MIRA INFORM REPORT
|
Report No. : |
346894 |
|
Report Date : |
27.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
TIANJIN LG BOHAI
CHEMICAL Co., Ltd. |
|
|
|
|
Registered Office : |
No. 667, Haihe Road, Lingang Industrial Area, Binhai New District,
Tianjin, 300452 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
25.02.2005 |
|
|
|
|
Com. Reg. No.: |
120000400004204 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
|
|
|
|
Line of Business : |
Development, production, selling of PVC resin, vinyl chloride,
ethylene dichloride, caustic soda, hydrochloric acid, hydrogen, sodium hypochlorite,
steam, water and related by-products, and providing related technical
services; storage (excluding dangerous chemicals, flammable easy system
drugs) and leasing its own plant; industrial water treatment. (With permit if
needed) |
|
|
|
|
No. of Employees : |
391 |
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 |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
Slow but correct |
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 & address
TIANJIN LG BOHAI CHEMICAL Co., Ltd.
No. 667, Haihe Road, Lingang Industrial Area,
Binhai New District, Tianjin, 300452 PR CHINA
TEL: 86 (0)
22-25386666/25388320/59881240/59881215
FAX: 86 (0) 22-59881260
EXECUTIVE
SUMMARY
INCORPORATION DATE : FEB. 25, 2005
REGISTRATION NO. : 120000400004204
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. LEE SUNG WOON (CHAIRMAN)
STAFF STRENGTH :
391
REGISTERED CAPITAL : USD 148,400,000
BUSINESS LINE :
Manufacturing & SELLING
TURNOVER :
CNY 2,372,580,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 855,160,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3519 = 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
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 Feb. 25, 2005.
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 & etc. 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 development, production, selling
of PVC resin, vinyl chloride, ethylene dichloride, caustic soda, hydrochloric
acid, hydrogen, sodium hypochlorite, steam, water and related by-products, and
providing related technical services; storage (excluding dangerous chemicals,
flammable easy system drugs) and leasing its own plant; industrial water
treatment. (With permit if needed)
SC is mainly engaged in manufacturing and selling chemical products.
Mr. Lee Sung Woon is legal representative and chairman of SC at present.
SC is known to have approx. 391 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial area of Tianjin.
Detailed information of the premise is unspecified.
SC also has another factory located in No. 1233, Shunhua Road, Tanggu
District, Tianjin City
www.lgchem.com
The website belongs to LG Chem. The design is professional and the content is
well organized. At present it is in English, Chinese and Korean versions.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unspecified |
Registration No. |
017027 |
Present one |
|
2015-9-30 |
Registered capital |
USD 100,000,000 |
Present amount |
SC’s previous legal representative is Sun Yudong (
Organization Code: 717854046
Tax Registration Certificate No.: 120115717854046
MAIN SHAREHOLDERS:
Name %
of Shareholding
LG Chem, Ltd. (Korea) 67.65
Tianjin Bohai Chemical Co., Ltd. 11.03
LG International Corp. (Korea) 10
LG Chem China Investment Co., Ltd. 7.35
Tianjin Dagu Chemical Co., Ltd. 3.97
LG Chem, Ltd. (Korea)
LG
=================
It is a listed company in Korea Stock Exchange with the code of 051910.
Web: http://lgchem.com/
Tel.: +82-2-3777-1114
Fax: +82-2-3777-5140
Address: LG Twin Towers 20, Yeouido-dong, Yeoungdengpo-gu, Seoul 150-721
Korea
Tianjin Bohai Chemical Co., Ltd.
========================
Registration No.: 120000000009927
Incorporation Date:
Chairman: Zhao Lizhi
Registered Capital: CNY 1,354,761,416
LG Chem China Investment Co., Ltd.
============================
Registration No.: 100000400010864
Incorporation Date:
Legal Representative: Li Zhicheng
Address: 22nd Floor, West Tower, Twin Towers, B-12, Jianguomenwai
Avenue, Chaoyang District, Beijing, China
Phone: 86-10-6563-2114
LG International Corp. (Korea)
LG
======================
It is a listed company in Korea Stock Exchange with the code of 001120.
Add.: LG Twin Tower 20, Yeouido-Dong, Yeongdeungpo-G, Yeongdeungpoh-Gu,
Seoul
Pone: +822.37731114
Fax: +822.37735836
Tianjin Dagu Chemical Co., Ltd.
