* Adopted abbreviations :
|
SC - Subject Company (the company enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
281845-P
|
|
COMPANY NAME
|
:
|
BP CHEMICALS (MALAYSIA)
SDN BHD
|
|
FORMER NAME
|
:
|
AMOCO CHEMICAL (MALAYSIA)
SDN BHD (19/11/2002)
|
|
INCORPORATION DATE
|
:
|
17/11/1993
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
QUILL 7, 9, JALAN STESEN SENTRAL 5, KUALA LUMPUR SENTRAL, LEVEL 22,
50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
LOT 116, KAWASAN PERINDUSTRIAN GEBENG , P O BOX 11 , BALOK, 26080
KUANTAN, PAHANG, MALAYSIA.
|
|
TEL.NO.
|
:
|
09-5825500
|
|
FAX.NO.
|
:
|
09-5833082
|
|
WEB SITE
|
:
|
www.bp.com
|
|
CONTACT PERSON
|
:
|
CHUNG RAE JOON ( GENERAL MANAGER )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
24290
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING OF PURIFIED TEREHTHALIC ACID (PTA)
|
|
AUTHORISED CAPITAL
|
:
|
MYR 360,000,000.00 DIVIDED INTO
ORDINARY SHARE 359,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 1,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 358,732,541.00 DIVIDED INTO
ORDINARY SHARES 343,862,345 CASH AND 14,781,200 OTHERWISE OF MYR 1.00 EACH.
PREFERENCE SHARES 88,996 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 2,139,043,000 [2009]
|
|
NET WORTH
|
:
|
MYR <945,297,000> [2009]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
230 [2011]
|
|
BANKER (S)
|
:
|
|
HSBC BANK MALAYSIA
BHD
MALAYAN BANKING BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
FAIR
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG 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) manufacturing of purified
terehthalic acid (pta).
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
The immediate holding company of the SC is AMOCO CHEMICAL HOLDING BV., a
company incorporated in NETHERLANDS.
The ultimate holding company of the SC is BP P.L.C., a company incorporated
in UNITED KINGDOM.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
AMOCO
CHEMICAL HOLDING BV
[ORD
358,643,545 & PREF 9,196]
|
RIVIUM
BOULEVARD 301, 2909LK CAPELLE AAN DEN IJSSEL,
2502, THE NETHERLANDS.
|
|
358,652,741.00
|
|
BP AMOCO CHEMICAL MALAYSIA HOLDING COMPANY
[PREF]
|
4101
WINFIELD ROAD, WARRENVILLE, ILLINOIS 60555 DELAWARE, UNITED
STATES.
|
|
79,800.00
|
|
|
|
|
---------------
|
|
|
|
|
358,732,541.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. WONG WAI YEE
|
|
Address
|
:
|
TOWER 1, 22D STAR CREST, 9
STAR STREET, WANCHAI, HONG
KONG.
|
|
IC / PP No
|
:
|
KJ0023873
|
|
|
|
|
|
Date of Birth
|
:
|
30/09/1959
|
|
|
|
|
|
Nationality
|
:
|
CHINESE
|
|
|
|
|
|
Remark
|
:
|
OLD PP: H90028178
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
CHUNG RAE JOON
|
|
Address
|
:
|
BLOCK B, LG-1, 1 KUANTAN TEMBELING RESORT, 25250 KUANTAN, PAHANG, MALAYSIA.
|
|
IC / PP No
|
:
|
MO4124290
|
|
|
|
|
|
Date of Birth
|
:
|
07/02/1948
|
|
|
|
|
|
Nationality
|
:
|
KOREAN
|
|
|
|
|
|
Remark
|
:
|
OLD PP: MP0177724
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
SEAN ZAHID PLANT
|
|
Address
|
:
|
1, LORONG PJU 7/22E, MUTIARA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
P099082854
|
|
|
|
|
|
Date of Birth
|
:
|
05/07/1969
|
|
|
|
|
|
Nationality
|
:
|
BRITISH
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. MOHD ROSLAN BIN ISMAIL
|
|
Address
|
:
|
LOT 4450, TAMAN INDAH 2, KAMPUNG CACAR BARU, DUNGUN, 23100 PAKA, TERENGGANU, MALAYSIA.
