|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
LL03675-B
|
|
COMPANY NAME
|
:
|
MITCO LABUAN CO LIMITED
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
24/02/1993
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
FOREIGN
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
N/A
|
|
BUSINESS ADDRESS
|
:
|
PETRONAS TWIN TOWERS, LEVEL 13-15, KUALA LUMPUR CITY CENTRE, TOWER
2, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-20514224
|
|
FAX.NO.
|
:
|
03-20514943
|
|
WEB SITE
|
:
|
www.mitco.com.my
|
|
CONTACT PERSON
|
:
|
HAFIZA ZAHID ( SENIOR ACCOUNTANT )
|
|
|
|
|
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INDUSTRY CODE
|
:
|
51499 51491 51432
|
|
PRINCIPAL ACTIVITY
|
:
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TRADING OF CHEMICALS & DERIVATIVES, FERTILISERS, POLYMERS,
AGRICULTURE AND INDUSTRIAL PRODUCTS
|
|
AUTHORISED CAPITAL
|
:
|
N/A
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
N/A
|
|
|
|
|
|
SALES
|
:
|
N/A
|
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NET WORTH
|
:
|
N/A
|
|
|
|
|
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STAFF STRENGTH
|
:
|
20 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
N/A
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG GROWTH
|
HISTORY / BACKGROUND
The SC is principally engaged in the (as a / as an) trading of chemicals
& derivatives, fertilisers, polymers, agriculture and industrial
products.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is not qualified to be one of the Top Corporate Performers in the
Malaysia 1000 (M1000) publication, a directory jointly published by Companies
Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and
Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.
No shareholders was found in our databank at the time of investigation
DIRECTOR
No director found in our databank.
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
HAFIZA ZAHID
|
|
|
Position
|
:
|
SENIOR ACCOUNTANT
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
SAHEDAH OTHMAN
|
|
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Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
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|
AUDITOR
No Auditor found in our databank
COMPANY SECRETARIES
No company secretary was found in our databank.
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our databank.
PAYMENT RECORD
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Import Countries
|
:
|
ASIA,EUROPE
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
END USERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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OPERATIONS
|
Goods Traded
|
:
|
|
CHEMICALS
& DERIVATIVES, FERTILISERS, POLYMERS, AGRICULTURE AND INDUSTRIAL
PRODUCTS
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
CHEMQUEST SDN BHD
|
|
IDEMITSU CHEMICALS (M) SDN BHD
|
|
MARUBENI KABUSHIKI KAISHA (MARUBENI CORPORATION)
|
|
TEXCHEM RESOURCES BHD
|
|
TITAN TRADING CORP. SDN BHD
|
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
20
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of chemicals
& derivatives, fertilisers, polymers, agriculture and industrial
products.
The SC is the procurement arm of Petronas for the supply of equipment,
machineries, spare parts, materials, chemicals, catalyst and other related
services for operational and project requirements of companies under the
Petronas Group and for other companies worldwide.
The SC trades a broad range of products as follows:-
1) Electricals - batteries, cables, fuses, circuit breakers, motors, relays,
contractors, transformers, switchboards and others.
2) Heating Ventilation & Air Conditioning (HVAC) Spares - fans, filters,
air handling units, fan coils, chillers, condenser units.
3) Instrumentation - control panels, flow instruments, level instruments,
sampling system, pressure instruments, valves,calibration equipment and etc.
4) Mechanical - water treatment equipment, hoses, hydraulic power unit,
bearings, cranes, marine systems, heat prosecc equipment and others.
5) Rotating Equipment - compressors, generators, primemover, centrifugal
pumps, rotary pumps, reciprocating pumps spacial purpose pumps.
6) Linepipes - seamless, welded, couplings and bends.
7) Office/Residential Equipment & Supplies - reading materials,
stationery, computer hardware & software, interior decoration and design,
sports equipments and etc.
8) Safety & Protection System - fire & gas system, platform alarm
system, detection equipment, fire fighting equipment, protection equipment,
survival equipment and others.
9) Structural - structural pipes, structural steel, building material and
hardware.
10) Telecommunications - radio communication equipment, microwave system,
troposcatter system, satellite system, public address (PA) system and etc.
