MIRA INFORM REPORT
|
Report Date : |
13.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
SICHUAN LOMON TITANIUM INDUSTRY CO., LTD. |
|
|
|
|
Registered Office : |
Xinshi Industrial
Development Zone, Mianzhu City, Sichuan Province 618200 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2009 |
|
|
|
|
Date of Incorporation : |
21.02.2001 |
|
|
|
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Com. Reg. No.: |
510000000173951 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing
and Selling Titanium Pigment |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 7,000,000 |
|
Status : |
Good |
|
Payment
Behaviour : |
Usually Correct |
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name & address
SICHUAN LOMON TITANIUM INDUSTRY CO., LTD.
XINSHI INDUSTRIAL DEVELOPMENT
ZONE, MIANZHU CITY
SICHUAN PROVINCE
618200 PR CHINA
TEL: 86 (0)
838-6506063
FAX: 86 (0)
838-6506053
EXECUTIVE SUMMARY
Date of Registration : FEBRUARY 21, 2001
REGISTRATION NO. : 510000000173951
LEGAL FORM : SHARES LIMITED company
REGISTERED CAPITAL :
CNY 286,800,000
staff : 1,200
BUSINESS CATEGORY :
manufacturing
Revenue :
CNY 919,202,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 1,236,432,000 (AS OF DEC. 31, 2010)
WEBSITE : www.lomontio.cn
E-MAIL :
N/A
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
7,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.39 = USD 1
Adopted abbreviations
(as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
***Note: SC’s address should be the heading one,
while SC’s parent company-Sichuan Lomon Group Co.,
Ltd. locates in the given address (23 Gao Peng Road, Hi-tech Zone, Chengdu,
Sichuan 610041)
SC was established
as a limited liabilities company of PRC on February 21, 2001. However, SC
changed to present legal form, and was registered as shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 510000000173951 on September 25, 2005.
SC’s Organization Code Certificate No.: 72551331-3
SC’s registered capital: CNY 286,800,000
SC’s paid-in capital: CNY 286,800,000
Registration Change Record:
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
|
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
Company
Name |
Sichuan
Lomon Titanium Limited |
Sichuan
Lomon Titanium Industry Co., Ltd. |
|
|
|
Registered Capital |
CNY
200,000,000 |
CNY 239,000,000 |
|
-- |
Registration No. |
5100001823429 |
510000000173951 |
|
|
Registered Capital |
CNY 239,000,000 |
CNY 286,800,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Sichuan Lomon Group Co., Ltd. |
75.06 |
|
Sichuan Lomon Investment Co.,
Ltd. |
9.70 |
|
Daoming Business Management Consultation
Service (Shenzhen) Co., Ltd. |
5.00 |
|
Chengdu Xinxing Venture
Capital Co., Ltd. |
2.40 |
|
Sun Dagui |
4.00 |
|
Xi Linfen |
1.60 |
|
Li Jiaquan |
1.06 |
|
Fu Zuying |
1.00 |
|
Other 6 individuals |
0.18 |
Note: The above shareholding information was SC’s former ones, and
the former registered capital was CNY 239,000,000. SC’s new shareholding
information has not been on file in local SAIC.
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Li
Jiaquan |
|
General Manager |
Zhou Xiaokui |
|
Director |
Li Weimin |
|
Fan Xianguo |
|
|
Xu Dabin |
|
|
Guo Yuanxi |
|
|
Fu Daiguo |
|
|
Supervisor |
Liu Jing |
|
Deng Guoqin |
|
|
Yan Yingang |
RECENT DEVELOPMENT
SC has passed OHSAS 18001 Occupation Health and Safety
Management System and ISO14001 Environment Protection Management System.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Sichuan Lomon Group Co., Ltd. 75.06
Sichuan Lomon Investment Co.,
Ltd. 9.70
Daoming Business Management
Consultation Service (Shenzhen)
Co., Ltd. 5.00
Chengdu Xinxing Venture Capital
Co., Ltd 2.40
Sun Dagui 4.00
Xi Linfen 1.60
Li Jiaquan 1.06
Fu Zuying 1.00
Other 6 individuals 0.18
Note: The above shareholding information was SC’s former ones, and
the former registered capital was CNY 239,000,000. SC’s new shareholding
information has not been on file in local SAIC.
Sichuan
Lomon Corporation.
