MIRA
INFORM REPORT
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Report Date : |
03.02.2014 |
IDENTIFICATION DETAILS
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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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Country : |
China |
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Financials (as on) : |
30.09.2013 |
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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 operating propylene oxide, hydrochloric
acid, chloros, sodium dioxide, compressed air, compressed nitrogen, compressed oxygen,
caustic soda, liquid chlorine, hydrogen, styrene and methylbenzene |
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No. of Employees : |
6,000 |
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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
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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
CHIEF EXECUTIVE : MR. Yang Henghua (CHAIRMAN)
STAFF STRENGTH : 6,000
REGISTERED CAPITAL :
CNY 1,157,500,167
BUSINESS LINE : MANUFACTURING &
selling
TURNOVER : CNY 11,576,133,000 (Consolidated, JAN. 1 TO Sep. 30, 2013)
EQUITIES : CNY
2,550,606,000 (CONSOLIDATED, As of Sep.
30, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE : CNY 6.05 = 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.
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.
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’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 Chinese version.
E-mail: admin@daguchem.com
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 |
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|
Registered capital |
CNY 48,690,000 |
CNY 655,516,700 |
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|
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% |
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Registered no. |
1200001001718 |
Present one |
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|
Legal representative |
Xiao Weiguo |
Yang Henghua |
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Registered capital |
CNY 976,240,380 |
Present amount |
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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.
Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code: 103607112
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tianjin Bohai Chemicals Co., Ltd. 53.1
Tianjin Changlu Haijing Group Co., Ltd 17.15
Tianjin International Investment Co., Ltd. 16.99
Tianjin Bohai Chemical Industry Group Co., Ltd. 10.15
The 13th Construction Co., Ltd. of China National
Chemical Engineering 1.19
Tianjin Dagu Chemical Factory Construction Installation
Engineering Corporation 0.71
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 Changlu Haijing Group Co., Ltd.
=============================
Registered no.: 120000000004192
Legal representative: Zhang Weizhong
Tel: 86-022-66887184
Fax: 86-022-25895796
Web: http://www.haijing-tj.com/
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: 022-58980325
Fax: 022-58980303
Web: http://www.bcig.cn/
Note: The business
license of SC’s parent company “Tianjin International Investment Co., Ltd.” was
cancelled, but SC’s shareholding information wasn’t changed.
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.
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
Directors:
Li Xiaoping
Liu Xinsheng
Zhu Jiang
Etc.
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
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As of Sep. 30, 2013 |
as of Dec. 31, 2012 |
|
Cash & bank |
264,923 |
1,113,815 |
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Inventory |
907,566 |
814,268 |
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Bills receivable |
366,150 |
266,104 |
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Accounts receivable |
600,002 |
301,515 |
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Advances to suppliers |
164,486 |
174,564 |
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Other receivables |
456,054 |
391,279 |
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Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
2,759,181 |
3,061,545 |
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Fixed assets net value |
9,035,922 |
9,320,267 |
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Long term investment |
67,484 |
62,484 |
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Projects under construction |
450,218 |
348,239 |
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Intangible assets |
866,915 |
688,720 |
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Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
13,179,720 |
13,481,255 |
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=========== |
=========== |
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Short loan |
4,092,787 |
3,173,353 |
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Accounts payable |
974,386 |
674,568 |
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Bills payable |
421,020 |
2,370,800 |
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Advances from clients |
383,104 |
296,392 |
|
Accrued payroll |
2,014 |
0 |
|
Taxes payable |
60,100 |
9,094 |
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Interest payable |
8,300 |
0 |
|
Other Accounts payable |
813,450 |
586,515 |
|
Other current liabilities |
0 |
0 |
|
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------------------ |
------------------ |
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Current liabilities |
6,755,161 |
7,110,722 |
|
Long term liabilities |
3,874,330 |
3,831,979 |
|
|
------------------ |
------------------ |
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Total liabilities |
10,629,491 |
10,942,701 |
|
Equities |
2,550,606 |
2,538,554 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
13,180,097 |
13,481,255 |
|
|
=========== |
=========== |
Note: The above data
are disclosed in China Foreign Exchange Trade System & National Interbank Funding
Center, and we remarked the controversial data in red.
Consolidated Income Statement
Unit: CNY’000
|
|
Jan. 1 to Sep. 30, 2013 |
As of Dec. 31, 2012 |
|
Turnover |
11,576,133 |
12,225,834 |
|
Cost of goods sold |
10,812,058 |
11,060,734 |
|
Taxes and additional of main operation |
27,570 |
12,225 |
|
Sales expense |
65,619 |
98,095 |
|
Management expense |
344,484 |
827,749 |
|
Finance expense |
316,684 |
249,941 |
|
Investment income |
0 |
40 |
|
Non-operating income |
2,990 |
45,228 |
|
Non-operating expense |
453 |
1,567 |
|
Profit before tax |
12,255 |
20,791 |
|
Less: profit tax |
2,572 |
6,123 |
|
Profits |
9,683 |
14,668 |
Important Ratios
=============
|
|
As of Sep. 30, 2013 |
as of Dec. 31, 2012 |
|
*Current ratio |
0.41 |
0.43 |
|
*Quick ratio |
0.27 |
0.32 |
|
*Liabilities to assets |
/ |
0.81 |
|
*Net profit margin (%) |
0.08 |
0.12 |
|
*Return on total assets (%) |
/ |
0.11 |
|
*Inventory /Turnover ×365 |
/ |
25 days |
|
*Accounts receivable/Turnover ×365 |
/ |
10 days |
|
*Turnover/Total assets |
/ |
0.91 |
|
* Cost of goods sold/Turnover |
0.93 |
0.90 |
PROFITABILITY:
AVERAGE
The turnover of SC appears good.
SC’s net profit margin is average.
SC’s return on total assets is average in 2012.
SC’s cost of goods sold is average in 2012 but fairly high in the first 3 quarters of 2013, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a poor level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loan of SC appears large.
SC’s turnover is in fair level in 2012, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is fairly high in 2012.
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.62.48 |
|
|
1 |
Rs.102.95 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.