MIRA
INFORM REPORT
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Report No. : |
346788 |
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Report Date : |
27.10.2015 |
IDENTIFICATION DETAILS
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Name : |
SINOMA SCIENCE AND TECHNOLOGY CO., LTD. |
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Registered Office : |
12FA Commerce Center, No. 69 Banjing Road, Haidian
District, Beijing 100097 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
28.12.2001 |
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Com. Reg. No.: |
100000000036157 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling glass fiber, composite
materials, filter materials, mineral wool, other non-metallic materials,
industrial platinum and rhodium alloy, infiltrating agents and related
equipment; technology transfer, consulting services; engineering design and
construction; engineering design and construction of glass fiber, composite
materials, other non-metallic materials; selling pressure vessels, precious
metals, machinery and equipment, industrial automation products, computer
software; international trade. |
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No. of Employee : |
7,150 |
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
|
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 AND ADDRESS
SINOMA SCIENCE AND
TECHNOLOGY CO., LTD.
12FA COMMERCE CENTER, NO. 69 BANJING ROAD, HAIDIAN DISTRICT, BEIJING 100097 PR CHINA
TEL: 86 (0) 10-88433966
FAX: 86 (0) 10-88437712
***Note: SC’s head
office should be the heading one, while SC’s Nanjing International Trade
Departments locates in the given address (Kanghou Street, No 119 Jiangjun
Avenue, Jiangning Dist Nanjang).
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 28, 2001
REGISTRATION NO. : 100000000036157
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 400,000,000
staff :
7,150
BUSINESS CATEGORY : manufacturing & trading
REVENUE :
CNY 2,523,405,000 (FROM JAN. 1,
2015 TO JUN. 30, 2015)
EQUITIES :
CNY 2,901,035,000 (AS OF JUN. 30, 2015)
WEBSITE : www.sinomatech.com
E-MAIL : sinoma@sinomatech.com
PAYMENT :
No complaints
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY 6.35 = USD 1 AS OF
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 shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 100000000036157
on December 28, 2001.
SC’s Organization Code Certificate No.:
71092927-9
SC’s registered capital: CNY 400,000,000
SC’s paid-in capital: CNY 400,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of September 30, 2015) |
% of Shareholding |
|
China National Materials Company |
54.32 |
|
Nanjing Tongtian Science & Technology Industrial Co., Ltd. |
5.08 |
|
China Three Gorges New Energy Co., Ltd. |
2.77 |
|
Zhongjietou Assets Management Co., Ltd. |
2.7 |
|
Gu Xiujuan |
0.75 |
|
Danshuiquan (Beijing) Investment & Management Co.,
Ltd.-Danshuiquan Growth Fund 1 |
0.73 |
|
China Foreign Economy and Trade Trust Co., Ltd.-Danshuiquan Featured 1 |
0.68 |
|
Ping An Trust Co., Ltd.-Danshuiquan |
0.53 |
|
Rongtong Capital- Industrial Bank- Rongtong Capital Mingying 1# Asset
management plan |
0.5 |
|
National Social Security Fund (114) |
0.49 |
|
Other Shareholders |
31.45 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Xue Zhongmin |
|
General Manager |
Liu Ying |
|
Deputy General Manager |
Huang Ziman |
|
Zhao Junshan |
|
|
Zhu Jianxun |
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|
Tang Jingyan |
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|
Zhao Qian |
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|
Chen Zhibin |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002080.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of September 30, 2015)
----------------------------------
China National Materials Company 54.32
Nanjing Tongtian Science & Technology
Industrial Co., Ltd. 5.08
China Three Gorges New Energy Co., Ltd. 2.77
Zhongjietou Assets Management Co., Ltd. 2.7
Gu Xiujuan 0.75
Danshuiquan (Beijing) Investment &
Management Co.,
Ltd.-Danshuiquan Growth Fund 1 0.73
China Foreign Economy and Trade Trust Co.,
Ltd.-Danshuiquan Featured 1 0.68
Ping An Trust Co., Ltd.-Danshuiquan 0.53
Rongtong Capital- Industrial Bank- Rongtong
Capital Mingying 1# Asset management plan 0.5
National Social Security Fund (114) 0.49
Other Shareholders 31.45
China National
Materials Company
------------------------------------------------
Date of Registration: June 22, 1987
Registration No.: 100000000006109
Legal Form: Shares Limited
Company
Registered Capital: CNY 3,571,464,000
Nanjing Tongtian
Science & Technology Industrial Co., Ltd.
