MIRA
INFORM REPORT
|
Report Date : |
11.08.2008 |
IDENTIFICATION
DETAILS
|
Name : |
Zhejiang Shaxing PharmACEUTICAL & ChemICAL Co. Ltd |
|
|
|
|
Registered Office : |
Yongquan Town Industrial Park, Linhai
City, Zhejiang Province, 317021 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
01.02.1996 |
|
|
|
|
Com. Reg. No.: |
331082000017866 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Manufacturing and Selling Pharmaceutical Intermediates, Pharmaceutical
Chemicals, etc. |
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 |
|
Maximum Credit Limit : |
USD 200,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
Zhejiang Shaxing PharmACEUTICAL & ChemICAL Co. Ltd
Yongquan Town
Industrial Park,
Linhai city,
Zhejiang PROVINCE, 317021 PR CHINA
TEL: 86 (0)
576-85686837 FAX: 86 (0)
576-85686516
EXECUTIVE SUMMARY
INCORPORATION DATE :
FEBRUARY 1, 1996
REGISTRATION NO. : 331082000017866
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
280
REGISTERED CAPITAL : CNY 21,880,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 152,860,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 33,050,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 200,000 (periodical review)
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.8627 = US$ 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on February 1, 1996.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business
scope includes manufacturing Cyclopropylamine, Beta-Thymidine,
5-Bromophthalide, 5-Methyluridine, Efavirenz, 4- chlorine-2-
trifluoro-acyl-aniline hydrate hydrochloride; exporting self-made chemical
products; importing raw materials, machines, instruments, meters and components
required in manufacture, research & development.
SC is mainly
engaged in manufacturing and selling pharmaceutical intermediates,
pharmaceutical chemicals, etc.
Mr. Wang Wenbin
has been legal representative and chairman of SC since 1996.
SC is known to have approx. 280 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 Linhai. Our checks reveal
that SC owns the total premise about 27,000 square meters.
http://www.shaxing.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: shaxing@mail.tzptt.zj.cn
SC’s quality system meets the international standards of ISO9002 and
ISO14001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Wenbin 23.1
Wang Wenxiu 21.4
Feng Daozhang 12.7
Ye Juhua 8.0
Other 11 individuals 34.8
l
Legal representative and chairman:
Mr. Wang Wenbin, about 46 years old. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 1996 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Wang Wenxiu, about 40 years old. He is currently responsible for the
daily management of SC.
Working Experience(s):
Present Working
in SC as general manager.
SC is mainly
engaged in manufacturing and selling pharmaceutical intermediates,
pharmaceutical chemicals, etc.
Main
Products: Cyclopropylamine,
Beta-Thymidine, 4-Chlorobutyryl Chloride, 5-Methyluridine
Cyclopropane
Carboylic Acid, Clorsulon, Mehtyl Cyclopropane Carboxylate, Cyclopropyl
Acetylen, 4-Chloro-4'-FluoroButyrophenone, Cytidine, P-Cyanobenaoic Acid,
URIDINE, 5-Bromophthalide, INTERMEDIATE OF EFAVIRENZ,
2,4,5-Trifluoro-3-methoxybenzoic Acid,
4-acetoxyazetidin-2-one 4-AA(AOSA), 2,2-Dimethyl Butyric Acid,
EFAVIRENZ, 2,2-Dimethyl Isobutyl Butyrate, Folic Acid, Sodium Methylate,
Sucralose
Brand: 
SC sources its materials 70% from domestic
market, and 30% from overseas market, mainly Taiwan and Europe. SC sells 40% of
its products in domestic market, and 60% to overseas market, mainly Indian
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.
*Major Supplier:
=============
Zhejiang Liansheng Chemical Co., Ltd
SC is
not known to have any subsidiary at present.
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’s suppliers
declined to make any comments.
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.
Agriculture Bank of China Linhai Sub-branch
AC#930101040003791
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
|
Cash & bank |
46,270 |
|
Notes receivable |
2,130 |
|
Inventory |
30,050 |
|
Accounts
receivable |
15,590 |
|
Advances to
suppliers |
900 |
|
Other
receivables |
5,330 |
|
Other current
assets |
10 |
|
|
------------------ |
|
Current assets |
100,280 |
|
Fixed assets |
52,140 |
|
Fixed assets net
value |
34,920 |
|
Projects under
construction |
390 |
|
Disposal of
fixed assets |
950 |
|
Long term
investment |
0 |
|
Intangible
assets |
1,590 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
138,130 |
|
|
============= |
|
Short loans |
21,720 |
|
Notes payable |
57,400 |
|
Accounts payable |
24,710 |
|
Advances from
customers |
0 |
|
Accrued payroll |
0 |
|
Welfare expenses
payable |
0 |
|
Taxes payable |
-1,210 |
|
Surcharge
payable |
60 |
|
Other payable |
700 |
|
Accrued expenses |
1,660 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
105,040 |
|
Long term
liabilities |
40 |
|
|
------------------ |
|
Total
liabilities |
105,080 |
|
Equities |
33,050 |
|
|
------------------ |
|
Total
liabilities & equities |
138,130 |
|
|
============= |
Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
|
Turnover |
152,860 |
|
Cost of goods sold |
142,490 |
|
Taxes and additional of main operation |
970 |
|
Sales expense |
1,290 |
|
Management expense |
9,340 |
|
Finance expense |
3,100 |
|
Non-operating expense |
220 |
|
Profit before
tax |
-4,560 |
|
Less: profit tax |
0 |
|
Profits |
-4,560 |
Important Ratios
=============
|
|
as
of Dec. 31, 2007 |
|
*Current ratio |
0.95 |
|
*Quick ratio |
0.67 |
|
*Liabilities
to assets |
0.76 |
|
*Net profit
margin (%) |
-2.98 |
|
*Return on
total assets (%) |
-3.30 |
|
*Inventory
/Turnover ×365 |
72 days |
|
*Accounts
receivable/Turnover ×365 |
38 days |
|
*Turnover/Total
assets |
1.11 |
|
* Cost of
goods sold/Turnover |
0.93 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC is maintained in an average level.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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.
SC is considered medium-sized in its line with fairly stable financial conditions.
A credit line up to USD 200,000 would appear to be within SC’s capacities upon
a periodical review basis.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.20 |
|
UK Pound |
1 |
Rs.81.48 |
|
Euro |
1 |
Rs.64.27 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)