MIRA INFORM REPORT
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Report Date : |
10.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG JINCHENG PHARMACEUTICAL &
CHEMICAL CO., LTD. |
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Registered Office : |
No. 26, Kunxin Road, Kunlun Town, Zichuan District, Zibo, Shandong Province, 255129 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
12.01.2004 |
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Com. Reg. No.: |
370300018517205 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling pharmaceutical and chemical
products |
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 1,500,000 |
|
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 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
SHANDONG JINCHENG
PHARMACEUTICAL & CHEMICAL CO., LTD.
NO. 26, KUNXIN ROAD, KUNLUN TOWN, ZICHUAN
DISTRICT, ZIBO,
SHANDONG PROVINCE, 255129 PR CHINA
TEL: 86 (0) 533-5770186 FAX: 86 (0) 533-5776517
EXECUTIVE SUMMARY
INCORPORATION
DATE : JAN. 12, 2004
REGISTRATION
NO. : 370300018517205
REGISTERED
LEGAL FORM : SHARES LIMITED COMPANY
STAFF
STRENGTH : 1,200
REGISTERED
CAPITAL :
CNY 90,000,000
BUSINESS
LINE :
MANUFACTURING
TURNOVER : CNY 530,907,000
(AS OF DEC. 31, 2010)
EQUITIES : CNY 297,043,000
(AS OF DEC. 31, 2010)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : UP TO USD 1,500,000
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : FAIRLY GOOD
OPERATIONAL
TREND :
STEADY
GENERAL
REPUTATION : average
EXCHANGE RATE : CNY 6.48 = 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 Liability Company at local Administration for industry & commerce
(AIC - the official body of issuing and renewing business license) on Jan. 12,
2004 and has been under present legal form since 2008.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. The board of directors must
consist of five to nineteen directors. If the co. raises capital by public
offer, the promoters must not subscribe less than 35% of the total shares.
the promoters’ shares are restricted to transfer- within one year of the
offer. A
state-owned enterprise that is restructured into a shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope includes manufacturing and selling
ATMAA, carbodiimide, TAEM, MAEM, TTZ, SMIA; import and export of goods and
technology.
SC is mainly engaged in manufacturing and
selling pharmaceutical and chemical products.
Mr. Zhao Yeqing has been legal representative and chairman of
SC since 2008.
SC is known to
have approx. 1,200 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 Zibo. SC’s management refused to release the
detailed information of the premise.
http://www.jinchengpharm.com The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: jcpc@jinchengpharm.com
SC was awarded as
The Key High-New Tech Enterprise of National Torch plans, Top 500 of Chinese
Chemical Enterprises, TOP 100 of Chinese Pharmaceutical API Industry, TOP100 of
Chinese Chemical API and Intermediates Industry, The National Post-doctoral Scientific
research station Cefixime item has been list in the “National Spark plan”,
Enterprise technical centre of Shandong Province, The Engineering and
Technology Research Center of Cephalosporin intermediates of Shandong Province,
Abide Contract and Regard for Credit Enterprise of Shandong Province, The
patent star enterprise of Shandong Province, Excellent Enterprise of Shandong
Province for Management Innovation, The Advanced Unit for Secure Production and
Management of Zibo City, The products of Ceftazidime and Cefixime has been
listed in the “National Key New Products”, DCC won Golden Prize of National
High-New Technical Patents, MAEM、SMIA has been listed in the “National Torch
Plan”, The
Star Industry Enterprise of Zibo City, etc.
Changes of its registered information are as
follows:
|
Date of change |
Item |
Before the change |
After the change |
|
|
Registered capital |
CNY 10,000,000 |
CNY 36,000,000 |
|
|
Registered capital |
CNY 36,000,000 |
CNY 45,000,000 |
|
|
SC’s Chinese name |
山东金城医药化工有限公司 |
山东金城医药化工股份有限公司 |
|
Registered legal
form |
Limited liability
company |
Shares limited
company |
|
|
Registered capital |
CNY 45,000,00 |
CNY 90,000,000 |
|
|
Legal
representative |
Zhao Hongfu |
Zhao Yeqing |
Note: SC changed its
Chinese name in 2008, while its English name remains the same.
SC is planning to
list in Shenzhen Stock Exchange Market.
MAIN SHAREHOLDERS:
Name % of Shareholding
Zibo Jincheng Industry Co., Ltd. 52.87
Shanghai Fosun Pharmaceutical Development Co., Ltd. 20.00
Qingdao Fuhe Investment Co., Ltd.
8.00
Zhao Hongfu 7.65
Zhang Xuebo 3.60
Zhao Yeqing
2.40
Zheng Gengxiu 0.91
Li Jiaquan 0.67
Other 30 individuals 3.90
Zibo Jincheng Industry Co., Ltd.
=======================
Tel: 0533-5415977
Fax: 0533-5439726
Address: Zichuan Economic
Development Zone, Zibo, Shandong Province
Web: http://www.jinchenggroup.com/
Email: zibojincheng@126.com
Shanghai Fosun Pharmaceutical Development Co., Ltd.