===============================================
Date of Registration: September 30, 2000
Registration No.: 320121000031896
Registered Capital: CNY 80,000,000
China Three Gorges
New Energy Co., Ltd.
==================================
Date of Registration: September 5, 1985
Registration No.: 100000000003764
Registered Capital: CNY 7,021,525,624.2
Zhongjietou Assets
Management Co., Ltd.
==================================
Date of Registration: September 5, 1985
Registration No.: 100000000003764
Registered Capital: CNY 7,021,525,624.2
MANAGEMENT
Xue Zhongmin ,
Legal Representative and Chairman
-------------------------------------------------------------------------------
Ø Gender: M
Ø Age: 48
Ø Qualification: Doctor
Degree
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Also as director of Sinomatech Wind
Power Blade Co., Ltd.
Liu
Ying , General Manager
--------------------------------------------
Ø Gender: M
Ø Age: 49
Ø Qualification: EMBA
Ø Working experience
(s):
Before, worked in Taishan Fiberglass
Inc. as general manager
From 2010 to present, working in SC as
general manager
Also as director of Sinomatech Wind
Power Blade Co., Ltd.
Deputy
General Manager
---------------------------------
Huang Ziman
Zhao Junshan
Zhu Jianxun
Tang Jingyan
Zhao Qian
Chen Zhibin
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling glass
fiber, composite materials, filter materials, mineral wool, other non-metallic
materials, industrial platinum and rhodium alloy, infiltrating agents and
related equipment; technology transfer, consulting services; engineering design
and construction; engineering design and construction of glass fiber, composite
materials, other non-metallic materials; selling pressure vessels, precious
metals, machinery and equipment, industrial automation products, computer
software; international trade.
SC is mainly
engaged in manufacturing and selling glass fiber, composite materials, and
filter materials.
Brand: SINOMA
SC’s products
mainly include: high strength glass fiber, high silica glass fiber, low
dielectric loss glass fiber, high modulus glass fiber, high strength fiberglass
fabric, absorptive glass-mat separators, fiberglass air filter paper, etc.
SC sources its materials 100% from domestic market. SC sells 30% of its
products to overseas market and 70% in
domestic market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
==============
Taishan Fiberglass Inc.
Sinoma (Liyang) Heavy Machinery Co., Ltd.
*Major Customers:
==============
Isorca Inc.
AFG Atlanta
Fiberglass
Kemrock Industries
& Exports Limited
Shanghai Huaite
Sande Trade Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 7,150 staff
at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is known to invest in
the following subsidiaries and branches,
Beijing
Composite Materials Co., Ltd.
Suzhou
Sinoma Design and Research Institute of Non-metallic Minerals Industry Co.,
Ltd.
Sinoma
Science & Technology (Suzhou) Co., Ltd.
Sinomatech
Wind Power Blade Co., Ltd.
