MIRA
INFORM REPORT
|
Report Date : |
04.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
TIANJIN DAGU CHEMICAL CO., LTD. |
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|
Registered Office : |
No. 1, Xinghua Road, Tanggu District, Tianjin, 300455 Pr |
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|
|
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.12. 2000 |
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Com. Reg. No.: |
120000000004094 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling different sorts of chemicals. |
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No. of Employees : |
6,000 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
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 and address
tianjin dagu chemical Co., Ltd.
NO. 1, XINGHUA
ROAD, TANGGU DISTRICT, TIANJIN, 300455 PR CHINA
TEL: 86 (0)
22-25393966 FAX: 86 (0) 22-25392407
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 20, 2000
REGISTRATION NO. : 120000000004094
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
6,000
REGISTERED CAPITAL : CNY 1,157,500,167
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 12,225,834,000
(Consolidated, AS OF DEC. 31, 2012)
EQUITIES :
CNY 2,538,555,000
(CONSOLIDATED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
CNY 6.13 = 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 is also known as Tianjin Dagu
Chemical Industry Co., Ltd.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC
was registered as a Sole state-owned enterprise at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on December 20, 2000 and has been under present ownership
since 2004.
SC’s registered
business scope includes manufacturing and operating propylene oxide,
hydrochloric acid, chloros, sodium dioxide, compressed air, compressed
nitrogen, compressed
oxygen, caustic soda, liquid chlorine, hydrogen, styrene and
methylbenzene; the use of calcium carbide, acetone, acrylonitrile, 2,6-
binitro-4- DTBP, p-tert.-butylcatechol, caustic potash, dichloroethane,
chlorethylene, ethylene, epoxyethane, propylene epoxide, ethyne, acrylonitrile,
styrene, propylene, dibutyl sebacate, carbinol, liquefied petroleum gas,
alcohol, nitrobenzene, butylene oxide, sodium metal, acetone, benzene, brim
stone, monarkite, liquid ammonia, mineral chameleon, perhydrol, perchloric
acid, barium chloride, arsenic flowers, potassium cyanide, mercury nitrate,
ethylic acid, sulphuric acid, hydrogen nitrate, caustic potash and mercuric
sulfate; manufacturing chemicals, plastics and building materials; loading and
unloading; common freight; storage; manufacturing special chemical equipment;
selling steel materials; leasing equipment and self-owned houses; international
trade; examine of seamless gas cylinders and welding gas cylinders;
manufacturing styrene (operate by its subsidiaries).
SC is mainly
engaged in manufacturing and selling different sorts of chemicals.
Mr. Yang
Henghua is legal representative and
chairman of SC at present.
SC is known
to have approx. 6,000 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Tianjin. Our checks
reveal that SC owns the total premise about 27,000 square meters.
http://www.daguchem.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
SC is a large-scaled integrated chlorine-soda manufacturing enterprise
produces caustic soda, PVC resin, pesticide, synthetic hydrochloric acid,
liquid chlorine and special-shaped plastics of doors and windows processing on
the basis of electrolyzing sodium chloride.
There are special lines for trains stretch into the plant from the
south, a special wharf with the capacity of berthing 5000-tonnage freight ships
beside the Haihe river, a rich supply of sodium chloride by Changlu Salt Works,
and a pipeline for transporting natural gas and ethylene from Dagang Oil Field,
which provide the plant with abundant raw materials and fuel for the
development of marine chemicals and petro-chemicals.
SC’s quality system meets the international standards of ISO 9001.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2004-3-12 |
Legal form |
Sole state-owned enterprise |
Present one |
|
Chinese name |
天津大沽化工有限责任公司 |
Present one |
|
|
Registered capital |
CNY 48,690,000 |
CNY 655,516,700 |
|
|
2009-12-16 |
Registered capital |
CNY 655,516,700 |
CNY 976,240,380 |
|
Unknown |
Shareholdings |
Tianjin Bohai Chemicals Co., Ltd. 44.31% China Cinda Asset Management Corporation. 21.36% Tianjin International Investment Co., Ltd.