========================================
Establishment date: Nov. 27, 2001
Registered no.: 310225000247780
Registered address: Room 350, No. 25, Kangshi Road, Kangqiao Town,
Pudong New Area, Shanghai
l
Legal
representative and Chairman:
Mr. Zhao Yeqing, ID# 370302197605067713, born
in 1976, he is currently responsible for the overall management of SC.
Working Experience(s):
From 2008 to present Working in SC as legal representative and chairman
Also working in Shandong Huihai Pharmaceutical & Chemical Co., Ltd., Shandong Jincheng Zhonghua Bio-pharmaceutical Co., Ltd. as legal representative.
SC is mainly engaged in manufacturing and
selling pharmaceutical and chemical products.
SC’s products mainly
include: basic chemical, pharmaceutical intermediates, etc.
SC sources its materials 70% from domestic market, and 30% from
overseas market. SC sells 60% of its products in domestic market, and 40% to
overseas market, mainly Europe, America, and Southeast Asia.
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 declined to release
its major suppliers and clients.
SC is known to have
the following subsidiaries: (according to SC’s website)
Shandong Jincheng Kerui Chemical Co., Ltd.
Shandong Huihai Pharmaceutical & Chemical Co., Ltd.
Shandong Jincheng Zhonghua Bio-pharmaceutical Co., Ltd.
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 make any comments on the given bank information.
(Bankers: Industrial & Commercial Bank of China Shandong Branch (SWIFT: ICBKCNBJSDG) A/c No. – 1603004119248033811)
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
65,622 |
99,477 |
|
Bills receivable |
13,648 |
12,173 |
|
Inventory |
26,014 |
32,031 |
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Accounts receivable |
121,848 |
136,631 |
|
Advances to suppliers |
10,376 |
25,743 |
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Other receivables |
77,600 |
55,225 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
--------------- |
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Current assets |
315,108 |
361,280 |
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Fixed assets net value |
107,273 |
157,546 |
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Projects under construction |
9,384 |
15,865 |
|
Long-term investment |
95,732 |
135,732 |
|
Intangible assets |
22,990 |
30,429 |
|
Deferred tax debit |
1,039 |
1,202 |
|
Other assets |
1 |
0 |
|
|
------------------ |
-------------- |
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Total assets |
551,527 |
702,054 |
|
|
============= |
============ |
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Short loans |
183,000 |
208,000 |
|
Bills payable |
5,000 |
26,909 |
|
Accounts payable |
55,267 |
89,736 |
|
Advances from clients |
30 |
2,503 |
|
Taxes payable |
6,689 |
4,571 |
|
Salaries and welfare payable |
7,894 |
7,026 |
|
Other payable |
1,500 |
41,266 |
|
Due within one year of non-current
liabilities |
0 |
15,000 |
|
Other current liabilities |
1 |
0 |
|
|
------------------ |
------------------- |
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Current liabilities |
259,381 |
395,011 |
|
Long term liabilities |
40,000 |
10,000 |
|
|
------------------ |
------------------- |
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Total liabilities |
299,381 |
405,011 |
|
Equities |
252,146 |
297,043 |
|
|
------------------ |
------------------- |
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Total liabilities & equities |
551,527 |
702,054 |
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============= |
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
Turnover |
408,285 |
530,907 |
|
Cost of goods sold |
283,455 |
408,880 |
|
Sales expense |
7,366 |
9,192 |
|
Management expense |
36,270 |
33,680 |
|
Finance expense |
10,228 |
14,299 |
|
Investment income |
31 |
0 |
|
Profit before tax |
72,058 |
64,818 |
|
Less: profit tax |
10,434 |
9,121 |
|
Profits |
61,624 |
55,697 |
Important Ratios
=============
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
*Current ratio |
1.21 |
0.91 |
|
*Quick ratio |
1.11 |
0.83 |
|
*Liabilities to assets |
0.54 |
0.58 |
|
*Net profit margin (%) |
15.09 |
10.49 |
|
*Return on total assets (%) |
11.17 |
7.93 |
|
*Inventory /Turnover ×365 |
23 days |
22 days |
|
*Accounts receivable/Turnover ×365 |
109 days |
94 days |
|
*Turnover/Total assets |
0.74 |
0.76 |
|
* Cost of goods sold/Turnover |
0.69 |
0.77 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears fairly good in its line, and it increased in 2010.
l
SC’s net
profit margin is fairly good, but it was declining in 2010.
l
SC’s
return on total assets is fairly good, but it was declining in 2010.
l
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current
ratio of SC is maintained in a normal level in 2009, but in a fair level in
2010.
l
SC’s
quick ratio is maintained in a normal level.
l
The
inventory of SC appears average.
l
The
accounts receivable of SC appears fairly large.
l
The
short-term loan of SC appears large.
l
SC’s
turnover 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
good
SC is considered
large-sized in its line with fairly good financial conditions. The large amount
of short-term loan could be a threat to SC’s financial condition. A credit line
up to USD 1,500,000 would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.72 |
|
UK Pound |
1 |
Rs.73.47 |
|
Euro |
1 |
Rs.65.38 |
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.