MIRA INFORM REPORT
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Report No. : |
344168 |
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Report Date : |
14.10.2015 |
IDENTIFICATION DETAILS
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Name : |
BP ZHUHAI CHEMICAL CO., LTD. |
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Registered Office : |
No. 1, Biyang Road, Harbor Industrial Zone, NaNshui Town, Zhuhai CITY, Guangdong Province, 519050 PR |
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Country : |
China |
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Financials (as on) : |
30.06.2015 |
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Date of Incorporation : |
03.09.1997 |
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Com. Reg. No.: |
440400400027927 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and
selling of PTA |
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No. of Employees : |
300 |
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 – March 31, 2015
|
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.
|
Source
: CIA |
Company
name and address
BP ZHUHAI CHEMICAL CO., LTD.
NO. 1, BIYANG ROAD, Harbor Industrial Zone, NaNshui Town,
Zhuhai CITY,
Guangdong PROVINCE, 519050 PR CHINA
TEL: 86 (0)
756-7269688/7269888 FAX: 86 (0)
756-7269888
EXECUTIVE
SUMMARY
INCORPORATION DATE :
SEP. 3, 1997
REGISTRATION
NO. : 440400400027927
REGISTERED
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF
EXECUTIVE : YANG
XIAOPING (LEGAL REPRESENTATIVE)
STAFF
STRENGTH : 300
REGISTERED
CAPITAL :
USD 488,000,000
BUSINESS
LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 2,684,678,000 (JAN. 1~ JUN. 30, 2015)
EQUITIES :
CNY 1,364,366,000 (AS OF JUN. 30, 2015)
PAYMENT :
Slow BUT
CORRECT
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.35 = 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’s complete address should be the heading one.
SC
was registered as a Chinese-foreign equity joint venture enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Sep. 3, 1997.
Company
Status: Chinese-foreign equity joint venture enterprise
This form of business in PR China is defined as a legal person. It
is a limited co. jointly invested by one or more foreign companies and one or
more PR China controlled companies within the territories of PR China according
to a certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of the
co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum. The
investing parties are free to agree on method of profit distribution and
liabilities bearing according to the proportion of capital investment. Each
investing parties contributes funds, tangible assets, technology. The board of
directors excises the high authority. The joint venture usually has a limited
duration of 10 to 50 years. Enterprise with large investment, long construction
periods, low investment returns, introducing of advanced technology
&advanced technology products that have good competition position in
international market may extend beyond the 50 years limit
SC’s registered business scope includes manufacturing of PTA and
selling PTA in domestic market and to
overseas market; wholesale, import and export of PTA and p-xylene (dangerous
chemicals operate in accordance with the dangerous chemicals business license
scope of business, involving goods under the management of special provisions
in accordance with the relevant state provisions, the above commodities does not
involve the state-run trade management, involving goods under quota and license
administration, shall be dealt with in accordance with the relevant provisions
of the state (if needed with permit)
SC is mainly engaged in manufacturing and selling of PTA.
Yang
Xiaoping has been legal representative and chairman of SC since 2014.
SC
is known to have approx. 300 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 Zhuhai. Detailed premise
information is not available at present.
http://www.bp.com/zh_cn/china.html (It belongs to BP Group. It includes information
on SC.) The design is professional and the content is well organized. At
present it is in Chinese and English versions.
For
the past two years there is no record of litigation.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2014-9-28 |
Legal representative |
Yang Shixu |
Present one |
Organization
Code: 632847138
MAIN SHAREHOLDERS:
Name %
of Shareholding
BP
Global Investments Limited
BP 55.2
BP
(China) Holdings Limited 10.8
Zhuhai
Port Co., Ltd. 15
BP
Amoco Chemical Holding Company 19
BP
(China) Holdings Limited
=======================
Registration
no.: 440400400026629
Incorporated
date: 2002-5-9
Legal
representative: Yang Hengming
Zhuhai
Port Co., Ltd.