18.31% Tianjin Bohai Group Finance Co., Ltd.
12.97% The 13th Construction Company
China Chemical Engineering 1.53% Tianjin Shenghua Construction Engineering
Corporation. 0.76% Tianjin Dagu Chemical Factory Construction
Installation Engineering Corporation. 0.76% |
Tianjin Bohai Chemicals Co., Ltd. 51% Tianjin International Investment Co., Ltd. 16.99% Tianjin Bohai Group Finance Co., Ltd.
12.03% The 13th Construction Co., Ltd. China Chemical Engineering
1.41% Tianjin Shenghua Construction Engineering Co., Ltd. 0.71% Tianjin Dagu Chemical Factory Construction Installation Engineering
Corporation 0.71% Tianjin Changlu Haijing Group Co., Ltd. 17.15% |
|
Registered no. |
1200001001718 |
Present one |
|
|
Legal representative |
Xiao Weiguo |
Yang Henghua |
|
|
Registered capital |
CNY 976,240,380 |
Present amount |
|
|
Shareholders |
Tianjin Bohai Chemicals Co., Ltd. 51% Tianjin International Investment Co., Ltd. 16.99% Tianjin Bohai Group Finance Co., Ltd. 12.03% The 13th Construction Co., Ltd. China Chemical Engineering
1.41% Tianjin Shenghua Construction Engineering Co., Ltd. 0.71% Tianjin Dagu Chemical Factory Construction Installation Engineering
Corporation 0.71% Tianjin Changlu Haijing Group Co., Ltd. 17.15% |
Present ones |
Note: SC changed its Chinese name in 2004, while its English name
remains the same.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Tianjin Bohai Chemicals Co., Ltd. 53.1
Tianjin Bohai Chemical Industry Group Co.,
Ltd. 10.15
Tianjin International Investment Co., Ltd. 16.99
The 13th Construction Co., Ltd.
of China National Chemical Engineering 1.19
Tianjin Dagu Chemical Factory Construction
Installation Engineering Corporation 0.71
Tianjin Changlu Haijing Group Co., Ltd. 17.15
Tianjin Shenghua Construction Engineering
Co., Ltd. 0.71
Tianjin Bohai Chemicals Co., Ltd.
=========================
Registered no.: 120000000009927
Legal representative: Zhao Lizhi
Registered capital: CNY 1,354,761,416
Tianjin Bohai Chemical Industry Group Co.,
Ltd.
===================================
Registered no.: 120000000005396
Legal representative: Zhao Lizhi
Registered capital: CNY 7,000,000,000
Date of incorporation:
Tel: 022-23390336
Fax: 022-23314025
Web: http://www.bcig.cn/
Tianjin International Investment Co., Ltd.
==============================
Registered no.: 120000000007940
Legal representative: Zhang Zhijun
Registered capital: CNY 828,179,501.75
Tianjin Changlu Haijing Group Co., Ltd.
=============================
Tel: 86-022-66887184
Fax: 86-022-25895796
Web: http://www.haijing-tj.com/
l
Legal representative and chairman:
Mr. Yang Henghua is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as chairman and legal
representative
Also working in Tianjin Dagu Chemical
Co., Ltd. Lingang Branch as principal.
l General manager:
Mr. Xiao Weiguo is currently responsible for the daily
management of SC.
Working Experience(s):
At present Working in SC as general manager
l
Directors:
Li Xiaoping
Liu Xinsheng
Zhu Jiang
Etc.
l
Supervisors:
Zhang Hongtao
He Min
Yue Xin
Etc.
SC is mainly
engaged in manufacturing and selling different sorts of chemicals.
SC’s products
mainly include caustic soda liquid, liquefied chlorine gas, industrial
hydrochloric acid, and so on.
SC sources its materials 80% from domestic
market, and 20% from overseas market, mainly U.S.A. and Europe. SC sells 40% of
its products in domestic market, and 60% to overseas market, mainly Southeast
Asian 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.
