MIRA
INFORM REPORT
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Report Date : |
22.04.2014 |
IDENTIFICATION DETAILS
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Name : |
SINOMA SCIENCE AND TECHNOLOGY CO., LTD. |
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Registered Office : |
12FA, Commerce Center, No.69 Banjing Road, Haidian District Beijing 100097 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.12.2001 |
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Com. Reg. No.: |
100000000036157 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling glass fiber, composite
materials, filter materials, mineral wool, other non-metallic materials,
industrial platinum and rhodium alloy, infiltrating agents and related
equipment; technology transfer, consulting services; engineering design and
construction; engineering design and construction of glass fiber, composite
materials, other non-metallic materials; selling pressure vessels, precious
metals, machinery and equipment, industrial automation products, |
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No. of Employees |
5,145 |
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 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Debt overhang from its credit-fueled stimulus program in 2008-10, particularly among local governments, and soaring property prices challenge policy makers currently. Their efforts to cool a red-hot property market in 2011 appear to have curbed inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources
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Source
: CIA |
Company name and address
SINOMA SCIENCE AND
TECHNOLOGY CO., LTD.
12FA, COMMERCE CENTER, NO.69 BANJING ROAD, HAIDIAN DISTRICT
BEIJING 100097 PR CHINA
TEL: 86 (0) 10-88433966
FAX: 86 (0) 10-88437712
***Note: SC’s head office should be the heading one, while SC’s Nanjing International Trade Departments locates in the (Kanghou Street, No 119 Jiangjun Avenue, Jiangning Dist Nanjang), and the telephone No. (+86-25-52428843/87186872) also belongs to it.
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 28, 2001
REGISTRATION NO. : 100000000036157
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE : XUE ZHONGMIN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 400,000,000
staff : 5,145
BUSINESS CATEGORY : manufacturing & trading
REVENUE : CNY 3,443,076,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 2,606,711,000 (AS OF DEC. 31, 2013)
WEBSITE : www.sinomatech.com
E-MAIL : sinoma@sinomatech.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.24 = 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
Not yet be determined
LEGAL STATUS & HISTORY
SC was established as a shares limited company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 100000000036157 on December 28, 2001.
SC’s Organization Code Certificate No.: 71092927-9
SC’s registered capital: CNY 400,000,000
SC’s paid-in capital: CNY 400,000,000
Registration Change Record:-
No significant changes of SC have been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder (s) (As of December 31, 2013) |
% of Shareholding |
|
China National Materials Company |
54.32 |
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Nanjing Tongtian Science & Technology Industrial Co., Ltd. |
5.08 |
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China Three Gorges New Energy Co., Ltd. |
4.29 |
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China Construction Bank- Xingquan Social Responsibility Equity Securities Investment |
2.93 |
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Zhongjietou Assets Management Co., Ltd. |
2.7 |
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China Construction Bank-Gongyin Ruixin Growth Stock Securities Investment Fund |
1.84 |
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China Merchants Bank Co., Ltd.-Huafu Growth Trend Securities Investment Fund |
1 |
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China Construction Bank-Huafu Competitiveness Preferred Hybrid Securities Investment Fund |
0.89 |
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National Social Security Fund (413) |
0.74 |
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China Life Insurance Company Limited- Dividend -
Individual Dividend |
0.63 |
|
Other Shareholders |
25.58 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Xue Zhongmin |
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General Manager |
Liu Ying |
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Deputy General Manager |
Huang Ziman |
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Zhao Junshan |
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Zhu Jianxun |
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|
Lu Bo |
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Tang Jingyan |
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Song Bolu |
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|
Zhao Qian |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code of 002080.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
(As of December 31, 2013)
----------------------------------
China National Materials Company 54.32
Nanjing Tongtian Science & Technology Industrial Co., Ltd. 5.08
China Three Gorges New Energy Co., Ltd. 4.29
China Construction Bank- Xingquan Social Responsibility Equity Securities Investmen 2.93
Zhongjietou Assets Management Co., Ltd. 2.7
China Construction Bank-Gongyin Ruixin Growth Stock Securities Investment Fund 1.84
China Merchants Bank Co., Ltd.-Huafu Growth trend Securities Investment Fund 1
China Construction Bank-Huafu Competitiveness Preferred Hybrid Securities Investment Fun 0.89
National Social Security Fund (413) 0.74
China Life Insurance Company Limited- Dividend - Individual
Dividend
Other Shareholders 25.58
China National Materials Company
=============================
Date of Registration: June 22, 1987
Registration No.: 100000000006109
Legal Form: Shares Limited Company
Chief Executive: Liu Zhijiang
Registered Capital: CNY 3,571,464,000
Nanjing Tongtian Science & Technology Industrial Co., Ltd.
