MIRA
INFORM REPORT
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Report Date : |
31.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
SINOCHEM
SHANGHAI CORPORATION |
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Registered Office : |
17-19/F, No. 33, South Henan Road Shanghai
200002 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
14.08.1992 |
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Com. Reg. No.: |
3101011023743 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
International Trader |
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 SHANGHAI
CORPORATION
17-19/F, NO. 33, SOUTH HENAN ROAD
SHANGHAI 200002 PR CHINA
TEL: 86 (0) 21-63375937 FAX:
86 (0) 21-63375157
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 14, 1992
REGISTRATION NO. :
3101011023743
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
STAFF STRENGTH :
363
REGISTERED CAPITAL : CNY
122,847,913
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 1,026,250,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 121,210,000 (AS OF DEC. 31, 2007)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 1,000,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY 6.85= 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 Aug. 14, 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 commodities & technology,
undertaking Chinese foreign equity joint venture enterprise and Chinese foreign
contractual joint venture enterprise, processing
with imported materials, processing with imported samples, assembling with
imported parts, and compensation trade in agreement, barter trade & transit trade; selling cereals,
oil materials, oils and by-products, metal materials, fuel oil, automobiles
(including cars) and parts.
SC is mainly
engaged in international trade.
Mr. Liu Jianping
has been chairman of SC since 2002.
SC is known to
have approx. 363 employees at present.
SC is currently
operating at the above stated address, and this address houses its operating
office in the commercial zone of Shanghai. Our checks reveal that SC owns the
total premise about 3,000 square meters.
http://www.sinochemsh.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: sinochemsh@sinochemsh.com
Initially established in July 1949, SC is directly subordinated to
SINOCHEM, which is one of top 500 companies of the world.
SC passed the quality audit ISO9001: 2000 issued by BSI in December of 2000
and passed the reexamination every year. In years of 2000 and 2003, SC won the
bronze award of Shanghai Top 500 companies.
SC’s former name was Sinochem Shanghai Importing and Exporting Corp and
in 2004 it was changed to the present one.
History & Honor
2005
No.99 among top 100 export enterprises in Shanghai Bronze Prize of
Shanghai Foreign Economy & Trade Contribution
2004
Top 50 chemicals export & import enterprises in China
No.60 among top 100 export enterprises in Shanghai
Bronze Prize of Shanghai Foreign Economy & Trade Contribution prize
for 3 years
2003
Award for excellent management system by Shanghai Foreign Economic
Relation & Trade Commission
2002
Shanghai Changhua Industries Co., Ltd passed the quality audit by BSI
2001
Grade A by Shanghai Municipal Administration of Taxation (State &
Local Together)
2000
No. 42 among top 100 export & import enterprises in Shanghai
1999
Honorable title of AA company by the Customs General Administration
Honorable title by the State Administration for Foreign Exchange to
enjoy import preference
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 2007, it was named to the list for the 17th year,
ranking the 299th. （The ranking of
Sinochem in FORTUNE）
Sinochem’s core business is as follows:
petroleum, fertilizer, trade, distribution and logistics of chemicals, crude
oil, and fuel oil and natural rubber futures; overseas oil & gas
exploitation and production, refinery, chemical mining & washing,
fertilizer & chemicals production; hotel & real estate development and
operation. Sinochem is one of the four major state-owned oil companies and the
largest fertilizer importer and phosphorus and compound fertilizer manufacturer
in China. It is also China’s major sales and marketing service provider of
chemical products. The brand name of Sinochem is accredited as Famous Chinese
Brand and enjoys worldwide prestige.
Sinochem has two listed branches, i.e.
“SINOFERT HOLDINGS LIMITED” in Hong Kong (Code: 0297) and “SINOCHEM
INTERNATIONAL” in Shanghai (Code: 600500).
Website: www.sinochem.com
Address：SInochem Tower, A2 Fuxingmenwai Dajie Beijing, China
Post code：100045
Tel：0086-10-88078888
Fax：0086-10-88078890
l
Chairman:
Mr. Liu Jianping, 51 years old with master’s degree. He is currently
responsible for the overall management of SC.
Working Experience(s):
Worked in Sinochem Corp. as director, and in Sinochem
International Oil Company as general manager;
From 2002 to present Working in SC as chairman.
l
General Manager:
Mr. Wang Ruisheng, in his 50’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 international trade.
SC’s products mainly
include: dyestuffs, pigments, intermediates, chemical industrial raw materials,
medicaments & insecticides, bio-chemical industrial raw materials, essences
& flavors, textiles & garments and light industry products, turnoff
oils, rubbers & plastics, machineries & electronic products and IT
products.
