MIRA INFORM REPORT
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Report Date : |
21.09.2012 |
IDENTIFICATION DETAILS
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Name : |
NINGXIA QIYUAN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No.1 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
21.01.2001 |
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Com. Reg. No.: |
640000000000414 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling troche, capsule, granule, and bulk drug |
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No. of Employees : |
2000 employees |
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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
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
ningxia qiyuan pharmaceutical co., ltd.
no.1 qiyuan street,
wangyuan industrial area, yinchuan,
Ningxia Hui
Autonomous Region, 750002 PR CHINa
TEL: 86 (0)
951-4066592/4066938/4066000-8030 FAX:
86 (0) 951-4066968/4066866
EXECUTIVE
SUMMARY
INCORPORATION DATE : january 21, 2001
REGISTRATION NO. : 640000000000414
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
2,000
REGISTERED CAPITAL : CNY 292,910,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 1,421,400,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 1,023,080,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : Fairly Stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.30 = 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 Renminbi
SC was registered as a limited liabilities company at Ningxia
Hui Autonomous Region Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on January 21, 2001.
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 manufacturing and selling chemical raw materials, chemical raw
materials intermediate (Erythromycin Thiocyanate), chemical medicine
preparation; Chinese medicine development, production, marketing, the export
business of technology; processing and selling medlar, Qizhenxibao capsule,
Qizhensenbao capsule, Qiyuan Qisheng capsule, Fuyanning plug; manufacturing and
selling pesticides (Avermectin TC), feed, feed additives, food additives,
fertilizer; corn acquisition, processing and its subsidiary product processing;
engaging in import business of its own products, the necessary raw and
auxiliary materials, machinery and equipment, instruments, spare parts and
related technology; processing with imported
materials, processing with imported samples, assembling with imported parts,
and compensation trade in agreement; processing system box, barrel, gland;
packaging and decorating printed matters; heating.
SC is mainly
engaged in manufacturing and selling troche, capsule, granule, and bulk drug.
Mr. Hu Jidong has been the legal representative and
chairman of SC since 2001.
SC is known to
have approx. 2,000 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 Yinchuan. Our checks
reveal that SC owns the total premise about 170,000 square meters.
http://www.china-qiyuan.com
The design is professional and the content is well organized. At present the
web site is in both Chinese and English versions.
E-mail: ie@china-qiyuan.com
SC has got the United States FDA certification and Europe COS certification.
Honor:
National Enterprise Technology Center
National key high-tech enterprises
Total View of the 100 key export enterprises
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2008-8 |
Registration No. |
6400001200229 |
Present one |
|
Registered capital |
CNY 129,700,000 |
Present amount |
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Shareholders |
State-owned Assets Supervision and
Administration Commission of Ningxia Hui
Autonomous Region Government 3.14%; Employee Shareholders
Association 96.86% |
Present ones |
MAIN SHAREHOLDERS:
Name % of Shareholding
Ningxia Funing Investment Group Co., Ltd.
(In Chinese Pinyin) 1.39
Employee Shareholders Association (including 47 individuals) 98.61
Ningxia Funing Investment Group Co., Ltd.
================================
Tel: 0951-7888870
Fax: 0951-6719806
Address:
Legal
representative, Chairman and General Manager:
Mr. Hu Jidong , about 60
years old with university education, he is currently responsible for the
overall management of SC.
Working
Experience(s):
Before 2001 Worked in Ningxia Pharmaceutical Factory as factory director;
From 2001 to present Working
in SC as legal representative, chairman and general manager
Vice General
Manager:
Ms. Ju Lihong , about 45 years old with university education, she is currently responsible for the daily management of SC.
Working
Experience(s):
From 2001 to present Working in SC as vice general manager, and also working in Ningxia Qiyuan
Guoyao Co., Ltd.
as general manager.
SC is mainly
engaged in manufacturing and selling troche, capsule, granule, and bulk drug.
SC’s products mainly include: tetracycline
hydrochloride, tetracycline, carbenoxolone sodium, 18-β-glycyrrhetinic acid,
erythromycin thiocyanate, tetracycline hydrochloride capsules, marine, etc.
