MIRA
INFORM REPORT
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Report Date : |
20.09.2012 |
IDENTIFICATION DETAILS
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Name : |
SHOUGUANG FUKANG PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 5, College East Street, Economy & Technology Development Zone, Shouguang, Shandong Province, 262700 Pr |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
08.07.1997 |
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Com. Reg. No.: |
370783400000776 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Producing and selling API, pharmaceutical intermediates, bromine compounds, color formers for thermal paper, etc. |
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No. of Employees : |
1,000 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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.
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Source
: CIA |
Company name and address
SHOUGUANG FUKANG
PHARMACEUTICAL CO., LTD.
NO. 5, COLLEGE EAST STREET, ECONOMY & TECHNOLOGY
DEVELOPMENT ZONE, SHOUGUANG, SHANDONG PROVINCE, 262700 PR CHINA
TEL: 86 (0) 536-5102364/5107650 FAX:
86 (0) 536-5101568/5107886
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 8, 1997
REGISTRATION NO. : 370783400000776
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
1,000
REGISTERED CAPITAL : USD 1,400,000
BUSINESS LINE :
manufacturing & TRADING
TURNOVER :
CNY 860,221,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY 140,862,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 800,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.30 = 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 Ren Min Bi
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 Jul. 8, 1997.
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 & selling trimethoprim, disinfectants,
phenylamino, methyl, ODB, sulfamethoxazole, omeprazole, metformin
hydrochloride, itraconazole, hydrochloric acid buflomedil, clozapine,
lansoprazole, pantoprazole sodium, health food: spirulina; selling its
self-made products.
SC is mainly
engaged in producing and selling API, pharmaceutical intermediates, bromine
compounds, color formers for thermal paper, etc.
Mr. Yang Weiguo
has been legal representative, chairman and general manager of SC since 1997.
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 development zone of Shouguang. Our checks
reveal that SC owns the total premise about 16,000 square meters.
http://www.fukangpharm.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-Mail: sgfkph@public.wfptt.sd.cn info@shouguangpharm.com
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
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Shareholders |
Shandong Shouguang Pharmaceutical Factory; Hong Kong Chaoxing Colza (Literal Translation) |
Shouguang Huakang Pharmaceutical Co., Ltd., Hong Kong Yidong
International Co., Ltd. (Literal Translation) |
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Shareholders |
Shouguang Huakang Pharmaceutical Co., Ltd. , Hong Kong Yidong
International Co., Ltd. (Literal Translation) |
The present ones. |
SC has been honored as the Hi-tech enterprise in Shandong province, the world-largest
manufacturer and exporter of TMP and also the famous manufacturer of bromine
compounds in the world. SC has got the ISO 9001, GMP, COS, ISO 14001, OHSAS
18001, etc. certificates.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hong Kong Yidong International Co., Ltd.
(Literal Translation) 45
Shouguang Fukang Chemical Industry Co., Ltd.
55
Shouguang Fukang Chemical Industry Co., Ltd.
===================================
Tel: 0536-5615599
l
Legal Representative, Chairman and General Manager:
Mr. Yang Weiguo , in his
Working Experience(s):
From 1997 to present Working
in SC as legal representative, chairman and general manager
l
Vice Chairman:
Mr. Miao Yuan , in his
Working Experience(s):
At present Working
in SC as vice chairman.
SC is mainly
engaged in producing and selling API, pharmaceutical intermediates, bromine
compounds, color formers for thermal paper, etc.
