MIRA
INFORM REPORT
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Report Date : |
12.08.2011 |
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) : |
31.12.2009 |
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Date of Incorporation : |
21.02.2000 |
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Com. Reg. No.: |
331082000040609 |
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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 |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 250,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually 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 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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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 |
Name and 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) 576-85588100
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB.
21, 2000
REGISTRATION NO. :
331082000040609
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 700
REGISTERED CAPITAL : CNY 120,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 381,373,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY 61,731,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 250,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.39 =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 Ren Min Bi
SC was registered as a Limited Liabilities Co. at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on Feb. 21, 2000.
Company Status: Limited Liabilities co. (有限责任公司) 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 hard capsules, oral solution, bulk drugs (ciprofloxacin hydrochloride, spironolactone, tazobactam, Tosi sultamicillin
acid and sulbactam sodium) manufacturing (permit valid until December 22, 2015), Veterinary bulk drugs (ciprofloxacin, enrofloxacin) manufacturing
(permit valid until October 9,
2011).
SC
is mainly engaged in manufacturing and selling different sorts of active pharmaceutical
ingredients and pharmaceutical intermediates.
Mr.
Zhang Weidong has been legal
representative and chairman of SC since 2010.
SC is known
to have approx. 700 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 area about 120,000 square meters.
http://www.xinhuapharma.com/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: xh@xinhuapharma.com
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-01 |
Legal representative |
Yang Jianping |
|
|
Registered capital |
CNY 10,200,000 |
CNY 35,000,000 |
|
|
2007-02 |
Registered capital |
CNY 35,000,000 |
CNY 50,000,000 |
|
|
Legal representative |
Shan Mengchun |
Deng Changkong |
|
|
Registration No. |
3310821007469 |
Present one |
|
2010-02 |
Shareholders |
Yang Nuo(14%) Yang Qing (15%) Yang Jianping (20%) Sinochem Ningbo Ltd. (51%) |
Yang Nuo(3%) Sinochem Ningbo Ltd. (97%) |
|
2010-08 |
Legal representative |
Deng Changkong |
Zhang Weidong |
|
Registered capital |
CNY 50,000,000 |
Present amount |
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
shareholdings
Yang Nuo 3
Sinochem Ningbo Ltd. 97
Sinochem Ningbo Ltd.
======================
SINOCHEM NINGBO LTD. is a subsidiary of SINOCHEM CORPORATION, which has
been listed among the Fortune Global 500 Companies for 18 consecutive years.
Registration no.: 330200000042822
Address: No. 21, Jiangxia Street, Haishu
District, Ningbo City, Zhejiang Province
Company State: Limited Liabilities Co.
Tel.: 86 (0) 574-87348868
Fax.: 86 (0) 574-87346712
Web.: http://www.sinochem-nb.com
l
Legal Representative & General Manager :
Mr. Zhang Weidong , ID# 210103197411222114, born in 1974, he
is currently responsible for the daily management of SC.
Working Experience(s):
From 2010 to present Working in SC as legal representative
and general manager.
l
Chairman :
Mr. Shan Mengchun , ID # 210106196503254919, born in 1965,
he is currently responsible for the overall management of SC.
At present
Working in SC as chairman.
Supervisors:
……………
Zhan Yingyan ID # 330204197701193023
Zhang Lijuan
ID # 332625197804033124
…………
Yang Nuo ID # 33100319830626001X
Ban Yan ID #
210402197310042966
Zheng Zansheng
ID # 330726197811081351
Yu Guojian ID
# 330425197101271836
SC is mainly engaged
in manufacturing and selling different sorts of active pharmaceutical
ingredients and pharmaceutical intermediates.
SC’s products mainly include
Antivirotic such as Ciprofloxacin Hydrochloride, Ciprofloxacin, Enrofloxacin; Angiomyocardiac such as Spironolactone, Canrenone, Enalapril Maleate; Antibiotics such as Sulbactam Sodium, Tazobactam, Tazobactam Sodium, Antipsychotics such as Olanzapine, Bupropion Hydrochloride; Others such as Rebamipide, Tolterodine L-Tartrate, etc.
SC sources its materials 80% from domestic
market and 20% from overseas market. SC sells 30% of its products in domestic
market and 70 % to overseas 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’s management declined to release its major clients and suppliers.
