MIRA INFORM REPORT
|
Report Date : |
06.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
TIANJIN RED TRIANGLE INTERNATIONAL TRADING
CO., LTD. |
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Registered Office : |
No. 3369
Bohai 10th Road, Harbor Industry Park,
Tanggu District, Tianjin 300450 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
01.03.2007 |
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Com. Reg. No.: |
120192000028959 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
Subject is engaged in international trade of Sodium Hydroxide
Solid |
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No. of Employees : |
30 |
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 |
|
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
TIANJIN RED TRIANGLE
INTERNATIONAL TRADING CO., LTD.
no. 3369
bohai 10th road, Harbor Industry Park
tanggu
district, tianjin 300450 PR CHINA
TEL: 86
(0) 22-59852923/59852935/59852950
FAX: 86
(0) 22-59852914
EXECUTIVE
SUMMARY
Date of
Registration : MARCH 1, 2007
REGISTRATION NO. : 120192000028959
LEGAL
FORM : Limited
liabilities company
CHIEF
EXECUTIVE : CHENG HAIRU
(LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 20,000,000
staff : 30
BUSINESS CATEGORY :
trading
Revenue : CNY 1,820,250,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 27,440,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.12 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
LEGAL
STATUS & HISTORY
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
120192000028959 on March 1, 2007.
SC’s Organization Code Certificate
No.: 79729233-7
SC’s registered capital: CNY 20,000,000
SC’s paid-in capital: CNY 20,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
-- |
Registration No. |
1201921001827 |
120192000028959 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Tianjin Bohai Chemical Industry Co., Ltd.
Tianjin Soda Plant |
97.5 |
|
Tianjin Tanggu Huatong Transport Service
Co., Ltd. |
2.5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Cheng Hairu |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
Tianjin Bohai Chemical Industry
Co., Ltd. Tianjin Soda Plant 97.5
Tianjin Tanggu Huatong Transport
Service Co., Ltd. 2.5
n Tianjin
Bohai Chemical Industry Co., Ltd. Tianjin Soda Plant
--------------------------------------------------------------------------------
Tianjin Bohai Chemical Industry
Co., Ltd. Tianjin Soda Plant is a large-scale state-owned chemical enterprise,
which has about a century development history. It was founded by Mr. Fan Xudong
who was late famous patriotic entrepreneur. It is mainly engaged in
manufacturing ammonia, methanol, acetic acid, n-butanol, isobutanol, octanol,
paraformaldehyde, n-butyraldehyde, isobutyraldehyde, carbon dioxide, sulfuric
acid, sulfur acid, propionic acid, formaldehyde, baking soda, soda ash,
ammonium chloride.
Registration No.: 120000000010082
Date of Registration: December 20, 2000
Legal Form: Sole State-owned Enterprise
Registered Capital: CNY 458,400,000
Legal Representative: Wang Yilong
Web: www.tjsoda.com
E-mail: tjwmk@tjsoda.com
Add: No. 3369, Bohai 10th Road,
Harbour Economic Zone, Binhai New Area, Tianjin
Tel: 86 (0) 22-59852926/59865833
Fax: 86 (0) 22-59852914/59865835
n Tianjin
Tanggu Huatong Transport Service Co., Ltd.
---------------------------------------------------------------------
Registration No.: 120107000010808
Date of Registration: October 11, 1999
Legal Form: Limited Liabilities Company
Registered Capital: CNY 600,000
Legal Representative: Feng Fuyun
MANAGEMENT
Cheng Hairu, Legal Representative, Chairman, and General
Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman, and general manager
BUSINESS
OPERATION
SC’s registered
business scope includes international trade; related simply processing; bonded
storage; commodity exhibition; selling agricultural machinery and equipment,
chemical fertilizer, agricultural film, agricultural and sideline products,
daily necessities, light industrial products, building materials, metal
materials, wood, electrical and mechanical equipment; importing and exporting
commodities and technology; related consulting services; selling chemical
products; and wholesaling dangerous chemicals.
SC is
mainly engaged in international trade.
SC’s products
mainly include:
Sodium Hydroxide
Solid.
SC sources its merchandises 100% from the domestic market. SC sells 60% of its merchandises in domestic market, and 40% to overseas market, mainly U.S.A., Southeast
Asia, etc.
