MIRA
INFORM REPORT
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Report Date : |
11.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG XINHUA PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Linhai Zone, Chemical And Medical
Materials Base, Linhai, Zhejiang
Province, 317016 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
21.02.2000 |
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Com. Reg. No.: |
3310821007469 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling different sorts of active Pharmaceutical
Ingredients and Pharmaceutical Intermediates. |
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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Maximum Credit Limit : |
USD 400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
ZHEJIANG XINHUA PHARMACEUTICAL CO., LTD.
Linhai Zone,
Chemical and Medical Materials Base,
linhai, zhejiang
PROVINCE, 317016 PR CHINA.
TEL: 86 (0)
576-85588383 FAX: 86 (0)
576-85588213
EXECUTIVE SUMMARY
INCORPORATION DATE :
FEBRUARY 21, 2000
REGISTRATION NO. : 3310821007469
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
500
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 255,896,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 60,996,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 400,000 (periodical review)
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.86 = 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on February 21, 2000.
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 hard capsule, peroral liquor, active
pharmaceutical ingredients and veterinary products.
SC is mainly
engaged in manufacturing and selling different sorts of active pharmaceutical
ingredients and pharmaceutical intermediates.
Mr. Shan Mengchun
has been legal representative and chairman of SC since 2000.
SC is known
to have approx. 500 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 120,000 square meters.
http://www.xinhuapharma.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: xh@xinhuapharma.com
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
2007-1-12 |
Legal representative |
Yang Jianping |
Shan Mengchun |
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Registered capital |
CNY 10,200,000 |
CNY 35,000,000 |
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Shareholders |
Zhang Lihua 9.9%, Yang Qing 31.37%, Xinhua Pharma Chemical Co., Ltd.
Huangyan, Zhejiang 58.82% |
The present ones |
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|
2007-2-7 |
Registered capital |
CNY 35,000,000 |
CNY 50,000,000 |
In 2003, SC was awarded the certificate of ISO 9000; in 2005, SC was
entitled as the Hi-Tech manufacturer of the National Torch Plan; in 2006, SC
got the GMP certificates for the main workshops.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xinhua Pharma Chemical Co., Ltd. Huangyan,
Zhejiang
20
Sinochem Ningbo Ltd.
51
Yang Nuo
14
Yang Qing
15
SINOCHEM NINGBO LTD. is a subsidiary of
SINOCHEM CORPORATION, which has been listed among the Fortune Global 500
Companies for 17 consecutive years. In 2007, SINOCHEM was ranked the 299th.
SINOCHEM NINGBO is a diversified
large-scaled group company, mainly focusing on trade. It also engages in the
research and development of new products, and currently, its business has
expanded to the fields of manufacturing of Chemicals, Agrochemicals,
Pharmaceuticals, Outdoor Products, HAVC, Electro-machinery, Foodstuffs, and
etc.
l
Legal representative and chairman:
Mr. Shan Mengchun, ID # 210106650325491, 43 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Deng Changkong , ID # 420804197010250732, 38 years old with
university education. He is currently responsible for the daily management of
SC.
Working Experience(s):
From 2000 to present Working
in SC as general manager.
*Officials:
=======
Name Title
Ban Yan Director
Xu Haibo Director
Li Minming Supervisor
Huang Xiaoqun Supervisor
SC is mainly
engaged in manufacturing and selling different sorts of active pharmaceutical
ingredients and pharmaceutical intermediates.
SC’s products mainly include: veterinary antibiotics, antipyretic
analgesic drugs, β-lactam antibiotics, Cardiovascular drugs and
antipsychotic drugs.
SC sources its materials 80% from domestic
market, and 20% from overseas market, mainly U.S.A. and Europe. SC sells 70% of
its products in domestic market, and 30% to overseas market, mainly Southeast
Asian 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.
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 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 management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Cash & bank |
65,844 |
43,680 |
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Inventory |
44,869 |
81,672 |
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Accounts
receivable |
14,533 |
50,891 |
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Notes receivable |
1,639 |
1,788 |
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Advances to
supplies |
0 |
2,849 |
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Prepaid expenses |
5,619 |
0 |
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Other
receivables |
801 |
5,841 |
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Other current
assets |
697 |
2,690 |
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------------------ |
------------------ |
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Current assets |
134,002 |
189,411 |
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Fixed assets |
49,209 |
109,916 |
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Fixed assets net
value |
34,692 |
99,026 |
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Projects under
construction |
52,726 |
7,463 |
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Long-term
investments |
0 |
0 |
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Intangible and
other assets |
2,176 |
24,548 |
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------------------ |
------------------ |
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Total assets |
223,596 |
320,448 |
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============= |
============= |
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Short loans |
15,094 |
46,200 |
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Accounts payable |
37,521 |
40,293 |
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Other Accounts
payable |
134,100 |
90,427 |
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Notes payable |
26,577 |
76,302 |
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Advances from
clients |
0 |
4,294 |
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Taxes unpaid |
-1,103 |
-3,681 |
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Welfares payable |
261 |
0 |
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Accrued payroll |
-78 |
0 |
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Other current
liabilities |
9 |
5,617 |
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----------------- |
----------------- |
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Current
liabilities |
212,381 |
259,452 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
212,381 |
259,452 |
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Shareholders
equities |
11,215 |
60,996 |
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------------------ |
------------------ |
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Total
liabilities & equities |
223,596 |
320,448 |
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============= |
============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Turnover |
117,561 |
255,896 |
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Cost of goods
sold |
106,484 |
221,374 |
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Taxes and
additional of main operation |
291 |
10 |
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Add: Income from
other operations |
30 |
4 |
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Sales expense |
436 |
2,682 |
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Management expense |
5,571 |
15,379 |
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Finance expense |
3,337 |
10,503 |
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Operation Profit |
1,323 |
5,614 |
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Less: profit tax |
437 |
156 |
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Net profit |
886 |
5,458 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
0.63 |
0.73 |
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*Quick ratio |
0.42 |
0.42 |
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*Liabilities
to assets |
0.95 |
0.81 |
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*Net profit
margin (%) |
0.75 |
2.13 |
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*Return on
total assets (%) |
0.40 |
1.70 |
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*Inventory
/Turnover ×365 |
139 days |
116 days |
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*Accounts
receivable/Turnover ×365 |
45 days |
73 days |
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*Turnover/Total
assets |
0.53 |
0.80 |
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* Cost of
goods sold/Turnover |
0.91 |
0.87 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good in its line, and it increased in
2007.
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SC’s net profit margin was increased, and it maintained at an average
level in 2007.
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SC’s return on total assets was increased, and it maintained at an
average level in 2007.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level in both 2 years.
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SC’s quick ratio is maintained in a fair level in both 2 years.
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The inventory of SC appears LARGE in both 2 years.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is in an average level.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is high.
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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.
The large amount of inventory could be a threat to SC’s financial condition. A
credit line up to USD 400,000 appears to be within SC’s capacities upon a
periodical review basis.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.20 |
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UK Pound |
1 |
Rs.81.48 |
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Euro |
1 |
Rs.64.27 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)