=================
Registration
no.: 440400000142072
Incorporated
date: 1986-6-20
Legal
representative: Ou Huisheng
Stock
code: 000507
Tel.:
86-0756-3292215/3292216
Fax:
86-0756-3321889
Email:
zph916@163.com
Website:
http://www.0507.com.cn
·
Legal Representative and Chairman:
Yang
Xiaoping is currently responsible for the overall management of SC.
Working
Experience(s):
From
2014 to present Working in
SC as legal representative and chairman.
·
Vice chairman:
Mr.
Ou Huisheng, born in 1970 with doctor’s degree, senior economist, accountant
and certified public accountant, he is currently responsible for the daily
management of SC.
Working
Experience(s):
At
present Working in SC
as vice chairman.
Also
working in Zhuhai Port Co., Ltd. as legal representative.
·
Directors:
Stewart
Graeme
Wang
Huiyi
Wilson
Mark
Guo
Ning
·
Supervisor:
Zheng
Songmei
SC
is mainly engaged in manufacturing and selling of PTA.
SC’s
products mainly include: PTA
SC
sources its materials from domestic market and overseas market. SC sells its
products to overseas market and in domestic 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.
Note:
SC declined to release its major suppliers and clients.
Trademark & Patents
N/A
According
to the website:
Shanghai
SECCO Petrochemical Company Limited
===============================
Registration
no.: 310000400279832
Incorporated
date: 2001-10-29
Legal
representative: Yan Zongzheng
Website:
http://www.secco.com.cn/en_us/
Tel.:
86 (0) 21 5257 4688
Fax:
86 (0) 21 6209 7070
Email:
contacts@secco.com.cn
Yangzijiang
Acetyl Chemical Co., Ltd.
===============================
Registration
no.: 500000400028432
Incorporated
date: 1995-12-22
Legal
representative: Xu Zhengning
Tel.:
86 0 (23) 6897 4407
Fax:
86 0 (23) 4026 0006
BP
YPC Acetyls Company (Nanjing) Ltd.
===============================
Registration
no.: 320100400031147
Incorporated
date: 2005-9-29
Legal
representative: Tan Xiaoping
Tel.:
86 0 (25) 5778 0000
Fax:
86 0 (25) 5778 0008
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.
SC’s
accountant refused to release the bank details.
Financial Summary
===============
Unit:
CNY’000
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As of Dec. 31, 2014 |
As of Jun. 30, 2015 |
||
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Total liabilities |
5,935,803 |
6,419,420 |
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Equities |
1,561,328 |
1,364,366 |
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-------------------- |
-------------------- |
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Total assets |
7,497,131 |
7,783,786 |
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============= |
============= |
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As of Dec. 31, 2014 |
Jan. 1~Jun. 30, 2015 |
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Turnover |
7,524,985 |
2,684,678 |
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Profit before tax |
/ |
/ |
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Profits |
-1,587,402 |
-202,894 |
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Note: SC’s management refused to release its detailed financial
reports.
Important Ratios
=============
|
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As of Dec. 31, 2014 |
Jan. 1~Jun. 30, 2015 |
|
*Liabilities to assets |
0.79 |
0.82 |
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*Net profit margin (%) |
-21.10 |
-7.56 |
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*Return on total assets (%) |
-21.17 |
-2.61 |
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*Turnover/Total assets |
1.00 |
0.34 |
PROFITABILITY: FAIR
The turnover of SC appears good in its line.
SC’s
net profit margin is poor in 2014 and fair
in the 1st half of 2015.
SC’s
return on total assets is poor in 2014 and
fair in the 1st half of 2015.
SC’s
turnover is in an average level in 2014,
comparing with the size of its total assets.
LEVERAGE: FAIR
The
debt ratio of SC is fairly high.
The
risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC
is considered medium-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.02 |
|
UK Pound |
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.73.92 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
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Report Prepared
by : |
TRU |
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.