SC’s products
mainly include:
*Pharmaceutical
Material
Trimethopim(TMP)
Sulfamethoxazole
Itraconazole
Omeprazole
Trimethoprim
lactic Acid
Hydroxyurea
Tramadol
Hydrochloride
*Intermediates
2,3,4,5-tetramethoxytoluene
3,4,5-Trimethoxybenzaldehyde
3,4,5-Trimethoxytoluene
1,3,5-Trimethoxybenzene
2,4-Dihydro-4-[[4-hydroxyphenyl)-1-piperazinyl]-phenyl]-2-(1-methylpropyl)-3H-
89848-21-5
3,5-Dibromo-4-Hydroxybenzaldehyde
P-Bromoanisole
Sodium methoxide
Cis-bromo-ester(Cis-BBD)
1,3,5-Tribromobenzene
2,4,5-Trimethoxybenzaldehyde
4460-86-0
2,4,5-Trimethoxybenzoic
acid
1,2,4-Trimethoxybenzene
M-Bromonitrobenzene
Guanidine nitrate
4-Bromo-3-methyl-anisole
3,4,5-Trimethoxy-2-(methoxymethyl)cinnamonitrile
*Bromine Compounds
Sodium Bromide
N-butyl bromide
Hydrobromic Acid
N-Propyl Bromide
Iso-propyl
bromide(2-bromopropane)
Bromoethane (Ethyl
bromide)
1-Bromo-3-Chloropropane
Potassium Bromid
1,2-Dibromoethane(Ethylene
bromide)
*Color formers for
thermal paper
2-phenylamino-3-methyl-6-di-n-butylaminofluoran
(odb-2; senor-2) Color formers for thermal paper 89331-94-2
4-hydroxy-4'-isopropoxydiphenylsulfone(D-8)
developer
2-(2'-4'-dimethylbenzeneamido)-3-methyl-6-(diethyl
amino) fluorine
Benzyl 2-naphthyl
ether(BON) sensitizer
Ethylene glycol
bis m-tolye ether (EGTE) sensitizer
TMP is the main
product of SC; it covers 80% of Chinese market and 55% of total output around
world. SC’s TMP can meet the standards of BP98 & EP4; the annual output is
1,600 tons. At present, SC’s TMP has been well-received by over 300 clients in
26 provinces of China, and has been exported to over 42 countries such as
Germany, USA, Japan and Britain.
SC sources its
materials 100% from domestic market. SC sells 60% of its products in domestic
market and 40% to overseas market, mainly Germany, U.S.A., Japan and U.K.
The buying terms of SC include T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
According to SC’s website:
Shandong
Ruikang Specialty Chemicals Co., Ltd. (literal translation)
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.
Construction Bank of China Shouguang Sub-Branch
AC#3600165225000100451
Relationship:
Normal.
Financial Summary
===============
Unit: CNY’000
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as of Dec. 31,
2008 |
as of Dec. 31,
2009 |
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Long term
liabilities |
368 |
0 |
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Total
liabilities |
538,738 |
538,732 |
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Shareholders
equities |
140,856 |
140,862 |
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Total Assets |
679,594 |
679,594 |
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Turnover |
797,399 |
860,221 |
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Profit before
tax |
-37,383 |
-26,705 |
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Less: profit tax |
0 |
-3,143 |
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Net profit |
-37,383 |
-23,562 |
Note: we did not
find SC’s detailed financial reports for Yr 2008 and Yr 2009. SC has not lodged
the latest annual returns in local registry, hence no up-to date detailed
financial information available.
Important Ratios
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as of Dec. 31,
2008 |
as of Dec. 31,
2009 |
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*Liabilities
to assets |
0.79 |
0.79 |
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*Net profit
margin (%) |
-4.69 |
-2.74 |
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*Return on
total assets (%) |
-5.50 |
-3.47 |
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*Turnover/Total
assets |
1.17 |
1.27 |
PROFITABILITY: FAIR
The turnover of SC appears fairly good in its line, and it increased in
2009.
l
SC’s net profit margin is fair in both years.
SC’s return on total assets is fair in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in both years.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high in both years.
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.
A credit line up to USD 800,000 appears to be within SC’s capacities upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.54.25 |
|
|
1 |
Rs.88.14 |
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Euro |
1 |
Rs.71.03 |
INFORMATION DETAILS
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Report Prepared
by : |
PDT |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
-- |
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.