MIRA
INFORM REPORT
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Report Date : |
27.10.2008 |
IDENTIFICATION DETAILS
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Name : |
SICHUAN
NITROCELL CO., LTD. |
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Registered Office : |
Gaoba, |
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Country : |
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Financials (as on) : |
30.06.2008 |
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Date of Incorporation : |
23.08.2002 |
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Com. Reg. No.: |
510000000064385 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Nitrocellulose. |
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 4,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SICHUAN NITROCELL
CO., LTD.
GAOBA, LUZHOU, SICHUAN PROVINCE, 646003 PR
CHINA
TEL: 86 (0)
830-2796909 FAX: 86 (0) 830-2796959
EXECUTIVE SUMMARY
INCORPORATION DATE : AUGUST 23, 2002
REGISTRATION NO. : 510000000064385
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
1,350
REGISTERED CAPITAL :
CNY 197,891,024
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 266,621,000 (JAN. 1 TO JUNE 30, 2008)
EQUITIES :
CNY 572,363,000 (AS OF JUNE 30, 2008)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 4,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY
6.841 = 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 Renminbi
Note: Both Sichuan Nitrocell Co., Ltd. and Sichuan Nitrocell
Corporation are SC’s English name.
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on August 23, 2002 and has been under present
ownership since September of 2005.
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 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 manufacturing nitrocellulose and
sulphuric acid; selling dangerous chemical products;
importing and exporting various goods; selling chemical products.
SC is mainly
engaged in manufacturing and selling nitrocellulose.
Mr. Zhang Yongchang has been legal representative of SC since 2008.
SC is known to have approx. 1,350 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 Luzhou.
Our checks reveal that SC owns the total premise about 120,000 square meters.
http://www.sn-nc.com
. The design is professional and the content is well organized. At present it
is in both Chinese and English versions.
E-Mail: snc-office@vip.sina.com
SC listed in Shenzhen Stock Exchange in 2008 with the stock number of
002246.
SC has got the certificate of ISO 9001: 2000.
SC changed its registered
legal form from limited liabilities company to
shares limited company in September of 2005.
SC’s former legal representative Wen Gang was
replaced by Zhang Yongchang in 2008.
MAIN SHAREHOLDERS: (As of June 30, 2008)
Name % of Shareholding
Luzhou North Chemical
Industry Co., Ltd. (LNCC) 52.210
Xi’an North Huian Chemical Industry Co., Ltd. 16.260
China North Chemical Industries Corp. (Nocinco) 5.110
Luzhou Lao Jiao Co.,
Ltd. 0.530
Sichuan Dadong
Electric Co., Ltd. 0.510
Shangluo Qinyong Alcohol Co., Ltd. 0.260
Dong Shiyun 0.140
Yi Hongzhou 0.130
Chen Lianyong 0.130
Jiang Hongchun 0.110
Other Shareholders 24.61
*Luzhou North
Chemical Industry Co., Ltd. (LNCC)
============================================================
As a sole subsidiary of China North
Industries Group Corporation (CNGC), China's defense industry leader, Luzhou North Chemical Industry Co., Ltd. (LNCC) is a large
scale chemical complex enterprise with I/E license. At present, LNCC is located
at the east suburb of Luzhou city in Sichuan
province, close to Changjiang River, the container
harbor of Luzhou city, Hulong
expressway and railway. LNCC is well known as the Garden-like enterprise.
Address: Gaoba, Longmatan District, Luzhou,
Sichuan Province
Postal code:
646003
Tel: +86-830-2796688 2796663
Fax: +86-830-2796114
Website: http://www.luzhou-north.com
E-mail: office@luzhou-north.com
*Xian North Huian
Chemical Industry Co., Ltd.
============================================================
Add: Yuxia Hu County Xi’an
Tel: 86 029-84913176/84910905
*China North Chemical Industries Corp. (Nocinco)
=========================================================
China North Chemical Industries Corp. (Nocinco) is an affiliate of China North Industries Group
(CNGC) specialized in chemical engineering. Nocinco
is a large enterprise comprising research, manufacturing and trading. Nocinco controls a total number of twenty-six R&D
institutes, trading companies and manufacturing entities.
Nocinco has possessed the
most advanced production facilities of Di-Nitro
Toluene (DNT), Toluene Di-Isocyanate (TDI),
Ethanolamine, Nitrocellulose, Active Carbon and Gas Masks in China.
Address: 11F Beifang
Dichan Plaza No.81 Zizhuyuan
Rd, Haidian Dist, Beijing, CHINA, 100089
Fax: +86(10)88829730
Telephone: +86(10)88829722, +86(10)88829721,
+86(10)88829727
E-Mail: nocin@163.com
Note: Sichuan Province Dadong
Xinhui Investment Co., Ltd was formerly named Sichuan
Dadong Electric Co., Ltd. and adopted present name in
August of 2008.
l
Legal representative:
Mr. Zhang Yongchang, born in 1948, with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2005 to 2008
Working
in SC as vice-chairman and general manager;
From 2008 to present Working in SC as legal representative.
