MIRA
INFORM REPORT
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Report Date : |
21.11.2012 |
IDENTIFICATION DETAILS
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Name : |
SINOCHEM PLASTICS
CO., LTD. |
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Registered Office : |
7/f, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
21.05.1988 |
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Com. Reg. No.: |
110000005006960 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Importing and Exporting of Petrochemicals and Plastic Chemical Fiber. |
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No. of Employees : |
125 |
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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 (31.03.2011) |
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
SINOCHEM PLASTICS CO., LTD.
7/f, sinochem tower, no. a2, fuxingmenwai
street,
beijing, 100045 PR CHINA
TEL: 86 (0) 10-59368993 / 59368585 FAX: 86 (0) 10-59369744
EXECUTIVE SUMMARY
INCORPORATION DATE : may 21, 1988
REGISTRATION NO. : 110000005006960
REGISTERED LEGAL FORM : One-person Limited
Liability Company
STAFF STRENGTH : 125
REGISTERED CAPITAL : CNY 200,000,000
BUSINESS LINE :
TRADING
TURNOVER : CNY 8,619,700,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 174,830,000 (AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY 6.23 = 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 Renminbi
Note: SC’s current contact numbers should be the heading
ones, while the given numbers were SC’s former ones.
SC is registered as a One-person Limited Liability Company at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license).
Company Status: One-person
Limited Liability Company
Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business
scope includes selling liquefied petroleum gas, compressed gas and flammable
liquid, oxidant, hydroperoxides, inflammable solid, spontaneous combustible
articles and substances emitting flammable gases when wet, corrosive, poisonous
articles and rank poison, including: 2-acrylonitrile, methylbenzene-2,
4-diisocyanate, precursor products: methylbenzene, acetone, potassium cyanide,
thallium, thallous sulfate, sodium cyanide, methyl ethyl ketone, sulphuric
acid, muriatic acid and mineral chameleon. Import and export goods, technology
and acting as an agent for it; affecting Chinese foreign equity joint venture
enterprise and Chinese foreign contractual joint venture enterprise.
SC is mainly
engaged in importing and exporting petrochemicals and plastic chemical fiber.
Mr. Zhang Xiaolei
is legal representative and chairman of SC at present.
SC is known to have approx. 125 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. Our checks reveal that SC owns the total premise, but SC’s accountant refused to release the gross area of the premise.
http://www.sinochemplastics.com/ The design is professional and the content is
well organized. At present it is in Chinese and English versions.
Changes
of its registered information are as follows:
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Date
of change |
Item |
Before
the change |
After
the change |
|
2012 |
Registered
capital |
CNY 73,273,600 |
Present amount |
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Sinochem Co., Ltd. 100
Registration no.: 100000000042135
Legal representative: Liu Deshu
Registered capital: CNY 39,800,000,000
Registered address: No. 28, Fuxing Mennei
Street, Xicheng District, Beijing
l
Chairman & Legal representative:
Mr. Zhang Xiaolei, born in 1962 with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as chairman and legal
representative.
Supervisor:
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Zhao Hongmin
SC is mainly engaged
in importing and exporting petrochemicals and plastic chemical fiber.
SC’s products
mainly include aromatics, PTA, ethylene glycol, methanol, polyethylene,
polypropylene, ABS resin, polyurethane, acrylic acid, and other products.
SC sources its materials 40% from domestic
market, and 60% from overseas market, mainly Hong Kong and Singapore. SC sells
90% of its products in domestic market, and 10% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note:
SC declined to release its major suppliers and clients.
