MIRA
INFORM REPORT
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Report Date : |
21.09.2012 |
IDENTIFICATION DETAILS
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Name : |
SINOLIGHT MATERIALS CORPORATION |
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Registered Office : |
21/F, Sinolight Building, No. 4, Qiyang Road, Wangjing, Chaoyang District, Beijing, 100102 Pr |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
16.06.2004 |
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Com. Reg. No.: |
110101007053559 |
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Legal Form : |
State-Owned |
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Line of Business : |
International Trade mainly includes
paper, pulp, oil & fats for industrial use, biochemical products,
tinplate, industrial chemicals, steel materials, plastics materials. |
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No. of Employees : |
40 |
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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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.
Source
: CIA
Company name and address
SINOLIGHT
MATERIALS CORPORATION
21/F, SINOLIGHT BUILDING, NO. 4, QIYANG
ROAD, WANGJING,
CHAOYANG DISTRICT, BEIJING, 100102 PR CHINA
TEL: 86 (0) 10-64778666 FAX: 86 (0) 10-64778688
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUN. 16, 2004
REGISTRATION NO. :
110101007053559
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. QIAN XIAOLIN (LEGAL REPRESENTATIVE)
STAFF STRENGTH :
40
REGISTERED CAPITAL : CNY 400,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 664,024,000 (AS OF DEC. 31,
2009)
EQUITIES :
CNY 412,965,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.32 = 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: the was SC’s former one, while SC has moved to the
heading address in July of 2012.
SC was registered as a state-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jun. 16, 2004.
Company Status: State-Owned This form of business in PR China is defined as a
commodity production or operational units of a socialist character which in
accordance with the law, has autonomy in management, takes full
responsibility for its profits and losses and practices independent
business accounting. It is a legal person established directly by central /
local government or enterprise owned by central or local government. In
theory, the liabilities of this form of enterprise are ultimately borne by
the government, since the adoption of company law in mid-1994, the Chinese
government has planned to separate the ownership from management and
liabilities bearing.
SC’s registered
business scope includes selling medical devices; wholesaling prepackaged food (in
accordance with the food distribution license, validity period as of Apr. 24,
2015). Selling paper, paper pulp, plant oil, feed, grain, metal materials,
building materials, chemical products (excluding dangerous chemicals),
mechanical equipments, hardware, AC power, electronic products, cultural and sports goods; import and export of goods, import
and export agent; and renting office space.
SC is mainly
engaged in international trade.
Mr. Qian
Xiaolin is legal representative and
general manager of SC at present.
SC is known to have approx. 40 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and head office in the commercial zone of Beijing. Our checks
reveal that SC rents the total premise, but SC’s accountant refused to release
the gross area of the premise.
http://www.climc.com
The design is professional and the content is well organized. At present the web
site is both in Chinese and English versions.
Email: office@sinolight.cn
Changes of its
registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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2007-3 |
Legal
representative |
Chen Xuezhong |
Yu Haixing |
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Company name |
China Light Industry Beijing Corporation |
Sinolight Materials Corporation |
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Unknown |
Legal
representative |
Yu Haixing |
Qian Xiaolin |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sinolight Corporation 100
Registration no.: 100000000008928
Legal
representative: Yu Haixing
Incorporation Date: Sep. 20, 1988
Registered Legal Form: State-Owned
Enterprise
Registered Capital: CNY 1,510,250,000
Tel: 86(0)10-64778888
Fax: 86(0)10-64778899
Website: http://www.sinolight.cn
Email: sinolight@sinolight.cn
l
Legal representative and general
manager:
Mr. Qian Xiaolin is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative
and general manager.
l
Vice general managers:
Tu Guoping
Zeng Fang
Shi Xiaotong
Cai Chunming
SC is mainly engaged in international
trade.
SC’s products mainly include: paper, pulp, oil & fats for industrial use,
biochemical products, tinplate, industrial chemicals, steel materials, plastics
materials.
SC sources its materials 20% from domestic
market, and 80% from overseas market, mainly Canada, Chile, Northern Europe and
Southeast Asia. SC sells 70% of its products in domestic market, and 30% to
overseas market, mainly Europe.