|
|
IC / PP No
|
:
|
A0436792
|
|
New IC No
|
:
|
660528-03-5847
|
|
Date of Birth
|
:
|
28/05/1966
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject
|
:
|
YANG SHIXU
|
|
Address
|
:
|
ROOM 2602, BUILDING 4, FOUR
SEASON GARDEN,
149, DONGAN ROAD,
200032, SHANGHAI, CHINA.
|
|
IC / PP No
|
:
|
G45763844
|
|
|
|
|
|
Date of Birth
|
:
|
08/11/1969
|
|
|
|
|
|
Nationality
|
:
|
CHINESE
|
|
Date of Appointment
|
:
|
03/11/2010
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
CHUNG RAE JOON
|
|
|
Position
|
:
|
GENERAL MANAGER
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
WONG YEE CHING
|
|
|
Position
|
:
|
FINANCIAL CONTROLLER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
SALEHUDDIN AHMAD
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
|
4)
|
Name of Subject
|
:
|
MOHD NAZIR MUDA
|
|
|
Position
|
:
|
PROCUREMENT MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
ERNST & YOUNG
|
|
Auditor' Address
|
:
|
KOMPLEKS TERUNTUM, JALAN MAHKOTA, 11TH FLOOR, 25000 KUANTAN, PAHANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. WENDY CHIN NGEOK MUI
|
|
|
IC / PP No
|
:
|
7311328
|
|
|
New IC No
|
:
|
640423-10-7826
|
|
|
Address
|
:
|
3, JALAN IBU KOTA 4, TAMAN IBU KOTA, GOMBAK, 53100 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. CHEN BEE LING
|
|
|
IC / PP No
|
:
|
A2824767
|
|
|
New IC No
|
:
|
740719-06-5256
|
|
|
Address
|
:
|
B-3-3A, PANGSAPURI IMPIAN, OFF JALAN PIPIT, BANDAR PUCHONG JAYA,
47100 PUCHONG, SELANGOR,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
HSBC BANK MALAYSIA
BHD
|
|
|
|
|
|
|
2)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
|
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
|
:
|
YES
|
|
Overseas
|
:
|
YES
|
|
|
|
|
The SC refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data
we conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
X
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
MEDICAL INDUSTRIES,LABORATORIES,CHEMICAL INDUSTRY,PETROCHEMICAL INDUSTRIES,PHARMACEUTICAL
INDUSTRIES
|
|
|
|
|
|
|
|
|
CUSTOMER(S)
|
:
|
|
1) TORAY BASF PBT RESIN SDN BHD
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
PURIFIED TEREHTHALIC ACID (PTA)
|
|
|
|
|
|
|
Brand Name
|
:
|
BP
|
|
|
|
|
|
Award
|
:
|
1 ) MS ISO
14001 Year :2000
2 ) MS ISO 9001 : 2000 Year :1998
|
|
|
|
|
|
Competitor(s)
|
:
|
EMERY
OLEOCHEMICALS (M) SDN BHD
KL-KEPONG OLEOMAS SDN BHD
NATURAL OLEOCHEMICALS SDN BHD
NYLEX (MALAYSIA)
BHD
POLYMERLATEX SDN BHD
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
FEDERATION OF
MALAYSIAN MANUFACTURERS (FMM)SMI ASSOCIATION OF MALAYSIASMALL & MEDIUM
ENTERPRISEMALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY
(MICCI)CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)
|
|
|
|
|
|
Ownership of premises
|
:
|
OWNED
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
COMPANY
|
230
|
212
|
212
|
240
|
245
|
240
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of purified
terehthalic acid (pta).
The SC produces the Purified Terehthalic (PTA) and chemicals to both private and
government sectors.
The SC's PTA is the key raw material for the manufacture of polyester. It is
a white powder that is produced from the oxidation of paraxylene, a
hydrocarbon obtained from naphtha.
It is also used to make polyethylene terephthalate (PET), the primary
container resin for applications such as carbonated beverage bottles and food
containers.
