|
EXECUTIVE SUMMARY
|
REGISTRATION
NO.
|
:
|
978545-P
|
|
COMPANY NAME
|
:
|
CGN CHEMICALS
SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION
DATE
|
:
|
17/02/2012
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE
LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED
ADDRESS
|
:
|
23B, JALAN
TODAK 5, BANDAR SUNWAY, SEBERANG JAYA, 2ND FLOOR, 13700 PERAI, PULAU
PINANG, MALAYSIA.
|
|
BUSINESS
ADDRESS
|
:
|
23C, JALAN
TODAK 5, BANDAR SUNWAY, SEBERANG JAYA, 13700 PERAI, PULAU PINANG, MALAYSIA.
|
|
TEL.NO.
|
:
|
04-3981018
|
|
FAX.NO.
|
:
|
04-3980068
|
|
CONTACT PERSON
|
:
|
LIM SOK LIN (
DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51499
|
|
PRINCIPAL
ACTIVITY
|
:
|
TRADING OF
CHEMICAL PRODUCTS
|
|
AUTHORISED
CAPITAL
|
:
|
N/A
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
N/A
|
|
|
|
|
|
SALES
|
:
|
N/A
|
|
NET WORTH
|
:
|
N/A
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
N/A
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER
CHECK
|
:
|
CLEAR
|
|
FINANCIAL
CONDITION
|
:
|
N/A
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT
CAPABILITY
|
:
|
WEAK
|
|
|
|
|
|
COMMERCIAL
RISK
|
:
|
N/A
|
|
CURRENCY
EXPOSURE
|
:
|
N/A
|
|
GENERAL
REPUTATION
|
:
|
NOT YET
DETERMINED
|
|
INDUSTRY
OUTLOOK
|
:
|
AVERAGE GROWTH
|
HISTORY / BACKGROUND
The SC is a private limited company and is
allowed to have a minimum of one and a maximum of forty-nine shareholders. As
a private limited company, the SC must have at least two directors. A private
limited company is a separate legal entity from its shareholders. As a
separate legal entity, the SC is capable of owning assets, entering into
contracts, sue or be sued by other companies. The liabilities of the
shareholders are to the extent of the equity they have taken up and the
creditors cannot claim on shareholders' personal assets even if the SC is
insolvent. The SC is governed by the Companies Act, 1965 and the company must
file its annual returns, together with its financial statements with the
Registrar of Companies.
The SC is principally engaged in the (as a
/ as an) trading of chemical products.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
No shareholders was found in our databank at the time of
investigation
DIRECTORS
DIRECTOR 1
|
Name Of
Subject
|
:
|
MR. LIM SOK
LIN
|
|
Address
|
:
|
7, LORONG
BAGAN LALLANG 11, TAMAN BAGAN LALLANG, 13400 BUTTERWORTH, PULAU PINANG,
MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
790612-07-5396
|
|
Date of Birth
|
:
|
12/06/1979
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
CHINESE
|
|
Date of
Appointment
|
:
|
17/02/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of
Subject
|
:
|
MR. NIK MOHD
FADHIL BIN MOHAMED
|
|
Address
|
:
|
KAMPUNG KUBANG
KAWAH, PERUPOK, 16300 BACHOK, KELANTAN, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
830316-03-5123
|
|
Date of Birth
|
:
|
16/03/1983
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
MALAY
|
|
Date of
Appointment
|
:
|
17/02/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of
Subject
|
:
|
LIM SOK LIN
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
AUDITOR
No Auditor found in our databank
COMPANY SECRETARIES
|
1)
|
Company
Secretary
|
:
|
MS. LOOI WAI
WAI
|
|
|
|
|
|
|
|
New IC No
|
:
|
801210-07-5394
|
|
|
Address
|
:
|
16, JALAN
BINTANG, BAGAN AJAM, 13000 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
No Banker found in our databank.
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT RECORD
|
SOURCES OF RAW
MATERIALS:
|
|
Local
|
:
|
N/A
|
|
Overseas
|
:
|
N/A
|
|
|
|
|
Ms Wai Wai ,the Assistant Company Secretary refused to disclose any
information on the SC's suppliers.