According to SC’s website:
Sinochem Plastics Co., Ltd. Shanghai Branch
Address: 29/F, Lujiazui Business Plaza, No. 1600 Century Boulevard Pudong New Area, Shanghai
Tel: 021-5081 2631
Fax: 021-5081 6335
Sinochem Plastics Co., Ltd. Shenzhen Branch
Address: Room 2506, Rongchao Economic Trade Center, 4028 Jin Tian Road, Futian Central District, Shenzhen, China
Tel: 0755-8355 1683
Fax: 0755-8355 1982
Sinochem Plastics Co., Ltd. Jiangsu Branch
Address: F19, Jincheng Tower, 216 Longpan Middle Road, Baixia District, Nanjing, China
Tel: 025-5181 7777
Fax: 025-5181 7788
Sinochem Plastics Co., Ltd. Guangzhou Sales Department
Address: Room 2408, East Tower, Yangcheng International Commercial Center No. 122 East Tiyu Road, Tianhe District, Guangzhou, China
Tel: 020-3826 7681
Fax: 020-38267970
Sinochem Plastics Co., Ltd. Chengdu Sales Department
Address: No. 3A04, Unit 1, No. 5 Building, Fengde International Plaza No. 6 Hangkong Road, Wuhou District, Chengdu, China
Tel: 028-8526 6758
Fax: 028-8526 6756
Sinochem Plastics Co., Ltd. Tianjing Sales Department
Address: No. 709 Tianxin Building No. 125 Weidi Road, Hexi District, Tianjin, China
Tel: 022-2840 8320
Fax: 022-2840 8320
Sinochem Plastics Co., Ltd. Qingdao Sales Department
Address: Room 1521, F15, North Building, Golden Plaza No. 20 Xianggang Road, Qingdao, Shandong, China
Tel: 0532-8502 1598
Fax: 0532-8502 1598
Sinochem Plastics Co., Ltd. Zhongshan Sales Department
Address: Room C, 2F, Taiwan Businessman Association Building No. 1, Bo'ai Sixth Road, East District, Zhongshan, Guangdong, China
Tel: 0760-8826 7757
Fax: 0760-8826 2718
Sinochem Trading (Singapore) Pte. Ltd.
Address: Suntec Tower 2,＃18-01/03, 9 Temasek Boulevard, Singapore
Tel: 0065-6338 0110
Fax: 0065-6334 1787
Sinochem Japan Co., Ltd.
Address: IMC Bldg. Shinbashi 6F,
Tel: 0081-3-3434 7890
Fax: 0081-3-3434-8747
Sinochem International Chemicals (Hong Kong) Ltd.
Address: 47F, Office Tower, Convention Plaza, 1 Harbour Road, Wancai, Hong Kong
Tel: 00852-2824 0100
Fax: 00852-2802 9607
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 did not
provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
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.
Industrial and Commercial Bank of China Beijing Fuwai Sub-branch
AC#：0200048509022101040
Relationship:
Normal
Balance Sheet (as
of Dec. 31, 2011)
Unit: CNY’000
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Cash & bank |
416,880 |
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Inventory |
749,770 |
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Accounts
receivable |
610,430 |
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Other
receivables |
72,820 |
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Other current
assets |
597,550 |
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Current assets |
2,447,450 |
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Fixed assets net
value |
3,430 |
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Projects under
construction |
0 |
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Long term investment |
44,500 |
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Other assets |
3,760 |
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Total assets |
2,499,140 |
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Short loans |
0 |
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Accounts payable |
1,908,260 |
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Notes payable |
10,000 |
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Other payable |
29,390 |
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Taxes payable |
8,880 |
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Advances from
clients |
260,100 |
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Other current
liabilities |
107,680 |
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Current
liabilities |
2,324,310 |
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Long term
liabilities |
0 |
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Total
liabilities |
2,324,310 |
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Equities |
174,830 |
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Total
liabilities & equities |
2,499,140 |
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Income Statement (as
of Dec. 31, 2011)
Unit: CNY’000
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Turnover |
8,619,700 |
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Cost of goods
sold |
8,433,040 |
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Sales expense |
113,010 |
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Management expense |
66,760 |
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Finance expense |
-12,870 |
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Profit before
tax |
132,000 |
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Less: profit tax |
37,920 |
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Profits |
94,080 |
Important Ratios
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as
of Dec. 31, 2011 |
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*Current ratio |
1.05 |
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*Quick ratio |
0.73 |
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*Liabilities
to assets |
0.93 |
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*Net profit
margin (%) |
1.09 |
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*Return on
total assets (%) |
3.76 |
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*Inventory
/Turnover ×365 |
32 days |
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*Accounts
receivable/Turnover ×365 |
26 days |
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*Turnover/Total
assets |
3.45 |
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* Cost of
goods sold/Turnover |
0.98 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
SC has no short-term loan in 2011.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.91 |
|
|
1 |
Rs.87.38 |
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Euro |
1 |
Rs.70.24 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.