PROJECTS
No projects found in our databank
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
09-5825500
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
LEVEL 22, QUILL 7 NO. 9, JALAN STESEN SENTAL 5, KUALA LUMPUR SENTRAL 50470
|
|
Current Address
|
:
|
LOT 116, KAWASAN PERINDUSTRIAN GEBENG , P O BOX 11 , BALOK, 26080
KUANTAN, PAHANG, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the staff from the Admin Department. She provided some
information on the SC.
The address provided belongs to the SC's registered office.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Decreased
|
[
|
2007 - 2009
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2007 - 2009
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
0.58%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
<0.81%>
|
]
|
The continuous fall in turnover could be due to the lower demand for the SC's
products / services. The SC could be more efficient in controlling its
operating costs and had managed to reduce its losses during the year. The unfavourable
return on shareholders' funds and net assets could indicate that the SC's
management was inefficient in utilising its assets to generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
17 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
24 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
40 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The favourable debtors' days could be due
to the good credit control measures implemented by the SC. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days.
The SC could be taking advantage of the cash discounts and also wanting to
maintain goodwill with its creditors.
Liquidity:
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.79 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.12 Times
|
]
|
A low liquid ratio means that the SC may be facing working capital deficiency.
If the SC cannot obtain additional financing or injection of fresh capital,
it may face difficulties in meeting its short term obligations.
Solvency
|
Interest Cover
|
:
|
Unfavourable
|
[
|
<13.81
Times>
|
]
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
<0.04
Times>
|
]
|
The SC incurred losses in the year. It did not generate sufficient income to
service its interest. If the situation does not improve, the SC may be
vulnerable to default in servicing the interest. The SC's gearing was negative
during the year as its shareholders' funds was in the red. This means the SC
is running its business using borrowed money. We consider the SC as facing
high financial risks.
Overall
Assessment:
Although the
SC's turnover decreased, its losses also decreased during the year. This
could be the result of more efficient control in its operating costs. Due to
its weak liquidity position, the SC will be faced with problems in meeting
all its short term obligations if no short term loan is obtained or additional
capital injected into the SC. The SC's interest cover was negative,
indicating that it did not generate sufficient income to service its
interest. If its result does not show impressive improvements or succeed
obtaining short term financing or capital injection, it may not be able to
service its interest and repay the loans. The SC has high financial risks. If
its shareholders do not inject more capital into the company or if its
business performance does not improve, its going concern may be in question.
Overall financial condition of the SC : POOR
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
27.17
|
27.73
|
28.31
|
28.88
|
29.13
|
|
Gross Domestic Products ( % )
|
6.3
|
4.6
|
<0.5>
|
6.9
|
5.8
|
|
Domestic Demand ( % )
|
9.0
|
6.9
|
2.9
|
4.6
|
4.8
|
|
Private Expenditure ( % )
|
8.6
|
7.1
|
<2.7>
|
8.1
|
7.0
|
|
Consumption ( % )
|
9.0
|
8.4
|
0.7
|
6.7
|
6.3
|
|
Investment ( % )
|
7.1
|
1.5
|
<17.2>
|
15.2
|
10.2
|
|
Public Expenditure ( % )
|
10.1
|
6.5
|
5.2
|
3.8
|
2.8
|
|
Consumption ( % )
|
10.8
|
11.6
|
3.1
|
0.2
|
4.6
|
|
Investment ( % )
|
9.3
|
0.7
|
8.0
|
8.3
|
0.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
100,340
|
129,563
|
89,650
|
118,356
|
116,058
|
|
Government Finance ( MYR Million )
|
<19,948>
|
<34,462>
|
<28,450>
|
<40,482>
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.2>
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
|
Inflation ( % Change in Composite CPI)
|
2.0
|
<3.3>
|
<5.2>
|
5.1
|
-
|
|
Unemployment Rate
|
3.2
|
3.7
|
4.5
|
3.9
|
-
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
336
|
388
|
331
|
394
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.04
|
1.91
|
2.87
|
2.20
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.30
|
13.24
|
11.08
|
15.30
|
-
|
|
Average Base Lending Rate ( % )
|
6.72
|
6.72
|
5.53
|
5.70
|
-
|
|
Business Loans Disbursed( % )
|
9.1
|
11.6
|
10.5
|
14.7
|
-
|
|
Foreign Investment ( MYR Million )
|
33,426.0
|
23,261.4
|
22,156.8
|
22,517.9
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
43,337
|
41,599
|
41,578
|
-
|
-
|
|
Registration of New Companies ( % )
|
13.2
|
<4.0>
|
<0.1>
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
22,629
|
27,992
|
39,075
|
-
|
-
|
|
Liquidation of Companies ( % )
|
161.5
|
23.7
|
39.6
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
227,410
|
269,866
|
312,581
|
-
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,431
|
18,885
|
19,345
|
-
|
-
|
|
Business Dissolved ( % )
|
<61.4>
|
<7.6>
|
2.4
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
442.9
|
497.5
|
319.4
|
369.7
|
-
|
|
Cellular Phone Subscribers ( Million )
|
23.3
|
25.1
|
30.1
|
32.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
20.9
|
21.5
|
23.6
|
24.0
|
25.0
|
|
Hotel Occupancy Rate ( % )
|
70
|
68
|
58
|
63
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
20.1
|
17.1
|
12.8
|
15.1
|
-
|
|
Bad Cheque Offenders (No.)