=========================
Date of Registration: Jul. 3, 1998
Legal Representative: Li Jiaquan
Registration No.: 510683000004622
Registered Capital: CNY 62,065,000
Sichuan Lomon
Corporation is a large-sized enterprise that integrates phospho-chemistry,
titanium-chemisrty, bio-chemistry and V-Ti-Fe ore compresive utilization
business into one entity. The Corporation now possesses five major industrial
bases. Namely, they are: The sulphur-phosphor-Titanium chemical base with
Deyang, Sichuan as its center: The sulphur-phosphor chemical base with Kunming,
Yunnan as its center; The sulphur-phosphor chemical base with Xiangfan, Hubei
as its center; The bio- chemical industry base with Chengdu, Sichuan as its
center; and The V-Ti-Fe ore comprehensive development and utilization base with
Panzhihua, Sichuan as its center. It is also one of the Spark leading
enterprises of National Technology Innovation with “State-level enterprise
technical center". In Sichuan province, the Corporation is one of the
province’s key large-sized enterprises. The Corporation was awarded as
"One of Top 500 Chinese Key Private Enterprises", "One of 500
key Chinese Chemical Enterprises ", "Top 100 Key Enterprises in
Sichuan Province" for four years consecutively, and so on. Its products
"Rutile Titanium Dioxide pigment” and "S-abscisic acid" were
certified as “Products of Technology Innovation." by Sichuan Provincial
Government in 2007.
Add: No. 23 Gaopeng
Ave., Chengdu, Sichuan Province, 610041 PR China
Tel: 86 (0) 28- 85187340
Fax: 86 (0) 28- 85183703
Web: http://www.lomon.com
Sichuan
Lomon Investment Co., Ltd.
===============================
Date of Registration: March 21, 2001
Registered Capital: CNY 40,000,000
Legal Representative: Li Jiaquan
Daoming
Business Management Consultation Service (Shenzhen) Co., Ltd.
============================================================
Date of Registration: November 18, 2005
Registration No.: 440307503243633
Legal Form: Wholly Foreign-Owned Enterprise
Legal Representative: Wu Shaoping
Registered Capital: HKD 23,000,000
Chengdu
Xinxing Venture Capital Co., Ltd.
=====================================
Date of Registration: November 10, 2000
Registered Capital: CNY 100,000,000
Legal Representative: Zhang Xueguo
MANAGEMENT
Li
Jiaquan, Legal
Representative and Chairman
--------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø
ID# 51062219630906153X
Ø
Qualification:
University
Ø
Working
experience (s):
From 2001 to present, working in SC as legal representative and
chairman
Also working in Sichuan Lomon Corporation and Sichuan Lomon
Investment Co., Ltd. as legal representative
Zhou
Xiaokui, General Manager
------------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø
ID# 31010419620921401X
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
Director
------------
Li Weimin
Fan Xianguo ID# 310104196404034014
Xu Dabin ID# 51010219380902187X
Guo Yuanxi ID# 510103195012033430
Fu Daiguo ID# 510103196410253417
Supervisors
---------------
Liu Jing ID# 510102196410211878
Deng Guoqin ID# 510622196107271512
Yan Yingang ID# 51292419740613955X
BUSINESS OPERATION
SC’s registered business scope includes manufacturing titanium
pigment; importing and exporting various goods and technology; manufacturing
fodder grade green copperas (I), sulphuric acid and phosphoric acid.
SC is
mainly engaged in manufacturing and selling titanium pigment.
Brand: LOMON
SC’s
products mainly include: R901, R966, and R986 rutile titanium dioxide for
general purposes use, top quality R108 and R109 rutile titanium dioxide for
special purposes, and water-soluble RS6013 and Rs6013 titanium dioxide white
liquid.
SC
sources its materials 80% from domestic market, and 20% from 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 Supplier:
=============
Sichuan Lomon Mining &
Metallurgy Co., Ltd.
*Major Customers:
==============
Yip’s Ink & Chemicals (Zhongshan)
Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 1,200
staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
According
to http://www.lomon.com and other sources:
Sichuan Lomon Fusheng Technology Co., Ltd. (in Chinese
pinyin)
Sichuan Lomon Phosphorous Products Inc.
Etc.
