MIRA
INFORM REPORT
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Report No. : |
324396 |
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Report Date : |
28.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
SICHUAN NITROCELL CORPORATION |
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Registered Office : |
Gaoba, Luzhou, Sichuan Province 646003 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
23.08.2002 |
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Com. Reg. No.: |
510000000064385 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in engaged in manufacturing and selling nitrocellulose |
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No of Employees : |
2,145 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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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 |
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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
SICHUAN NITROCELL
CORPORATION
GAOBA, LUZHOU,
SICHUAN PROVINCE 646003 PR CHINA
TEL: 86 (0)
830-2796779/2796924/2796909
FAX: 86 (0)
830-2796959
EXECUTIVE SUMMARY
Date of Registration : August 23, 2002
REGISTRATION NO. : 510000000064385
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 413,686,536
staff :
2,145
BUSINESS CATEGORY : manufacturing & trading
REVENUE :
CNY 2,036,033,000 (CONSOLIDATED, AS OF DEC. 31, 2014)
EQUITIES :
CNY 1,162,644,000 (CONSOLIDATED, AS OF DEC. 31, 2014)
WEBSITE : www.sn-nc.com
E-MAIL :
snc-office@vip.sina.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY 6.20 = 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 limited liabilities company of PRC on August 23, 2002. However, SC changed to present legal form, and was
registered as shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 510000000064385
in 2005.
SC’s Organization Code Certificate No.:
74225407-7
SC’s registered capital: CNY 413,686,536
SC’s paid-in capital: CNY 413,686,536
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2005 |
Legal form |
Limited Liabilities Company |
Shares Limited Company |
|
2008 |
Legal Representative |
Wen Gang |
Zhang Yongchang |
|
-- |
Legal Representative |
Zhang Yongchang |
Wang Ligang |
|
Legal Representative |
Wang Ligang |
Li Chunjian |
|
|
Registered capital: |
CNY 197,891,024 |
CNY 413,686,536 |
|
|
2014-9-17 |
Legal Representative |
Li Chunjian |
Wei Guangyuan |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (as
of March 31, 2015) |
% of Shareholding |
|
Zhongbing Investment & Management Co.,
Ltd. |
16.03 |
|
China North Chemical Industries (Group)
Co., Ltd. |
12.27 |
|
Xian North Huian Chemical Industries Co.,
Ltd. |
11.27 |
|
Luzhou North Chemical Industries Co., Ltd. |
10.47 |
|
China Construction Bank Co., Ltd.- Huashang
Theme Selected Stock Securities Investment Fund |
3.25 |
|
China Construction Bank Co., Ltd.-
Huashang Future Theme Stock Securities Investment Fund |
2.47 |
|
Tongqian Securities Investment Fund |
0.97 |
|
Zhongrong International Trust Co., Ltd.-Zhongrong
Hengtai No. 1 |
0.83 |
|
Industrial and Commercial Bank of
China-Huashang Cutting-Edge Flexible Configuration Hybrid Securities
Investment Fund |
0.71 |
|
China Construction Bank Co., Ltd.-Huashang
Dynamic Alpha Flexible Disposition Mixed Securities Investment Fund |
0.63 |
|
Other Shareholders |
41.1 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and General Manager |
Wei Guangyuan |
|
Chairman |
Zhang Jinpeng |
|
Deputy General Manager |
Xue Junzheng |
|
Xue Gang |
|
|
Li Xiaoyan |
|
|
Zhan Zusheng |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002246.
SHAREHOLDER CHART & BACKGROUND
Name (as of March 31, 2015) % of Shareholding
Zhongbing Investment & Management Co.,
Ltd. 16.03
China North Chemical Industries (Group) Co.,
Ltd. 12.27
Xian North Huian Chemical Industries Co.,
Ltd. 11.27
Luzhou North Chemical Industries Co., Ltd. 10.47
China Construction Bank Co., Ltd.- Huashang
Theme Selected Stock Securities Investment Fund
3.25
China Construction Bank Co., Ltd.- Huashang
Future Theme Stock Securities Investment Fund
2.47
Tongqian Securities Investment Fund 0.97
Zhongrong International Trust Co.,
Ltd.-Zhongrong Hengtai No. 1 0.83
Industrial and Commercial Bank of
China-Huashang Cutting-Edge Flexible Configuration Hybrid Securities Investment
Fund 0.71
China Construction Bank Co., Ltd.-Huashang
Dynamic Alpha Flexible Disposition Mixed Securities Investment Fund 0.63
Other Shareholders 41.1
Zhongbing Investment & Management Co.,
Ltd.
