MIRA
INFORM REPORT
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Report Date : |
24.07.2013 |
IDENTIFICATION DETAILS
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Name : |
Sinochem Agro Co Ltd. |
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Formerly Known as: |
Sinochem Shanghai Corporation |
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Registered Office : |
17-19/F, New Shanghai City Plaza, No. 33, South He’nan Road, Huangpu District, Shanghai 200002 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
14.08.1992 |
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Com. Reg. No.: |
310101000052600 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
selling of pesticides including insecticides, herbicides, fungicides
and intermediates of pesticides. |
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No. of Employees : |
220 |
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 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to China's,
and is expected to further drag Chinese growth in 2013. 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 & address
SINOCHEM AGRO CO., LTD.
17-19/F, NEW SHANGHAI CITY PLAZA, NO. 33, SOUTH HE’NAN ROAD,
HUANGPU DISTRICT, SHANGHAI 200002 PR CHINA
TEL: 86 (0) 21-63289888-1963
FAX: 86 (0) 21-63283968
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 14, 1992
REGISTRATION NO. :
310101000052600
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. LI BIN (CHAIRMAN)
STAFF STRENGTH :
220
REGISTERED CAPITAL : CNY 680,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 795,320,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 686,220,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE : CNY 6.14= 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
SC was registered as a limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license).
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes importing and exporting commodities and technologies;
property management; pesticide business; chemical raw materials and products
business; grain, oil, grease and by-products; importing metal materials, fuel
oil, autos and parts; warehousing (limited to operating in Branch) (with permit
if needed).
SC is mainly
engaged in selling pesticides.
Mr. Li Bin has
been the legal representative and chairman of SC since Sep. of 2012.
SC is known to
have approx. 220 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shanghai. Our checks reveal that SC owns the total premise about 3,000 square meters.
http://www.sinochemsh.com/
The
design is professional and the content is well organized. At present the web
site is in Chinese and English versions.
E-mail: sinochemargo@sinochem.com
SC passed the quality audit ISO9001: 2000 issued by BSI in December of
2000 and passed the reexamination every year. In years of 2000 and 2003, SC won
the bronze award of Shanghai Top 500 companies.
History &
Honor
2005
No.99 among top 100 export enterprises in Shanghai Bronze Prize of
Shanghai Foreign Economy & Trade Contribution
2004
Top 50 chemicals export & import enterprises in China
No.60 among top 100 export enterprises in Shanghai
Bronze Prize of Shanghai Foreign Economy & Trade Contribution prize
for 3 years
2003
Award for excellent management system by Shanghai Foreign Economic
Relation & Trade Commission
2001
Grade A by Shanghai Municipal Administration of Taxation (State &
Local Together)
2000
No. 42 among top 100 export & import enterprises in Shanghai
1999
Honorable title of AA company by the Customs General Administration
Honorable title by the State Administration for Foreign Exchange to
enjoy import preference
Changes of its registered
information:
|
Date of change |
Item |
Before the change |
After the change |
|
2009 |
SC’s company name |
Sinochem Shanghai Corporation |
Sinochem Shanghai Co., Ltd. |
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Registered no. |
3101011023743 |
Present one |
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Registered legal form |
State-owned enterprise |
One-person limited liability company |
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Registered capital |
CNY 122,847,913 |
CNY 344,811,290 |
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|
Unknown |
Legal representative |
Liu Jianping |
Hu Hanchun |
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2012-9 |
Company name |
Sinochem Shanghai Co., Ltd. |
Present one |
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Registered legal form |
One-person limited liability company |
Present one |
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Legal representative |
Hu Hanchun |
Present one |
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Registered capital |
CNY 344,811,290 |
Present amount |
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Shareholdings |
China Sinochem Group Corporation 100% |
Present ones |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
China Sinochem Group Corporation 51
Shenyang Research Institute of Chemical Industry Co., Ltd. 49
China Sinochem Group Corporation
==========================
Incorporation date: Aug. 11, 1981
Registration no.: 100000000000410
Registered legal form: State-owned
enterprise
Legal representative: Liu Deshu
Registered capital: CNY 10,166,050,000
Website:
http://www.sinochem.com/
Tel: 0086-10-59568888
Fax: 0086-10-59568890
Shenyang Research Institute of Chemical
Industry Co., Ltd.
===========================================
Incorporation date: Dec. 14, 1992
Registration no.: 210106000002577
Legal representative: Li Bin
Registered capital: CNY 1,406,915,232
Web: http://www.syrici.com.cn/
Address: No. 8, Shenliao Dong Road, Tiexi
District, Shenyang, Liaoning Province
Tel: (86)24-85869252
Fax: (86)24-25873080
Legal Representative
and Chairman:
Mr. Li Bin, senior engineer, born in 1958, with
university education. He is currently responsible for the overall management of
SC.
Working
Experience(s):
From Sep. of 2012 present working in SC as legal representative and chairman;
Also working in Shenyang Research Institute of Chemical Industry Co., Ltd. as legal representative; working in China Sinochem Group Corporation as vice president.