11) Valves - ball valves, gate valves, chech valves, choke valves, needle
valves, vacuum/breeder valves and etc.
12) Miscellaneous - plastic products, service station accessories.
We were informed that the SC has an Operation Centre located in Yokohama,
Japan.
PROJECTS
No projects found in our databank
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's ( Bernama )
database, but no latest development was noted in our investigations.
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-20514224
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
UNIT LEVEL 13 (E) MAIN OFFICE TOWER FINANCIAL PARK LABUAN JALAN
MERDEKA 87000 LUBUAN F T LABUAN
|
|
Current Address
|
:
|
PETRONAS TWIN
TOWERS, LEVEL 13-15, KUALA LUMPUR CITY CENTRE, TOWER 2, 50088 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
NO
|
|
We have contacted the SC's Accountant and its Company Secretary for the
latest financial accounts. However they have rejected our request in view
of the confidentiality of the documents.
|
|
|
Other Investigations
We conducted an interview with one of the SC staff from Finance Dept. She
kidnly provided us some information pertaining on the SC and its related
services and operations.
We have verified and confirmed that the SC is not located at the address
provided.
FINANCIAL COMMENTS
No latest
financial accounts are available at the Registry Office, thus we are not able
to comment on the SC's financial performance.
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2005
|
2006
|
2007
|
2008*
|
2009**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
26.13
|
26.64
|
27.17
|
27.73
|
28.31
|
|
Gross Domestic Products ( % )
|
5.3
|
5.8
|
6.3
|
5.0
|
3.5
|
|
Domestic Demand ( % )
|
7.3
|
7.0
|
9.0
|
6.1
|
6.0
|
|
Private Expenditure ( % )
|
9.5
|
7.0
|
8.6
|
6.6
|
6.4
|
|
Consumption ( % )
|
9.2
|
7.1
|
9.0
|
6.8
|
6.5
|
|
Investment ( % )
|
8.5
|
7.0
|
7.1
|
6.2
|
5.8
|
|
Public Expenditure ( % )
|
3.6
|
6.8
|
10.1
|
4.7
|
5.1
|
|
Consumption ( % )
|
5.4
|
5.0
|
10.8
|
5.7
|
4.0
|
|
Investment ( % )
|
1.9
|
8.9
|
9.3
|
3.6
|
6.4
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
99,760
|
108,192
|
100,340
|
115,563
|
126,650
|
|
Government Finance ( MYR Million )
|
<18,684>
|
<19,109>
|
<19,948>
|
<34,462>
|
<28,450>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.8>
|
<3.3>
|
<3.2>
|
<4.8>
|
<4.8>
|
|
Inflation ( % Change in Composite CPI)
|
3.1
|
3.9
|
2.0
|
4.4
|
5.0
|
|
Unemployment Rate
|
3.5
|
3.4
|
3.2
|
3.3
|
3.2
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
266
|
290
|
336
|
388
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
5.13
|
4.21
|
3.04
|
1.91
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.63
|
12.91
|
13.30
|
13.24
|
-
|
|
Average Base Lending Rate ( % )
|
6.00
|
6.61
|
6.72
|
6.72
|
-
|
|
Business Loans Disbursed( % )
|
8.7
|
<2.5>
|
9.1
|
-
|
-
|
|
Foreign Investment ( MYR Million )
|
17,882.9
|
20,228.0
|
33,426.0
|
23,261.4
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
37,474
|
38,293
|
43,337
|
-
|
-
|
|
Registration of New Companies ( % )
|
<2.9>
|
2.2
|
13.2
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
3,069
|
8,647
|
22,629
|
-
|
-
|
|
Liquidation of Companies ( % )
|
<7.9>
|
181.8
|
161.5
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
193,095
|
216,147
|
227,410
|
-
|
-
|
|
Registration of New Business ( % )
|
2.1
|
11.9
|
5.2
|
-
|
-
|
|
Business Dissolved ( No. )
|
73,355
|
52,879
|
20,431
|
-
|
-
|
|
