MIRA INFORM REPORT
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Report No. : |
323609 |
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Report Date : |
22.05.2015 |
IDENTIFICATION DETAILS
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Name : |
SINOCHEM PLASTICS CO., LTD. |
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Formerly Known As : |
Sinochem Plastics Corp. |
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Registered Office : |
7/F, Sinochem Tower, No. A2, Fuxingmenwai Street, Beijing, 100045 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
21.05.1988 |
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Com. Reg. No.: |
110000005006960 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
· Engaged in Selling Hazard Chemicals; Wholesaling Prepackaged Food and Dairy Products; Import and Export of Goods and Technologies, and acting as an agent for it; affecting Chinese foreign equity joint venture enterprise and Chinese foreign contractual joint venture enterprise. · engaged in Supplying Petrochemicals and Plastic Chemical Fiber. · Subject product ranges includes Aromatics, PTA, Ethylene Glycol, Methanol, Polyethylene, Polypropylene, ABS Resin, Polyurethane & Acrylic Acid. |
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No of Employees : |
300 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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. In 2014 the People’s Bank of China (PBOC) doubled the daily trading band within which the RMB is permitted to fluctuate. 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 2014 stood as the largest economy in the world, surpassing the US that year... 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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
Source
: CIA
Company
name & address
SINOCHEM PLASTICS
CO., LTD.
7/F, SINOCHEM TOWER, NO. A2, FUXINGMENWAI STREET, BEIJING, 100045
PR CHINA
TEL: 86 (0) 10-59368993 / 59368520 FAX:
86 (0) 10-59368301/59368578
EXECUTIVE
SUMMARY
INCORPORATION DATE :
MAY 21, 1988
REGISTRATION NO. :
110000005006960
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE : MR. ZHANG XIAOLEI (LEGAL REPRESENTATIVE)
STAFF STRENGTH :
APPROXIMATELY 300
REGISTERED & PAID-IN CAPITAL :
CNY 200,000,000
BUSINESS LINE :
SUPPLIER
TURNOVER :
CNY 8, 255,170,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 282,818,000 (AS OF DEC. 31, 2012)
PAYMENT : Slow but Correct
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2655 = 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: The given banker information cannot be confirmed.
SC was registered as a one-person limited liability company at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license)
Company Status: One-person Limited
Liability Company Single person
LLC refers to a limited liability company set up by only one natural person
or legal person as the single shareholder of it. The minimum
registered capital of Single person LLC is CNY100,000. The shareholder’s
capital contributes, as set out by the articles of associations should be a
lump-sum payment in full. One natural person
can only invest in and set up one limited liability company, which is not
permitted to invest in and set up a new Single person LLC. As to any
one-person limited liability company, the sole-investor nature of the
natural person or legal person shall be indicated in the registration
documents of the company and shall be indicated in the business license
thereof as well. The regulation
of Single person LLC should be set up by the shareholder The
regulation of Single person LLC has no shareholder meeting.
SC’s registered
business scope includes selling hazard chemicals; wholesaling prepackaged food
and dairy products; import and export of goods and technologies, and acting as an
agent for it; affecting Chinese foreign equity joint venture enterprise and
Chinese foreign contractual joint venture enterprise.
SC is mainly
engaged in supplying petrochemicals and plastic chemical fiber.
Mr. Zhang Xiaolei
is legal representative, executive director and general manager of SC at
present.
SC is known to
have approx. 300 employees at present.
The
subject operates from premises located at the heading address, and this address
houses its head office in the commercial zone of Beijing. Detailed premise
information is not available at present.
http://www.sinochemplastics.com/
The
design is professional and the content is well organized. At present it is in
Chinese, English and Japanese versions.
Tax Registration Certificate No.: 110102101135780
Organization Code: 101135780
Changes of its
registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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2009-6 |
Legal form |
State-owned enterprise |
Present one |
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Company name |
Sinochem Plastics Corp. |
Present one |
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2012-6 |
Registered capital |
CNY 73,273,600 |
Present amount |
Subject passed the annual inspection
of 2012 with Administration for Industry & Commerce.