===============================================
Date of Registration: September 30, 2000
Registration No.: 320121000031896
Chief Executive: Li Lingling
Registered Capital: CNY 80,000,000
China Three Gorges New Energy Co., Ltd.
==================================
Date of Registration: September 5, 1985
Registration No.: 100000000003764
Chief Executive: Pan Jianjun
Registered Capital: CNY 7,021,525,624.2
Zhongjietou Assets Management Co., Ltd.
==================================
Date of Registration: September 5, 1985
Registration No.: 100000000003764
Chief Executive: Pan Jianjun
Registered Capital: CNY 7,021,525,624.2
MANAGEMENT
Xue Zhongmin Legal Representative and Chairman
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Gender: M
Age: 48
Qualification: Doctor Degree
Working experience (s):
At present, working in SC as legal representative, chairman
Also as director of Sinomatech Wind Power Blade Co., Ltd.
Liu Ying General Manager
--------------------------------------------
Gender: M
Age: 49
Qualification: EMBA
Working experience (s):
Before, worked in Taishan Fiberglass Inc. as general manager
From 2010 to present, working in SC as general manager
Also as director of Sinomatech Wind Power Blade Co., Ltd.
Deputy General Manager
---------------------------------
Huang Ziman
Zhao Junshan
Zhu Jianxun
Lu Bo
Tang Jingyan
Song Bolu
Zhao Qian
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling glass fiber, composite materials, filter materials, mineral wool, other non-metallic materials, industrial platinum and rhodium alloy, infiltrating agents and related equipment; technology transfer, consulting services; engineering design and construction; engineering design and construction of glass fiber, composite materials, other non-metallic materials; selling pressure vessels, precious metals, machinery and equipment, industrial automation products, computer software; international trade.
SC is mainly engaged in manufacturing and selling glass fiber, composite materials, and filter materials.
Brand: SINOMA
SC’s products mainly include: high strength glass fiber, high silica glass fiber, low dielectric loss glass fiber, high modulus glass fiber, high strength fiberglass fabric, absorptive glass-mat separators, fiberglass air filter paper, etc.
SC sources its materials 100% from domestic market. SC sells 30% of its products to overseas market and 70% in domestic market.
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 Suppliers:
==============
Taishan Fiberglass Inc.
Sinoma (Liyang) Heavy Machinery Co., Ltd.
Sinoma Advanced Materials Co., Ltd.
*Major Customers:
==============
Isorca Inc.
Midwesco Filter Resources Inc.
AFG Atlanta Fiberglass
Kemrock Industries & Exports Limited
Shanghai Huaite Sande Trade Co., Ltd.
Jiangxi Maide Wind Power Co., Ltd.
Shanghai Exon Gas Equipment Co., Ltd.
Staff & Office:
--------------------------
SC is known to have approx. 5,145 staff at present.
SC owns an area as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to invest in the following subsidiaries and branches,
Beijing Composite Materials Co., Ltd.
Suzhou Sinoma Design and Research Institute of Non-metallic Minerals Industry Co., Ltd.
Sinoma Science & Technology (Suzhou) Co., Ltd.
Sinomatech Wind Power Blade Co., Ltd.