|
30,004
|
34,834
|
-
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
13,238
|
13,907
|
-
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.6>
|
5.1
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.1
|
3.6
|
0.4
|
3.4
|
4.5
|
|
Palm Oil
|
<0.6>
|
7.0
|
<1.1>
|
1.3
|
-
|
|
Rubber
|
1.0
|
<1.1>
|
<19.8>
|
9.9
|
-
|
|
Forestry & Logging
|
2.8
|
<1.5>
|
<5.9>
|
<1.3>
|
-
|
|
Fishing
|
5.2
|
4.0
|
5.5
|
4.1
|
-
|
|
Other Agriculture
|
7.0
|
5.9
|
9.0
|
6.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
487.3
|
393.0
|
413.7
|
508.4
|
-
|
|
% of Industry Non-Performing Loans
|
1.1
|
<2.0>
|
1.3
|
2.1
|
-
|
|
|
|
|
|
|
|
|
Mining
|
3.3
|
<0.8>
|
<3.8>
|
1.0
|
2.9
|
|
Oil & Gas
|
2.2
|
12.7
|
2.1
|
4.9
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
42.2
|
36.0
|
44.2
|
49.7
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
3.1
|
1.3
|
<9.4>
|
10.8
|
6.7
|
|
Exported-oriented Industries
|
<1.9>
|
2.7
|
<19.0>
|
12.1
|
-
|
|
Electrical & Electronics
|
3.0
|
2.4
|
<30.3>
|
27.4
|
-
|
|
Rubber Products
|
8.0
|
4.2
|
<10.1>
|
25.3
|
-
|
|
Wood Products
|
3.3
|
<6.0>
|
<24.1>
|
19.7
|
-
|
|
Textiles & Apparel
|
<10.1>
|
1.9
|
<19.5>
|
<1.3>
|
-
|
|
Domestic-oriented Industries
|
5.3
|
9.9
|
<9.8>
|
16.3
|
-
|
|
Food, Beverages & Tobacco
|
5.6
|
9.5
|
0.2
|
3.0
|
-
|
|
Chemical & Chemical Products
|
9.2
|
1.4
|
<7.7>
|
20.4
|
-
|
|
Plastic Products
|
<3.6>
|
6.5
|
<9.1>
|
2.4
|
-
|
|
Iron & Steel
|
17.5
|
16.8
|
<32.7>
|
30.0
|
-
|
|
Fabricated Metal Products
|
26.2
|
14.7
|
<2.5>
|
14.9
|
-
|
|
Non-metallic Mineral
|
6.6
|
8.3
|
<15.5>
|
20.2
|
-
|
|
Transport Equipment
|
<19.0>
|
27.1
|
<13.5>
|
36.5
|
-
|
|
Paper & Paper Products
|
14.9
|
8.6
|
<5.0>
|
20.5
|
-
|
|
Crude Oil Refineries
|
8.6
|
7.8
|
0.2
|
<11.4>
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,366.2
|
5,729.4
|
6,007.3
|
6,217.5
|
-
|
|
% of Industry Non-Performing Loans
|
14.1
|
16.8
|
18.3
|
23.8
|
-
|
|
|
|
|
|
|
|
|
Construction
|
4.6
|
2.1
|
5.8
|
4.9
|
4.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,116.7
|
4,149.8
|
3,241.8
|
4,038.5
|
-
|
|
% of Industry Non-Performing Loans
|
11.3
|
12.2
|
9.9
|
10.7
|
-
|
|
|
|
|
|
|
|
|
Services
|
9.7
|
7.3
|
2.6
|
6.5
|
5.3
|
|
Electric, Gas & Water
|
4.6
|
5.0
|
0.4
|
8.5
|
5.6
|
|
Transport, Storage & Communication
|
7.60
|
7.80
|
1.60
|
7.15
|
7.55
|
|
Wholesale, Retail, Hotel & Restaurant
|
11.6
|
10.0
|
2.8
|
4.7
|
5.2
|
|
Finance, Insurance & Real Estate
|
10.7
|
9.2
|
3.8
|
6.0
|
5.2
|
|
Government Services
|
4.6
|
8.6
|
2.0
|
6.7
|
1.9
|
|
Other Services
|
5.0
|
5.9
|
4.4
|
4.2
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
10,207.8
|
8,281.4
|
6,631.3
|
7,384.6
|
-
|
|
% of Industry Non-Performing Loans
|
22.6
|
24.3
|
20.2
|
25.7
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
|
|
|
|
|
|
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
24290 : Manufacture of other chemical products n.e.c
|
|
|
|
|
INDUSTRY :
|
CHEMICAL
|
|
The chemicals industry is one of Malaysia's key industries,