CLIENTELE
|
Local
|
:
|
N/A
|
|
|
|
|
|
Overseas
|
:
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ms Wai Wai ,the Assistant Company Secretary refused to disclose any
information on the SC's clientele.
OPERATIONS
|
Goods Traded
|
:
|
CHEMICAL
PRODUCTS
|
|
|
|
|
|
Competitor(s)
|
:
|
IDEMITSU
CHEMICALS (M) SDN BHD
KZH RESOURCES SDN BHD
MARUBENI KABUSHIKI KAISHA_(MARUBENI CORPORATION)
TEXCHEM RESOURCES BHD
TITAN TRADING CORP. SDN BHD
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of chemical
products.
Ms Wai Wai ,the Assistant Company Secretary refused to disclose any
information on the SC's operation.
PROJECTS
No projects found in our databank
CURRENT INVESTIGATION
Latest fresh investigations carried out on the SC
indicated that :
|
Telephone
Number Provided By Client
|
:
|
N/A
|
|
Current
Telephone Number
|
:
|
04-3981018
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided
by Client
|
:
|
NO. 32, JALAN
TODAK 5, BANDAR SUNWAY 13700 SUBARANG JAYA PENANG
|
|
Current
Address
|
:
|
23C, JALAN
TODAK 5, BANDAR SUNWAY, SEBERANG JAYA, 13700 PERAI, PULAU PINANG, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest
Financial Accounts
|
:
|
NO
|
|
The SC being newly incorporated and has yet to file its financial statement
with the Registrar Office.
|
|
|
Other
Investigations
we contacted Ms Wai Wai, the
SC's Company Secretary. She only provided limited information on the SC.
According to her the address provided has no connection with the SC.
The SC is sharing the contact and fax number belongs to the SC's registered
office.
The SC's contact and fax number is not yet been fixed.
FINANCIAL ANALYSIS
|
No latest
financial accounts are available at the Registry Office, thus we are not
able to comment on the SC's financial performance.
|
|
|
|
|
|
|
|
|
|
Overall
financial condition of the SC : N/A
|
MALAYSIA ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic
Indicators:
|
2008
|
2009
|
2010
|
2011*
|
2012**
|
|
|
|
|
|
|
|
|
Population (
Million)
|
27.73
|
28.13
|
28.35
|
28.70
|
29.10
|
|
Gross Domestic
Products ( % )
|
4.6
|
<0.5>
|
7.2
|
5.5
|
5.3
|
|
Domestic
Demand ( % )
|
6.9
|
2.9
|
6.3
|
4.8
|
7.6
|
|
Private
Expenditure ( % )
|
7.1
|
<2.7>
|
8.1
|
7.0
|
8.7
|
|
Consumption (
% )
|
8.4
|
0.7
|
6.7
|
6.3
|
7.1
|
|
Investment ( %
)
|
1.5
|
<17.2>
|
17.7
|
16.2
|
15.9
|
|
Public
Expenditure ( % )
|
6.5
|
5.2
|
3.8
|
7.6
|
4.7
|
|
Consumption (
% )
|
11.6
|
3.1
|
0.2
|
8.9
|
3.0
|
|
Investment ( %
)
|
0.7
|
8.0
|
2.8
|
0.6
|
7.0
|
|
|
|
|
|
|
|
|
Balance of
Trade ( MYR Million )
|
129,563
|
89,650
|
118,356
|
116,058
|
-
|
|
Government
Finance ( MYR Million )
|
<34,462>
|
<28,450>
|
<40,482>
|
<45,511>
|
<43,021>
|
|
Government
