MIRA
INFORM REPORT
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Report Date : |
29.09.2012 |
IDENTIFICATION DETAILS
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Name : |
CSPC ZHONGNUO PHARMACEUTICAL ( |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
31.07.2002 |
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Com. Reg. No.: |
130100400003657 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
manufacturing and selling various active
pharmaceutical ingredients. |
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No. of Employees : |
2,879 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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
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.
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Source : CIA |
Company name & address
CSPC Zhongnuo Pharmaceutical
(Shijiazhuang) Co., Ltd.
NO. 188,
GONGNONG ROAD, SHIJIAZHUANG CITY
HEBEI
PROVINCE 050051 PR CHINA
TEL: 86
(0) 311-83805386/83869312
FAX: 86
(0) 311-83805385
EXECUTIVE SUMMARY
Date of Registration : JULY 31, 2002
REGISTRATION NO. : 130100400003657
LEGAL FORM : WHOLLY FOREIGN-OWNED
ENTERPRISE
REGISTERED CAPITAL : CNY 282,810,000
staff : 2,879
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 1,950,844,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 724,747,000 (AS OF DEC. 31, 2010)
WEBSITE : www.znpc.cn
E-MAIL :
znbgs@mail.ecspc.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.30 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
LEGAL STATUS & HISTORY
***Note: SC’s current address should be the heading
one, while the (
SC was
established as a wholly foreign-owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.:
130100400003657 on July 31, 2002.
SC’s Organization Code Certificate
No.: 74015797-8
%20CO%20,%20LTD%20%20-%20195385%2029-Sep-2012_files/image002.jpg)
SC’s customs registration No.: 1301930780
SC’s Tax No.: 130102740157978
SC’s registered capital: CNY
282,810,000
SC’s paid-in capital: CNY
282,810,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
-- |
Registration No. |
130100100387 |
130100400003657 |
|
Registered Capital |
CNY 216,000,000 |
CNY 282,810,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
China
Pharmaceutical Group Limited |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Cai
Dongchen |
|
General Manager |
Xu
Baozhi |
RECENT DEVELOPMENT
SC has got ISO9001:2004, ISO14001:2000, OHSA, COS certificates,
etc. All its workshops have passed GMP certification in China, and has
successfully experienced international GMP inspection and audit from many
countries’ FDA, such as Uganda, Malawi, Nigeria, Pakistan, Ghana, Ethiopia… Its
products can conform to BP, EP, USP, CP standard, as per clients’ requirements.
.jpg)
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
China
Pharmaceutical Group Limited 100
-----------------------------------------
China Pharmaceutical Group
Limited ("China Pharm") (Ticker: 1093) is one of the largest
pharmaceutical groups in China. It has been listed on the Main Board of the
Hong Kong Stock Exchange since June 1994.
CR No. : 0362244
Registered Legal Form: Listed Company
Active Status: Live
Incorporation Date: Jun. 16, 1992
Address: Room 3206, 32/F,
Central Plaza, 18 Harbour Road, Wanchai, Hong Kong
Tel: 852-28023011
Fax: 852-28024552
Website:
www.cpg.hk
Email: info@cpg.hk
MANAGEMENT
Cai
Dongchen, Legal Representative
and Chairman
------------------------------------------------------------------------------
Ø
%20CO%20,%20LTD%20%20-%20195385%2029-Sep-2012_files/image010.jpg)
Gender: M
Ø
Age: 59
Ø
Qualification:
University
Ø
Working
experience (s):
Educated in Hebei Finance & Economics College
From 1972 to 1984, worked in Hebei Pharmaceutical Plant as technician
Since 1984, worked in Hebei Pharmaceutical Plant as factory manager
From 2002 to present, working in SC as legal representative and chairman
At present, working in China Pharmaceutical Group Ltd. as chairman, and in CSPC as chairman
Xu
Baozhi , General Manager
--------------------------------------------------
Ø
%20CO%20,%20LTD%20%20-%20195385%2029-Sep-2012_files/image012.jpg)
Gender: F
Ø
Age:
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing power for injection, freeze-dried powder
injection, nose drops, eye drops, oral liquid, tablet,
hard capsule, granule, Repaglinide, Nitrendipine, Metformin Hydrochride,
Ranitidine Hydrochloride, Propafenone Hydrochloride, Benzylpenicillin Sodium,
and Penicillin G Procaine, health foods, coffee, surgical
dressing, retaining materials; and selling its homegrown products.
