MIRA
INFORM REPORT
|
Report Date : |
04.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
GUOBANG PHARMACHEM GROUP CO., LTD. |
|
|
|
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Registered Office : |
No. 2-12
Dongchang West Road, Chengguan Town, Xinchang County, Shaoxing, Zhejiang Province
312500 Pr |
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|
|
Country : |
China |
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|
Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
29.03.1996 |
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Com. Reg. No.: |
330600400009418 |
|
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|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
|
|
|
|
Line of Business : |
manufacturing and selling pharmaceutical
intermediates |
|
|
|
|
No. of Employees : |
203 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned
system to a more market-oriented one that plays a major global role - in 2010
China became the world's largest exporter. Reforms began with the phasing out
of collectivized agriculture, and expanded to include the gradual
liberalization of prices, fiscal decentralization, increased autonomy for state
enterprises, creation of a diversified banking system, development of stock
markets, rapid growth of the private sector, and opening to foreign trade and
investment. China has implemented reforms in a gradualist fashion. In recent
years, China has renewed its support for state-owned enterprises in sectors it
considers important to "economic security," explicitly looking to
foster globally competitive national champions. After keeping its currency
tightly linked to the US dollar for years, in July 2005 China revalued its
currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2010 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China's
agricultural and industrial output each exceed those of the US; China is second
to the US in the value of services it produces. Still, per capita income is
below the world average. The Chinese government faces numerous economic
challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy's rapid transformation. Economic development
has progressed further in coastal provinces than in the interior, and by 2011
more than 250 million migrant workers and their dependents had relocated to
urban areas to find work. One consequence of population control policy is that
China is now one of the most rapidly aging countries in the world.
Deterioration in the environment - notably air pollution, soil erosion, and the
steady fall of the water table, especially in the North - is another long-term
problem. China continues to lose arable land because of erosion and economic
development. The Chinese government is seeking to add energy production
capacity from sources other than coal and oil, focusing on nuclear and
alternative energy development. In 2010-11, China faced high inflation
resulting largely from its credit-fueled stimulus program. Some tightening
measures appear to have controlled inflation, but GDP growth consequently
slowed to near 9% for 2011. An economic slowdown in Europe is expected to
further drag Chinese growth in 2012. Debt overhang from the stimulus program,
particularly among local governments, and a property price bubble challenge
policy makers currently. The government's 12th Five-Year Plan, adopted in March
2011, emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent on exports in the
future. However, China has made only marginal progress toward these rebalancing
goals.
|
Source : CIA |
Company name & address
GUOBANG PHARMACHEM GROUP
CO., LTD.
no. 2-12 dongchang west road, chengguan town, xinchang county
shaoxing, zhejiang PROVINCE 312500 PR CHINA
TEL: 86 (0) 575-86126550/86126556
FAX: 86 (0) 575-86126550
EXECUTIVE SUMMARY
Date of Registration : march 29, 1996
REGISTRATION NO. : 330600400009418
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : usd 9,295,900
staff : 203
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 387,453,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 365,628,000 (AS
OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.23 = 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
LEGAL STATUS & HISTORY
Note: SC’s subsidiary (Zhejiang Guobang
Pharmaceutical Co., Ltd.) located in the (No. 3688 Jiangnan Rd., Binjiang
District, Mangzhou Zhejiang China 310053).
SC was
established as a Chinese-foreign equity joint venture enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 330600400009418 on March 29,
1996.
SC’s Organization Code Certificate No.:
60969085-7
SC’s Tax No.: 330624609690857
SC’s registered capital: usd 9,295,900
SC’s paid-in capital: usd 9,295,900
Registration Change Record:-
No significant changes of SC have been
noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Xinchang Qingyu Investment
& Development Co., Ltd. |
27.18 |
|
Xinchang Ande Trade Co., Ltd. |
47.82 |
|
USA Fubi International Trade
Co., Ltd. |
25.00 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Qiu Jiajun |
|
Vice Chairman |
Zhu Mingxing |
|
Deputy General Manager |
Zhu Yaqing |
|
Gao Yuntai |
|
|
Director |
Gong Yuda |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Xinchang Qingyu Investment &
Development Co., Ltd. 27.18
Xinchang Ande Trade Co., Ltd. 47.82
USA Fubi International Trade
Co., Ltd. 25.00
Xinchang
Qingyu Investment & Development Co., Ltd.
===========================================
Date of Registration: July 14, 2008
Legal Form: Limited
Liabilities Company
Registered Capital: USD 500,000
Xinchang
Ande Trade Co., Ltd.