SC is
known to invest in the following company:
Xuyong Lomon Minerals Co., Ltd.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
Agricultural Bank of China Sichuan Branch Mianzhu Sub-branch
AC# 204101040006603
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
|
139,105 |
230,883 |
|
|
Notes receivable |
28,225 |
2,659 |
|
Accounts
receivable |
65,268 |
84,344 |
|
Advances to
suppliers |
65,034 |
90,699 |
|
Other receivable |
28,040 |
47,901 |
|
Inventory |
185,617 |
163,040 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
511,289 |
619,526 |
|
Fixed assets |
426,329 |
341,364 |
|
Construction in
progress |
49,363 |
177,367 |
|
Project
materials |
5,065 |
0 |
|
Intangible
assets |
38,649 |
41,858 |
|
Long-term
investment |
69,379 |
125,438 |
|
Deferred income
tax assets |
0 |
1,973 |
|
Other
non-current assets |
0 |
8 |
|
|
------------------ |
------------------ |
|
Total assets |
1,100,074 |
1,307,534 |
|
|
============= |
============= |
|
Short-term loans |
205,000 |
205,000 |
|
Notes payable |
0 |
17,380 |
|
Accounts payable |
39,575 |
60,800 |
|
Accrued
payable |
11,199 |
14,298 |
|
Tax
unpaid |
6,617 |
4,108 |
|
Interest
unpaid |
670 |
89 |
|
Advances from
clients |
10,044 |
29,595 |
|
Other payable |
4,307 |
2,693 |
|
Long-term
liabilities due with in one year |
5,160 |
62,910 |
|
Other current
liabilities |
7,408 |
619 |
|
|
------------------ |
------------------ |
|
Current liabilities |
289,980 |
397,492 |
|
Non-current
liabilities |
162,910 |
107,816 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
452,890 |
505,308 |
|
Equities |
647,184 |
802,226 |
|
|
------------------ |
------------------ |
|
Total liabilities
& equities |
1,100,074 |
1,307,534 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2008 |
As of Dec. 31,
2009 |
|
Revenue |
764,141 |
841,012 |
|
Cost of sales |
559,171 |
561,008 |
|
Taxes and surcharges |
2,651 |
3,315 |
|
Sales expense |
35,184 |
47,337 |
|
Management expense |
29,282 |
26,333 |
|
Finance expense |
28,097 |
19,912 |
|
Investment
income |
5,978 |
7,827 |
|
Non-operating
income |
12,867 |
1,942 |
|
Non-operating expense |
8,851 |
9,603 |
|
Profit before
tax |
115,194 |
183,273 |
|
Less: profit tax |
1,681 |
570 |
|
113,513 |
182,703 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
|
Long term investment |
588,542 |
|
Total assets |
2,272,640 |
|
|
------------- |
|
Long term liabilities |
284,822 |
|
Total
liabilities |
1,036,208 |
|
Equities |
1,236,432 |
|
|
------------- |
|
Revenue |
919,202 |
|
Profit before
tax |
317,675 |
|
Less: profit tax |
0 |
|
Profits |
317,675 |
Note: The detailed financials for Y2010 are not filed in local SAIC.
Important Ratios
=============
|
|
As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.76 |
1.56 |
- |
|
*Quick ratio |
1.12 |
1.15 |
- |
|
*Liabilities
to assets |
0.41 |
0.39 |
0.46 |
|
*Net profit
margin (%) |
14.85 |
21.72 |
34.56 |
|
*Return on
total assets (%) |
10.32 |
13.97 |
13.98 |
|
*Inventory /
Revenue ×365 |
89 days |
71 days |
-- |
|
*Accounts
receivable/ Revenue ×365 |
32 days |
37 days |
-- |
|
*
Revenue/Total assets |
0.69 |
0.64 |
0.40 |
|
* Cost of
sales / Revenue |
0.73 |
0.67 |
-- |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in
its line, and it increased year by year.
l
SC’s net profit margin is fairly good
in three years.
l
SC’s return on total assets is fairly
good in three years.
l
SC’s cost of goods sold is fair,
comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level in 2008 & 2009.
l
SC’s quick ratio is maintained in a
fairly good level in 2008 & 2009.
l
The inventory of SC is maintained in an
average level.
l
The accounts receivable of SC is
maintained in an average level.
l
SC’s short-term loans are in an average
level.
l
SC’s revenue is in a fair level,
comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is average in
three years.
l
The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good
financial conditions. Taking into consideration of SC’s general performance, reputation as
well as market conditions, a credit line up to USD 7,000,000 would appear to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.97 |
|
UK Pound |
1 |
Rs.74.22 |
|
Euro |
1 |
Rs.63.66 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
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 |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.