MIRA INFORM REPORT
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Report Date : |
02.11.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG MEDICINES & HEALTH PRODUCTS
IMPORT & EXPORT CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
29.06.1999 |
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Com. Reg. No.: |
330000000009213 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
importing and exporting
medical instruments |
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No. of Employees
: |
320 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 : |
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
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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 & address
ZHEJIANG MEDICINES
& HEALTH PRODUCTS IMPORT & EXPORT CO., LTD.
ZMC BUILDING, NO. 101-2, ZHONGSHAN NORTH
ROAD, HANGZHOU,
ZHEJIANG PROVINCE, 310003 PR CHINA
TEL: 86 (0) 571-87017661/87017663 FAX: 86 (0) 571-87016777
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 29, 1999
REGISTRATION NO. : 330000000009213
REGISTERED LEGAL FORM :
LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
320
REGISTERED CAPITAL : CNY 80,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 3,441,598,000 (AS
OF DEC. 31, 2010)
EQUITIES :
CNY 232,884,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
CNY 6.31 =USD 1
Adopted abbreviations
ANS – amount not stated
NS – not stated
SC – subject company (the company inquired by you)
NA – not available
CNY – China Yuan Renminbi
Note: SC’s correct name should be the above stated one.
SC was registered as a limited liabilities company at Zhejiang Provincial Administration for Industry & Commerce (The official body of issuing and renewing business license) on June 29, 1999.
Company Status: Limited Liabilities Co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes operating medical machinery (validity
period as of Jun. 14, 2014; selling Chinese traditional medicinal crops,
Chinese patent medicines, traditional Chinese medicines prepared in
ready-to-use forms, chemical raw materials, chemical agent, antibiotic,
biochemical, acetic anhydride, and phenyl acetic acid; selling dangerous chemical products (validity period as of Aug. 30,
2011); operating non-medicine poisonous chemicals (validity period as of Oct.
11, 2012), and potassium permanganate (validity period as of Feb. 28, 2011); importing and exporting business.
SC is mainly
engaged in importing and exporting medical instruments.
Mr.
Chen Zhangsheng has been legal representative, chairman and general manager of
SC since April of 2010.
SC is known to
have approx. 320 employees at present.
SC is currently operating at the above
stated address, and this address houses its operating office in the commercial
zone of Hangzhou. Our checks reveal that SC owns the total premise about 2,000
square meters.
http://www.zmchealthcare.com
The design is professional and the content is well organized. At present the
web site is only in English version.
Email: info@zibchina.com
SC obtained GSP Certificate, ISO Certificate and JAS Certificate.
Changes
of its registered information are as follows:
|
Date
of change |
Item |
Before the
change |
After the change |
|
|
Registered
capital |
CNY
43,000,000 |
CNY 47,437,000 |
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|
Registered
capital |
CNY 47,437,000 |
CNY 55,455,500 |
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|
Registered
capital |
CNY 55,455,500 |
CNY 61,069,375 |
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|
Registered
capital |
CNY 61,069,375 |
CNY 65,000,000 |
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|
Registered capital |
CNY 65,000,000 |
CNY 69,000,000 |
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Registered capital |
CNY 69,000,000 |
CNY 40,000,000 |
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|
Registered capital |
CNY 40,000,000 |
CNY 56,000,000 |
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Registered capital |
CNY 56,000,000 |
CNY 63,000,000 |
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Registration no. |
3300001005837 |
The present one |
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Registered capital |
CNY 63,000,000 |
CNY 70,000,000 |
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Legal representative |
Li Fusheng |
The present one |
|
Unknown |
Registered capital |
CNY 70,000,000 |
Present amount |
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Shareholders |
Employee
Shareholders Association45.27%; Zhejiang
International Business Group Co., Ltd. 30.00%; Chen
Zhangsheng1.30%; Li Fusheng1.25%; Li Lin1.23%; Wang Ping王.23% Liu
Junguang0.99%; Other 36 individuals3618.73% |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Employee Shareholders Association 47.72
Zhejiang International Business
Group Co., Ltd. 33.50
Chen Zhangsheng 1.14
Li Lin 1.08
Wang Ping 1.08
Liu Junguang 0.86
Other 33 individuals 14.62
Zhejiang International Business
Group Co., Ltd.
===================================
Zhejiang International Business
Group Co., Ltd. was establishes in 2008.
It is a sole state-owned enterprise invested by the provincial government. The
registered capital of the group is 980 million Yuan, which comes from the
capital of original Rongda Group, Zhongda Group, and Dongfang Group. The legal
residence of the group is 199 Qingchun Road, Hangzhou City, Zhejiang. Conduct
scope covers all the ranging in the authorization scope. It involve foreign trading,
economy cooperation, real estate, industry investment, trade service, financial
stock, and the import and export trade is the main business. The group built up
extensive and stable trade cooperative relationship with the well-know
companies from 213 nations and region. The group exports more than 210 series
of products, mainly including textile products, clothing, primary product,
medical and chemical products, light industry article, machinery and
electricity product, and set equipments, etc.