License Expiry Date: Long
terms
Business started: 1988
Listed at the stock exchange: No
PUBLIC
The sources consulted
record no detrimental legal court information.
Shareholders Parent Company (ies)
Name
%
of Shareholding
Sinochem Co., Ltd. 100
Registration no.: 100000000042135
Legal representative: Liu Deshu
Registered capital: CNY 39,800,000,000
Legal form: Shares limited co.
Registered address: No. 28, Fuxing Mennei Street, Xicheng District,
Beijing
The subject has the following senior company
personnel:
Legal
Representative, Executive Director and General Manager:
Mr. Zhang Xiaolei, born in 1962 with university education. He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Supervisor:
Zhao Hongmin
SC is mainly
engaged in supplying petrochemicals and plastic chemical fiber.
Products/Services description: aromatics, PTA, ethylene glycol,
methanol, polyethylene, polypropylene, ABS resin, polyurethane & acrylic
acid.
Sales are: wholesale
Operations area: National, Local
SC sources its materials 40% from domestic market and 60% from overseas
market. SC sells 90% of its products in domestic market and 10% to 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 Check, T/T, L/C and Credit of 30-60 days.
There is no local supplier
to confirm the trade references.
SC’s ultimate parent company is China Sinochem Group Corporation.
SC is known to have an
invested company:
INCOM Resources Co., Ltd.
======================
Reg. No.: 110000005272374
Legal representative: Fang Xinqiao
Incorporation date: 2003-01-23
Web: http://www.incom.cc/
Tel: +86 10 8048 0988
Fax: +86 10 8048 6879
SC is known to have the following branches:
Sinochem Plastics Co., Ltd. Shanghai Branch
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Reg. No.: 310112000762904
Principal: Miu Guangming
Incorporation date: 2004-09-13
Tel: 021-5081 2631
Fax: 021-5081 6335
Sinochem Plastics Co., Ltd. Shenzhen Branch
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Reg. No.: 440301103546523
Principal: Zheng Jin
Incorporation date: 2005-11-11
Address: Room 2506, Rongchao Economic Trade Center,
4028 Jin Tian Road, Futian Central District, Shenzhen, China
Tel: 0755-8355 1683
Fax: 0755-8355 1982
Sinochem Plastics Co., Ltd. Jiangsu Branch
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Reg. No.: 320103000187625
Principal: Zheng Guomeng
Incorporation date: 2009-08-18
Address: F19, Jincheng Tower, 216 Longpan Middle Road,
Baixia District, Nanjing, China
Tel: 025-5181 7777
Fax: 025-5181 7788
Sinochem Plastics Co., Ltd. Guangzhou Branch
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Reg. No.: 440106000051487
Principal: He Jianda
Incorporation date: 2009-9-14
Sinochem Plastics Co., Ltd. Chengdu Branch
Tel: 028-8526 6758
Fax: 028-8526 6756
Sinochem Plastics Co., Ltd. Tianjin Branch
Tel: 022-2840 8320
Fax: 022-2840 8320
Sinochem Plastics Co., Ltd. Qingdao Branch
Tel: 0532-8502 1598
Fax: 0532-8502 1598
According to SC’s
website:
Sinochem Trading (Singapore) Pte. Ltd.
Address: Suntec Tower 2,＃18-01/03, 9 Temasek
Boulevard, Singapore
Tel: 0065-6338 0110
Fax: 0065-6334 1787
Sinochem Japan Co., Ltd.
Address: IMC Bldg. Shinbashi 6F, 5-5-1 Shimbashi,
Minato-ku, Tokyo, Japan
Tel: 0081-3-3434 7890
Fax: 0081-3-3434-8747
Sinochem International Chemicals (Hong Kong) Ltd.
Address: 47F, Office Tower, Convention Plaza, 1 Harbour
Road, Wancai, Hong Kong
Tel: 00852-2824 0100
Fax: 00852-2802 9607
Ultimate Parent Company
China Sinochem Group Corporation
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Registration Number: 100000000000410
Legal representative: Liu Deshu
Incorporation date: Aug. 11, 1981
Tel: 86 (0) 10-59568888/59569332
Fax: 86 (0) 10-59568890
The company has many branches in the country.
