MIRA INFORM REPORT
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Report No. : |
323349 |
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Report Date : |
23.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
SINOCHEM INTERNATIONAL CORPORATION |
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Registered Office : |
18/F, Jinmao Tower, No. 88 Century Avenue, Pudong New Area, Shanghai, 200121 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
14.12.1998 |
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Com. Reg. No.: |
310000000066961 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in international trade, investing and managing in its subsidiaries. |
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No of Employees : |
9,545 (Including Subsidiaries) |
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 |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
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 INTERNATIONAL CORPORATION
18/F, JINMAO TOWER, NO. 88 CENTURY AVENUE,
PUDONG NEW AREA, SHANGHAI, 200121 PR CHINA.
TEL: 86 (0) 21-61048666 FAX:
86 (0) 21-50470206
EXECUTIVE
SUMMARY
INCORPORATION DATE : DEC. 14, 1998
REGISTRATION NO. : 310000000066961
REGISTERED LEGAL FORM : shares limited company
STAFF STRENGTH :
9,545 (INCLUDING SUBSIDIARIES)
REGISTERED CAPITAL :
CNY 2,083,012,671
BUSINESS LINE :
TRADE,
INVESTMENT & MANAGEMENT
TURNOVER :
CNY 38,605,197,000
(CONSOLIDATED, AS OF DEC. 31, 2014)
EQUITIES :
CNY 14,395,243,000 (CONSOLIDATED, AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE : CNY 6.1955= 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 Ren Min Bi
SC was registered as a shares limited company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 14, 1998.
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 China. Natural person are allowed to serve as promoters. The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. 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 importing & exporting commodities and technology,
excluding commodity
exported under state-unified operation and commodities operated to
import by state-designated companies; processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement, counter trade, transit trade; selling feed,
cotton, hemp, domestic animal products, textiles, garments, daily-use articles,
paper pulp, paper products, hardware, household appliances, chemicals, chemical
materials, mineral products, rock oil products (excluding oil products),
grease, coal, steel, rubber & rubber products, building materials, ferrous metal materials,
machinery, electronic devices, automobiles (excluding cars), motorcycles and
spare parts; planting rubber crops; storage services; program investment;
wholesale of the cereals, oils and products; trade of agriculture products such as fertilizer,
agricultural film, pesticide, and relative consultation services, technical
exchanges and technical development.
SC is mainly
engaged in international trade, investing and managing in its subsidiaries.
Mr.
Zhang Zenggen has been legal representative and chairman of SC since
Feb. of 2015.
SC is known
to have approx. 9,545 (including subsidiaries) employees at present,
including 6,474 production staff, 526 sales staff, 428 technicians, 341
financial staff and 1,776 administrative staff.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. The detailed information
of the premise is unspecified.
http://www.sinochemintl.com The design
is professional and the content is well organized. At present the web is in
Chinese, English and other versions.
E-mail: ir@sinochem.com
SC is listed in Shanghai Stock Exchange Market with the stock code
600500.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2002-2-22 |
Legal representative |
Lin Daxian |
Liu Deshu |
|
2002-7-31 |
Legal representative |
Liu Deshu |
Shi Guoliang |
|
2004-9-8 |
Company name |
Sinochem International Trading Co., Ltd. |
The present one |
|
2004-12-29 |
Legal representative |
Shi Guoliang |
Luo Dongjiang |
|
2009-10-30 |
Legal representative |
Luo Dongjiang |
Pan Zhengyi |
|
2015-2-4 |
Legal representative |
Pan Zhengyi |
The present one |
Tax Registration Certificate No.: 310115710923539
Organization Code: 71092353-9
Since its listing on Shanghai Stock Exchange in 2000, Sinochem
International has kept paying returns to shareholders and the society with its
good performance; for 9 straight years, it is cited by Fortune Magazine as one
of China’s top 100 listed companies, and has won many other honors like “Best
Corporate Governance of 100 Listed Chinese Companies”, “Best Chinese Board of
Directors”, “China's Most Respected Listed Companies”, “Most Responsible Listed
Company”, and “Best Governance of Listed Companies in China”.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (As of March 31, 2015)
Name %
of Shareholding
Sinochem Corporation 55.35
Shanghai Huaxin Petroleum Group Co., Ltd. 2.61
Shanghai Huaxin Petroleum Group
International Trade Co., Ltd. 1.92
Beijing Infrastructure Investment Co., Ltd. 1.62
National Social Security Fund Portfolio 103 0.96
Industrial and Commercial Bank of China-
Bosera Select Equity Securities Investment Fund 0.48
China Foreign Economic and Trade Trust
Company Limited- Ruijin Period 12 Dingsa Securities Investment Collective
Capital Trust Plan (in Chinese pinyin) 0.45
China Petroleum Sales Co., Ltd. 0.38
Zhonghua Jinqiao International Trading
Company 0.31
Tibet Aier Medical Investment Co., Ltd. 0.28
Other shareholders 35.64
Sinochem Corporation
===================
Registration no.: 100000000042135
Legal representative: Liu Deshu
Registered capital: CNY 39,800,000,000
Tel: 010-59568888
Fax: 010-59568890
- Legal representative and Chairman:
Mr. Zhang Zenggen, born in 1965, with Master’s Degree, engineer and
Senior International Business Operator. He is currently responsible for the
overall management of SC.
