MIRA
INFORM REPORT
|
Report Date : |
21.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
TAIXING YANGZI PHARMACEUTICAL INDUSTRY CO.,
LTD. |
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Registered Office : |
No. 16, Xin’gang Road, Economic Development Zone, Taixing, Jiangsu Province 225400 Pr |
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Country : |
China |
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Financials (as on) : |
30.11.2012 |
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Date of Incorporation : |
15.06.2001 |
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Com. Reg. No.: |
321200400004458 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
manufacturing and selling chemical products |
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No. of Employees : |
393 employees |
RATING & COMMENTS
|
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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Status : |
Good |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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China |
A2 |
A2 |
|
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.
|
Source : CIA |
Company name & address
Taixing
Yangzi Pharmaceutical Industry CO., LTD.
NO. 16, XIN’GANG ROAD, ECONOMIC DEVELOPMENT
ZONE, TAIXING
JIANGSU PROVINCE 225400 PR CHINA
TEL: 86 (0) 523-87673750
FAX: 86 (0) 523-87672150
EXECUTIVE SUMMARY
Date of Registration : JUNE 15, 2001
REGISTRATION NO. : 321200400004458
LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
REGISTERED CAPITAL : USD 365,000
staff : 393
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 507,266,000 (FROM JAN. 1, 2012
TO NOV. 30, 2012)
EQUITIES :
CNY 177,717,000 (AS
OF NOV. 30, 2012)
WEBSITE : www.yzyyhg.com
E-MAIL :
zzm@yzyyhg.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATIO : 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
SC was established
as a limited liabilities company of PRC on June 15, 2001. However, SC changed
to present legal form, and was registered as Chinese-foreign equity joint
venture enterprise of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 321200400004458 on April 16, 2004.
SC’s Organization Code Certificate
No.: 72901472-2
SC’s registered capital: USD 365,000
SC’s paid-in capital: USD 365,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
-- |
Registered No. |
001157 |
321200400004458 |
|
|
Registered Legal Form |
Limited
Liabilities Co. |
Chinese-Foreign Equity Joint Venture
Enterprise |
|
Registered Capital |
CNY
3,030,000 |
USD 365,000 |
|
|
Shareholder (s) (% of
Shareholding) |
Zhao Bingnan 8.75% Ren Wenzhong 11.88% Zhou Zhaoming 17.82% Chen Qilin 23.76% other 33 individuals 37.79% |
Cheng HongYa
(French) 26.58% Chen Qilin 23.75% Zhou Zhaoming 17.84% Ren Wenzhong 11.89% other 5 individuals 19.94% |
|
|
|
Legal Representative |
Chen Qilin |
Zhou Zhaoming |
|
Shareholder (s) (% of
Shareholding) |
Cheng HongYa
(French) 26.58% Chen Qilin 23.75% Zhou Zhaoming 17.84% Ren Wenzhong 11.89% other 5 individuals 19.94% |
Xu Limin 3.29% Cheng HongYa (French) 26.58% Zhou Zhaoming 55.59% Ren Wenzhong 11.89% Wang Bo 2.65% |
|
|
|
Shareholder (s) (% of
Shareholding) |
Xu Limin 3.29% Cheng HongYa (French) 26.58% Zhou Zhaoming 55.59% Ren Wenzhong 11.89% Wang Bo 2.65% |
Cheng HongYa (French) 26.58% Ren Wenzhong 20.30% Wang Bo 13.53% Xu Limin 10.55% Zhou Zhaoming
29.04% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Cheng HongYa (French) |
26.58 |
|
Ren Wenzhong |
20.30 |
|
Wang Bo |
13.53 |
|
Xu Limin |
10.55 |
|
Zhou Zhaoming |
29.04 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhou Zhaoming |
|
Vice Chairman |
Cheng HongYa |
|
Deputy General Manager |
Ren
Wenzhong |
RECENT DEVELOPMENT
SC has passed ISO 9001: 2000 quality management system certifications.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Cheng HongYa (French) 26.58
Ren Wenzhong 20.30
Wang Bo 13.53
Xu Limin 10.55
Zhou Zhaoming 29.04
MANAGEMENT
Zhou Zhaoming, Legal
Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
ID# 321025620307521
Ø Qualification:
University
Ø Working experience
(s):
From 2006 to present, working in SC as legal representative, chairman and general manager
Also working in Jiangsu Decheng Import and Export Trading Co., Ltd. and Taixing Decheng Chemical Co., Ltd. as legal representative
Cheng
HongYa, Vice Chairman
-----------------------------------------
Ø
Gender: M
Ø
Nationality: France
Ø
Passport No.: 03RC29326
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as vice chairman
Ren Wenzhong , Deputy General Manager
------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 44
Ø
ID# 321025196809110010
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as deputy general
manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing 4 -
nitro-(benzene) phenol and 4-amino-benzene phenols.