At
present
Working in Guangzhou Beihua Kaiming
Trading Co., Ltd and in Jiangxi Luqing
NC Co., Ltd. as chairman.
SC is mainly engaged
in manufacturing and selling nitrocellulose.
SC’s products
mainly include: Nitrocellulose and alcohol.
Brand:
SC sources its
materials 70% from domestic market, and 30% from the overseas market, mainly
European countries. SC sells 60% of its products in domestic market, and 40% to
the overseas market, mainly 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 Customers:
==============
Wuxi North Chemical
Industry Corporation
Shanxi Beifang Xing'an Chemical
Industrial Co., Ltd.
Akzo Nobel Coatings (Dongguan) Co., Ltd
Yibin North Chuan’an Chemical Co., Ltd.
Shen Zhen Finechem Science and Technology Development Co., Ltd.
Luzhou North Chemical
Industry Co., Ltd. (LNCC)
SC is known to invest in the following companies:
Guangzhou
Beihua Kaiming Trade Co.,
Ltd.
Jiang Xi Luqing NC Co., Ltd
Beijing North
Century Cellulose Technology Research & Development 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 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.
SC’s management
declined to release its bank details.
Consolidated Balance
Sheet
Unit: CNY’000
|
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as of Dec. 31,
2007 |
as
of June 30, 2008 |
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Cash & bank |
34,210 |
338,990 |
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Notes receivable |
17,578 |
4,821 |
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Inventory |
138,152 |
171,432 |
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Accounts
receivable |
75,798 |
121,512 |
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Advances to
supplies |
27,257 |
18,034 |
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Other
receivables |
5,604 |
2,390 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
298,599 |
657,179 |
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Fixed assets |
134,249 |
127,939 |
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Projects under
construction |
19,200 |
26,813 |
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Long-term
investments |
200 |
200 |
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Intangible
assets |
5,601 |
5,540 |
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Commercial
reputation |
96 |
96 |
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Deferred tax
assets |
349 |
506 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
458,294 |
818,273 |
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============= |
============= |
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Short loans |
80,000 |
110,000 |
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Notes payable |
7,100 |
10,000 |
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Accounts payable |
58,116 |
52,154 |
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Advances from
customers |
976 |
793 |
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Employee pay
payable |
26,466 |
25,473 |
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Taxes payable |
5,583 |
6,968 |
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Other Accounts
payable |
31,794 |
25,614 |
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Other current
liabilities |
168 |
5,768 |
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----------------- |
----------------- |
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Current
liabilities |
210,203 |
236,770 |
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Long-term
payable |
2,570 |
3,410 |
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Specified
payables |
5,500 |
5,500 |
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Deferred income
tax liabilities |
30 |
30 |
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Other
Non-current liabilities |
200 |
200 |
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------------------ |
------------------ |
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Total
liabilities |
218,503 |
245,910 |
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Shareholders
equities |
239,791 |
572,363 |
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------------------ |
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Total
liabilities & equities |
458,294 |
818,273 |
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Consolidated
Income Statement (Jan. 1 to
June 30, 2008)
Unit: CNY’000
|
Turnover |
266,621 |
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Cost of goods
sold |
206,516 |
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Taxes and
additional of main operation |
645 |
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Sales expense |
13,867 |
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Management expense |
19,006 |
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Finance expense |
5,550 |
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Asset impairment
loss |
528 |
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Investment
income |
11 |
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Non-operating
income |
270 |
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Non-operating
expense |
140 |
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Profit before
tax |
20,651 |
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Less: profit tax |
2,867 |
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Profits |
17,784 |
Important Ratios
=============
|
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as of Dec. 31,
2007 |
as
of June 30, 2008 |
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*Current ratio |
1.42 |
2.78 |
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*Quick ratio |
0.76 |
2.05 |
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*Liabilities
to assets |
0.48 |
0.30 |
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*Net profit
margin (%) |
|
6.67 |
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*Return on
total assets (%) |
|
2.17 |
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*Inventory
/Turnover ×365/180 |
days |
116 days |
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*Accounts
receivable/Turnover ×365/180 |
days |
83 days |
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*Turnover/Total
assets |
|
0.33 |
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* Cost of
goods sold/Turnover |
|
0.77 |
PROFITABILITY:
FAIRLY GOOD
l
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 average.
l
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 in 2007 and fairly good in the first half of 2008.
l
SC’s quick ratio is maintained in a fair level in
2007 but fairly good in the first half of 2008.
l
The inventory of SC appears fairly large.
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 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 4,000,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.77 |
|
UK Pound |
1 |
Rs.79.78 |
|
Euro |
1 |
Rs.63.36 |
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 |
|
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%)