Working
Experience(s):
Acted as general manager of Sinochem Xingzhong Petroleum Transfer &
Transportation (Zhoushan) Co., Ltd.; vice general manager of Sinochem
International Oil Corp.; general manager of Sinochem Group Corp. Risk
Management Department.
From 2007
to 2015 Worked in SC
as general manager
From Feb.
of 2015 to present Working in SC as legal representative and
chairman.
- General Manager:
Mr. Qin Hengde, born in 1970, with Master’s Degree, senior accountant.
He is currently responsible for the daily management of SC.
Working
Experience(s):
From
Feb. of 2015 to present Working in
SC as general manager.
Born in 1970, Mr. Qin holds a Bachelor’s
Degree in Accounting, Nanjing University of Science and Technology and a
Master’s Degree in Management Engineering, Huazhong University of Science and
Technology, and is a Senior Accountant. Before joining Sinochem in 2004, he
held several important positions, including Director of Financial Department
and Chief Financial Officer in Hubei Hongqi Electric Group Co., Ltd.; Chief
Financial Officer of the State Investment & Resources Corporation; and Vice
General Manager, Investment Management Department, D’long International
Strategic Investment Company. He was General Manager of Business Development,
Vice General Manager and CFO in this company, before taking current position as
Director and General Manager.
Also working in Jiangsu Sinorgchem Technology Co., Ltd. and Sinochem International Logistics Co., Ltd. as legal
representative.
- Vice general managers:
Li Dajun
Cheng Xiaoxi
Liu Hongsheng
Yao Xingliang
- Directors:
Zhu Hongchao
Xu Jingchang
Lan Zhongkai
Qin Hengde
Etc.
- Supervisors:
Song Yuzeng
Li Chao
Cheng Yong
SC is mainly
engaged in international trade, investing and managing in its subsidiaries.
SC’s products mainly
include: Chemicals products, Rubber products, Metallurgy and Energy products,
etc.
SC’s (including
its subsidiaries) businesses mainly include:
Natural Rubber
Business
New Material
Business
Rubber Chemical
Business
Agrochemical
Business
Logistics Business
Distribution &
Trade Business
SC sources its
materials 80% from domestic market, and 20% from overseas market. SC sells 40%
of its products in domestic market and 60% 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 T/T, Check, L/C and Credit of 30-60 days.
*Major Supplier:
=============
Shanxi Yaxin Coal Coking Co., Ltd.
Major Client:
==========
Sinochem Plastics Co., Ltd.
Branches:
Sinochem
International Corp. Guangdong Branch
Sinochem
International Corp. Beijing Branch
Sinochem
International Corp. Tianjin Branch
Sinochem
International Corp. Fujian Branch
Sinochem
International Corp. Qingdao Office
Sinochem
International Corp. Shenyang Office
Etc.
SC is known to invest in
the following companies:
Sinochem International (Overseas) Pte. Ltd.
GMG Global Ltd.
Sinochem International Logistics Co., Ltd.
Shanghai Northsea Shipping Co., Ltd.
Hainan
Sinochem Rubber Co., Ltd.
Xishuangbanna
Sinochem Rubber Co., Ltd.
Sinochem International PU Limited Company
Sinochem International Crop Care Co., Ltd.
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 suppliers
declined to make any comments.
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.