Payments
are Slow but Correct
The subject
maintains relations with the following bank:
Industrial and
Commercial Bank of China Beijing Fuwai Sub-branch
AC#：0200048509022101040
It is generally not
the policy of local banks to provide credit status information to non-bona fide
applications, and interested parties would be advised to consult first with the
subject if banker's references are required.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Cash & bank |
416,883 |
385,245 |
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Notes receivable |
417,865 |
329,239 |
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Inventory |
749,774 |
856,552 |
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Accounts receivable |
610,435 |
445,673 |
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Advances to suppliers |
179,383 |
149,403 |
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Other receivables |
72,820 |
33,511 |
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Other current assets |
296 |
4,565 |
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------------------ |
------------------ |
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Current assets |
2,447,456 |
2,204,188 |
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Fixed assets net value |
3,433 |
3,673 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
44,500 |
49,001 |
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Deferred tax asset |
3,758 |
191 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
2,499,147 |
2,257,053 |
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=========== |
=========== |
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Short loan |
0 |
0 |
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Note payable |
100,000 |
232,043 |
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Accounts payable |
1,908,259 |
1,444,939 |
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Accrued payroll |
16,248 |
13,900 |
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Advances from clients |
260,104 |
260,383 |
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Taxes payable |
8,877 |
2,710 |
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Other payable |
29,393 |
19,939 |
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Other current liabilities |
1,432 |
0 |
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------------------ |
------------------ |
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Current liabilities |
2,324,313 |
1,973,914 |
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Long term liabilities |
0 |
321 |
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------------------ |
------------------ |
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Total liabilities |
2,324,313 |
1,974,235 |
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Equities |
174,834 |
282,818 |
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------------------ |
------------------ |
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Total liabilities & equities |
2,499,147 |
2,257,053 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Turnover |
8,619,701 |
8,255,170 |
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Cost of goods sold |
8,433,046 |
7,980,005 |
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Taxes and additional of main operation |
1,415 |
3,112 |
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Sales expense |
113,015 |
122,793 |
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Management expense |
66,763 |
69,317 |
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Finance expense |
-12,878 |
-1,945 |
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Asset impairment loss |
8,553 |
7,244 |
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Non-operational income |
0 |
821 |
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Non-operational expense |
20 |
10 |
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Investment income |
116,940 |
11,481 |
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Profit before tax |
132,004 |
88,451 |
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Less: profit tax |
37,924 |
22,522 |
|
Profits |
94,080 |
65,929 |
Note:
The financial reports for Yr2013 are not available at present.
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.05 |
1.12 |
|
*Quick ratio |
0.73 |
0.68 |
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*Liabilities to assets |
0.93 |
0.87 |
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*Net profit margin (%) |
1.09 |
0.80 |
|
*Return on total assets (%) |
3.76 |
2.92 |
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*Inventory /Turnover ×365 |
32 days |
38 days |
|
*Accounts receivable/Turnover ×365 |
26 days |
20 days |
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*Turnover/Total assets |
3.45 |
3.66 |
|
* Cost of goods sold/Turnover |
0.98 |
0.97 |
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 high, 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 fair
level.
l The inventory of SC appears average.
l The accounts receivable of SC appears
average.
l SC has no short loans in both years.
l SC’s turnover is in a fairly good level,
comparing with the size of its total assets.
LEVERAGE: FAIR
l The debt ratio of SC is high.
l The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
We have
contacted SC’s management. They refused to release the financial information,
the above detailed financial reports were found at local AIC.
SC was registered as a State-owned enterprise at Beijing Administration
for Industry & Commerce on May 21, 1988, and has been under present
ownership since 2009. The subject operates as supplier of petrochemicals and
plastic chemical fiber.
No legal actions were traced against the subject during the course of
this investigation. No unfavorable
information with regard to the subject's commercial reputation was reported.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.70 |
|
UK Pound |
1 |
Rs.98.91 |
|
Euro |
1 |
Rs.70.66 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
DPT |
RATING EXPLANATIONS
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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 |
|
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 |
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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 |
|
-- |
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.