catering not only for its own national requirements but also exporting to a
number of countries worldwide. The Malaysian chemicals and chemical
products industry has become the second largest contributor to the
manufactured exports sector, after the electrical and electronics industry.
|
|
The chemicals industry is important in Malaysia on account of the
nation's substantial oil and gas feedstock. The Chemicals Industries
Council of Malaysia (CICM) was established in 1978 as an industry group
under the aegis of the Federation of Malaysian Manufacturers, to focus on
the development of the chemicals industry. The primary objective of the
CICM was to organise the chemicals industry in Malaysia
into a cohesive group to represent Malaysia's interest at the
ASEAN Chemicals Industries Club (ACIC).
|
|
The Malaysian chemicals industry witnessed 37% growth in domestic sales
value in 2004 and sustained solid growth up until mid-2008. It expanded
rapidly and had been forecast to reach sales figures of MYR60,816mn by
2009.
|
|
Malaysia's
balance of trade for the year January to December 2008 was MYR114,883mn. In
the first five months of 2008, total trade was 11.2% up on the same period
last year. These impressive figures were short-lived however, with
significant decreases observed in the latter half of 2008 and early 2009,
due to the impact of global economic crisis. The Industrial Production
Index (IPI) in January 2009 was 20.2 % lower than it was in January 2008,
following a sharp decline of 15.9% in December 2008.
|
|
The biggest drop was witnessed by chemicals and chemical products, which
saw output contract by 29.9%. This is partly because the chemicals industry
tends to be more sensitive to the economic cycle and so fares
disproportionately badly in recessions.
|
|
Total exports are down from MYR100,115mn (US$27,858.48mn) in
January-February 2008 to MYR77,856mn (US$21,662mn) in the same period of
2009. Similarly, there has been a fall in imports, with total incoming
sales falling from MYR81,289mn (US$22,617mn) in January-February 2008 to
MYR57,778mn (US$16,705mn) in January-February 2009.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Strong Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 1993 as a private limited company, the SC is principally
engaged in the manufacturing and sale of purified terehthalic acid (pta)
and related chemical products. Having been in the industry for 18 years, the
SC should have received strong support from its regular customers. With a
large issued and paid up capital of RM358.73 million, the SC's business has
been expanding comfortably over the years.
|
|
Apart from supplying its products to the local market, the SC also exports
to overseas countries. Its ability to penetrate into the global market has
benefited the SC in terms of higher profitability and well diversified its
business risk. Hence, better growth prospect can be expected. The SC is a
fairly large and rapidly growing company with 230 staff in its operations.
