MIRA
INFORM REPORT
|
Report Date : |
21.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
NEXCHEM PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 1318 Jinsha Street, Linjiang Industrial Zone,
Bailongqiao Jinhua City, Zhejiang Province 321025 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
23.12.2002 |
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Com. Reg. No.: |
330700400001924 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing pharmaceutical raw materials. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 500,000 |
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Status : |
Moderate |
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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 |
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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 |
Company name and address
NEXCHEM PHARMACEUTICAL CO., LTD.
NO. 1318 JINSHA STREET, LINJIANG INDUSTRIAL ZONE, BAILONGQIAO
JINHUA CITY, ZHEJIANG PROVINCE 321025 PR CHINA.
TEL: 86 (0) 579-82207640
FAX: 86 (0) 579-82207642
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 23, 2002
REGISTRATION NO. : 330700400001924
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
REGISTERED CAPITAL : USD 36,106,670
staff :
363
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 330,569,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 155,289,000 (AS OF DEC. 31, 2010)
WEBSITE : www.nexchem.cn
E-MAIL :
commercial@nexchem.cn
PAYMENT :
AVERAGE
Recommended Credit Limit: UP TO USD 500,000
(PERIODICAL REVIEW)
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.40 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a Chinese-foreign equity joint
venture enterprise of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 330700400001924.
SC’s Organization Code Certificate No.:
74581255-6
SC’s Tax No.: 330702745812556
SC’s Customs Registration No. 3307930316
SC’s registered capital: USD 36,106,670
SC’s paid-in capital: USD 36,106,670 (CNY 254,438,093.90)
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Company Name |
Zhejiang Lixin Pharmaceutical Co., Ltd. |
Nexchem Pharmaceutical Co., Ltd. |
|
Registered Capital |
USD 3,000,000 |
USD 4,010,000 |
|
|
Shareholder (s) (% of Shareholdings) |
Jinhua Lixin Pharma Chemical Co., Ltd.33.33% Giuseppe Nonni (Italy) 66.67% |
Jinhua Lixin Pharma Chemical Co., Ltd.50.12% Giuseppe Nonni (Italy) 49.88% |
|
|
|
Registered Capital |
USD 4,010,000 |
USD 6,169,230 |
|
Shareholder (s) (% of Shareholdings) |
Jinhua Lixin Pharma Chemical Co., Ltd.50.12% Giuseppe Nonni (Italy) 49.88% |
Jinhua Lixin Pharma Chemical Co., Ltd. 32.58% Alkmaar Export B.V. (Holland) 35% Giuseppe Nonni (Italy) 32.42% |
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Registration No. |
000927 |
330700400001924 |
|
|
|
Legal Representative |
Fan Yaqiang |
Yang Zhi |
|
Legal Form |
Chinese-Foreign Equity Joint Venture Enterprise |
Wholly Foreign-owned Enterprise |
|
|
Shareholder (s) (% of Shareholdings) |
Jinhua Lixin Pharma Chemical Co., Ltd.32.58% Alkmaar Export B.V. (Holland) 35% Giuseppe Nonni (Italy) 32.42% |
Creative Medicine Italy 100% |
|
|
|
Registered Capital |
USD 6,169,230 |
USD 21,169,230 |
|
|
Registered Capital |
USD 21,169,230 |
USD 27,080,000 |
|
|
Legal Form |
Wholly Foreign-owned Enterprise |
Chinese-Foreign Equity Joint Venture Enterprise |
|
Registered Capital |
USD 27,080,000 |
USD 36,106,670 |
|
|
Shareholder (s) (% of Shareholdings) |
Creative Medicine Italy 100% |
Xi’an Zizhitong Investment Co., Ltd. 25% Creative Medicine Italy 75% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Xi’an Zizhitong Investment Co., Ltd. |
25 |
|
Creative Medicine Italy |
75 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Yang Zhi |
|
General Manager |
Lu Feng |
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Director |
Zhang Hua |
|
Yi Li |
|
|
Zhang
Xin |
|
|
Jiang Xiaodong |
|
|
Zhang Xuting |
|
|
Supervisor |
Tian Yun |
|
Wang Degui |
RECENT DEVELOPMENT
SC has GMP certificates for Azithromycin, Clarithromycin, Roxithromycin,
Benserazide Hydrochlorides, Fenofibrate and Meropenem Injection Powder. SC has also
obtained COS certificates for Clarithromycin, Fenofibrate and Glimepiride.
Further, Clarithromycin is successfully approved by PMDA inspection. SC is
committed to becoming a leading enterprise in the Global API Industry.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Xi’an Zizhitong Investment Co., Ltd. 25
Creative Medicine Italy 75
Xi’an Zizhitong
Investment Co., Ltd.
===============================
Registration No.: 610131100035209
Legal Form: Limited Liabilities Company
Registered Capital: CNY 100,000,000
Legal Representative: Zhang Hua
MANAGEMENT
Yang Zhi , Legal
Representative and Chairman
---------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: Cayman Islands
Ø
Passport No.: insa#024-592-751
Ø
Age: 56
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Also
working in Jiangxi Lixin Pharmaceutical Co., Ltd. as legal representative
Lu Feng , General
Manager
--------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
Director
=======
Zhang Hua ID# 622827196610103153
(also working in Yan’an Zhongsheng Mining Co., Ltd.
and Shaanxi Zhongbang Real Estate Co., Ltd. as legal representative)
Yi Li Passport No. 056975705
Zhang Xin ID# 370702196301310734
Jiang Xiaodong ID# 320106197701280413
Zhang Xuting ID# 440305196506182014
Supervisor
=========
Tian Yun ID# 612721196307140810
Wang Degui ID# 310110196612146253
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing pharmaceutical raw materials.