*Major Supplier:
=============
Tianjin Pergan Fine Chemical Co., Ltd.
Note: SC’s management declined to release its customer details.
SC is known to have the following subsidiaries and branches:
Tianjin
Dagu Trade Co., Ltd.
-----------------------------------
Registered
no.: 120192000008761
Legal
representative: Zhou Xiaoxing
Registered
capital: CNY 50,000,000
Tianjin
LG Dagu Chemical Co., Ltd.
---------------------------------------------
Registered
no.: 120000400051475
Legal
representative: Mok Kyeong Soo
Tianjin
Dagu Chemical Co., Ltd. Lingang Branch
-----------------------------------------------------------------------
Registered
no.: 120116000059571
Principal:
Yang Henghua
Date
of incorporation:
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’s supplier
declined to make any commends, so the trade reference is not available.
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
AC#：0302090309002814325
Relationship:
Normal.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash & bank |
1,625,743 |
1,113,815 |
|
Inventory |
893,439 |
814,268 |
|
Bills receivable |
156,602 |
266,104 |
|
Accounts
receivable |
149,046 |
301,515 |
|
Advances to
suppliers |
214,910 |
174,564 |
|
Other
receivables |
383,305 |
391,279 |
|
Other current
assets |
23,859 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
3,446,904 |
3,061,545 |
|
Fixed assets net
value |
7,604,209 |
9,320,267 |
|
Long term
investment |
62,694 |
62,484 |
|
Projects under
construction |
2,124,997 |
348,239 |
|
Intangible
assets |
10,769 |
688,721 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
13,249,573 |
13,481,256 |
|
|
=========== |
=========== |
|
Short loan |
4,001,730 |
3,173,353 |
|
Accounts payable |
740,903 |
674,568 |
|
Bills payable |
1,711,452 |
2,370,800 |
|
Advances from clients |
376,178 |
296,392 |
|
Taxes payable |
-36,073 |
9,094 |
|
Other Accounts
payable |
456,949 |
586,515 |
|
Other current
liabilities |
36,015 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
7,287,154 |
7,110,722 |
|
Long term
liabilities |
3,402,438 |
3,831,979 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
10,689,592 |
10,942,701 |
|
Equities |
2,559,981 |
2,538,555 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
13,249,573 |
13,481,256 |
|
|
=========== |
=========== |
Consolidated
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Turnover |
13,913,280 |
12,225,834 |
|
Cost of goods sold |
12,455,594 |
11,060,734 |
|
Taxes and additional of main operation |
16,956 |
12,225 |
|
Sales expense |
80,800 |
98,095 |
|
Management expense |
856,092 |
827,749 |
|
Finance expense |
387,185 |
249,941 |
|
Investment income |
171 |
40 |
|
Non-operating income |
10,562 |
45,228 |
|
Non-operating
expense |
1,531 |
1,567 |
|
Profit before tax |
125,855 |
20,791 |
|
Less: profit tax |
27,049 |
6,123 |
|
Profits |
98,806 |
14,668 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.47 |
0.43 |
|
*Quick ratio |
0.35 |
0.32 |
|
*Liabilities
to assets |
0.81 |
0.81 |
|
*Net profit
margin (%) |
0.71 |
0.12 |
|
*Return on
total assets (%) |
0.75 |
0.11 |
|
*Inventory
/Turnover ×365 |
24 days |
25 days |
|
*Accounts receivable/Turnover
×365 |
4 days |
10 days |
|
*Turnover/Total
assets |
1.05 |
0.91 |
|
* Cost of
goods sold/Turnover |
0.90 |
0.90 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears good, but it decreased in 2012.
l SC’s net profit
margin is average in both years.
l SC’s return on
total assets is average in both years.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a poor
level in both years.
l
SC’s quick ratio is maintained in a poor level in
both years.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears large in both
years.
l
SC’s turnover is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.57 |
|
|
1 |
Rs.86.15 |
|
Euro |
1 |
Rs.73.64 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
-- |
NB |
New Business |
-- |
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.