MIRA INFORM REPORT
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Report No. : |
348221 |
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Report Date : |
07.11.2015 |
IDENTIFICATION DETAILS
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Name : |
CHINA PETROCHEMICAL INTERNATIONAL (TIANJIN) CO., LTD. |
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Registered Office : |
12/F, Tianxin Building, No. 125, Weidi Road, Hexi District, Tianjin, 300074 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2015 |
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Date of Incorporation : |
27.08.2010 |
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Com. Reg. No.: |
120192000067529 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in selling chemical products and chemical equipment. |
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No. of Employees : |
43 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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, 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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 2014 more than 274 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 also implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
name & address
China Petrochemical International (Tianjin)
Co., Ltd.
12/F, TIANXIN BUILDING, NO. 125, WEIDI ROAD,
HEXI DISTRICT, TIANJIN, 300074 PR CHINA
TEL: 86 (0) 22-28408509/28408497 FAX:
86 (0) 22-23358623
EXECUTIVE
SUMMARY
INCORPORATION DATE : AUG. 27, 2010
REGISTRATION NO. : 120192000067529
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
43
REGISTERED CAPITAL : CNY
20,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 533,750,000 (JAN. 1 TO SEP.
30, 2015)
EQUITIES :
CNY 67,860,000 (AS OF SEP. 30, 2015)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.3343 = 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
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image017.gif){kind=small}
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) on Aug. 27, 2010.
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 import and export of goods and technologies;
wholesaling chemical products (involving hazardous chemicals with dangerous
chemicals business license) (no storage, lease warehousing and logistics
behavior); maritime international cargo transport agents; air international
cargo transport agents; overland international cargo transport agents;
wholesaling and retailing mechanical equipment, instrumentation, automotive
parts, construction materials, wood, metal materials and coal; selling motor
vehicles (excluding cars) (with permit if needed)
SC is mainly
engaged in selling chemical products and chemical equipment.
Mr. Zhang Jianli
has been the legal representative, chairman and general manager of SC since
2010.
SC is known
to have approx. 43 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Tianjin. Our checks reveal that SC rents
the total premise, but the gross area of the premise is unspecific.
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image018.gif){kind=small}
SC is not known to host website of its own at present.
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image019.gif){kind=small}
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
Tax registration no.: 120116559483744
Organization code: 559483744
Credibility Code: 91120116559483744Y
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image020.gif){kind=small}
For the past two years there is no record of litigation.
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image021.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
China Petrochemical International Co., Ltd. 100
Incorporation date: 1984-6-2
Registration no.: 110000007068581
Registered capital: CNY 1,400,000,000
Legal rep.: Wang Yubing
Legal form: One-person Limited Liability
Company
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image022.gif){kind=small}
l
Legal representative, Chairman and General manager:
Mr. Zhang Jianli is currently responsible for the overall management of
SC.
Working Experience(s):
From 2010 to present Working in SC as legal representative, chairman and general
manager
Also working in China Petrochemical Materials
and Equipment (Tianjin) Co., Ltd. (Literal translation) as legal
representative.
Supervisor:
…………..
Liu Jianquan
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image023.gif){kind=small}
SC is mainly
engaged in selling chemical products and chemical equipment.
SC’s products
mainly include chemical products and chemical equipment.
SC sources its materials 20% from domestic market, and 80% from overseas market. SC sells 95% of its products in domestic market, and 5% 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.
Trademark & Patents
No record
Note:
SC’s management declined to release its major clients and suppliers.
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image024.gif){kind=small}
SC is known to invest in the following company:
China Petrochemical Materials and Equipment
(Tianjin) Co., Ltd. (Literal translation)
=====================================================
Incorporation date: 1992-8-6
Registration no.: 120192000045943
Registered capital: CNY 26,880,000
Legal rep.: Zhang Jianli
Legal form: One-person Limited Liability Company
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image025.gif){kind=small}
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 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.
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image026.gif){kind=small}
Bank of China Tianjin Hexi Sub-branch
AC#：N/A
Relationship:
Normal.
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image027.gif){kind=small}
Balance Sheet
|
Unit: CNY’000 |
as
of Sep. 30, 2015 |
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Cash & bank |
8,140 |
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Inventory |
230,120 |
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Accounts
receivable |
11,110 |
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Advances to
suppliers |
61,930 |
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Internal
dealings |
-26,540 |
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Other accounts
receivable |
690 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
285,450 |
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Fixed assets net
value |
830 |
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Projects under
construction |
0 |
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Long term
investment |
29,000 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
315,280 |
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============= |
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Short loans |
0 |
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Accounts payable |
121,510 |
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Advances from
clients |
108,620 |
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Employee pay
payable |
140 |
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Other accounts
payable |
29,000 |
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Taxes payable |
-11,870 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
247,400 |
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Other
liabilities |
20 |
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------------------ |
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Total
liabilities |
247,420 |
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Equities |
67,860 |
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------------------ |
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Total
liabilities & equities |
315,280 |
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============= |
Income Statement
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Unit: CNY’000 |
Jan.
1 to Sep. 30, 2015 |
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Turnover |
533,750 |
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Cost of goods sold |
497,830 |
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Taxes and additional of main operation |
10 |
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Sales expense |
5,090 |
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Management expense |
4,810 |
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Finance expense |
7,180 |
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Non-operating
income |
90 |
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Non-operating expenses |
0 |
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Profit before
tax |
18,920 |
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Less: profit tax |
4,730 |
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Profits |
14,190 |
Important
Ratios
=============
|
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as of Sep. 30,
2015 |
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*Current ratio |
1.15 |
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*Quick ratio |
0.22 |
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*Liabilities
to assets |
0.78 |
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*Net profit
margin (%) |
2.66 |
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*Return on
total assets (%) |
4.50 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts receivable/Turnover
×365 |
/ |
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*Turnover/Total
assets |
1.69 |
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* Cost of
goods sold/Turnover |
0.93 |
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image028.gif){kind=small}
PROFITABILITY:
AVERAGE
l The turnover 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 goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a poor level.
l
The accounts receivable of SC appears average.
l
The inventory of SC appears large.
l
SC has no short-term loan.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
%20CO.,%20LTD.%20-%20348221%2007-Nov-2015_files/image029.gif){kind=small}
SC is considered medium-sized in its line with fairly stable financial conditions.
The large amount of inventory could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.79 |
|
|
1 |
Rs.99.94 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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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 |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
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41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
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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 |
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-- |
NB |
New Business |
-- |
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This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major sections
of this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.