SC is mainly
engaged in manufacturing pharmaceutical raw materials.
SC’s products mainly include:
Azithromycin Dihydrate
Azithromycin Bitterless
Clarithromycin
Clarithromycin Enteric coated Granules
Roxithromycin
Meropenem for injection
Meropenem
Ciprofibrate
Fenofibrate
Glimepiride
Benserazide Hydrochloride
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 70% of its products in domestic market, and
30% to overseas market, mainly Pakistan, India, Bangladesh, Brazil, etc.
The
import & export status of SC in 2010 is as follows,
|
Country |
Amount of
Exports (USD) |
Amount of Imports (USD) |
|
Pakistan |
818,000 |
-- |
|
India |
1,723,500 |
-- |
|
Bangladesh |
1,738,000 |
-- |
|
Brazil |
5,153,300 |
-- |
|
|
------------------- |
------------------- |
|
Total Amount |
9,432,800 |
0 |
The buying terms
of SC include T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known
to have approx. 363 staff at present.
SC owns an area as
its operating office & factory of approx. 225,560 sq. meters at the heading
address.
Note: SC
also has other two factories located in Dongxi Industrial Zone and the given
address Bailongqiao Industrial Zone.
RELATED COMPANY
l
Yan’an Zhongsheng Mining Co., Ltd.
Registration No.: 612600100012036
Date of Registration: October 28, 2008
Legal Form: Limited Liabilities Company
Registered Capital: CNY 100,000,000
Legal Representative: Zhang Hua 张华
l
Shaanxi Zhongbang Real Estate Co., Ltd.
Registration No.: 610000100101015
Date of Registration: December 5, 2000
Legal Form: Limited Liabilities Company
Registered Capital: CNY 30,000,000
Legal Representative: Zhang Hua
l
Jiangxi Lixin Pharmaceutical Co., Ltd.
Registration No.: 360200510000432
Date of Registration: August 12, 2004
Legal Form: Chinese-foreign equity joint
venture enterprise
Registered Capital: CNY 152,240,000
Legal Representative: Yang Zhi
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank
Agricultural Bank of China Jinhua City Wucheng Sub-branch
AC#:
610101040003988
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
11,202 |
56,060 |
|
|
Notes receivable |
100 |
12,395 |
|
Accounts
receivable |
11,980 |
36,338 |
|
Advances to
suppliers |
22,823 |
22,591 |
|
Other receivable |
5,316 |
4,032 |
|
Inventory |
16,106 |
80,632 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
185 |
604 |
|
|
------------------ |
------------------ |
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Current assets |
67,712 |
212,652 |
|
Fixed assets |
143,076 |
147,925 |
|
Construction in
progress |
13,811 |
18,624 |
|
Project materials |
429 |
262 |
|
Intangible
assets |
19,107 |
40,522 |
|
Long-term
investment |
0 |
0 |
|
Long-term
deferred expenses |
1,207 |
1,046 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
245,342 |
421,031 |
|
|
============= |
============= |
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Short-term loans |
153,541 |
112,500 |
|
Notes payable |
0 |
27,930 |
|
Accounts payable |
22,860 |
76,303 |
|
Wages payable |
2,904 |
2,855 |
|
Advances from clients |
376 |
3,515 |
|
Taxes payable |
-334 |
-1,272 |
|
Other payable |
46,289 |
41,613 |
|
Other current
liabilities |
13,559 |
2,298 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
239,195 |
265,742 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
239,195 |
265,742 |
|
Equities |
6,147 |
155,289 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
245,342 |
421,031 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Revenue |
42,563 |
330,569 |
|
Cost of sales |
47,615 |
279,388 |
|
Sales expense |
2,460 |
4,232 |
|
Management expense |
30,228 |
18,318 |
|
Finance expense |
26,079 |
13,989 |
|
Profit before
tax |
-66,174 |
785 |
|
Less: profit tax |
0 |
0 |
|
-66,174 |
785 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
0.28 |
0.80 |
|
*Quick ratio |
0.22 |
0.50 |
|
*Liabilities
to assets |
0.97 |
0.63 |
|
*Net profit
margin (%) |
-155.47 |
0.24 |
|
*Return on
total assets (%) |
-26.97 |
0.19 |
|
*Inventory /
Revenue ×365 |
139 days |
90 days |
|
*Accounts
receivable/ Revenue ×365 |
103 days |
41 days |
|
*
Revenue/Total assets |
0.17 |
0.79 |
|
* Cost of
sales / Revenue |
1.12 |
0.85 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average in 2009, and it
was rising significantly in 2010.
l
SC’s net profit margin is poor in 2009 and average
in 2010.
l
SC’s return on total assets is fair in 2009 and
average in 2010.
l
SC’s cost of goods sold is average, comparing with
its revenue in 2010.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a poor
level in 2009, fair in 2010.
l
SC’s quick ratio is maintained in a poor level in
2009, fair in 2010.
l
The inventory of SC is maintained in an average
level in 2010.
l
The accounts receivable of SC appears average in
2010.
l
The short-term loans of SC appear large in both
years.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in 2010.
l
The risk for SC to go bankrupt is average.
Overall financial condition
of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition, a credit line up to USD 500,000 is recommended upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.22 |
|
|
1 |
Rs.75.63 |
|
Euro |
1 |
Rs.65.64 |
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.