===============================
Incorporation Date: 2000-12-20
Registered No.: 120000000004094
Legal Representative: Yang Henghua
Tel.: 86 (0) 22-25393966
E-mail: admin@daguchem.com
Website: www.daguchem.com
Legal Representative and Chairman:
Mr. Lee Sung Woon is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as
legal representative and chairman.
Also working in LG Chem China Investment Co., Ltd. as director.
Vice Chairman:
Bai Wenju is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as vice chairman.
Also working in Tianjin Dagu Chemical Co., Ltd. as director.
Directors:
Kang In Sik
Zhao Li
Jin Shangnan
Moon Bo Hwan
Li Zhicheng
Supervisors:
Li Junhao
He Min
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include: VCM, EDC, C/A.
SC sources its materials 100% from domestic market. SC sells 100% of its
products 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 and Credit of 30-60 days.
Note: SC’s
management declined to release its major clients and suppliers.
Ningbo LG Yongxing Chemical Co., Ltd.
===========================
Registration No.: 330200400014852
Incorporation Date: 1995-05-24
Legal Rep.: Sun Yudong
LG Chemical (Guangzhou) Engineering Plastics Co., Ltd.
===============================
Registration No.: 440108400005400
Incorporation Date: 2002-07-23
Legal Rep.: Jung Il Tae
LG Chem (Tianjin) Engineering Plastics Co., Ltd.
LG
===============================
Registration No.: 120000400045356
Incorporation Date: 2004-12-29
Legal Rep.: Li Shihao
SC is known to
invest in the following company:
Tianjin LG Botian Chemical Co., Ltd.
===========================
Registration No.: 120000400101622
Incorporation Date:
Chairman: Lee Jong Teck
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 declined to release its bank details.
Balance
Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2014 |
|
Cash & bank |
1,190 |
|
Inventory |
382,310 |
|
Accounts receivable |
457,890 |
|
Note receivable |
32,270 |
|
Advances to suppliers |
2,170 |
|
Other receivables |
220 |
|
Dividends receivable |
0 |
|
Other current assets |
24,350 |
|
|
------------------ |
|
Current assets |
900,400 |
|
Fixed assets net value |
938,680 |
|
Projects under construction |
17,460 |
|
Long-term deferred expense |
4,420 |
|
Intangible assets & other assets |
3,370 |
|
|
------------------ |
|
Total assets |
1,864,330 |
|
|
============= |
|
Short loans |
147,300 |
|
Accounts payable |
290,390 |
|
Advances from clients |
7,820 |
|
Taxes payable |
130 |
|
Other accounts payable |
255,710 |
|
Accrued payroll |
1,870 |
|
Notes payable |
0 |
|
Non-current liabilities maturing within one year |
122,380 |
|
|
------------------ |
|
Current liabilities |
825,600 |
|
Long term loans |
183,570 |
|
|
------------------ |
|
Total liabilities |
1,009,170 |
|
Equities |
855,160 |
|
|
------------------ |
|
Total liabilities & equities |
1,864,330 |
|
|
============= |
Income
Statement
Unit: CNY’000
|
|
as of Dec. 31,
2014 |
|
Turnover |
2,372,580 |
|
Cost of goods sold |
2,577,780 |
|
Taxes and additional of main operation |
1,790 |
|
Sales expense |
10,820 |
|
Management expense |
16,480 |
|
Finance expense |
20,180 |
|
Asset impairment loss |
4,160 |
|
Investment income |
0 |
|
Non-operating income |
5,000 |
|
Non-operating expense |
1,140 |
|
Profit before tax |
-254,770 |
|
Less: profit tax |
0 |
|
Profits |
-254,770 |
Important
Ratios
=============
|
|
as of Dec. 31,
2014 |
|
*Current ratio |
1.09 |
|
*Quick ratio |
0.63 |
|
*Liabilities to assets |
0.54 |
|
*Net profit margin (%) |
-10.74 |
|
*Return on total assets (%) |
-13.67 |
|
*Inventory /Turnover ×365 |
59 days |
|
*Accounts receivable/Turnover ×365 |
71 days |
|
*Turnover/Total assets |
1.27 |
|
* Cost of goods sold/Turnover |
1.09 |
PROFITABILITY:
POOR
The turnover of SC appears good in its line.
SC’s net profit margin is poor.
SC’s return on total assets is poor.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is fair.
SC’s quick ratio is maintained in a fair level.
SC’s inventory is average in 2014.
The accounts receivable of SC appears fairly
large in 2014.
SC’s short-term loan appears average in 2014.
SC’s turnover is average, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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. The fairly large amount of accounts receivable could be a threat to
SC’s financial condition.
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
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.