MIRA INFORM REPORT
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Report Date : |
17.11.2008 |
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 : |
19.04.1982 |
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Com. Reg. No.: |
12000000003690 |
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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 : |
Regular |
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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. : 12000000003690
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
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
Ren Min Bi
Note: SC’s concrete
address should be the above stated one.
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 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 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 both Chinese and English versions.
Email: tianjin@sinochem.com
SC’s predecessor was North China Foreign Trade Company, which was
founded in 1949. And it is one membership of Sinochem Group Company, one of the
earliest specialized foreign trade companies since China is founded. SC is the
top 500 company in national import and export volume and is the top 50 company
in the export volume of Tianjin.
Changes of its
registration information:
|
Date of change |
Item |
Before the change |
After the change |
|
1949-9 |
Company name |
North China Foreign Trade Company |
North China Import Company |
|
1950-4 |
Company name |
North China Import Company |
China Import Company |
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1951-5 |
Company name |
China Import Company |
China Chemicals Import and Export
Corporation Tianjin Branch |
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1982-4-19 |
Company name |
China Chemicals Import and Export
Corporation Tianjin Branch |
Tianjin Chemicals Import and Export
Corporation |
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1995-1-1 |
Company name |
Tianjin Chemicals Import and Export
Corporation |
Sinochem Tianjin Import & Export
Corporation |
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2005-7-21 |
Registered capital |
CNY 46,941,000 |
CNY 106,952,000 |
|
2005-9-5 |
Company name |
Sinochem Tianjin Import & Export
Corporation |
Sinochem Tianjin Corporation |
|
2008-6 |
Registration number |
1200001000756 |
12000000003690 |
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
Tel 0086-10-59568888
Fax 0086-10-59568890
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.
l
Deputy General Manager:
Mr. Sun Jinghui, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working
Experience(s):
From 2006 to
present Working in SC as deputy general manager.
SC is mainly
engaged in international trade.
SC mainly deals
with organic and inorganic chemicals, plastics, dyestuffs, intermediates,
pesticides, fertilizers, metal chemicals, pharmaceuticals and other products. It
handles about 1000 kinds of products, among which YOUHAO brand dyestuffs, TP
brand pigments, Sunflower brand printing inks, etc.
SC’s products
mainly include: glyphosate, mancozeb, ammonium sulphate, triple super phosrate,
8063 indigo s grains, 8061 indigo pare powder, 521 sulphur black b,
anthraquinone, tobias acid, rubber, Ferro silicon, Ferro molybdenum, etc.
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:
===========
SINOCHEM International Oil Company
*Major Suppliers:
=============
Lion Brothers Co., Ltd
Shanghai Yingli Brightening Agent 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 |
|
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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----------------- |
------------------ |
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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
=============
|
|
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 |
Note: Investigations were made with the local AIC, however, SC’s financial
records of 2007 were not available.
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good, though it decreased in 2006.
l
SC’s net profit margin is average in 2005 and 2006.
l
SC’s return on total assets is fairly good in 2005 and 2006.
l
SC’s cost of goods sold is fairly high in 2005 and 2006, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in 2005 and
2006.
l
SC’s quick ratio is maintained in a fair level in 2005 but in a normal
level in 2006.
l
The accounts receivable of SC is average.
l
The inventory of SC is average.
l
The short loans of SC are average.
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 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.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.99 |
|
UK Pound |
1 |
Rs.72.14 |
|
Euro |
1 |
Rs.61.57 |
RATING
EXPLANATIONS
|
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 |
|
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%)