Business Dissolved ( % )
|
43.0
|
<27.9>
|
<61.4>
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
400.8
|
446.2
|
442.9
|
-
|
-
|
|
Cellular Phone Subscribers ( Million )
|
18.5
|
19.5
|
23.3
|
25.1
|
-
|
|
Tourist Arrival ( Million Persons )
|
16.7
|
17.5
|
20.9
|
21.5
|
-
|
|
Hotel Occupancy Rate ( % )
|
63.6
|
64.8
|
70.0
|
68.0
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
13.9
|
15.4
|
20.1
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
57,316
|
36,555
|
30,004
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
15,868
|
13,596
|
13,238
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.4>
|
<14.3>
|
<2.6>
|
-
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2005
|
2006
|
2007
|
2008*
|
2009**
|
|
|
|
|
|
|
|
|
Agriculture
|
2.5
|
5.3
|
3.1
|
3.6
|
3.7
|
|
Palm Oil
|
7.1
|
5.8
|
<0.6>
|
7.0
|
-
|
|
Rubber
|
<2.9>
|
12.6
|
1.0
|
<1.1>
|
-
|
|
Forestry & Logging
|
2.0
|
<0.4>
|
2.8
|
<1.5>
|
-
|
|
Fishing
|
<0.4>
|
9.3
|
5.2
|
4.0
|
-
|
|
Other Agriculture
|
3.2
|
5.3
|
7.0
|
5.9
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
563.7
|
516.5
|
487.3
|
393
|
0
|
|
% of Industry Non-Performing Loans
|
1.19
|
1.06
|
1.08
|
0
|
0
|
|
|
|
|
|
|
|
|
Mining
|
0.8
|
<0.4>
|
3.3
|
2.8
|
3.4
|
|
Oil & Gas
|
1.6
|
4.6
|
2.2
|
12.7
|
-
|
|
Other Mining
|
<1.0>
|
5.1
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
68.8
|
55.4
|
42.2
|
36.0
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
-
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
5.1
|
7.3
|
3.1
|
4.7
|
4.3
|
|
Exported-oriented Industries
|
3.0
|
11.1
|
<1.9>
|
2.7
|
-
|
|
Electrical & Electronics
|
3.6
|
13.4
|
3.0
|
2.4
|
-
|
|
Rubber Products
|
2.4
|
0.4
|
8.0
|
4.2
|
-
|
|
Wood Products
|
0.9
|
0.7
|
3.3
|
<6.0>
|
-
|
|
Textiles & Apparel
|
<4.4>
|
12.6
|
<10.1>
|
1.9
|
-
|
|
Domestic-oriented Industries
|
6.9
|
5.0
|
5.3
|
9.9
|
-
|
|
Food, Beverages & Tobacco
|
7.7
|
4.8
|
5.6
|
9.5
|
-
|
|
Chemical & Chemical Products
|
6.9
|
1.7
|
9.2
|
1.4
|
-
|
|
Plastic Products
|
18.6
|
21.3
|
<3.6>
|
6.5
|
-
|
|
Iron & Steel
|
<6.7>
|
<6.9>
|
17.5
|
16.8
|
-
|
|
Fabricated Metal Products
|
<7.5>
|
20.0
|
26.2
|
14.7
|
-
|
|
Non-metallic Mineral
|
<6.0>
|
<1.9>
|
6.6
|
8.3
|
-
|
|
Transport Equipment
|
10.4
|
5.3
|
<19.0>
|
27.1
|
-
|
|
Paper & Paper Products
|
4.6
|
4.1
|
14.9
|
8.6
|
-
|
|
Crude Oil Refineries
|
8.2
|
12.1
|
8.6
|
7.8
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,035.6
|
6,181.3
|
6,366.2
|
5,729.4
|
-
|
|
% of Industry Non-Performing Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
<1.6>
|
<0.5>
|
4.6
|
4.0
|
3.1
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,172.7
|
5,527.3
|
5,116.7
|
4,149.8
|
-
|
|
% of Industry Non-Performing Loans
|
10.9
|
11.4
|
11.3
|
-
|
-
|
|
|
|
|
|
|
|
|
Services
|
6.6
|
7.2
|
9.7
|
7.7
|
6.9
|
|
Electric, Gas & Water
|
5.5
|
5.2
|
4.6
|
5.0
|
4.3
|
|
Transport, Storage & Communication
|
6.3
|
5.2
|
7.6
|
7.8
|
7.3
|
|
Wholesale, Retail, Hotel & Restaurant
|
8.0
|
7.1
|
11.6
|
10.0
|
7.4
|
|
Finance, Insurance & Real Estate
|
7.0
|
7.7
|
10.7
|
9.2
|
8.1
|
|
Government Services
|
7.6
|
9.8
|
4.6
|
8.6
|
4.0
|
|
Other Services
|
5.0
|
4.7
|
5.0
|
5.9
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
8,716.8
|
11,593.2
|
10,207.8
|
8,281.4
|
-
|
|
% of Industry Non-Performing Loans
|
18.4
|
23.9
|
22.6
|
-
|
-
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
51499 : Wholesale of other intermediate products, waste and scrap
n.e.c.