Overall, we regard that the SC's management capability is average.
|
|
For the year ended 2009, the SC's turnover dropped from RM2.33 billion to
RM2.13 bilion which led to pre-tax losses of RM5.46 million. Due to these
losses, the SC has generated an unfavourable return on shareholders' funds
indicating that the management was inefficient in utilising its funds to
generate return. We noted that the SC's current liabilities well exceed its
current assets. Due to its weak liquidity position, the SC may face working
capital deficiency in meeting its short term financial obligations if no
fresh capital is injected into the SC. The SC has high liabilities ratio
and it may face financial difficulties if no additional capital is
injected. The SC's unfavourable financial performance over the years has
wiped out its shareholders' funds to a deficit of RM945.29 million.
Therefore, the SC as a going concern is much dependent on its ability to
generate sufficient cash flow and obtain additional financing to meet its
future obligations.
|
|
Investigation revealed that the SC's supplies are sourced locally and from
overseas countries. Thus, it is subjected to the currency fluctuation risk.
|
|
Based on the historical financial data, we concluded that the SC's payment
habit is fair. With poor financial condition, the SC may unable to pay its
creditor on time.
|
|
The industry is rapidly growing and continue to be attractive in the near terms.
We believe that the SC has the potential of capturing a higher market share
in line with the tremendous growth in the industry. However, the SC should
adopt more aggressive marketing strategies in order to broaden its market
segment as well as compete with numerous players in the same field.
|
|
We noted that the SC is having a red shareholders' funds, Hence, credit is
not recommended.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
BP CHEMICALS (MALAYSIA)
SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
TURNOVER
|
2,139,043,000
|
2,333,836,000
|
2,430,196,000
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
<5,464,000>
|
<235,157,000>
|
<163,354,000>
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
<5,464,000>
|
<235,157,000>
|
<163,354,000>
|
|
Taxation
|
<29,000>
|
46,000
|
27,000
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
<5,493,000>
|
------------
<235,111,000>
|
------------
<163,327,000>
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
<5,493,000>
|
------------
<235,111,000>
|
------------
<163,327,000>
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
<5,493,000>
|
------------
<235,111,000>
|
------------
<163,327,000>
|
|
As previous reported
|
<1,304,099,000>
|
<1,068,988,000>
|
<905,661,000>
|
|
|
|
|
|
|
As restated
|
------------
<1,304,099,000>
|
------------
<1,068,988,000>
|
------------
<905,661,000>
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
<1,309,592,000>
|
<1,304,099,000>
|
<1,068,988,000>
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
<1,309,592,000>
==========
|
------------
<1,304,099,000>
==========
|
------------
<1,068,988,000>
==========
|
|
RETAINED BY: The Company
|
<1,309,592,000>
|
<1,304,099,000>
|
<1,068,988,000>
|
|
|
------------
<1,309,592,000>
==========
|
------------
<1,304,099,000>
==========
|
------------
<1,068,988,000>
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
|
|
|
|
|
Other interest expenses
|
369,000
|
3,593,000
|
5,155,000
|
|
|
------------
369,000
==========
|
------------
3,593,000
==========
|
------------
5,155,000
==========
|
|
|
|
|
|
BALANCE SHEET
|
BP CHEMICALS (MALAYSIA)
SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
588,248,000
|
631,570,000
|
673,607,000
|
|
TOTAL LONG TERM ASSETS
|
------------
588,248,000
|
------------
631,570,000
|
------------
673,607,000
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Stocks
|
102,184,000
|
97,984,000
|
159,270,000
|
|
|
|
|
|
|
|
|
Trade debtors
|
142,539,000
|
51,066,000
|
132,590,000
|
|
|
Other debtors, deposits & prepayments
|
3,405,000
|
4,984,000
|
4,712,000
|
|
|
Short term deposits
|
-
|