Finance to GDP / Fiscal Deficit ( % )
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
<4.7>
|
|
Inflation ( %
Change in Composite CPI)
|
<3.3>
|
<5.2>
|
5.1
|
3.1
|
-
|
|
Unemployment
Rate
|
3.7
|
4.5
|
3.9
|
3.3
|
-
|
|
|
|
|
|
|
|
|
Net
International Reserves ( MYR Billion )
|
388
|
331
|
329
|
415
|
-
|
|
Average
Risk-Weighted Capital Adequacy Ratio ( % )
|
1.91
|
2.87
|
2.20
|
3.50
|
-
|
|
Average 3
Months of Non-performing Loans ( % )
|
13.24
|
11.08
|
15.30
|
14.80
|
-
|
|
Average Base
Lending Rate ( % )
|
6.72
|
5.53
|
6.30
|
6.60
|
-
|
|
Business Loans
Disbursed( % )
|
11.6
|
10.5
|
14.7
|
15.3
|
-
|
|
Foreign
Investment ( MYR Million )
|
23,261.4
|
22,156.8
|
22,517.9
|
23,546.1
|
-
|
|
Consumer Loans
( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration
of New Companies ( No. )
|
41,599
|
41,578
|
44,148
|
-
|
-
|
|
Registration
of New Companies ( % )
|
<4.0>
|
<0.1>
|
6.2
|
-
|
-
|
|
Liquidation of
Companies ( No. )
|
27,992
|
39,075
|
25,585
|
-
|
-
|
|
Liquidation of
Companies ( % )
|
23.7
|
39.6
|
<34.5>
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration
of New Business ( No. )
|
269,866
|
312,581
|
271,414
|
-
|
-
|
|
Registration
of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business
Dissolved ( No. )
|
18,885
|
19,345
|
19,738
|
-
|
-
|
|
Business
Dissolved ( % )
|
<7.6>
|
2.4
|
2.0
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New
Passenger Cars (' 000 Unit )
|
497.5
|
486.3
|
543.6
|
363.0
|
-
|
|
Cellular Phone
Subscribers ( Million )
|
25.1
|
30.1
|
32.8
|
35.3
|
-
|
|
Tourist
Arrival ( Million Persons )
|
21.5
|
23.6
|
24.6
|
25.3
|
-
|
|
Hotel
Occupancy Rate ( % )
|
68.0
|
58.0
|
63.0
|
51.3
|
-
|
|
|
|
|
|
|
|
|
Credit Cards
Spending ( % )
|
17.1
|
12.8
|
14.1
|
15.6
|
-
|
|
Bad Cheque
Offenders (No.)
|
34,834
|
36,667
|
33,568
|
27,208
|
-
|
|
Individual
Bankruptcy ( No.)
|
13,907
|
16,228
|
18,119
|
16,155
|
-
|
|
Individual
Bankruptcy ( % )
|
5.1
|
16.7
|
11.7
|
<10.8>
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( %
of Growth ):
|
2008
|
2009
|
2010
|
2011*
|
2012**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.6
|
0.4
|
2.1
|
4.7
|
4.1
|
|
Palm Oil
|
7.0
|
<1.1>
|
<3.4>
|
7.3
|
-
|
|
Rubber
|
<1.1>
|
<19.8>
|
9.9
|
6.4
|
-
|
|
Forestry &
Logging
|
<1.5>
|
<5.9>
|
<3.3>
|
<4.7>
|
-
|
|
Fishing
|
4.0
|
5.5
|
5.6
|
2.8
|
-
|
|
Other
Agriculture
|
5.9
|
9.0
|
7.9
|
8.5
|
-
|
|
Industry
Non-Performing Loans ( MYR Million )
|
393.0
|
413.7
|
508.4
|
634.1
|
-
|
|
% of Industry
Non-Performing Loans
|
<2.0>
|
1.3
|
2.1
|
3.2
|
-
|
|
|
|
|
|
|
|
|
Mining
|
<0.8>
|
<3.8>
|
0.2
|
<2.4>
|
2.5
|
|
Oil & Gas
|
12.7
|
2.1
|
0.5
|
<1.7>
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry
