH :
1,200
REGISTERED CAPITAL : CNY 58,275,996
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,011,890,000 (AS OF DEC.
31, 2007)
EQUITIES :
CNY 467,600,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 3,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.93599 = 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 Shares
limited co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Apr. 17, 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 co has
independent property of legal person and enjoys property rights of legal
person. The
characteristics of the shares limited co. are as follows: The
establishment of the co. requires at least two promoters and no more than
200, half of whom shall be domiciled in China.. Natural person are allowed
to serve as promoters. The minimum
registered capital of a co. is CNY 5M. while that of the co. with foreign
investment is CNY 5M. The total capital of a co. which propose to apply for
publicly listed must be no less than CNY 30M. The board of
directors must consist 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 one year of the offer. 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 scope includes producing, selling and exporting
calcium carbide, bleaching powder, chlorylene, sodium hudroxide, PVC and other
chemical products; importing technology, materials, equipment, instruments
& meters, and components (excluding the items operated by the state-designated companies); undertaking cargo loading,
devanning, and transporting; services, leasing tank cars, affecting Chinese
foreign equity joint venture enterprises and Chinese foreign contractual joint
venture enterprises, processing with imported samples, assemblying with
imported parts, and compensation trade in agreement; producing and selling
metal bucket, pot and plastic containers; importing and exporting business; producing
and selling chemical vessels, accessories of complete plants; producing and selling building materials.
SC is mainly
engaged in producing and selling chemical products.
Mr.
Pei Dengtai is legal representative and chairman of SC at present.
SC is known to have approx. 1,200
employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Hohhot. Our
checks reveal that SC owns the premise, but SC’s accountant refused to release
the gross area of the premise.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Pei Dengtai and other 703 individuals 100
l
Legal representative, chairman and
general manager:
Mr. Pei Dengtai, born in 1950 with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC and
Inner Mongolia Sanlian Chemical Group as chairman, legal representative and general manager.
l
Vice-General manager:
Mr. Zhang Yaoping,
in his 40’s with university education. He is currently responsible for the
daily management of SC.
Working Experience(s):
At present Working
in SC as vice-general manager.
SC is mainly engaged in producing and selling
chemical products.
SC’s products mainly
include: Caustic Soda Liquid, Caustic Soda Solid or Flakes, Synthetic
Hydrochloric Acid, Calcium Hypochlorite, Solution Acetylene, Trichloroethylene,
Calcium Carbide and Chlorine Liquid.
SC sources its
materials 95% from domestic market and 5% from the overseas market. SC sells
30% of its products to overseas market
and 70% in domestic 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.
*Major Suppliers*
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Inner Mongolia
Lantai Industrial Co., Ltd.
*Major Customers*
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Sinochem International
Corporation
SC is known to
invest in the following company:
Inner Mangolia Sanlian Chemicals Corpo. Ltd. Qingshuihe Country Branch
Sinochem Sanlian
Plastic (Inner Mongolia) 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’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.
China Construction Bank Hohhot Zhongshan West Road Sub-branch
AC#1507720826314618
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2007 |
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Cash & bank |
63,630 |
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Bills receivable |
1,230 |
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Accounts receivable |
35,620 |
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Other receivables |
50,760 |
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Advances to suppliers |
71,260 |
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Inventory |
66,860 |
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Prepaid expenses |
0 |
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Other current assets |
80 |
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Current assets |
289,440 |
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Fixed
assets |
216,490 |
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Fixed assets net value |
146,770 |
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Projects under construction |
19,810 |
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Project materials |
49,910 |
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Long term investment |
259,750 |
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Other assets |
11,560 |
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Total assets |
777,240 |
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Short loans |
30,000 |
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Bills payable |
10,000 |
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Accounts payable |
65,970 |
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Welfare payable |
13,120 |
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Advances from clients |
55,900 |
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Accrued payroll |
0 |
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Tax payable |
10,740 |
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Other payable |
46,370 |
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Dividends payable |
1,750 |
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Accrued expenses |
2,500 |
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Other current liabilities |
0 |
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Current liabilities |
236,350 |
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Long-term loans |
69,070 |
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Other liabilities |
4,220 |
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Total liabilities |
309,640 |
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Equities |
467,600 |
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Total liabilities & equities |
777,240 |
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Income Statement
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Turnover |
1,011,890 |
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Cost of goods sold |
861,920 |
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Sales expense |
44,420 |
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Management expense |
28,420 |
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Finance expense |
3,840 |
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Investment income |
67,930 |
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Profit before tax |
170,060 |
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Less: profit tax |
12,840 |
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Profits |
157,220 |
Important Ratios
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as of Dec. 31, 2007 |
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*Current ratio |
1.22 |
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*Quick ratio |
0.94 |
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*Liabilities to assets |
0.40 |
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*Net profit margin (%) |
15.54 |
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*Return on total assets (%) |
20.23 |
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*Inventory /Turnover ×365 |
25 days |
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*Accounts receivable/Turnover ×365 |
13 days |
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*Turnover/Total assets |
1.30 |
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* Cost of goods sold/Turnover |
0.85 |
PROFITABILITY: FAIRLY GOOD
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The turnover of
SC appears fairly good in its line.
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SC’s net profit
margin is fairly good.
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SC’s return on
total assets is fairly good.
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SC’s cost of
goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current
ratio of SC is maintained in a normal level.
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SC’s quick
ratio is maintained in a normal level.
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The inventory
conversion period of SC appears average.
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The accounts
receivable of SC appears average.
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SC’s short-term
loan is in an average level.
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SC’s turnover
is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
l
The debt ratio
of SC is low.
l
The risk for SC
to go bankrupt is low.
Overall financial condition of the SC: Fairly
good.
SC is considered
large-sized in its line with fairly good financial conditions. A credit line up
to USD 3,000,000 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%)