SC is mainly
engaged in manufacturing and selling chemical products.
Brand: SHENGNIAO
SC’s products mainly include:
para aminophenol, Para-Nitrophenol, etc.
SC
sources its materials 60% from domestic market, and 40% from the overseas
market. SC sells 70% of its products in domestic market, and 30% to the
overseas market, mainly U.S.A., India, etc.
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.
*Major Customer:
=============
First Continental
International Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 393
staff at present.
SC rents an area
as its operating office & factory of approx. 21,333 sq. meters at the
heading address.
RELATED COMPANY
SC is known to have a
subsidiary at present:
Jiangsu
Decheng Import and Export 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
Basic Bank:
Bank of China Taixing Sub-branch
AC#: 17765008092038
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Nov. 30, 2012 |
|
80,302 |
86,536 |
65,467 |
|
|
Notes receivable |
1,657 |
887 |
1,753 |
|
Interest receivable |
0 |
0 |
306 |
|
Accounts
receivable |
45,384 |
51,292 |
87,775 |
|
Advances to
suppliers |
5,428 |
6,135 |
0 |
|
Other receivable |
31,107 |
38,011 |
44,825 |
|
Inventory |
10,760 |
14,249 |
8,277 |
|
Deferred expense |
0 |
0 |
97 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
820 |
2,288 |
551 |
|
|
------------------ |
------------------ |
------------------ |
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Current assets |
175,458 |
199,398 |
209,051 |
|
Fixed assets |
47,795 |
45,653 |
122,770 |
|
Long term
investment |
5,000 |
5,000 |
5,000 |
|
Construction in
progress |
2,844 |
1,987 |
86 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
231,097 |
252,038 |
336,907 |
|
|
============= |
============= |
============= |
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Short-term loans |
25,000 |
30,000 |
80,000 |
|
Notes payable |
57,920 |
53,470 |
37,400 |
|
Accounts payable |
15,449 |
17,634 |
9,421 |
|
Wages payable |
3,316 |
3,763 |
1,623 |
|
Welfares payable |
0 |
0 |
1,919 |
|
Taxes payable |
3,953 |
2,798 |
6,710 |
|
Advances from
clients |
147 |
565 |
0 |
|
Other payable |
4,899 |
5,601 |
5,184 |
|
Accrued expense |
0 |
0 |
6,426 |
|
Other current
liabilities |
3,563 |
11,141 |
1,261 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
114,247 |
124,972 |
149,944 |
|
Non-current
liabilities |
7,916 |
7,389 |
9,246 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
122,163 |
132,361 |
159,190 |
|
Equities |
108,934 |
119,677 |
177,717 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
231,097 |
252,038 |
336,907 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
From
Jan. 1, 2012 to Nov. 30, 2012 |
|
Revenue |
295,708 |
334,627 |
507,266 |
|
Cost of sales |
252,940 |
305,462 |
407,136 |
|
Sales expense |
5,237 |
6,131 |
11,572 |
|
Management expense |
14,693 |
17,326 |
18,295 |
|
Finance expense |
321 |
654 |
-922 |
|
Profit before
tax |
20,380 |
15,833 |
69,272 |
|
Less: profit tax |
6,001 |
4,749 |
17,318 |
|
14,379 |
11,084 |
51,954 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Nov. 30, 2012 |
|
*Current ratio |
1.54 |
1.60 |
1.39 |
|
*Quick ratio |
1.44 |
1.48 |
1.34 |
|
*Liabilities
to assets |
0.53 |
0.53 |
0.47 |
|
*Net profit
margin (%) |
4.86 |
3.31 |
10.24 |
|
*Return on total
assets (%) |
6.22 |
4.40 |
15.42 |
|
*Inventory /
Revenue ×365 |
14 days |
16 days |
6 days |
|
*Accounts
receivable/ Revenue ×365 |
57 days |
56 days |
64 days |
|
*
Revenue/Total assets |
1.28 |
1.33 |
1.51 |
|
* Cost of
sales / Revenue |
0.86 |
0.91 |
0.80 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good.
l SC’s net profit
margin is average.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears 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:
AVERAGE
l
The debt ratio of SC is average.
l
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.54.84 |
|
UK Pound |
1 |
Rs.89.11 |
|
Euro |
1 |
Rs.72.47 |
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.