Non-performing Loans ( MYR Million )
|
36.0
|
44.2
|
49.7
|
46.5
|
-
|
|
% of Industry
Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing
#
|
1.3
|
<9.4>
|
11.4
|
5.6
|
4.5
|
|
Exported-oriented
Industries
|
2.7
|
<19.0>
|
12.1
|
2.8
|
-
|
|
Electrical
& Electronics
|
2.4
|
<30.3>
|
28.4
|
<4.9>
|
-
|
|
Rubber
Products
|
4.2
|
<10.1>
|
25.3
|
15.4
|
-
|
|
Wood Products
|
<6.0>
|
<24.1>
|
20.1
|
<7.3>
|
-
|
|
Textiles &
Apparel
|
1.9
|
<19.5>
|
<0.4>
|
14.8
|
-
|
|
Domestic-oriented
Industries
|
9.9
|
<9.8>
|
16.3
|
6.3
|
-
|
|
Food,
Beverages & Tobacco
|
9.5
|
0.2
|
3.0
|
4.2
|
-
|
|
Chemical &
Chemical Products
|
1.4
|
<7.7>
|
16.2
|
5.6
|
-
|
|
Plastic
Products
|
6.5
|
<9.1>
|
2.4
|
3.8
|
-
|
|
Iron &
Steel
|
16.8
|
<32.7>
|
29.3
|
2.4
|
-
|
|
Fabricated
Metal Products
|
14.7
|
<2.5>
|
14.9
|
25.2
|
-
|
|
Non-metallic
Mineral
|
8.3
|
<15.5>
|
20.2
|
16.3
|
-
|
|
Transport
Equipment
|
27.1
|
<13.5>
|
36.5
|
<9.4>
|
-
|
|
Paper &
Paper Products
|
8.6
|
<5.0>
|
18.7
|
15.6
|
-
|
|
Crude Oil
Refineries
|
7.8
|
0.2
|
<11.4>
|
9.3
|
-
|
|
Industry
Non-Performing Loans ( MYR Million )
|
5,729.4
|
6,007.3
|
6,217.5
|
6,537.2
|
-
|
|
% of Industry
Non-Performing Loans
|
16.8
|
18.3
|
23.8
|
25.7
|
-
|
|
|
|
|
|
|
|
|
Construction
|
2.1
|
5.8
|
5.1
|
4.4
|
7.0
|
|
Industry
Non-Performing Loans ( MYR Million )
|
4,149.8
|
3,241.8
|
4,038.5
|
3,856.9
|
-
|
|
% of Industry
Non-Performing Loans
|
12.2
|
9.9
|
10.7
|
10.2
|
-
|
|
|
|
|
|
|
|
|
Services
|
7.3
|
2.6
|
6.5
|
6.4
|
6.5
|
|
Electric, Gas
& Water
|
5.0
|
0.4
|
8.5
|
5.6
|
4.8
|
|
Transport, Storage
& Communication
|
7.8
|
1.6
|
7.7
|
6.5
|
7.3
|
|
Wholesale,
Retail, Hotel & Restaurant
|
10.0
|
2.8
|
4.7
|
5.2
|
6.9
|
|
Finance,
Insurance & Real Estate
|
9.2
|
3.8
|
6.1
|
6.3
|
6.5
|
|
Government
Services
|
8.6
|
2.0
|
6.7
|
7.6
|
5.6
|
|
Other Services
|
5.9
|
4.4
|
4.2
|
5.4
|
5.7
|
|
Industry
Non-Performing Loans ( MYR Million )
|
8,281.4
|
6,631.3
|
7,384.6
|
6,825.2
|
-
|
|
% of Industry
Non-Performing Loans
|
24.3
|
20.2
|
25.7
|
23.4
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate /
Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY ANALYSIS
|
MSIC CODE
|
|
51499 :
Wholesale of other intermediate products, waste and scrap n.e.c.
|
|
|
|
|
INDUSTRY :
|
MANUFACTURING
|
|
|
|
|
|
|
The manufacturing sector expanded by 5.1% in the third quarter ended September
30,2011 on a year-on-year basis as supply-chain disruptions were reduced
and following higher output of domestic-related industries as well as a
weaker external environment. Investments in Malaysia's manufacturing sector
reached RM40.7 billion in the first 10 months of 2011 and the full-year
figure is expected to surpass year 2010's numbers.