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 refused
to release its major suppliers and customers.
Subsidiaries:
==========
China Light Industrial Materials Co., Ltd.
Sinolight Materials Xi’an Co., Ltd.
Sinolight Materials Guangzhou Co., Ltd.
Sinolight Materials Wuhan Co., Ltd.
Sinolight Materials Shenyang Co., Ltd.
Sinolight Materials Chongqing Corporation
Sinolight Materials Dalian Co., Ltd.
Sinolight Materials Tianjin Co., Ltd.
Beijing Quanxin Property Management Co., Ltd.
Sinolight Materials Corporation Lianyungang
Branch
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.
SC’s accountant
refused to disclose its bank information.
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2008 |
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Cash & bank |
80,632 |
2,407 |
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Bills receivable |
13,570 |
120 |
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Inventory |
82,161 |
77,423 |
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Accounts
receivable |
34,938 |
4,982 |
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Advances to
suppliers |
55,462 |
24,391 |
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Other
receivables |
305,476 |
228,757 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
572,239 |
338,080 |
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Fixed assets net
value |
44,418 |
44,795 |
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Long term
investment |
303,517 |
288,652 |
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Other assets |
4,657 |
2,319 |
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Total assets |
924,831 |
673,846 |
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Short loans |
80,000 |
70,000 |
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Bills payable |
9,000 |
0 |
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Accounts payable |
53,084 |
35,241 |
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Advances from
clients |
23,990 |
13,680 |
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Wages
& welfares payable |
497 |
50 |
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Taxes payable |
-3,005 |
-6,084 |
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Other payable |
344,527 |
150,873 |
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Other current
liabilities |
3,773 |
0 |
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Current
liabilities |
511,866 |
263,760 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
511,866 |
263,760 |
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Equities |
412,965 |
410,086 |
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Total
liabilities & equities |
924,831 |
673,846 |
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Income Statement
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Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2008 |
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Turnover |
664,024 |
583,542 |
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Cost
of goods sold |
616,313 |
567,823 |
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Taxes
and additional of main operation |
75 |
120 |
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Sales expense |
19,104 |
828 |
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Management expense |
7,518 |
2,544 |
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Finance expense |
9,284 |
1,100 |
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Asset
impairment loss |
19,608 |
9,048 |
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Investment income |
11,121 |
273 |
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Non-operating income |
42 |
0 |
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Non-operating
expense |
5 |
161 |
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Profit before tax |
3,280 |
2,191 |
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Less: profit tax |
401 |
545 |
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Profits |
2,879 |
1,646 |
Note: SC’s
management declined to release any financial information.
SC has not lodged the
latest annual returns in the local registry, hence no up-to-date detailed
financial information could be provided.
Important Ratios
=============
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|
As of Dec. 31,
2009 |
As of Dec. 31, 2008 |
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*Current ratio |
1.12 |
1.28 |
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*Quick ratio |
0.96 |
0.99 |
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*Liabilities
to assets |
0.55 |
0.39 |
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*Net profit
margin (%) |
0.43 |
0.28 |
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*Return on
total assets (%) |
0.31 |
0.24 |
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*Inventory
/Turnover ×365 |
46 days |
49 days |
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*Accounts
receivable/Turnover ×365 |
20 days |
4 days |
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*Turnover/Total
assets |
0.72 |
0.87 |
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* Cost of
goods sold/Turnover |
0.93 |
0.97 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line,
and it increased in 2009.
l
SC’s net profit margin is average in both 2 years.
l
SC’s return on total assets is average in both 2
years.
l
SC’s cost of goods sold is fairly high in both 2
years, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both 2 years.
l
SC’s quick ratio is maintained in a normal level in
both 2 years.
l
The inventory of SC appears average in both 2
years.
l
The accounts receivable of SC appears average in
both 2 years.
l
The short-term loan of SC appears average in both 2
years.
l
SC’s turnover is in a fair level in both 2 years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in 2009.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable
SC is considered medium-sized in its line.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.34 |
|
|
1 |
Rs.87.91 |
|
Euro |
1 |
Rs.70.57 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.