MIRA INFORM REPORT
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Report Date : |
22.09.2012 |
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IDENTIFICATION DETAILS
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Name : |
NANJING WISDOMPHARM
CHEMICAL CO., LTD. |
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Registered Office : |
Room 2207, Jinlun International Plaza, No. 8 Hanzhong Road, Gulou District, Nanjing City, Jiangsu Province, 210000 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
14.03.2008 |
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Com. Reg. No.: |
320103000157917 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Exporting Chemical Products |
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No. of Employees : |
6 |
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 : |
Slow |
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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
NANJING
WISDOMPHARM CHEMICAL CO., LTD.
ROOM 2207, JINLUN INTERNATIONAL PLAZA, NO. 8
HANZHONG ROAD,
GULOU DISTRICT, NANJING CITY, JIANGSU
PROVINCE, 210000 PR CHINA
TEL: 86 (0) 25-84752772/ 84752770 FAX: 86 (0) 25-84773443
EXECUTIVE SUMMARY
INCORPORATION DATE :
MARCH 14, 2008
REGISTRATION NO. :
320103000157917
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 6
REGISTERED CAPITAL : CNY 580,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 27,540,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 240,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
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
Note: SC’s complete name should be the
heading one, instead of the given one “Nanjing Wisdom Pharm Co., Ltd.”.
SC was registered as a limited liabilities co. at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on March 14, 2008.
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 selling
chemical products; importing and exporting commodities and technology.
SC
is mainly engaged in exporting chemical products.
Mr.
Sun Tao has been legal representative and
chairman of SC since 2008.
SC is known
to have approx. 6 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Nanjing. Our checks reveal that SC owns
the total premise about 130 square meters.
http://www.wisdom-pharm.com/
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
Email: sales@wisdom-pharm.com
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name
%
of shareholdings
Jin Ping 65.52
Sun Tao 34.48
l Legal
Representative and Chairman:
Mr. Sun Tao ID#
321282198610060017, born in 1986 with junior college education, he is currently
responsible for the overall management of SC.
Working Experience(s):
From 2008 to present Working in SC as legal representative
and chairman.
l General Manager:
Ms. Jin Ping ID# 321024196707072467, born in 1967 with
middle school education, she is currently responsible for the daily management
of SC.
Working Experience(s):
At present Working
in SC as general manager.
SC
is mainly engaged in exporting chemical products.
SC’s products
mainly include: organosilane series, pyridine derivatives series, montelukast
intermediate, special chemicals, API, and etc.
SC sources its
materials 99% from domestic market, and 1% from overseas markets, mainly Japan
and Korea. SC sells 10% of its products in domestic market, and 90% to overseas
market, mainly India, America, Korea and Japan.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
Note: SC’s management declined to release
its customer and supplier details.
According to the above website:
Jiangsu Wisdom Pharmaceutical 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 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.
Agricultural Bank
of China Nanjing Yangguang Sub-branch
AC#:
11350104000853
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
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Cash & bank |
1,710 |
2,530 |
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Inventory |
2,020 |
2,310 |
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Accounts
receivable |
0 |
10 |
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Advances to
suppliers |
0 |
0 |
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Other accounts
receivable |
50 |
980 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
3,780 |
5,830 |
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Fixed assets net
value |
5,770 |
5,190 |
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Project under
construction |
0 |
0 |
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Long-term
deferred expenses |
140 |
70 |
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Intangible and
other assets |
0 |
30 |
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Total assets |
9,690 |
11,120 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
5,620 |
7,500 |
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Advances from
clients |
60 |
0 |
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Accrued payroll |
0 |
0 |
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Taxes payable |
-1,110 |
-800 |
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Other accounts
payable |
4,530 |
4,180 |
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Other current
liabilities |
0 |
0 |
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------------------ |
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Current
liabilities |
9,100 |
10,880 |
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Long-term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
9,100 |
10,880 |
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Equities |
590 |
240 |
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Total
liabilities & equities |
9,690 |
11,120 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
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Turnover |
8,040 |
27,540 |
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Cost of goods sold |
6,690 |
26,140 |
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Taxes and additional of main operation |
10 |
0 |
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Sales expense |
90 |
630 |
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Management expense |
1,240 |
1,050 |
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Finance expense |
10 |
60 |
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Profit before
tax |
10 |
-340 |
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9.7 |
10 |
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Profits |
0.3 |
-350 |
Important
Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
0.42 |
0.54 |
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*Quick ratio |
0.19 |
0.32 |
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*Liabilities
to assets |
0.94 |
0.98 |
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*Net profit
margin (%) |
0.004 |
-1.27 |
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*Return on
total assets (%) |
0.003 |
-3.15 |
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*Inventory
/Turnover ×365 |
92 days |
31 days |
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*Accounts
receivable/Turnover ×365 |
/ |
1 day |
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*Turnover/Total
assets |
0.83 |
2.48 |
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* Cost of
goods sold/Turnover |
0.83 |
0.95 |
PROFITABILITY: FAIR
The turnover of SC appears average in its
line, and it increasing in 2011.
l
SC’s net profit margin is
average in 2010, but fair in 2011.
l SC’s return on total assets is average in 2010, but fair in 2011.
l SC’s cost of goods sold is high 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 poor level in both years.
l The inventory of
SC appears LARGE in both years.
l The accounts
receivable of SC appears small.
l
SC has no short-term loan in both years.
l SC’s turnover is
in an average level in 2011, comparing with the size of its total assets.
LEVERAGE: FAIR
l The debt ratio of
SC is high.
l The risk for SC to
go bankrupt is above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.53.90 |
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1 |
Rs.87.60 |
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Euro |
1 |
Rs.70.01 |
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 |
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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 |
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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.