MIRA INFORM REPORT
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Report Date : |
04.12.2012 |
IDENTIFICATION DETAILS
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Name : |
INNER MONGOLIA SANLIAN CHEMICAL CORP., LTD. |
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Registered Office : |
Jinshan
Development Zone, |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
17.04.1998 |
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Com. Reg. No.: |
150000000004191 |
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Legal Form : |
Shares Limited
Company |
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Line of Business : |
producing and Selling Chemical Products |
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No. of Employees : |
1,200 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.
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Source : CIA |
Company name & address
INNER MONGOLIA SANLIAN CHEMICAL CORP., LTD.
JINSHAN DEVELOPMENT ZONE,
TEL: 86 (0) 471-3964522/3620103 FAX: n/a
EXECUTIVE SUMMARY
INCORPORATION
DATE : APR. 17, 1998
REGISTRATION NO. : 150000000004191
REGISTERED LEGAL
FORM : SHARES LIMITED CO.
CHIEF EXECUTIVE : MR. PEI DENGTAI (CHAIRMAN)
STAFF STRENGTH : 1,200
REGISTERED
CAPITAL : CNY 58,275,996
BUSINESS
LINE :
MANUFACTURING
TURNOVER : cny 779,664,000
(AS OF dec. 31, 2009)
EQUITIES : cny
473,801,000 (AS OF dec. 31, 2009)
PAYMENT
: AVERAGE
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : FAIRly stable
OPERATIONAL
TREND : fairly STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.5359 =
USD 1
Adopted abbreviations
ANS - amount not
stated
NS - not stated
SC - subject company
(the company inquired by you)
NA - not available
CNY -
Note: SC’s current address should be the heading one, while
the (No. 1,
SC is also known as Inner Mongolia Sanlian Chemical Co., Ltd.
SC was registered as a Shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 17, 1998.
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 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
producing, selling and exporting calcium carbide, bleaching powder, chlorylene,
sodium hudroxide, PVC and other chemical products; importing technology,
materials, equipment, instruments & meters, and components;
undertaking cargo loading,
transporting, services, leasing tank cars, affecting Chinese foreign equity
joint venture enterprises and Chinese foreign contractual joint venture
enterprises, processing with imported samples, assembling with imported parts,
and compensation trade in agreement; producing and selling metal bucket, pot
and plastic containers; importing and exporting business; producing and selling
chemical vessels, accessories of complete plants; producing and selling
building materials; solution acetylene.
SC is mainly engaged in producing and selling
chemical products.
Mr. Pei Dengtai is legal
representative, chairman and general manager of SC at present.
SC is known to have approx. 1,200 employees at present.
SC is currently
operating at the above stated address, and this address houses its operating
office and factory in Jinshan Development Zone of Hohhot. SC’s accountant
refused to release the detailed information of the premise.
http://www.three-u.com
The website belongs to Sanlian Chemical Group. The design is professional and the content
is well organized. At present it is in Chinese and English versions.
Qualifications:
================
SC was awarded as
Hi-tech Enterprise, Outstanding Enterprise, etc.
SC’s former
registration no. was 1500001001951.
MAIN SHAREHOLDERS:
Name % of Shareholding
Pei Dengtai and other 703 individuals 100
l
Legal
representative,
chairman and general manager:
Mr. Pei Dengtai, ID#
150103195011172095, born in 1950 with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC and Inner Mongolia Sanlian Chemical Group as chairman, legal representative and
general manager.
From 1994, he took charge and brought to success more than 20 items important technological reconstruction and exploitation of the new products of State and Autonomous Region, and he also was awarded “The Outstanding Achievement of The Development of The Chlorine-Alkali Industry”, “Advancement of Science and Technology”, “Labor Model of State”, “Labor Medal of May 1st” and so on. He also won Autonomous Region “advanced worker of chemical science-technology”, “Autonomous Region excellent quality management award”, Hohhot city “ameliorate technology award” and “special award by mayor” etc. He is the director of Chinese chlorin-alkali industrial institution, the director of Inner Mongolia Autonomous Region industry and economy institution, the director of chemical academy eighth council.
SC is mainly engaged in producing and selling
chemical products.
SC’s products mainly
include: Caustic Soda Liquid, Caustic Soda Solid or Flakes, Synthetic
Hydrochloric Acid, Calcium Hypochlorite, Solution Acetylene, Trichloroethylene,
Calcium Carbide and Chlorine Liquid.
SC sources its
materials 95% from domestic market and 5% from the overseas market. SC sells
30% of its products to overseas market
and 70% in domestic market.
The buying terms of
SC include Check, L/C, T/T and Credit of 30-60 days. The payment terms of SC
include Check, T/T, L/C, and Credit of 30-60 days.
*Major Supplier
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Inner Mongolia
Lantai Industrial Co., Ltd.
*Major Customer
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Sinochem
International Corporation
·
Inner Mongolia Sanlian Chemical Machine Co.,
Ltd.
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Huhhot Sanlian Real Estate Development Co., Ltd.
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Sino-Chem International Co., Ltd.
Etc.
Branches:
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Inner Mongolia Sanlian Chemical Corp., Ltd. Qingshuihe
Inner Mongolia Sanlian Chemical Corp., Ltd. Jinshan Branch
SC is known to invest in the following
company:
=========================================
Sino-Chem Sanlian
Plastic (
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.
Note: SC’s suppliers
declined to make any comment on SC, so the trade reference is not available.
AC# 1507720826314618
Relationship:
Financial Summary
===============
Unit: CNY’000
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As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
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Total liabilities |
244,450 |
365,267 |
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Equities |
491,200 |
473,801 |
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-------------- |
-------------- |
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Total assets |
735,650 |
839,068 |
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========= |
========= |
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Turnover |
1,039,620 |
779,664 |
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Profit before tax |
/ |
/ |
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Less: profit tax |
/ |
/ |
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Profits |
24,780 |
-16,619 |
Note: we did not find SC’s detailed financial
reports for Yr 2008 and 2009.
Important Ratios
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As of Dec. 31, 2008 |
As of Dec. 31, 2009 |
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*Liabilities to assets |
0.33 |
0.44 |
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*Net profit margin (%) |
2.38 |
-2.13 |
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*Return on total assets (%) |
3.37 |
-1.98 |
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*Turnover/Total assets |
1.41 |
0.93 |
PROFITABILITY: FAIR
l
The
turnover of SC appears fairly good in its line, but it decreased in 2009.
l
SC’s net
profit margin is average in 2008 but fair in 2009.
l
SC’s
return on total assets is average in 2008 but fair in 2009.
l
SC’s
turnover is in an average level, comparing with the size of its total assets in
both years.
LEVERAGE: AVERAGE
l
The debt
ratio of SC is low.
l
The risk
for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly
stable.
SC is considered
large-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.56 |
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UK Pound |
1 |
Rs.87.46 |
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Euro |
1 |
Rs.71.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.