SC declined to
release its banking details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2014 |
as of Dec. 31, 2013 (Restatement) |
|
Cash & bank |
3,187,047 |
2,238,939 |
|
Financial assets
at fair value through profit or loss |
100,707 |
0 |
|
Derivative
financial assets |
69,927 |
41,614 |
|
Inventory |
3,335,526 |
3,818,766 |
|
Accounts
receivable |
2,485,936 |
2,884,183 |
|
Notes receivable |
474,688 |
912,702 |
|
Advances to
supplies |
526,964 |
270,960 |
|
Interest
receivable |
983 |
1,265 |
|
Dividends
receivable |
12,842 |
0 |
|
Other
receivables |
1,082,331 |
639,951 |
|
Other current
assets |
605,011 |
1,242,751 |
|
|
------------------ |
------------------ |
|
Current assets |
11,881,962 |
12,051,131 |
|
Financial assets
available for sale |
392,055 |
493,946 |
|
Fixed assets net
value |
5,684,017 |
5,726,122 |
|
Projects under
construction |
990,462 |
300,388 |
|
Project
materials |
1,541 |
447 |
|
Long-term
investments |
5,730,968 |
6,227,408 |
|
Investment real
estate |
83,061 |
177,498 |
|
Productive
biological assets |
647,408 |
586,039 |
|
Long-term
receivables |
22,734 |
25,674 |
|
Intangible
assets |
2,324,554 |
2,433,846 |
|
Goodwill |
1,939,065 |
1,939,835 |
|
Long-term
deferred expense |
49,269 |
16,313 |
|
Deferred tax
assets |
135,338 |
284,242 |
|
Other assets |
228,749 |
202,192 |
|
|
------------------ |
------------------ |
|
Total assets |
30,111,183 |
30,465,081 |
|
|
============= |
============= |
|
Short loans |
3,659,486 |
2,146,692 |
|
Financial
liabilities at fair value through profit or loss |
88,888 |
0 |
|
Derivative
financial liabilities |
40,265 |
12,136 |
|
Accounts payable |
2,357,896 |
2,969,442 |
|
Other Accounts
payable |
559,037 |
605,666 |
|
Notes payable |
816,604 |
604,819 |
|
Advances from
clients |
372,099 |
481,353 |
|
Taxes payable |
216,966 |
113,923 |
|
Interest payable |
118,462 |
115,283 |
|
Accrued payroll |
168,293 |
151,019 |
|
Dividends
payable |
0 |
252,485 |
|
Long-term
liabilities due with in one year |
303,282 |
2,528,193 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
8,701,278 |
9,981,011 |
|
Long term
liabilities |
7,014,662 |
5,287,649 |
|
Other
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
15,715,940 |
15,268,660 |
|
Equities |
14,395,243 |
15,196,421 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
30,111,183 |
30,465,081 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2014 |
as of Dec. 31, 2013 (Restatement) |
|
Turnover |
38,605,197 |
48,314,789 |
|
Cost of goods sold |
35,916,779 |
45,321,106 |
|
Taxes and additional of main
operation |
84,867 |
118,407 |
|
Sales expense |
986,875 |
850,714 |
|
Management expense |
1,097,889 |
1,079,888 |
|
Finance expense |
445,093 |
264,165 |
|
Asset impairment loss |
324,532 |
188,615 |
|
Income from
changes in fair value |
-974 |
38,537 |
|
Investment
income |
1,072,963 |
367,829 |
|
Non-operating
income |
406,920 |
118,311 |
|
Non-operating expense |
9,345 |
24,512 |
|
Profit before
tax |
1,218,726 |
992,059 |
|
Less: profit tax |
336,071 |
203,304 |
|
Profits |
882,655 |
788,755 |
Important Ratios
=============
|
|
As of Dec. 31,
2014 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.37 |
1.21 |
|
*Quick ratio |
0.98 |
0.82 |
|
*Liabilities
to assets |
0.52 |
0.50 |
|
*Net profit
margin (%) |
2.29 |
1.63 |
|
*Return on total
assets (%) |
2.93 |
2.59 |
|
*Inventory
/Turnover ×365 |
32 days |
29 days |
|
*Accounts
receivable/Turnover ×365 |
24 days |
22 days |
|
*Turnover/Total
assets |
1.28 |
1.59 |
|
* Cost of
goods sold/Turnover |
0.93 |
0.94 |
PROFITABILITY: FAIRLY GOOD
l The turnover of SC appears good in its line
l SC’s net profit margin is average
l SC’s return on total assets is average
l SC’s cost of goods sold is fairly 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 normal level.
l The inventory of
SC appears average.
l The accounts
receivable of SC appears average.
l
SC’s short-term loan appears average.
l SC’s turnover is
in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l The debt ratio of
SC is average.
l The risk for SC to
go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
SC is well-known in its industry with fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.57 |
|
|
1 |
Rs. 99.66 |
|
Euro |
1 |
Rs. 70.92 |
INFORMATION DETAILS
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
DPT |
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.