MIRA
INFORM REPORT
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Report Date : |
18.12.2012 |
IDENTIFICATION DETAILS
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Name : |
INNER MONGOLIA SANLIAN CHEMICAL CORP., LTD. |
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Registered Office : |
Jinshan Development Zone, Hohhot, Inner Mongolia, 010010 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
17.04.1998 |
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Reg. No.: |
150000000004191 |
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Legal Form : |
SHARES LIMITED CO. |
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Line of Business : |
Subject is engaged in producing and selling chemical products. |
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No. of Employees : |
1,200 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 (31.03.2011) |
Current Rating (30.06.2012) |
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China |
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 and address
INNER MONGOLIA SANLIAN CHEMICAL CORP., LTD.
JINSHAN DEVELOPMENT ZONE, HOHHOT, INNER MONGOLIA, 010010 PR CHINA
TEL: 86 (0) 471-3964522/3620692 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 6.35 = 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 current address should be the heading one, while the (No. 1,
Huagong Road, Hohhot, Inner Mongolia) was the former one.
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
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.
Huhhot Sanlian Real Estate Development Co., Ltd.
Sino-Chem International Co., Ltd.
Etc.
Branches:
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Inner Mongolia Sanlian Chemical Corp., Ltd.
Qingshuihe County Branch
Inner Mongolia Sanlian Chemical Corp., Ltd.
Jinshan Branch
SC is known to
invest in the following company:
=========================================
Sino-Chem Sanlian Plastic (Inner Mongolia) 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’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.
China Construction Bank Hohhot Zhongshan West Road Sub-branch
AC#：1507720826314618
Relationship: Normal.
Financial Summary
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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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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, 2009 and 2010.
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
The turnover of SC appears fairly good in its line, but it decreased in
2009.
SC’s net profit margin is average in 2008 but fair in 2009.
SC’s return on total assets is average in 2008 but fair in 2009.
SC’s turnover is in an average level, comparing with the size of its
total assets in both years.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
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.54.63 |
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1 |
Rs.88.40 |
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Euro |
1 |
Rs.71.85 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.