17,200,000
|
42,500,000
|
|
|
|
|
|
|
|
|
Amount due from related companies
|
-
|
39,414,000
|
58,592,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
100,960,000
|
16,383,000
|
24,870,000
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
349,088,000
|
------------
227,031,000
|
------------
422,534,000
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
231,711,000
|
46,719,000
|
79,945,000
|
|
|
Other creditors & accruals
|
42,387,000
|
41,669,000
|
42,958,000
|
|
|
|
|
|
|
|
|
Other borrowings
|
38,058,000
|
154,982,000
|
164,639,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to related companies
|
-
|
97,359,000
|
173,632,000
|
|
TOTAL CURRENT LIABILITIES
|
------------
312,156,000
|
------------
340,729,000
|
------------
461,174,000
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
36,932,000
|
------------
<113,698,000>
|
------------
<38,640,000>
|
|
TOTAL NET ASSETS
|
------------
625,180,000
==========
|
------------
517,872,000
==========
|
------------
634,967,000
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
358,644,000
|
358,644,000
|
358,644,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
358,644,000
|
------------
358,644,000
|
------------
358,644,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
Capital reserve
|
-
|
5,318,000
|
4,522,000
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
<1,309,592,000>
|
<1,304,099,000>
|
<1,068,988,000>
|
|
|
share option reserve
|
5,651,000
|
-
|
-
|
|
TOTAL RESERVES
|
------------
<1,303,941,000>
|
------------
<1,298,781,000>
|
------------
<1,064,466,000>
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
<945,297,000>
|
------------
<940,137,000>
|
------------
<705,822,000>
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
redeemable preference shares
|
1,570,477,000
|
1,458,009,000
|
1,340,789,000
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
1,570,477,000
|
------------
1,458,009,000
|
------------
1,340,789,000
|
|
|
------------
|
------------
|
------------
|
|
|
625,180,000
|
517,872,000
|
634,967,000
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
BP CHEMICALS (MALAYSIA)
SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
100,960,000
|
33,583,000
|
67,370,000
|
|
|
Net Liquid Funds
|
100,960,000
|
33,583,000
|
67,370,000
|
|
|
Net Liquid Assets
|
<65,252,000>
|
<211,682,000>
|
<197,910,000>
|
|
|
Net Current Assets/(Liabilities)
|
36,932,000
|
<113,698,000>
|
<38,640,000>
|
|
|
Net Tangible Assets
|
625,180,000
|
517,872,000
|
634,967,000
|
|
|
Net Monetary Assets
|
<1,635,729,000>
|
<1,669,691,000>
|
<1,538,699,000>
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
38,058,000
|
154,982,000
|
164,639,000
|
|
|
Total Liabilities
|
1,882,633,000
|
1,798,738,000
|
1,801,963,000
|
|
|
Total Assets
|
937,336,000
|
858,601,000
|
1,096,141,000
|
|
|
Net Assets
|
625,180,000
|
517,872,000
|
634,967,000
|
|
|
Net Assets Backing
|
<945,297,000>
|
<940,137,000>
|
<705,822,000>
|
|
|
Shareholders" Funds
|
<945,297,000>
|
<940,137,000>
|
<705,822,000>
|
|
|
Total Share Capital
|
358,644,000
|
358,644,000
|
358,644,000
|
|
|
Total Reserves
|
<1,303,941,000>
|
<1,298,781,000>
|
<1,064,466,000>
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.32
|
0.10
|
0.15
|
|
|
Liquid Ratio
|
0.79
|
0.38
|
0.57
|
|
|
Current Ratio
|
1.12
|
0.67
|
0.92
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
17
|
15
|
24
|
|
|
Debtors Ratio
|
24
|
8
|
20
|
|
|
Creditors Ratio
|
40
|
7
|
12
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
<0.04>
|
<0.16>
|
<0.23>
|
|
|
Liabilities Ratio
|
<1.99>
|
<1.91>
|
<2.55>
|
|
|
Times Interest Earned Ratio
|
<13.81>
|
<64.45>
|
<30.69>
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
<0.26>
|
<10.08>
|
<6.72>
|
|
|
Net Profit Margin
|
<0.26>
|
<10.07>
|
<6.72>
|
|
|
Return On Net Assets
|
<0.81>
|
<44.71>
|
<24.91>
|
|
|
Return On Capital Employed
|
<0.81>
|
<44.71>
|
<24.91>
|
|
|
Return On Shareholders' Funds/Equity
|
0.58
|
25.01
|
23.14
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
8,281,500.00
|
8,026,500.00
|
7,989,500.00
|
|
|
|
|
|
|
|
|
|