MIRA INFORM REPORT
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Report Date : |
14.12.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG EAST-ASIA PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Economic Development Zone Of Sanmen County, Taizhou Zhejiang Province
317100 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
06.02.1998 |
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Reg. No.: |
331022000001126 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling active pharmaceutical ingredient (APIs). |
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No. of Employees : |
385 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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With Financials |
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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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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
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.
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Source : CIA |
Company
Name And Address
ZHEJIANG EAST-ASIA PHARMACEUTICAL
CO., LTD.
ECONOMIC DEVELOPMENT ZONE OF
SANMEN county, TAIZHOU
ZHEJIANG PROVINCE 317100 PR CHINA
TEL: 86 (0) 576-84273552/83310959
FAX: 86 (0) 576-84285399
EXECUTIVE
SUMMARY
DATE OF REGISTRATION :
FEBRUARY 6, 1998
REGISTRATION NO. : 331022000001126
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
CHI
ZHENGMING (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 25,000,000
staff :
385
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 184,519,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 190,568,000 (AS
OF DEC. 31, 2011)
WEBSITE : www.eapharm.net
E-MAIL :
wwang@eapharm.net
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23 = USD 1 AS OF
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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
331022000001126 on February 6, 1998.
SC’s Organization Code Certificate No.:
14811831-2
SC’s Tax No.: 331022148118312
SC’s registered capital: CNY 25,000,000
SC’s paid-in capital: CNY 25,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
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Shareholder (s) |
Chi Zhengming 90% Liang Lingfei 10% |
Liang Lingfei 10% Zhejiang East-Asia Pharmaceutical Chemical
Co., Ltd. 90% |
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Shareholder (s) |
Liang Lingfei 10% Zhejiang East-Asia Pharmaceutical Chemical
Co., Ltd. 90% |
Chi Zhengming 90% Liang Lingfei 10% |
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Registered Capital |
CNY 5,000,000 |
CNY 25,000,000 |
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Shareholder (s) (% of Shareholding) |
Chi Zhengming 90% Liang Lingfei 10% |
Liang Lingfei 2% Chi Zhengming18% Chi Cheng 36% Zhejiang East-Asia Pharmaceutical Chemical Co., Ltd. 44% |
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Registration No. |
3310221000101 |
331022000001126 |
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Company Name |
Zhejiang Sanmen Zhengming Chemical Co., Ltd. |
Zhejiang East-Asia Pharmaceutical Co., Ltd. |
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-- |
Shareholder (s) (% of Shareholding) |
Liang Lingfei 2% Chi Zhengming 18% Chi Cheng 36% Zhejiang East-Asia Pharmaceutical Chemical Co., Ltd. 44% |
Wang Xiaomin 0.35% Zhang Jianghui 0.24% Zhang Yunhua.35% He Xiaopeng 0.35% Chen Lingzhi 0.35% Chi Ying 0.35% Zhang Ji 1.18% Wang Wei 1.18% Xia Daomin 1.76% Taizhou Ruikang Investment Partnership Enterprise (Limited
Partnership) 4.00% Chi Cheng 6.70% Chi Zhengming 76.60% Liang Lingfei 5.76% He Jianpeng 0.24% Wang Haiping 0.35% Zhang Zuhong 0.24% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang Xiaomin |
0.35 |
|
Zhang Jianghui |
0.24 |
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Zhang Yunhua |
0.35 |
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He Xiaopeng |
0.35 |
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Chen Lingzhi |
0.35 |
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Chi Ying |
0.35 |
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Zhang Ji |
1.18 |
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Wang Wei |
1.18 |
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Xia Daomin |
1.76 |
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Taizhou Ruikang Investment Partnership Enterprise (Limited
Partnership) |
4.00 |
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Chi Cheng |
6.70 |
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Chi Zhengming |
76.60 |
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Liang Lingfei |
5.76 |
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He Jianpeng |
0.24 |
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Wang Haiping |
0.35 |
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Zhang Zuhong |
0.24 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Chi Zhengming |
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Director |
Wang Xiaomin |
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Zhang Jianghui |
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Zhang Yunhua |
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He Xiaopeng |
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Chen Lingzhi |
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Chi Ying |
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Zhang Ji |
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Wang Wei |
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Xia Daomin |
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Chi Cheng |
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He Jianpeng |
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Wang Haiping |
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Zhang Zuhong |
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Supervisor |
Liang Lingfei |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Wang Xiaomin 0.35
Zhang Jianghui 0.24
Zhang Yunhua 0.35
He Xiaopeng 0.35
Chen Lingzhi 0.35
Chi Ying 0.35
Zhang Ji 1.18
Wang Wei 1.18
Xia Daomin 1.76
Taizhou Ruikang Investment Partnership Enterprise (Limited Partnership) 4.00
Chi Cheng 6.70
Chi Zhengming 76.60
Liang Lingfei 5.76
He Jianpeng 0.24
Wang Haiping 0.35
Zhang Zuhong 0.24
MANAGEMENT
Chi Zhengming , Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------------
Gender: M
Age: 55
ID# 332603570910003
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Director
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Wang Xiaomin ID#
33262619711125078X
Zhang Jianghui ID#
332603197511072471
Zhang Yunhua ID#
330103196510111674
He Xiaopeng ID#
362221197401110891
Chen Lingzhi ID#
33260319761003266X
Chi Ying ID#
331003198212290015
Zhang Ji ID#
332603197508110019
Wang Wei ID#
332603196912220012
Xia Daomin ID# 332603196308140032
Chi Cheng ID#
331003198412310
He Jianpeng ID#
360121197810010552
Wang Haiping ID#
330411197306260817
Zhang Zuhong ID#
33260319630506007X
Supervisor
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Liang Lingfei ID#
332603195905190025
BUSINESS OPERATION
SC’s registered business scope includes manufacturing active
pharmaceutical ingredient (APIs), including erdosteine, ofloxacin,
ketoconazole, loratadine, tiopronin, levofloxacin hydrochloride, levofloxacin
lactate, terbinafine, trimebutine, levofloxacin; freight; manufacturing
ketoconazole, ofloxacin, and trimebutine maleate; and selling chemical
equipment, hardware, and steel materials.