|
|
The E&E sub-sector is expected to moderate in the second half of 2011,
due to the increasingly uncertain external environment. Output of E&E
contracted 4.9% during the first seven months of 2011 largely due to the
global supply chain disruptions and lower global chip sales. Lower orders
for notebooks and personal computers arising from increased preference for
smartphones and media tables coupled with uncertainties over the US and
European economies, adversely affected the sub-sector.
|
|
The wood and wood products sub-sector, on the other hand, is expected to
rebound when Japan's reconstruction efforts gain momentum and new housing
projects start in the Middle East after the month of Ramadhan in the year
2011. Production of wood and wood products contracted 7% during the first
half of the year 2011, largely due to slower output of wooden and cane
furniture as well as veneer sheets and plywood.
|
|
The rubber products sub-sector is expected to remain resilient supported by
continuous improvements in medical and healthcare standards in emerging
markets as well as demand from niche markets such as the oil and gas sector
for rubber hoses. Output of rubber products increased 15.4% during the
first seven months of 2011, supported by continuos demand for rubber gloves
as well as rubber tyres and tubes.
|
|
For the textiles, apparel and footwear sub-sector, the local industry
players's ability to produce quality designs and diversification of product
lines to cater to different market segments as well as market under their
own labels are expected to sustain the growth of this sub-sector.
Furthermore, the upcoming 2012 Olympic Games is anticipated to boost demand
for sports attire and strengthen the sub-sector's growth further.
Production of textiles, apparel and foorwear grew 14.8% during the first
half of the year 2011 led by higher output of wearing apparel and footwear.
|
|
During the first seven months of 2011, production of chemicals and chemical
products rose 5.6%. While output of basic chemicals contracted 8.2%, other
chemical and plastic products recorded a positive growth of 30% and 20.7%
respectively. On the domestic front, output of construction related
materials as a group grew strongly by 20% following robust housing
construction activities and aided by ongoing implementation of civil
engineering projects. The manufacture of transport equipment shrank 9.4% as
a result of supply chain disruptions caused by the earthquake and tsunami
in Japan. In addition, production of food rose 2.4% driven by the
manufacture of refined palm oil processed and preserved fish products and
other food products. Specifically, production of beverages increased 12.6%
while tobacco declined 2.3%
|
|
Going forward, the manufacturing sector is expected to be driven by higher
value-added activities. In this regard, further tax and non-tax incentives
will be provided to encourage manufacturers to move up the value chain. The
new growth initiatives in the manufacturing sector such as solar and medial
services would be important drivers of growth apart from helping to
diversify the manufacturing base and contributing to the resilience of the
sector.
|
|
|
|
|
OVERALL
INDUSTRY OUTLOOK : Average Growth
|
CREDIT RISK EVALUATION &
RECOMMENDATION
|
Incorporated
in 2012, the SC is a Private Limited company, focusing on trading of
chemical products. The SC
was newly
established and it has yet to build up a stable clientele base in the
market. It is likely to incur start-up costs during the initial years of
its operations.
|
|
We regard that the SC's management capability is weak. Without capable
management, the SC is unlikely to be successful and often contribute to
unacceptable levels of accountability. Weak management can affect
productivity, profitability, sales growth and ultimately can result in the
failure of a business.
|
|
The SC was only in the operation for a few month and is a new presence in
the industry. Thus, it has yet to file its financial statement with the Registrar
Office. Therefore, we are unable to comment on the SC's financial position.
|
|
The industry shows an upward trend and this trend is very likely to sustain
in the near terms. Being a young and small player in the industry, the SC
however faces fierce competition from other well-established players and it
is likely to be exposed to currency fluctuation risk which in turn may
impair its profitability.
|
|
Being a young company, we propose that business transaction with the SC be
conducted with caution and on a conservative basis until such time when the
SC is more fully established. Hence, credit is not recommended.
|
|