SC sources its materials 100% from domestic
market, mainly Ningxia. SC sells 70% of its products in domestic market, and
30% 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.
*Major Customer:
==============
Ningxia Qiyuan Guoyao Co., Ltd.
Note: SC’s management declined to release its main suppliers.
SC
is known to have 2 subsidiaries at present:
Ningxia Qiyuan Guoyao Co., Ltd.
Ningxia
Qiyuan Dayaofang Pharmaceutical Co., Ltd. (In 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 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.
Industrial and Commercial
Bank of China Yinchuan Branch
AC#：2902009209021003861
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
Unaudited, as of Dec. 31,
2010 |
as
of Dec. 31, 2011 |
|
Cash & bank |
121,580 |
/ |
|
Inventory |
266,840 |
/ |
|
Accounts
receivable |
95,840 |
/ |
|
Advances to
suppliers |
44,650 |
/ |
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Other Accounts
receivable |
99,360 |
/ |
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Other current
assets |
64,930 |
/ |
|
|
------------------ |
------------------ |
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Current assets |
693,200 |
357,620 |
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Fixed assets net
value |
1,584,740 |
/ |
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Projects under
construction |
54,400 |
/ |
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Other assets |
27,480 |
/ |
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|
------------------ |
------------------ |
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Total assets |
2,359,820 |
2,135,950 |
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|
============= |
============= |
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Short loans |
551,800 |
/ |
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Accounts payable |
158,000 |
/ |
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Advances from
clients |
65,880 |
/ |
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Taxes payable |
1,540 |
/ |
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Other Accounts
payable |
54,710 |
/ |
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Other current
liabilities |
151,460 |
/ |
|
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------------------ |
------------------ |
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Current
liabilities |
983,390 |
775,920 |
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Long term
liabilities |
450,550 |
336,950 |
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------------------ |
------------------ |
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Total
liabilities |
1,433,940 |
1,112,870 |
|
Equities |
925,880 |
1,023,080 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
2,359,820 |
2,135,950 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
Unaudited, as of Dec. 31, 2010 |
as of Dec. 31,
2011 |
|
Turnover |
1,258,380 |
1,421,400 |
|
Cost of goods
sold |
1,005,300 |
972,180 |
|
Sales expense |
58,770 |
/ |
|
Management expense |
125,850 |
/ |
|
Finance expense |
26,850 |
/ |
|
Profit before
tax |
38,740 |
174,980 |
|
Less: profit tax |
12,090 |
30,590 |
|
Profits |
26,650 |
144,390 |
Note:
we did not find SC’s detailed financial reports for Yr2011.
Important Ratios
=============
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
*Current ratio |
0.70 |
0.46 |
|
*Quick ratio |
0.43 |
/ |
|
*Liabilities
to assets |
0.61 |
0.52 |
|
*Net profit
margin (%) |
2.12 |
10.16 |
|
*Return on
total assets (%) |
1.13 |
6.76 |
|
*Inventory
/Turnover ×365 |
77 days |
/ |
|
*Accounts
receivable/Turnover ×365 |
28 days |
/ |
|
*Turnover/Total
assets |
0.53 |
0.67 |
|
* Cost of goods
sold/Turnover |
0.80 |
0.68 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line
in 2010, and it increased in 2011.
l
SC’s net profit margin is average in 2010 and fairly
good in 2011.
l
SC’s return on total assets is average in 2010 and
fairly good in 2011.
l
SC’s cost of goods sold is average in 2010 and low
in 2011, comparing with its turnover.
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
2010.
l
The inventory of SC is maintained in a fairly large
level in 2010.
l
The accounts receivable of SC appears average in
2010.
l
The short-term loan of SC appears large in 2010.
l
SC’s turnover is in a fair level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both 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. Over the past 11 years, SC has made a
stable growth with favorable profit.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.34 |
|
UK Pound |
1 |
Rs.87.91 |
|
Euro |
1 |
Rs.70.57 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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 |
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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 |
|
<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.