Tel: 86 0571-87385921
Fax: 86 0571-87385988
E-mail: info@zibchina.com
Website: http://www.zibchina.com
Legal
representative,
chairman and general manager:
Mr. Chen Zhangsheng , ID# 330105195610290313,
born in 1956, with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 1999 to April of 2010 Worked in SC as vice chairman and general manager;
From April of 2010 to present Working in SC as legal representative, chairman and general manager.
Directors:
Mr. Li Lin, ID# 330102195210010336
Mr. Wang Baoping , ID# 610104196309090115
Mr. Liu Junguang, ID# 33010219540320003X
Mr. Huang Hai, ID# 330103196312161339
Supervisors:
· Ms. Wang Ping ID# 330103195606170025
· Ms. Gong Yougen ID# 330106196211301565
· Mr. Xie Weiran, ID# 330106196504100134
SC is mainly engaged
in importing and exporting medical instruments.
SC’s products
mainly include: medical instruments, pharmaceuticals & intermediates,
natural plant extracts & food additives, medicines & preparations, etc.
SC
sources its materials 70% from domestic market, and 30% from U.S.A. and Europe.
SC sells 30% of its products in domestic market, and 70% to Asian, Europe,
America, 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.
Note: SC refused to release its main customers and
suppliers.
SC is known to invest in the following companies:
Zhejiang Yibao Health Products Co., Ltd.
Zhejiang International Business Group Logistics
Co., Ltd.
Zhejiang Shangshang Medicine and Health Products
Co., Ltd.
Ningbo Huana Chemical Co., Ltd.
Jiangsu Meinuo Medical
Instrument Co., Ltd. (in Chinese Pinyin)
Quzhou Chemsyn Pharm. Co., Ltd.
Shandong Liyuan Pharmaceutical Co., Ltd.
Zhejiang Hisun Chemical
Co., Ltd.
Pinghu Xinjiyuan Raiment Co., Ltd.
Etc.
Overall payment appraisal:
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet 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.
Bank of China Zhejiang Branch
AC#:
800100024308091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2010 |
|
Cash & bank |
57,070 |
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Short term
investments |
0 |
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Transaction
monetary assets |
4,947 |
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Inventory |
171,857 |
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Accounts receivable |
321,441 |
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Other Accounts
receivable |
121,055 |
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Advances to
suppliers |
89,207 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
765,577 |
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Fixed assets net
value |
19,591 |
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Projects under construction |
9,256 |
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Long term
investments |
69,428 |
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Financial assets
available for sale |
7,549 |
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Long-term
deferred expenses |
338 |
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Intangible
assets |
0 |
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Deferred assets
debits |
5,537 |
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Other assets |
0 |
|
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------------------ |
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Total assets |
877,276 |
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============= |
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Short loans |
27,159 |
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Bills payable |
380,075 |
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Accounts payable |
62,794 |
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Other Accounts
payable |
20,560 |
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Advances from
clients |
155,551 |
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Salary payable |
14,401 |
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Welfare payable |
0 |
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Tax payable |
-16,241 |
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Other current
liabilities |
0 |
|
|
------------------ |
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Current
liabilities |
644,299 |
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Long term
liabilities |
0 |
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Other
liabilities |
93 |
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|
------------------ |
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Total liabilities |
644,392 |
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Equities |
232,884 |
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|
------------------ |
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Total
liabilities & equities |
877,276 |
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============= |
Income Statement
Unit: CNY’000
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|
As of Dec. 31,
2010 |
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Turnover |
3,441,598 |
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Cost of goods sold |
3,261,392 |
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Taxes and additional of main
operation |
1,167 |
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Sales expense |
67,335 |
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Management expense |
44,677 |
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Finance expense |
-22,491 |
|
Loss from asset devaluation |
4,349 |
|
Income from
changes in fair value |
344 |
|
Investment
income |
5,353 |
|
Non-operation
income |
3,877 |
|
Non-operation expense |
4,095 |
|
Profit before
tax |
90,648 |
|
Less: profit tax |
22,861 |
|
Profits |
67,787 |
Important Ratios
=============
|
|
as
of Dec. 31, 2010 |
|
*Current ratio |
1.19 |
|
*Quick ratio |
0.92 |
|
*Liabilities
to assets |
0.73 |
|
*Net profit
margin (%) |
1.97 |
|
*Return on
total assets (%) |
7.73 |
|
*Inventory /Turnover
×365 |
19
days |
|
*Accounts
receivable/Turnover ×365 |
35
days |
|
*Turnover/Total
assets |
3.92 |
|
* Cost of
goods sold/Turnover |
0.95 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears fairly large.
l
SC’s short loan appears average.
l
SC’s turnover 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: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.78 |
|
UK Pound |
1 |
Rs.86.77 |
|
Euro |
1 |
Rs.69.71 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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 |
|
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NB |
New Business |
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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.