MIRA
INFORM REPORT
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Report Date : |
27.09.2012 |
IDENTIFICATION DETAILS
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Name : |
He’nan Newland
Pharmaceutical Co., Ltd. |
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Registered Office : |
Southside Of |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
15.09.2005 |
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Com. Reg. No.: |
411082100006960 |
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Legal Form : |
Shares Limited Company |
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line of business
: |
Manufacturing and Selling Pharmaceutical Intermediates. |
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No. of Employees : |
550 |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
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.
|
Source
: CIA |
COMPANY NAME AND ADDRESS
He’nan Newland
Pharmaceutical Co., Ltd.
SOUTHSIDE OF QINGGONG ROAD (EAST SECTION),
CHANGGE CITY, HE’NAN PROVINCE, 461500 PR CHINA
TEL: 86 (0) 374-6103188/6105083 FAX: 86 (0) 374-6105388
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER 15, 2005
REGISTRATION NO. : 411082100006960
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
MR. xie jianzhong (CHAIRMAN)
STAFF STRENGTH :
550
REGISTERED CAPITAL : CNY 99,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 228,740,000 (UNAUDITED, AS
OF DEC. 31, 2010)
EQUITIES :
CNY 193,830,000 (UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
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
Note: SC’s address “Southside of Qinggong Road (East Section)” was
formerly named “No. 31, Qinggong Road”.
SC was registered as a Shares limited co. at local Administration for
industry & commerce (AIC - the official body of issuing and renewing
business license) on Sep. 15, 2005.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co. raises capital by public
offer, the promoters must not subscribe less than 35% of the total shares.
the promoters’ shares are restricted to transfer- within one year of the
offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes manufacturing and selling
pharmaceutical intermediates (excluding the hazard chemicals and within
limits); import and export goods and technology.
SC is mainly engaged in manufacturing and selling pharmaceutical
intermediates.
Mr. Xie Jianzhong is legal representative and chairman of SC at present.
SC is known to have approx. 550 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 Changge. Our
checks reveal that SC owns the total premise about 80,000 square meters.
http://www.newlandpharma.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: market@newlandpharma.com; xjz@newlandpharma.com
SC’s quality system meets the international standards of ISO 14001,
OHSAS 18001 and ISO 9001.
MAIN SHAREHOLDERS:
Name % of Shareholding
He’nan Shuangji Industrial Co., Ltd 85.15
Changge Zhongyuan Commerce & Trade Co., Ltd. 14.85
He’nan Shuangji Industrial Co., Ltd.
==========================
Registration no.: 411082100000979
Legal representative: Xie Jianzhong
Changge Zhongyuan Commerce & Trade Co., Ltd.
=====================================
Registration no.: 411082100009777
Legal representative: Pan Huiping
Legal Rep.,
Chairman & General Manager:
Mr. Xie Jianzhong, born in 1965, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal rep., chairman and general manager.
Also working in He’nan Shuangji Industrial Co., Ltd. as legal
representative.
SC is mainly engaged in manufacturing and selling pharmaceutical
intermediates.
SC’s products mainly include D (-)-p-hydroxyphenylglycine, D-(-)-4-Hydroxyphenylglycine
dane salt, Para-Toluenesulfonic Acid monohydrate, and so on.
SC sources its materials 100% from domestic market. SC sells 80% of its
products in domestic market, and 20% to overseas 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’s management declined to release its main clients and
suppliers.
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.
China Construction Bank Changge Sub-branch
AC#：N/A
Relationship: Normal
Balance
Sheet
Unit: CNY’000
|
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as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash & bank |
7,110 |
10,450 |
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Inventory |
22,920 |
34,560 |
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Accounts receivable |
56,150 |
49,100 |
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Notes receivable |
33,850 |
40,570 |
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Advances to suppliers |
2,050 |
6,550 |
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Other receivables |
12,800 |
15,870 |
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Other current assets |
0 |
8,770 |
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------------------ |
------------------ |
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Current assets |
134,880 |
165,870 |
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Fixed assets net value |
47,330 |
46,660 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Intangible assets |
20,240 |
20,440 |
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Other assets |
850 |
4,010 |
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------------------ |
------------------ |
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Total assets |
203,300 |
236,980 |
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============= |
============= |
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Short loans |
20,000 |
16,850 |
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Accounts payable |
14,410 |
12,470 |
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Other payable |
5,160 |
6,610 |
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Taxes payable |
6,230 |
2,110 |
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Accrued payroll |
4,190 |
4,090 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
49,990 |
42,130 |
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Long term liabilities |
1,020 |
1,020 |
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------------------ |
------------------ |
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Total liabilities |
51,010 |
43,150 |
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Equities |
152,290 |
193,830 |
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------------------ |
------------------ |
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Total liabilities & equities |
203,300 |
236,980 |
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============= |
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Income Statement
Unit: CNY’000
|
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as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
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Turnover |
230,810 |
228,740 |
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Cost of goods sold |
133,200 |
140,650 |
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Sales expense |
7,590 |
8,820 |
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Management expense |
18,880 |
19,860 |
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Finance expense |
1,720 |
1,440 |
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Other expenses |
420 |
1,500 |
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Profit before tax |
69,000 |
56,470 |
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Less: profit tax |
16,030 |
14,930 |
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Profits |
52,970 |
41,540 |
Note: The above
financial for Yr2010 have not been audited.
Important Ratios
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|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
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*Current ratio |
2.70 |
3.94 |
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*Quick ratio |
2.24 |
3.12 |
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*Liabilities to assets |
0.25 |
0.18 |
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*Net profit margin (%) |
22.95 |
18.16 |
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*Return on total assets (%) |
26.06 |
17.53 |
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*Inventory /Turnover ×365 |
36 days |
55 days |
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*Accounts receivable/Turnover ×365 |
89 days |
78 days |
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*Turnover/Total assets |
1.14 |
0.97 |
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* Cost of goods sold/Turnover |
0.58 |
0.61 |
PROFITABILITY: GOOD
The turnover of SC appears good in both years.
SC’s net profit margin is good in both years.
SC’s return on total assets is good in both years.
SC’s cost of goods sold is low in both years, comparing with its
turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC is maintained in an average level in both years.
The accounts receivable of SC appears fairly large in both years.
SC’s short-term loan is in an average level in both years.
SC’s turnover is in an average level in both years, comparing with the
size of its total assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low in both years.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.58 |
|
UK Pound |
1 |
Rs.86.60 |
|
Euro |
1 |
Rs.68.94 |
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 |
|
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.