==========================
Date of Registration: July 16, 2010
Legal Form: Limited
Liabilities Company
Registered Capital: USD 500,000
MANAGEMENT
Qiu Jiajun , Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 47
Ø
ID# 320106196505012054
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman and general manager
Also working in Zhejiang Guobang Pharmaceutical Co., Ltd. and Xinchang Ande Trade Co., Ltd. as legal representative
Zhu Mingxing, Vice Chairman
----------------------------------------------------
Ø
Gender: M
Ø
Age: 47
Ø
ID# 320106196512192030
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Zhu Yaqing, Deputy General Manager
--------------------------------------------------------------
Ø
Gender: M
Ø
Age: 45
Ø
ID# 330624196701060012
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
Also working in Xinchang Guobang Import and Export
Co., Ltd. and Xinchang Qingyu Investment &
Development Co., Ltd. as legal representative
Gao Yuntai, Deputy General Manager
-------------------------------------------------------------
Ø
Gender: M
Ø
Age: 61
Ø
ID# 330624195103270031
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
Gong Yuda, Director
----------------------------------------
Ø
Gender: M
Ø
Age: 44
Ø
ID# 330623196807165414
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
pharmaceutical intermediates, selling its owned products.
SC is
mainly engaged in manufacturing and selling pharmaceutical intermediates.
Brand: Guobang
SC’s
products mainly include:
Xylometazoline
hydrochloride
Amorolfine
hcl
Barium
stearate
Ondansetron
hydrochloride
Calcitriol
Levodropropizine
Etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC sells 96% of its products in domestic market, and 4% to overseas market, mainly India.
The
import & export status of SC in 2011 is as follows,
|
Country |
Amount
of Exports (USD) |
Amount of Imports (USD) |
|
India |
2,437,221 |
-- |
|
|
------------------- |
------------------- |
|
Total Amount |
2,437,221 |
-- |
The buying
terms of SC include Check, 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. 203
staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have 8
subsidiaries at present,
n
Zhejiang Guobang Xiandai Medicine Co., Ltd.
n
Shandong Guobang Pharmaceutical Co., Ltd.
n
Xinchang Guobang Import and Export Co., Ltd.
n
Xinchang Hebao Biotechnology Co., Ltd.
n
Xinchang Guobang Financial Management Consulting Co., Ltd.
n
Xinchang Guobang Enterprise Management Co., Ltd.
n
Zhejiang Zhongtong Technology Co., Ltd.
n
Zhejiang Guobang Pharmaceutical Co., Ltd.
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
35,987 |
22,265 |
|
|
Notes receivable |
137 |
0 |
|
Accounts
receivable |
73,042 |
43,442 |
|
Advances to suppliers |
0 |
0 |
|
Other receivable |
523 |
1,436 |
|
Inventory |
15,250 |
33,234 |
|
Prepaid
expenses |
880 |
243 |
|
Other current
assets |
800 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
126,619 |
100,620 |
|
Long-term
investment |
222,603 |
333,851 |
|
Fixed assets |
31,375 |
29,788 |
|
Construction in
progress |
850 |
2,730 |
|
Intangible
assets |
2,539 |
2,483 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred assets |
44 |
561 |
|
Other
non-current assets |
850 |
2,485 |
|
|
------------------ |
------------------ |
|
Total assets |
384,030 |
470,035 |
|
|
============= |
============= |
|
Short-term loans |
45,000 |
45,000 |
|
Notes payable |
15,000 |
5,000 |
|
Accounts payable |
33,930 |
43,523 |
|
Wages payable |
0 |
0 |
|
Welfare payable |
1,252 |
1,165 |
|
Taxes payable |
380 |
-1,293 |
|
Unpaid profit |
3,799 |
3,799 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
6,365 |
5,884 |
|
Accrued expenses |
0 |
400 |
|
Other current
liabilities |
20,044 |
929 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
125,770 |
104,407 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
125,770 |
104,407 |
|
Equities |
258,260 |
365,628 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
384,030 |
470,035 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
281,631 |
387,453 |
|
Cost of sales |
252,775 |
358,914 |
|
Taxes and surcharges |
91 |
381 |
|
Sales expense |
5,462 |
8,682 |
|
Management expense |
15,384 |
15,207 |
|
Finance expense |
583 |
249 |
|
Income from
investments |
81,276 |
101,913 |
|
Subsidy income |
11 |
311 |
|
Non-business
income |
70 |
85 |
|
Non-business expenditure |
322 |
420 |
|
Profit before
tax |
90,253 |
108,331 |
|
Less: profit tax |
1,441 |
1,413 |
|
88,812 |
106,918 |
Important Ratios
=============
|
|
|
|
|
*Current ratio |
1.01 |
0.96 |
|
*Quick ratio |
0.89 |
0.65 |
|
*Liabilities
to assets |
0.33 |
0.22 |
|
*Net profit
margin (%) |
31.53 |
27.60 |
|
*Return on
total assets (%) |
23.13 |
22.75 |
|
*Inventory / Revenue
×365 |
20 days |
32 days |
|
*Accounts
receivable/ Revenue ×365 |
95 days |
41 days |
|
*
Revenue/Total assets |
0.73 |
0.82 |
|
* Cost of
sales / Revenue |
0.90 |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good, and it was
rising in 2011.
l
SC’s net profit margin is fairly good in both
years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
AVERAGE
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 is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.56 |
|
UK Pound |
1 |
Rs.87.46 |
|
Euro |
1 |
Rs.71.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.