The buying terms of SC include Check, T/T 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 Bohai Chemical Industry
Co., Ltd. Tianjin Soda Plant
*Major
Clients*
------------------
Evans
Enterprises
Brenntag
Southwest, Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 30 staff
at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED
COMPANY
Tianjin Bohai Chemical Industry Co., Ltd. Tianjin Chemical Plant
--------------------------------------------------
Date of Registration: December 20, 2000
Registration No.: 120000000006320
Registered Capital: CNY 463,110,000
Legal Representative: Meng Qingdong
Legal Form: Sole state-owned enterprise
Add: Xinkai South Road, Hangu District, Tianjin
Tel: 86-22-67992777
Fax: 86-22-67992793
According to the website: http://www.tjsoda.com
Tianjin
Bohua Yongli Thermal Power Co., Ltd.
------------------------------------
Date of Registration: December 10, 2008
Registration No.: 120107000048860
Registered Capital: CNY 200,000,000
Legal Representative: Zou Zemin
Legal Form: One-person Limited Liability Company
Tel: 86-22-59868665
Tianjin
Veolia Water Bohua Yongli Co., Ltd.
---------------------------------------------------
Date of Registration: January 8, 2008
Registration No.: 120000400041125
Registered Capital: CNY 249,521,409
Legal Representative: Zou Zemin
Legal Form: Chinese-foreign equity joint
venture enterprise
Tel: 86-22-65272961
Etc.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( )
Poor ( ) Not yet be 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.
BANKING
Basic Bank
Bank of China
Tianjin Free Trade Zone Branch
AC#:
277860083159
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
11,650 |
118,590 |
|
|
Notes receivable |
4,520 |
3,320 |
|
Accounts
receivable |
70,610 |
225,610 |
|
Advances to
suppliers |
48,780 |
108,970 |
|
Other receivable |
2,540 |
61,890 |
|
Inventory |
86,050 |
157,550 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
30 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
224,280 |
675,930 |
|
Fixed assets |
170 |
130 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
investment |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
10 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
224,460 |
676,060 |
|
|
============= |
============= |
|
Short-term loans |
0 |
109,000 |
|
Notes payable |
0 |
59,570 |
|
Accounts payable |
142,290 |
297,300 |
|
Welfares payable |
860 |
910 |
|
Taxes payable |
-2,710 |
-18,930 |
|
Advances from
clients |
9,660 |
75,150 |
|
Other payable |
39,700 |
115,860 |
|
Other current
liabilities |
9,770 |
9,760 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
199,570 |
648,620 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
199,570 |
648,620 |
|
Equities |
24,890 |
27,440 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
224,460 |
676,060 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
1,107,600 |
1,820,250 |
|
Cost of sales |
1,079,980 |
1,758,290 |
|
Taxes and
additional of main operation |
90 |
330 |
|
Sales expense |
14,140 |
46,650 |
|
Management expense |
4,030 |
6,350 |
|
Finance expense |
4,660 |
8,090 |
|
Subsidy income |
140 |
30 |
|
Non-operating
income |
170 |
190 |
|
Non-operating
expense |
10 |
0 |
|
Profit before
tax |
5,010 |
3,500 |
|
Less: profit tax |
1,310 |
950 |
|
3,700 |
2,550 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.12 |
1.04 |
|
*Quick ratio |
0.69 |
0.80 |
|
*Liabilities
to assets |
0.89 |
0.96 |
|
*Net profit
margin (%) |
0.33 |
0.14 |
|
*Return on
total assets (%) |
1.65 |
0.38 |
|
*Inventory /
Revenue ×365 |
29 days |
32 days |
|
*Accounts
receivable / Revenue ×365 |
24 days |
46 days |
|
*Revenue /
Total assets |
4.93 |
2.69 |
|
*Cost of sales
/ Revenue |
0.98 |
0.97 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line, and it increased in 2012.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear large in 2012.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
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.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of inventory & accounts receivable
& short-term
loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.04 |
|
UK Pound |
1 |
Rs.103.11 |
|
Euro |
1 |
Rs.86.99 |
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 |
|
---- |
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.