Sinoma
Science and Technology Co., Ltd. Tai’an Branch
Sinoma
Science and Technology Co., Ltd. Dongguan Shuangwei Branch
Sinoma
Science and Technology Co., Ltd. Tai’an Shuangwei Branch
Sinoma
Science and Technology Co., Ltd. Beijing Branch
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, 2014 |
As
of Jun. 30, 2015 |
|
531,864 |
395,746 |
|
|
Accounts
receivable |
1,408,169 |
1,385,677 |
|
Notes receivable |
1,736,376 |
1,501,764 |
|
Advances to
suppliers |
123,692 |
197,145 |
|
Dividends
receivable |
0 |
0 |
|
Other receivable |
21,910 |
26,318 |
|
Inventory |
1,017,967 |
1,437,584 |
|
Non-current
assets within one year |
22,065 |
29,935 |
|
Other current
assets |
41,307 |
45,472 |
|
|
------------------ |
------------------ |
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Current assets |
4,903,350 |
5,019,641 |
|
Long-term investments |
23,783 |
24,013 |
|
Financial assets
available for sale |
6,931 |
6,931 |
|
Real estate
investment |
24,789 |
25,430 |
|
Fixed assets |
2,212,244 |
2,238,488 |
|
Construction in
progress |
279,977 |
291,251 |
|
Project
materials |
11 |
68 |
|
Fixed assets in
liquidation |
2,760 |
2,760 |
|
Intangible
assets |
365,317 |
372,302 |
|
Goodwill |
0 |
0 |
|
Long-term
deferred expense |
1,796 |
3,228 |
|
Deferred income
tax assets |
61,095 |
61,645 |
|
Other
non-current assets |
173,207 |
175,165 |
|
|
------------------ |
------------------ |
|
Total assets |
8,055,260 |
8,220,922 |
|
|
============= |
============= |
|
Short-term loans |
215,000 |
266,000 |
|
Notes payable |
1,478,263 |
1,535,273 |
|
Accounts payable |
1,271,884 |
1,618,295 |
|
Payroll payable |
87,384 |
76,027 |
|
Taxes payable |
58,633 |
31,264 |
|
Interest payable |
16,747 |
38,750 |
|
Advances from
clients |
140,052 |
103,299 |
|
Other payable |
47,516 |
64,057 |
|
Other current
liabilities |
1,346,367 |
959,970 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
4,661,846 |
4,692,935 |
|
Non-current
liabilities |
647,485 |
626,952 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
5,309,331 |
5,319,887 |
|
Equities |
2,745,929 |
2,901,035 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
8,055,260 |
8,220,922 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2014 |
From
Jan. 1, 2015 to Jun. 30, 2015 |
|
Revenue |
4,424,452 |
2,523,405 |
|
Cost of sales |
3,489,862 |
1,985,675 |
|
Business Taxes and Surcharges |
21,512 |
10,659 |
|
Sales expense |
198,853 |
113,494 |
|
Management expense |
439,202 |
190,747 |
|
Finance expense |
84,494 |
35,826 |
|
Asset impairment loss |
64,236 |
6,644 |
|
Investment
income |
1,231 |
229 |
|
Non-operating
income |
106,201 |
73,491 |
|
Non-operating expense |
5,680 |
1,543 |
|
Profit before
tax |
228,046 |
252,536 |
|
Less: profit tax |
55,289 |
47,042 |
|
172,757 |
205,494 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
As of Jun. 30, 2015 |
|
*Current ratio |
1.05 |
1.07 |
|
*Quick ratio |
0.83 |
0.76 |
|
*Liabilities
to assets |
0.66 |
0.65 |
|
*Net profit
margin (%) |
3.90 |
8.14 |
|
*Return on
total assets (%) |
2.14 |
2.50 |
|
*Inventory /
Revenue ×365/180 |
84 days |
103 days |
|
*Accounts
receivable / Revenue ×365/180 |
117 days |
99 days |
|
*Revenue /
Total assets |
0.55 |
0.31 |
|
*Cost of sales
/ Revenue |
0.79 |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue 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 average, comparing with
its revenue.
LIQUIDITY: FAIR
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 large.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear average.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIRLY
GOOD
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 Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of inventory and accounts receivable may be a
threat to SC’s financial condition. But taking into consideration of SC’s
general performance, reputation as well as market conditions,.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.96 |
|
|
1 |
Rs.99.55 |
|
Euro |
1 |
Rs.71.64 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
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Report Prepared
by : |
ASH |
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.