SC sources its
materials 60% from domestic market, and 40% from the overseas market, mainly
Japan, European and American Countries. SC sells 40% of its products in
domestic market, and 60% to the overseas market, mainly Japan, South Korea, 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, Check, L/C and Credit of 30-60 days.
*Major Customers:
==============
USA CELANESE Corp
Shandong Jinyimeng Group Corp.
Hong Kong Bingfeng Group
SC is
known to have the following subsidiaries at present:
Shanghai Sikaike Property Co., Ltd.
Shanghai Baoding Investment Shares Co., Ltd.
Shanghai Chemical Importing and Exporting Corp
Pudong Corp
Shanghai Bishi Chemical Department
Shanghai Chemical Importing and Exporting Corp
Goods Quality Monitoring Center
Shanghai Trade International Presents Co.,
Ltd.
Shanghai Orient Chemical Trade Center
Shanghai Kaile Transportation Co., Ltd.
Shanghai Shanghua Store Service Corp
Shanghai Sikaike Technology Development Center
Shanghai Chemical Importing and Exporting Corp
Jiangdong Chemical Factory
Shanghai Zhenchen Storehouse
Shenyin & Wanguo Securities Co., Ltd.
Shanghai Shenlu Chemical Packing Co., Ltd.
Shanghai Orient Store Pot Co., Ltd.
Shanghai Changhua Industry 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
records 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 Shanghai Branch
AC#8001006900808091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
|
Cash & bank |
45,170 |
20,020 |
|
Advances to
suppliers |
28,020 |
88,410 |
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Accounts
receivable |
220,440 |
33,310 |
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Inventory |
39,730 |
59,480 |
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Other
receivables |
84,440 |
82,240 |
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Other current
assets |
30,090 |
6,460 |
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------------------ |
------------------ |
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Current assets |
447,890 |
289,920 |
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Fixed assets net
value |
167,880 |
64,710 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
34,060 |
90,010 |
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Other assets |
10,600 |
247,290 |
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------------------ |
------------------ |
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Total assets |
660,430 |
691,930 |
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============= |
============= |
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Short loans |
93,220 |
120,110 |
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Accounts payable |
62,530 |
46,400 |
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Bills payable |
69,560 |
0 |
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Advances from
clients |
52,420 |
14,510 |
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Taxes payable |
5,710 |
0 |
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Salaries payable |
0 |
127,910 |
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Other payable |
20,570 |
0 |
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Other current
liabilities |
81,240 |
64,810 |
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------------------ |
------------------ |
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Current
liabilities |
385,250 |
373,740 |
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Long term
liabilities |
203,330 |
196,980 |
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------------------ |
------------------ |
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Total
liabilities |
588,580 |
570,720 |
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Equities |
71,850 |
121,210 |
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------------------ |
------------------ |
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Total
liabilities & equities |
660,430 |
691,930 |
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============= |
============= |
Income Statement
Unit: CNY’000
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|
As of Dec. 31, 2006 |
As of Dec. 31, 2007 |
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Turnover |
1,212,030 |
1,026,250 |
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Cost of goods
sold |
1,147,830 |
952,150 |
|
Sales expense |
22,250 |
26,850 |
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Management expense |
31,040 |
29,770 |
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Finance expense |
9,500 |
10,300 |
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Investment
income |
/ |
53,440 |
|
Profit before
tax |
31,620 |
72,590 |
|
Less: profit tax |
6,680 |
20,250 |
|
Profits |
24,940 |
52,340 |
Important Ratios
=============
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|
2006 |
2007 |
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*Current ratio |
1.16 |
0.78 |
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*Quick ratio |
1.06 |
0.62 |
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*Liabilities
to assets |
0.89 |
0.82 |
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*Net profit
margin (%) |
1.98 |
5.10 |
|
*Return on total
assets (%) |
3.64 |
7.56 |
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*Inventory
/Turnover ×365 |
12days |
21days |
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*Accounts
receivable/Turnover ×365 |
66days |
12days |
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*Turnover/Total
assets |
1.84 |
1.48 |
|
* Cost of
goods sold/Turnover |
0.95 |
0.93 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2006 and 2007.
l
SC’s net profit margin is average in 2006 and fairly good in 2007.
l
SC’s return on total assets is average in 2006 and fairly good in 2007.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal level in 2006 but fair
in 2007.
l
SC’s quick ratio is maintained in a normal level in 2006 but fair in
2007.
l
The accounts receivable of SC is maintained in an average level in both
2 years.
l
The inventory of SC is average in both 2 years.
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The short loans of appears large.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered a large-sized company in its line with favorable background.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD 1,000,000 would appear to be within SC’s capacities
upon a periodical review basis.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.25 |
|
UK Pound |
1 |
Rs.80.36 |
|
Euro |
1 |
Rs.62.84 |
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 |
|
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 |
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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%)