MIRA
INFORM REPORT
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Report Date : |
31.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
LONZA
GUANGZHOU NANSHA LTD |
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Registered Office : |
NO. 68 Huangge Road, Nansha District, Guangzhou City,
Guangdong Province 511455 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
16.04.2003 |
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Com. Reg. No.: |
440101400010983 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and Processing Nicotinic Acid Amide and
Related Products |
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|
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No. of Employees : |
493 |
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 5,000,000 |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
|
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company and address
LONZA GUANGZHOU NANSHA LTD.
NO. 68
HUANGGE ROAD, NANSHA DISTRICT, GUANGZHOU CITY
GUANGDONG
PROVINCE 511455 PR CHINA
TEL: 86
(0) 20-84338998
FAX: 86
(0) 20-84331998-1257
EXECUTIVE SUMMARY
Date of Registration : APRIL 16, 2003
REGISTRATION NO. : 440101400010983
LEGAL FORM : WHOLLY
FOREIGN-OWNED ENTERPRISE
REGISTERED CAPITAL : USD 135,500,000
staff : 493
BUSINESS CATEGORY : manufacturing
Revenue : CNY 860,270,000 (AS OF DEC. 31, 2010)
EQUITIES : CNY 887,410,000 (AS OF DEC. 31, 2010)
WEBSITE : N/A
E-MAIL : polly.liu@lonza.com
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
5,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.32 = 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 wholly foreign-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 440101400010983 on April 16,
2003.
SC’s Organization Code Certificate No.:
74757354-4
SC’s registered capital: USD 135,500,000
SC’s paid-in capital: USD
135,500,000
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011 |
Legal Representative |
Lukas Utiger |
Gerardus Boot |
|
Registered Capital |
USD 80,500,000 |
USD 135,500,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Lonza (China) Investment Co.,
Ltd. (Switzerland) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Gerardus Boot |
RECENT DEVELOPMENT
SC has past the certificate of ISO9001:2008, ISO14001:2004,
OHSAS18001:2007.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Lonza (China) Investment Co.,
Ltd. (Switzerland)
100
------------------------------------
Website: www.lonza.com.cn
MANAGEMENT
Gerardus Boot, Legal Representative, Chairman, and General
Manager
--------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
From 2011 to present, working in SC as legal representative,
chairman, and general manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
processing nicotinic acid amide and related products, active pharmaceutical
ingredient and related products, domestic patent and administrative protection bulk drugs, chemical materials, amino acids, new technology analgesic-antipyretics, new type anti-cancer drugs and cardio- and
cerebro-vascular drugs, efficient contraceptives, adjuvants, veterinary
antibacterial drugs, anthelmintics, insecticides, anticoccidial drugs, chemical
intermediates and other related products; producing and processing L-carnitine
and related products used in food additives and feeds; selling its products and
providing related technical services and consultation services.
SC is
mainly engaged in manufacturing and selling nicotinic acid
amide.
SC’s products mainly include: nicotinic
acid amide and APIs.
SC sources its materials 90% from domestic market and 10%
from the overseas market. SC sells 30% of its products to overseas market and 70% in domestic
market.
The buying terms of SC include Check, L/C, 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. 493 staff at present.
SC rents
an area as its operating office and factory, but the detailed information is
unknown.
RELATED COMPANY
SC is not known to have any
subsidiary at present.
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:
China
CITIC Bank
AC#: N/A
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
10,460 |
28,430 |
|
|
Accounts
receivable |
219,369 |
110,970 |
|
Advances to
suppliers |
520 |
0 |
|
Other receivable |
4,438 |
2,550 |
|
Inventory |
125,615 |
130,590 |
|
Prepaid expenses |
143 |
0 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
17,590 |
|
|
------------------ |
------------------ |
|
Current assets |
360,545 |
290,130 |
|
Fixed assets |
879,992 |
873,120 |
|
Construction in
progress |
216,064 |
342,530 |
|
Intangible
assets |
0 |
0 |
|
Long-term prepaid
expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
28,510 |
29,680 |
|
|
------------------ |
------------------ |
|
Total assets |
1,485,111 |
1,535,460 |
|
|
============= |
============= |
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Short-term loans |
253,884 |
258,850 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
104,332 |
79,590 |
|
Accrued
payroll |
7,724 |
9.410 |
|
Tax
payable |
7,681 |
6,080 |
|
Advances from
clients |
0 |
2,690 |
|
Other payable |
2,028 |
150 |
|
Other current
liabilities |
27,670 |
84,121 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
403,319 |
431,490 |
|
Non-current
liabilities |
250,229 |
216,560 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
653,548 |
648,050 |
|
Equities |
831,563 |
887,410 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,485,111 |
1,535,460 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31, 2010 |
|
Revenue |
748,710 |
860,270 |
|
Cost of sales |
546,206 |
703,410 |
|
Sales expense |
29,132 |
35,860 |
|
Management expense |
59,553 |
61,720 |
|
Finance expense |
26,967 |
8,260 |
|
Profit before
tax |
85,502 |
55,400 |
|
Less: profit tax |
5,628 |
6,480 |
|
79,874 |
48,920 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
0.89 |
0.67 |
|
*Quick ratio |
0.58 |
0.37 |
|
*Liabilities
to assets |
0.44 |
0.42 |
|
*Net profit margin
(%) |
10.67 |
5.69 |
|
*Return on
total assets (%) |
5.38 |
3.19 |
|
*Inventory /
Revenue ×365 |
62 days |
56 days |
|
*Accounts
receivable/ Revenue ×365 |
107 days |
48 days |
|
*
Revenue/Total assets |
0.50 |
0.56 |
|
* Cost of
sales / Revenue |
0.73 |
0.82 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
fairly good in its line, and it increased in 2010.
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 goods sold is average, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level in 2010.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in a
fair 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 low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
Credit Opinion: USD 1,500,000
SC is considered medium-sized in its line
with fairly stable financial conditions. We consider
higher credit amount appears to be within SC’s capacities comparing with the
above given one, and USD 5,000,000 is recommended
upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.50 |
|
|
1 |
Rs.77.73 |
|
Euro |
1 |
Rs.65.18 |
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.