MIRA
INFORM REPORT
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Report Date : |
04.09.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG GUOBANG PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 6, Weiwu Road, Shangyu Fine Chemical Industrial Park, Hangzhou Bay, Zhejiang Province, 312369 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
06.08.2004 |
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Com. Reg. No.: |
330600400010566 |
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Legal Form : |
Chinese-foreign equity joint venture enterprise |
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Line of Business : |
Manufacturing and selling API, chemical intermediates and animal medicine. |
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No. of Employees : |
1,000 |
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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 : |
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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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.
Source
: CIA
Company name and address
Zhejiang Guobang Pharmaceutical Co., Ltd.
NO. 6, WEIWU ROAD,
SHANGYU
Fine Chemical INDUSTRIAL Park,
HANGZHOU bay,
zhejiang PROVINCE, 312369 PR CHINA
TEL: 86 (0)
575-86126552/82738278 FAX: 86 (0) 575-82730672
EXECUTIVE SUMMARY
INCORPORATION DATE : august 6, 2004
REGISTRATION NO. : 330600400010566
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
1,000
REGISTERED CAPITAL : CNY 138,800,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 1,002,108,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY 265,195,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.35 = 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
SC was registered as a wholly foreign-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on august 6, 2004 and has been under present
legal form since 2009.
Company Status: Chinese-foreign equity joint venture
enterprise 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 animal powder drug/premix, peroral solution,
non-sterile bulk drugs; bulk drugs (doxifluridine, hydrochloric acid,
ciprofloxacin, azithromycin, roxithromycin, clarithromycin, norfloxacin,
ciprofloxacin lactate, simvastatin, L besylate amlodipine besylate); selling
its products.
SC is mainly
engaged in manufacturing and selling API, chemical intermediates and animal
medicines.
Mr. Qiu
Jiajun has been the legal
representative, chairman and general manager of SC since 2004.
SC is known to
have approx. 1,000 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 Shangyu. Detailed
information of the premise is unknown.
SC
has another office in Guobang Building, No. 2-12 Dongchang West Road, Xinchang
County, Shaoxing, Zhejiang Province, 312369 PR China.
http://www.gbpharm.com
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-mail: gb@gbpharm.com
SC has passed ISO9001:2000 quality system and ISO14001environment
quality system certification as a whole. All products are strictly manufactured
according to ICH Q
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the
change |
After the change |
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Registered
Capital |
CNY 20,000,000 |
CNY 32,000,000 |
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Legal
representative |
Zhang Qiong |
Qiu Jiajun |
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Company Name |
Zhejiang Guobang
Veterinary
Drug Co., Ltd. |
Zhejiang Guobang
Pharmaceutical Co., Ltd. |
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Registered
Capital |
CNY 32,000,000 |
CNY 80,800,000 |
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Registration No. |
003124 |
330600400010566 |
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Legal form |
Wholly foreign-owned enterprise |
Chinese-foreign equity joint venture
enterprise |
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Shareholders and % of shareholdings |
Yubang Investment Limited (B.V.I.)100% |
Yubang Investment Limited (B.V.I.)60% Guobang Pharmaceutical & Chemical
Group Co., Ltd. 40% |
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Unknown |
Registered capital |
CNY 80,800,000 |
CNY 138,800,000 |
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Shareholders (shareholding) |
Yubang Investment Limited (B.V.I.) 60% Guobang Pharmaceutical & Chemical
Group Co., Ltd. 40% |
Yubang Investment Limited (B.V.I.)36%; Guobang Pharmaceutical & Chemical
Group Co., Ltd. 40% Antou Holding Co., Ltd. (in Chinese
Pinyin) 24% |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yubang Investment Limited (B.V.I.) 36
Guobang Pharmaceutical & Chemical Group
Co., Ltd. 40
Antou Holding Co., Ltd. (in Chinese
Pinyin) 24
Guobang Pharmaceutical & Chemical Group
Co., Ltd.:
=====================================
Legal representative: Qiu Jiajun
Registration No.: 330600400009418
Incorporation date: Mar. 29, 1996
Address: No. 2-12 Dongchang West Road,
Chengguan Town, Xinchang County, Shaoxing City, Zhejiang Province
Tel: 86 0575-86124548/86133852
l
Legal Representative, Chairman and General Manager:
Mr. Qiu Jiajun , ID# 320106650501205, born in
1965 with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2004 to present Working
in SC as legal representative, chairman and general manager;
Also working in Guobang Pharmaceutical & Chemical
Group Co., Ltd. as legal representative
l
Supervisor:
Gao Yuntai ID# 330624195103270031
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Directors:
Gong Yuda ID# 330623680716541
Jin Xiaoyong ID# 330624197603010032
Jin Biao ID# 330624194808050018
Zhu Yaqing ID# 330624196701060012
SC is mainly
engaged in manufacturing and selling API, chemical intermediates and animal
medicine.