SC is not known to have any subsidiaries 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.
Agricultural Bank of China Linhai Duqiao
Office
AC# 930701040011627
China
Construction Bank Huangyan Branch
AC# 263147015
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2008 |
As of Dec. 31,
2009 |
|
Cash & bank |
15,608 |
36,561 |
|
Notes receivable |
6,723 |
6,835 |
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Inventory |
77,769 |
66,369 |
|
Accounts
receivable |
22,430 |
41,627 |
|
Advances to
suppliers |
6,039 |
6,291 |
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Other accounts
receivable |
6,870 |
3,143 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
135,439 |
160,826 |
|
Disposal of fixed
assets |
242 |
180 |
|
Fixed assets net
value |
100,843 |
119,551 |
|
Project under
construction |
19,786 |
5,378 |
|
Long term
investment |
0 |
0 |
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Long-term
prepaid expenses |
0 |
0 |
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Intangible and
other assets |
24,737 |
24,804 |
|
Deferred tax assets |
0 |
1,052 |
|
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------------------ |
------------------ |
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Total assets |
281,047 |
311,791 |
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|
============= |
============= |
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Short loans |
103,660 |
53,080 |
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Notes payable |
28,855 |
68,240 |
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Accounts payable |
39,633 |
57,312 |
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Advances from
clients |
1,791 |
1,133 |
|
Accrued payroll |
0 |
5,512 |
|
Welfare payable |
0 |
0 |
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Taxes payable |
596 |
-517 |
|
Surcharge payable |
0 |
0 |
|
Accrued expenses |
7,496 |
10,425 |
|
Other accounts
payable |
53,267 |
54,875 |
|
Other current
liabilities |
0 |
0 |
|
Interest payable |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
235,298 |
250,060 |
|
Long-term
liabilities |
0 |
0 |
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Long-term payables |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
235,298 |
250,060 |
|
Equities |
45,749 |
61,731 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
281,047 |
311,791 |
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|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2008 |
As of Dec. 31,
2009 |
|
Turnover |
280,260 |
381,373 |
|
Cost of goods sold |
245,062 |
306,928 |
|
Taxes and additional
of main operations |
687 |
1,364 |
|
Other operating
profit |
-8,504 |
-897 |
|
Sales expense |
5,826 |
8,638 |
|
Management expense |
25,779 |
35,974 |
|
Finance expense |
9,786 |
8,109 |
|
Non-operating
income |
408 |
1,979 |
|
Non-operating expense |
854 |
3,132 |
|
Profit before
tax |
-15,830 |
18,310 |
|
-583 |
2,327 |
|
|
Profits |
-15,247 |
15,983 |
Note: SC has not lodged the latest annual returns in the local registry,
hence no up-to-date detailed financial information could be provided.
Important
Ratios
=============
|
|
As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
|
*Current ratio |
0.58 |
0.64 |
|
*Quick ratio |
0.25 |
0.38 |
|
*Liabilities
to assets |
0.84 |
0.80 |
|
*Net profit
margin (%) |
-5.44 |
4.19 |
|
*Return on
total assets (%) |
-5.43 |
5.13 |
|
*Inventory
/Turnover ×365 |
102days |
64 days |
|
*Accounts
receivable/Turnover ×365 |
30 days |
40 days |
|
*Turnover/Total
assets |
1.00 |
1.22 |
|
* Cost of goods
sold/Turnover |
0.87 |
0.80 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good in both 2
years.
l
SC’s net profit margin appears
fair in 2008 and average in 2009.
l
SC’s return on total assets appears fair in 2008
and fairly good in 2009.
l
SC’s cost of goods sold is average in both 2 years,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both 2 years.
l
SC’s quick ratio appears poor in both 2 years.
l
The inventory of SC appears fairly
large in 2008 and average in 2009.
l
The accounts receivable of SC appears average in
both 2 years.
l
SC’s short-term loan appears too large in 2008 and
large in 2009.
l
SC’s turnover is in a average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in both 2 years.
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. It is considered a credit line up to USD 250,000 appears to be
within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.27 |
|
|
1 |
Rs.73.34 |
|
Euro |
1 |
Rs.64.58 |
RATING EXPLANATIONS
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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.