Sinoma Science and Technology Co., Ltd. Tai’an Branch
Sinoma Science and Technology Co., Ltd. Dongguan Shuangwei Branch
Sinoma Science and Technology Co., Ltd. Tai’an Shuangwei Branch
Sinoma Science and Technology Co., Ltd. Beijing Branch
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Consolidated Balance Sheet
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Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
507,189 |
311,721 |
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Accounts receivable |
1,251,691 |
1,339,066 |
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Notes receivable |
697,349 |
978,235 |
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Advances to suppliers |
123,700 |
144,610 |
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Dividends receivable |
1,656 |
0 |
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Other receivable |
19,798 |
20,257 |
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Inventory |
910,206 |
860,521 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
32,099 |
37,826 |
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------------------ |
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Current assets |
3,543,688 |
3,692,236 |
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Long-term investments |
29,211 |
29,635 |
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Financial assets available for sale |
0 |
0 |
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Real estate investment |
0 |
6,522 |
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Fixed assets |
1,897,002 |
1,897,234 |
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Construction in progress |
199,566 |
370,985 |
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Project materials |
36 |
0 |
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Fixed assets in liquidation |
0 |
0 |
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Intangible assets |
315,717 |
360,382 |
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Goodwill |
0 |
0 |
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Long-term deferred expense |
151 |
2,768 |
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Deferred income tax assets |
46,400 |
54,247 |
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Other non-current assets |
41,197 |
78,769 |
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Total assets |
6,072,968 |
6,492,778 |
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============= |
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Short-term loans |
693,000 |
1,129,267 |
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Notes payable |
886,272 |
845,224 |
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Accounts payable |
935,332 |
926,768 |
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Payroll payable |
45,497 |
53,373 |
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Taxes payable |
33,202 |
32,002 |
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Interest payable |
1,176 |
18,569 |
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Advances from clients |
132,347 |
123,809 |
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Other payable |
49,615 |
52,639 |
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Other current liabilities |
183,057 |
52,203 |
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------------------ |
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Current liabilities |
2,959,498 |
3,233,854 |
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Non-current liabilities |
353,459 |
652,213 |
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------------------ |
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Total liabilities |
3,312,957 |
3,886,067 |
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Equities |
2,760,011 |
2,606,711 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
6,072,968 |
6,492,778 |
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============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Revenue |
2,834,438 |
3,443,076 |
|
Cost of sales |
2,235,694 |
2,682,549 |
|
Business Taxes and Surcharges |
18,902 |
20,480 |
|
Sales expense |
130,849 |
152,222 |
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Management expense |
389,814 |
424,273 |
|
Finance expense |
61,811 |
83,068 |
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Asset impairment loss |
34,229 |
76,314 |
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Investment income |
3,474 |
686 |
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Non-operating income |
207,823 |
149,156 |
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Non-operating expense |
7,020 |
2,915 |
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Profit before tax |
167,415 |
151,096 |
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Less: profit tax |
27,783 |
29,189 |
|
139,632 |
121,907 |
Important Ratios
=============
|
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As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
*Current ratio |
1.20 |
1.14 |
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*Quick ratio |
0.89 |
0.88 |
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*Liabilities to assets |
0.55 |
0.60 |
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*Net profit margin (%) |
4.93 |
3.54 |
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*Return on total assets (%) |
2.30 |
1.88 |
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*Inventory / Revenue ×365 |
118 days |
92 days |
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*Accounts receivable/ Revenue ×365 |
162 days |
142 days |
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* Revenue/Total assets |
0.47 |
0.53 |
|
* Cost of sales / Revenue |
0.79 |
0.78 |
FINANCIAL COMMENTS
PROFITABILITY: AVERAGE
The revenue of SC appears good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears fairly large.
The accounts receivable of SC appears large.
The short-term loans of SC appear large.
SC’s revenue is in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered
large-sized in its line with fairly stable financial conditions. The fairly
large amount of inventory, accounts receivable and short-term loans may be a
threat to SC’s financial condition. But taking into consideration of SC’s
general performance, reputation as well as market conditions,
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.34 |
|
|
1 |
Rs.101.41 |
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Euro |
1 |
Rs.83.38 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
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 |
|
|
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 |
|
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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.