MIRA
INFORM REPORT
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Report Date : |
12.10.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG XIANJU JUNYE PHARMACEUTICAL CO.,
LTD. |
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Registered Office : |
Hebu Bridge, Chengguan, Xianju County,
Zhejiang Province, 317300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
05.08.2002 |
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Com. Reg. No.: |
331000400001765 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
manufacturing and selling chemical raw
materials and medicine intermediates |
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No. of Employees : |
260 employees |
RATING & COMMENTS
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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 : |
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
|
Country Name |
Previous Rating (31.03.2012) |
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 XIANJU
JUNYE PHARMACEUTICAL CO., LTD.
HEBU BRIDGE, CHENGGUAN, XIANJU COUNTY,
ZHEJIANG PROVINCE, 317300 PR CHINA
TEL: 86 (0) 576-87821307 FAX:
86 (0) 576-87750188
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 5, 2002
REGISTRATION NO. :
331000400001765
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. ZHANG RUJIN (CHAIRMAN)
STAFF STRENGTH :
260
REGISTERED CAPITAL : USD 8,010,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 350,320,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 184,700,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.28 = 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: The above address is also known as No. 1, Junye Road, Xianju
County, Zhejiang Province浙江省仙居县君业路1号.
SC was registered as a
Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Aug. 5, 2002.
Company Status:
Chinese-Foreign Equity Joint Venture This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing and
selling Mifepristonetablets raw materials (validity period as of Jan. 20,
2015); manufacturing and selling medical intermediates.
SC is
mainly engaged in manufacturing and selling chemical raw materials and medicine
intermediates.
Mr.
Zhang Rujin is legal representative and chairman of SC at present.
SC is known to have approx. 260 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Xianju County. Our checks reveal that SC owns the total premise about 6,533
square meters.
http://www.junyepharm.com/
The
design is professional and the content is well organized. At present it is both
in Chinese and English versions.
E-Mail: junye@junyepharm.com
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-12 |
Registered capital |
USD 5,120,000 |
The present amount |
|
Unspecified |
Registration No. |
001159 |
The present one |
|
Shareholders |
Xianju Junye Medicine Chemical
Factory 51%, Hong Kong TAYOBI Int’l TAYOBI
49% |
The present ones |
SC has past the
certificate of ISO9001:2000 Quality System, ISO14001:2004 Environmental System,
GMP, GB/T28001 Occupational Health and Safety Management System Certification,
etc.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xianju Junye Investment Co.,
Ltd. 50.99
Hong Kong TAYOBI Int’l 49.01
Xianju Junye Investment Co.,
Ltd.
=========================
Registration no.:
331024000002221
Legal representative: Zhang
Rujin
Legal representative
and Chairman:
Mr. Zhang Rujin, born in 1956. He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working
in SC as legal representative and chairman;
Also working in Xianju Junye Investment Co., Ltd. as legal
representative.
SC is
mainly engaged in manufacturing and selling chemical raw materials and medicine
intermediates.
SC’s products mainly include: Tibolone, Mifepristone,
Rocuronium bromide, Vecuronium bromide, Drospirenone, Finasteride,
Norethisterone Acetate and Cyproterone Acetate.
SC sources its materials 100%
from domestic market, mainly Zhejiang. SC sells 60% of its products in domestic
market, and 40% to overseas market, mainly Southeast Asian 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.
Note: SC refused
to release its major suppliers and customers.
SC
is not known to have any subsidiary at present.
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 Taizhou Branch Xianju Sub-branch
AC#: 840022279308091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
Cash
& bank |
16,690 |
28,660 |
|
Inventory |
93,810 |
83,780 |
|
Accounts
receivable |
62,390 |
65,390 |
|
Advances to
suppliers |
5,160 |
10,480 |
|
Other
receivables |
2,900 |
5,410 |
|
Other
current assets |
0 |
4,140 |
|
|
------------------ |
------------------ |
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Current
assets |
180,950 |
197,860 |
|
Fixed
assets net value |
69,250 |
108,550 |
|
Projects
under construction |
46,680 |
13,780 |
|
Long
term investment |
0 |
0 |
|
Intangible
assets |
10,860 |
10,620 |
|
Other
assets |
10 |
0 |
|
|
------------------ |
------------------ |
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Total
assets |
307,750 |
330,810 |
|
|
============= |
============= |
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Short
loans |
62,280 |
53,610 |
|
Bills
payable |
36,450 |
47,840 |
|
Accounts
payable |
48,050 |
41,240 |
|
Advances from
clients |
0 |
3,410 |
|
Accrued
payroll |
1,060 |
/ |
|
Tax
payable |
-4,220 |
-4,660 |
|
Other
payable |
2,690 |
2,820 |
|
Other
current liabilities |
0 |
850 |
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|
------------------ |
------------------ |
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Current
liabilities |
146,310 |
145,110 |
|
Long
term liabilities |
26,050 |
1,000 |
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------------------ |
------------------ |
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Total
liabilities |
172,360 |
146,110 |
|
Equities |
135,390 |
184,700 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
307,750 |
330,810 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
|
Turnover |
350,320 |
|
Cost of goods sold |
260,660 |
|
Sales expense |
2,260 |
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Management expense |
29,190 |
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Finance expense |
7,300 |
|
Profit before tax |
52,360 |
|
Less: profit tax |
2,910 |
|
Profits |
49,450 |
Important Ratios
=============
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
*Current ratio |
1.24 |
1.36 |
|
*Quick ratio |
0.60 |
0.79 |
|
*Liabilities
to assets |
0.56 |
0.44 |
|
*Net profit
margin (%) |
/ |
14.12 |
|
*Return on
total assets (%) |
/ |
14.95 |
|
*Inventory
/Turnover ×365 |
/ |
88 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
69 days |
|
*Turnover/Total
assets |
/ |
1.06 |
|
* Cost of
goods sold/Turnover |
/ |
0.74 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2011.
l
SC’s net profit margin is fairly good in 2011.
l
SC’s return on total assets is fairly good in 2011.
l
SC’s cost of goods sold is average, comparing with
its turnover in 2011.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears average.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in 2011.
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 stable.
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of inventory could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.07 |
|
UK Pound |
1 |
Rs.84.95 |
|
Euro |
1 |
Rs.68.24 |
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 |
|
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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.