----------------------------------------------------------
Registration No.: 110000016891767
Legal Form: One-person Limited Liabilities
Company
Registered Capital: CNY 1,000,000,000
Legal Representative: Tang Bin
China North Chemical Industries (Group) Co.,
Ltd.
-------------------------------------------------------------
China North Chemical Industries (Group) Co.,
Ltd. (Nocinco) is an affiliate of China North Industries Group. (CNGC)
specialized in chemical engineering. Nocinco is a large enterprise comprising
research, manufacturing and trading. Nocinco controls a total number of
twenty-six R&D institutes, trading companies and manufacturing entities.
Nocinco has possessed the most advanced
production facilities of Di-Nitro Toluene (DNT), Toluene Di-Isocyanate (TDI),
Ethanolamine, Nitrocellulose, Active Carbon and Gas Masks in China.
Address: 11F Beifang Dichan Plaza, No.81
Zizhuyuan Rd, Haidian Dist, Beijing, CHINA
Fax: +86 (10) 88829730
Telephone: +86 (10) 88829722, +86 (10)
88829721, +86 (10) 88829727
E-Mail: nocin@163.com
Web: http://www.nocinco.com.cn
Registration No.: 100000000009159
Legal Form: One-person Limited Liabilities
Company
Registered Capital: 2,290,000,000
Legal Representative: Zhang Jinpeng
Xian North Huian Chemical Industry Co., Ltd.
-------------------------------------------------------
Add: Yuxia Hu County Xi’an
Tel: 86 029-84913176/84910905
Registration No.: 610000100053131
Legal Form: Sole State-owned Enterprise
Registered Capital: CNY 202,470,000
Legal Representative: Wei Hetian
Luzhou North Chemical Industry Co., Ltd.
(LNCC)
--------------------------------------------------------------
As a sole subsidiary of China North
Industries Group Corporation (CNGC), China's defense industry leader, Luzhou
North Chemical Industry Co., Ltd. (LNCC) is a large scale chemical complex
enterprise with I/E license. At present, LNCC is located at the east suburb of
Luzhou city in Sichuan province, close to Changjiang River, the container
harbor of Luzhou city, Hulong expressway and railway. LNCC is well known as the
Garden-like enterprise.
Address: Gaoba, Longmatan District, Luzhou,
Sichuan Province
Postal code: 646003
Tel: +86-830-2796688/2796663
Fax: +86-830-2796114
Website: http://www.luzhou-north.com
E-mail: office@luzhou-north.com
Registration No.: 510500000006907
Legal Form: One-person Limited Liabilities
Company
Registered Capital: CNY 432,300,000
Legal Representative: Deng Weiping
MANAGEMENT
Wei Guangyuan,
Legal Representative and General Manager
------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 54
Ø Qualification: MBA
Ø Working experience
(s):
At present, working in SC as legal
representative and general manager
Zhang Jinpeng,
Chairman
----------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as chairman
Xue
Junzheng, Deputy General Manager
----------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as deputy general
manager
Xue
Gang, Deputy General Manager
--------------------------------------------------------
Ø
Gender: M
Ø
Age: 46
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as deputy general manager
Li
Xiaoyan, Deputy General Manager
------------------------------------------------------------
Ø
Gender: F
Ø
Age: 34
Ø Qualification:
University
Ø Working experience
(s):
From 2013 to present, working in SC as deputy
general manager
Zhan Zusheng,
Deputy General Manager
-----------------------------------------------------------------
Ø
Gender: M
Ø
Age: 53
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as deputy general
manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing nitrocellulose and
sulphuric acid; selling dangerous chemical products; importing and exporting
various goods; selling chemical products.
SC is mainly
engaged in manufacturing and selling nitrocellulose.
Brand:
SC’s products
mainly include: Nitrocellulose and alcohol.
SC sources its materials
70% from domestic market, and 30% from the overseas market, mainly European
countries. SC sells 60% of its products in domestic market, and 40% to the
overseas market, mainly American and European countries.