Vice-chairman and
General Manager:
Mr. Wang Hongjun, with EMBA degree. He is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as vice-chairman and general manager.
SC is mainly
engaged in selling pesticides.
SC’s products
mainly include: insecticides, herbicides, fungicides and intermediates of pesticides.
SC sources its
materials 95% from domestic market, and 5% from the overseas market. SC sells
30% of its products in domestic market, and 70% to the 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 T/T, Check, L/C and Credit of 30-60 days.
Note:
SC’s management declined to release its major suppliers and clients.
According
to SC’s website:
Shanghai Zhenchen Storage Co., Ltd.
---------------------------------------------
Registered no.: 310000400381535
Establishment date: 2004-5-9
Legal representative: Song Shaoping
Registered capital: CNY 1,150,000
Shanghai Kaile Freight Co., Ltd.
----------------------------------------
Registered no.: 310113000049681
Establishment date: 1992-9-8
Legal representative: Song Shaoping
Registered capital: CNY 5,000,000
Shanghai Changhua Industries Co., Ltd.
------------------------------------------------
Registered no.: 310115400003663
Establishment date: 1992-8-26
Legal representative: Song Shaoping
Registered capital: CNY 11,683,140
Shenyang
Sciencreat Chemicals Co., Ltd.
--------------------------------------------------
Registered no.: 210100400016292
Legal representative: Yang Chunhe
Registered capital: CNY 488,730,900
Date of incorporation: 1989-04-20
Sinochem
Agro Argentina S.A.
Sinochem
Agro Brazil Company
Etc.
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.
Bank of China Shanghai Branch
AC#：436459214544
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash & bank |
163,950 |
117,770 |
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Notes receivable |
0 |
1,310 |
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Inventory |
25,150 |
82,530 |
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Accounts
receivable |
230,630 |
167,230 |
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Other
receivables |
19,130 |
18,050 |
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Advances to
suppliers |
/ |
590 |
|
Other current
assets |
4,550 |
33,070 |
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|
------------------ |
------------------ |
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Current assets |
443,410 |
420,550 |
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Fixed assets net
value |
91,880 |
88,040 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
45,770 |
380,950 |
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Investment real
estate |
/ |
100,680 |
|
Financial
assets available for sale |
/ |
29,040 |
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Intangible
assets |
/ |
4,320 |
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Other assets |
136,830 |
3,440 |
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------------------ |
------------------ |
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Total assets |
717,890 |
1,027,020 |
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============= |
============= |
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Short loans |
7,000 |
7,000 |
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Accounts payable |
43,000 |
49,700 |
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Bills payable |
206,390 |
120,700 |
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Advances from
clients |
15,540 |
25,410 |
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Other payable |
115,740 |
121,760 |
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Accrued payroll |
/ |
17,460 |
|
Taxes payable |
/ |
-8,180 |
|
Other current
liabilities |
14,930 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
402,600 |
333,850 |
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Long term liabilities |
5,990 |
6,950 |
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|
------------------ |
------------------ |
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Total
liabilities |
408,590 |
340,800 |
|
Equities |
309,300 |
686,220 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
717,890 |
1,027,020 |
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|
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============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Turnover |
985,650 |
795,320 |
|
Cost of goods
sold |
882,970 |
673,770 |
|
Taxes
and additional of main operation |
2,200 |
1,530 |
|
Sales expense |
46,780 |
43,720 |
|
Management expense |
43,250 |
55,990 |
|
Finance expense |
7,700 |
-440 |
|
Investment
income |
38,140 |
870 |
|
Non-operating
income |
1,750 |
1,110 |
|
Non-operating expense |
40 |
740 |
|
Asset impairment loss |
4,780 |
810 |
|
Profit before
tax |
37,820 |
21,180 |
|
Less: profit tax |
4,820 |
5,990 |
|
Profits |
33,000 |
15,190 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
1.10 |
1.26 |
|
*Quick ratio |
1.04 |
1.01 |
|
*Liabilities
to assets |
0.57 |
0.33 |
|
*Net profit
margin (%) |
3.35 |
1.91 |
|
*Return on
total assets (%) |
4.60 |
1.48 |
|
*Inventory
/Turnover ×365 |
10 days |
38 days |
|
*Accounts
receivable/Turnover ×365 |
86 days |
77 days |
|
*Turnover/Total
assets |
1.37 |
0.77 |
|
* Cost of
goods sold/Turnover |
0.90 |
0.85 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line, but it decreased in 2012.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, 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 normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears fairly large
in both years.
l
The short term loan of SC appears average.
l
SC’s turnover is in a fair level in 2012, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low in 2012.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered a medium-sized company in its line with fairly stable
financial conditions and favorable background. The large amount of accounts
receivable could be a threat to SC’s financial condition. A
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.69 |
|
UK Pound |
1 |
Rs.91.66 |
|
Euro |
1 |
Rs.78.69 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
<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.