SC is mainly engaged in manufacturing and selling active pharmaceutical
ingredient (APIs).
SC’s products mainly include:
Ropinirole
Levocetirizine
Escitalopram
Citalopram
Ofloxacin
Ofloxacin hydrochloride
Levofloxacin hydrochloride
Trimebutine
Etc.
SC sources its materials 100% from domestic market. SC sells 70% of its
products in domestic market and 30% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 385
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
Zhejiang Dongbang Pharmaceutical Co., Ltd.
Zhejiang
East-Asia Pharm-Chemical Imp. & Exp. Co., Ltd.
Zhejiang Jinming Pharmaceutical Co., Ltd.
Shanghai Pukang Pharmaceutical Co., Ltd.
Shanghai Youshou Pharmaceutical Technology Development Co., Ltd.
Etc.
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’s suppliers declined to make any
comments.
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:
Industrial and Commercial Bank of China Sanmen Sub-branch
AC#: 1207071109045008285
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
60,252 |
85,154 |
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Notes receivable |
5,287 |
1,124 |
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Accounts receivable |
20,912 |
24,742 |
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Advances to suppliers |
4,147 |
3,893 |
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Other receivable |
130,017 |
72,371 |
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Subsidy receivable |
851 |
0 |
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Inventory |
35,350 |
61,182 |
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Deferred expense |
228 |
66 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
257,044 |
248,532 |
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Long-term investment |
60,816 |
71,816 |
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Fixed assets |
51,652 |
53,956 |
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Construction in progress |
2,129 |
0 |
|
Intangible assets |
4,563 |
4,028 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
6,684 |
1,899 |
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Other non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
382,888 |
380,231 |
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============= |
============= |
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Short-term loans |
81,100 |
67,200 |
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Notes payable |
84,390 |
84,500 |
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Accounts payable |
23,705 |
29,317 |
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Wages payable |
905 |
634 |
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Taxes payable |
-793 |
1,993 |
|
Advances from clients |
5,005 |
835 |
|
Other payable |
5,938 |
5,101 |
|
Other current liabilities |
188 |
83 |
|
|
------------------ |
------------------ |
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Current liabilities |
200,438 |
189,663 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
200,438 |
189,663 |
|
Equities |
182,450 |
190,568 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
382,888 |
380,231 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
169,028 |
184,519 |
|
Cost of sales |
135,541 |
148,663 |
|
Business Taxes and Surcharges |
1,677 |
857 |
|
Sales expense |
3,013 |
2,504 |
|
Management expense |
21,965 |
19,819 |
|
Finance expense |
2,279 |
271 |
|
Non-operating income |
1,199 |
893 |
|
Non-operating expense |
1,404 |
600 |
|
Profit before tax |
5,380 |
13,292 |
|
Less: profit tax |
807 |
1,993 |
|
4,573 |
11,299 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.28 |
1.31 |
|
*Quick ratio |
1.11 |
0.99 |
|
*Liabilities to assets |
0.52 |
0.50 |
|
*Net profit margin (%) |
2.71 |
6.12 |
|
*Return on total assets (%) |
1.19 |
2.97 |
|
*Inventory / Revenue ×365 |
77 days |
122 days |
|
*Accounts receivable/ Revenue ×365 |
46 days |
49 days |
|
* Revenue/Total assets |
0.44 |
0.49 |
|
* Cost of sales / Revenue |
0.80 |
0.81 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line, and it increased in
2011.
SC’s net profit margin is average in 2010 and fairly good in 2011.
SC’s return on total assets is average in both years.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in both years.
SC’s quick ratio is maintained in a normal level in both years.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loans are in an average level in both years.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.23 |
|
|
1 |
Rs.87.53 |
|
Euro |
1 |
Rs.70.94 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.