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, L/C and Credit of 30-60 days.
*Major Customers:
==============
Wuxi North Chemical Industry Corporation
Shanxi Beifang Xing'an Chemical Industrial
Co., Ltd.
Akzo Nobel Coatings (Dongguan) Co., Ltd
Yibin North Chuan’an Chemical Co., Ltd.
Shen Zhen Finechem Science and Technology
Development Co., Ltd.
Luzhou North Chemical Industry Co., Ltd.
(LNCC)
Island
Pyrochemical Industries Corp.
Compania Global De
Pinturas S.A.
Staff & Office:
--------------------------
SC is known
to have approx. 2,145 staff
at present.
SC owns an area as
its operating office & factory of approx. 120,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to
invest in the following companies,
Guangzhou
Beihua Kaiming Trade Co., Ltd.
Jiang
Xi Luqing NC Co., Ltd
Beijing
North Century Cellulose Technology Research & Development Co., Ltd.
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
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
135,360 |
125,945 |
|
|
Notes receivable |
116,937 |
97,642 |
|
Accounts
receivable |
295,982 |
256,143 |
|
Advances to
suppliers |
69,591 |
49,022 |
|
Interest
receivable |
0 |
0 |
|
Other receivable |
10,706 |
8,070 |
|
Inventory |
306,856 |
325,779 |
|
Other current
assets |
4,321 |
7,971 |
|
|
------------------ |
------------------ |
|
Current assets |
939,753 |
870,572 |
|
Available-for-sale
financial assets |
0 |
0 |
|
Long-term equity
investment |
2,667 |
0 |
|
Fixed assets |
481,828 |
529,113 |
|
Construction in
progress |
60,625 |
58,699 |
|
Project
materials |
0 |
0 |
|
Fixed asset
depreciation |
0 |
0 |
|
Intangible
assets |
175,769 |
172,970 |
|
Goodwill |
96 |
96 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income tax
assets |
17,962 |
12,236 |
|
Other
non-current assets |
0 |
10,061 |
|
|
------------------ |
------------------ |
|
Total assets |
1,678,700 |
1,653,747 |
|
|
============= |
============= |
|
Short-term loans |
127,000 |
12,000 |
|
Held for trading
financial liabilities |
0 |
0 |
|
Notes payable |
103,063 |
115,284 |
|
Accounts payable |
201,432 |
217,608 |
|
Advances from
clients |
37,508 |
54,214 |
|
Payroll payable |
5,190 |
5,275 |
|
Tax payable |
10,992 |
5,864 |
|
Dividends
payable |
181 |
0 |
|
Other payable |
17,545 |
15,891 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
502,911 |
426,136 |
|
Non-current
liabilities |
92,242 |
64,967 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
595,153 |
491,103 |
|
Equities |
1,083,547 |
1,162,644 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,678,700 |
1,653,747 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Revenue |
2,012,663 |
2,036,033 |
|
Cost of sales |
1,735,461 |
1,739,866 |
|
Taxes and surcharges |
5,892 |
7,052 |
|
Sales expense |
112,071 |
117,631 |
|
Management expense |
111,906 |
113,698 |
|
Finance expense |
9,597 |
1,762 |
|
Investment
income |
-3,115 |
-608 |
|
Non-operating
income |
43,406 |
40,051 |
|
Non-operating expense |
1,204 |
758 |
|
Profit before
tax |
75,413 |
90,195 |
|
Less: profit tax |
11,388 |
9,664 |
|
Profits |
64,025 |
80,531 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
1.87 |
2.04 |
|
*Quick ratio |
1.26 |
1.28 |
|
*Liabilities
to assets |
0.35 |
0.30 |
|
*Net profit
margin (%) |
3.18 |
3.96 |
|
*Return on
total assets (%) |
3.81 |
4.87 |
|
*Inventory /
Revenue ×365/90 |
56 days |
59 days |
|
*Accounts
receivable / Revenue ×365/90 |
54 days |
46 days |
|
*Revenue /
Total assets |
1.20 |
1.23 |
|
*Cost of sales
/ Revenue |
0.86 |
0.85 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly 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 sales is average, comparing with its
revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear average.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.94 |
|
|
1 |
Rs. 98.63 |
|
Euro |
1 |
Rs. 69.85 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.