SC’s products
mainly include: Azaerythromycin Order, Azithromycin USP / Ph. Eup.,
Clarithromycin USP / Ph. Eup., Roxithromycin Ph. Eup. /CP2005, Ciprofloxacin
Hcl USP / Ph. Eup., Ciprofloxacin Lactate, Cyclopropylamine (CPA), Cyclopropyl
Carboxylic Acid (Q-Acid), Levofloxacin, Levofloxacin Carboxylic Acid
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 40% of its products in domestic market, and
60% 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 T/T, L/C and Credit of 30-60 days.
*Major Supplier:
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Henan Topfond Pharmaceutical Co., Ltd.
*Major Customer:
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Shandong Kanghui Pharmaceutical Co., Ltd.
SC
is known to invest in the following companies:
Shangyu
Huada Pharmaceutical Chemicals R&D Co., Ltd.
Shangyu
Lianxin Recycling Materials Recovery Co., Ltd.
Shangyu
Water Treatment Development Co., Ltd.
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 records 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
Shangyu Fine Chemical Industrial Park Sub-branch
AC#：870017377608091001
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2008 |
as
of Dec. 31, 2009 |
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Cash & bank |
73,560 |
60,639 |
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Short-term
investment |
0 |
500 |
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Notes receivable |
0 |
14,535 |
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Inventory |
153,120 |
112,003 |
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Accounts
receivable |
57,010 |
104,423 |
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Other Accounts
receivable |
11,150 |
17,881 |
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Other current
assets |
11,740 |
0 |
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------------------ |
------------------ |
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Current assets |
306,580 |
309,981 |
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Fixed assets net
value |
165,640 |
161,875 |
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Projects under
construction |
0 |
25,385 |
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Long term
investment |
0 |
3,904 |
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Intangible and
other assets |
20,190 |
7,954 |
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Total assets |
492,410 |
509,099 |
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============= |
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Short loans |
138,330 |
113,000 |
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Notes payable |
0 |
46,000 |
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Accounts payable |
61,660 |
57,191 |
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Other Accounts
payable |
14,110 |
17,951 |
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Welfare payable |
0 |
2,560 |
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Taxes payable |
0 |
5,932 |
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Surcharge
payable |
0 |
251 |
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Accrued expenses |
0 |
1,019 |
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Other current
liabilities |
71,270 |
0 |
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Current
liabilities |
285,370 |
243,904 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
10 |
0 |
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------------------ |
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Total
liabilities |
285,380 |
243,904 |
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Equities |
207,030 |
265,195 |
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------------------ |
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Total
liabilities & equities |
492,410 |
509,099 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2008 |
as of Dec. 31,
2009 |
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Turnover |
744,610 |
1,002,108 |
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Cost of goods
sold |
631,350 |
830,294 |
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Tax and
associate charge |
586 |
751 |
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Add: Income from
other operations |
7,984 |
2,784 |
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Sales expense |
20,050 |
17,862 |
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Management expense |
47,010 |
78,906 |
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Finance expense |
12,310 |
7,237 |
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Investment
income |
0 |
28 |
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Subsidy income |
523 |
1,160 |
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Non-operating
income |
1,799 |
334 |
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Non-operating expense |
3,004 |
3,303 |
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Profit before
tax |
40,606 |
68,061 |
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Less: profit tax |
5,076 |
10,209 |
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Profits |
35,530 |
57,852 |
Note: SC has not lodged the latest annual returns in
the local registry, hence no up-to-date detailed financial information could be
provided.
Important
Ratios
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As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
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*Current ratio |
1.07 |
1.27 |
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*Quick ratio |
0.54 |
0.81 |
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*Liabilities to
assets |
0.58 |
0.48 |
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*Net profit
margin (%) |
4.77 |
5.77 |
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*Return on
total assets (%) |
7.22 |
11.36 |
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*Inventory
/Turnover ×365 |
75 days |
41 days |
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*Accounts
receivable/Turnover ×365 |
28 days |
38 days |
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*Turnover/Total
assets |
1.51 |
1.97 |
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* Cost of
goods sold/Turnover |
0.85 |
0.83 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line
in 2008, and it increased in 2009.
l
SC’s net profit margin is average in both 2 years.
l
SC’s return on total assets is fairly good in both
2 years.
l
SC’s cost of goods sold is average in both 2 years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both 2 years.
l
SC’s quick ratio is maintained in a fair level in
2008, and appears normal in 2009.
l
The inventory of SC appears fairly large in both 2
years.
l
The accounts receivable of SC appears average in
2008, but fairly large in 2009.
l
The short-term loan of SC appears fairly large in
both 2 years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is average in both 2 years.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
SC is considered large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.45 |
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|
1 |
Rs.87.98 |
|
Euro |
1 |
Rs.69.69 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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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 |
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<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.