|
|
51491 : Wholesale of fertilizers
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51432 : Wholesale of construction materials, builders hardware, plumbing
and heating equipment and supplies
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INDUSTRY :
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CHEMICAL
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The chemical products industry is essentially a supporting industry,
supplying intermediates and inputs to the end-user industries such as agriculture,
electronics, automotive, construction-related industry and personal care
products. The chemicals and chemical products industry, including
agricultural and industrial chemicals, cosmetics and toiletry products,
paint and soaps, is a significant contributor to the manufacturing sector.
The growth of the industry is also highly dependent on the performance of
the other sectors of the economy.
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The growth in the chemicals and chemical products sector may be constrained
by the rising raw material prices. Chemicals and chemical products, chalked
up a 16.8% year on year rise.
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This industry remains an important sector and a growth engine for
manufacturing output. It accounts for the largest share of Malaysia's
non-electrical and electronic exports. Both organic and inorganic chemicals
are gaining more attention and are anticipated to continue their growth
momentum of 2007, especially driven by demand from China, Thailand and
other ASEAN countries. In particular, agricultural and industrial chemicals,
cosmetics and toiletry products are being absorbed by burgeoning economies
with large consumer bases, like China. The sub-sector that looks most
promising in this industry is the expansion of the agricultural chemicals
industry, which includes the manufacture of fertilisers and pesticides.
There have also been indications of a higher level of foreign participation
in this industry, especially in the form of strategic partnerships with
domestic firms, essentially to expand their production capacities for
export.
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In January-November 2007, the industry's exports summed up to RM1.16
billion, translating into a 19% rise. However, closer scrutiny shows that
the pesticides and herbicides sub-sector posted a corresponding 34.3% growth,
with output coming up to RM561.6 million for the same period.
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The chemical products industry is expected to grow in tandem with the
overall growth of other manufacturing of the economy. Besides that, the
chemical and chemical products industry raises investment to improve
efficiency and increase productivity to meet stronger demand. In addition,
the Government's emphasis on high technology and higher-skilled projects is
expected to increase investment in high value-added projects. Strong external
demand for resource-based products and the improvement in the
construction-related industries would further lend support to the expansion
of chemical sector.
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OVERALL INDUSTRY OUTLOOK : Strong Growth
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COMMENTS
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Founded 1993, the SC is registered as a foreign company. Our
investigation revealed that the SC is the procurement arm of Petronas for
the supply of equipment, machineries, spare parts, materials, chemicals,
catalyst and other related services for operational and project
requirements of companies under the Petronas Group and for other companies
worldwide. Through years' development, the SC has succeeded in building up
its reputation among its customers.
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We noted that the SC serves both local and overseas clients. Penetrating
into the overseas countries such as Asia has well diversified its business
risk and at the same time added strength to its capabilities in capturing
higher market shares. As the SC provides a wide range of products, it has
the abilities to diversify its business risk. As a whole, the SC's business
risk is low. Currently, the management of the SC is assisted by 20
employees in the operations.
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No latest financial statements are available for analysis, therefore we are
unable to comment on the SC's current financial standing.
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About 40% of the SC's products are obtained from overseas countries. Being
involved in both the import and export activities, the SC is likely to be
exposed to foreign exchange risk.
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There are no legal suit against the SC.
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The industry continues to be attractive with encouraging global and
domestic demand for its products. With the promising outlook of the
industry, the SC should be able to further enhance its business.
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In view of the above, we recommend credit be granted to the SC under
guarantee.
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