SC is
mainly engaged in manufacturing and selling various active
pharmaceutical ingredients.
SC’s products mainly include: power for injection, tablet,
hard capsule, granule, and eye drop.
%20CO%20,%20LTD%20%20-%20195385%2029-Sep-2012_files/image014.jpg)
%20CO%20,%20LTD%20%20-%20195385%2029-Sep-2012_files/image016.jpg)
SC sources its materials 100% from
domestic market, mainly Hebei province. SC sells 95% of its products in
domestic markets, mainly Guangdong and Hebei province, and 5% to overseas
market, mainly Hong Kong.
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.
*Major Customer:
==============
Guangzhou Pharmaceuticals Corp.
Staff
& Office:
--------------------------
SC is known to
have approx. 2,879 staff at present.
SC owns an area as its operating office
& factory of approx. 113,229 sq. meters at the heading address.
RELATED COMPANY
n
CSPC Zhongnuo Pharmaceutical (Taizhou) Co., Ltd.
Etc.
PAYMENT
Overall payment
appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic
Bank:
Industrial and Commercial Bank of China
Jianhua Sub-branch
AC#: 04020224093000309202
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
153,731 |
225,843 |
|
|
Notes receivable |
268,389 |
267,028 |
|
Accounts
receivable |
230,838 |
303,958 |
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Advances to
suppliers |
20,388 |
13,428 |
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Other receivable |
415,848 |
258,141 |
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Inventory |
254,657 |
286,233 |
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Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
1,343,851 |
1,354,631 |
|
Fixed assets |
172,704 |
170,559 |
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Construction in
progress |
10,473 |
492 |
|
Intangible assets |
78,243 |
95,105 |
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Long-term
investment |
140,000 |
242,800 |
|
Long-term
prepaid expenses |
14,408 |
15,235 |
|
Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
1,759,679 |
1,878,822 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Notes payable |
110,000 |
90,000 |
|
Accounts payable |
374,029 |
364,839 |
|
Wages payable |
6,770 |
9,249 |
|
Taxes payable |
6,202 |
3,187 |
|
Advances from
clients |
35,134 |
19,827 |
|
Other payable |
534,708 |
596,184 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
1,066,843 |
1,083,286 |
|
Non-current
liabilities |
250 |
70,789 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,067,093 |
1,154,075 |
|
Equities |
692,586 |
724,747 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
1,759,679 |
1,878,822 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Revenue |
1,865,774 |
1,950,844 |
|
Cost of sales |
1,370,657 |
1,489,073 |
|
Taxes and surcharges |
0 |
64 |
|
Sales expense |
293,219 |
299,105 |
|
Management expense |
101,705 |
92,063 |
|
Finance expense |
3,512 |
4,287 |
|
Income from
investment |
-800 |
0 |
|
Non-operating
income |
2,450 |
3,543 |
|
Non-operating expense |
944 |
5,153 |
|
Profit before
tax |
96,103 |
64,640 |
|
Less: profit tax |
6,563 |
9,480 |
|
89,540 |
55,160 |
Note: SC’s Y2011
financials are not filed in local SAIC.
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.26 |
1.25 |
|
*Quick ratio |
1.02 |
0.99 |
|
*Liabilities
to assets |
0.61 |
0.61 |
|
*Net profit
margin (%) |
4.80 |
2.83 |
|
*Return on
total assets (%) |
5.09 |
2.94 |
|
*Inventory /
Revenue ×365 |
50 days |
54 days |
|
*Accounts
receivable/ Revenue ×365 |
46 days |
57 days |
|
*
Revenue/Total assets |
1.06 |
1.04 |
|
* Cost of
sales / Revenue |
0.73 |
0.76 |
FINANCIAL COMMENTS
PROFITABILITY: AVERAGE
l
The revenue of SC appears
good in its line in both years.
l
SC’s net profit margin is fairly good in 2009 and average
in 2010.
l
SC’s return on total assets is fairly good in 2009
and average in 2010.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans in both years.
l
SC’s revenue is in an
average level, 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: Stable.
CONCLUSIONS
SC is considered
large-sized in its line with stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.70 |
|
UK Pound |
1 |
Rs.85.72 |
|
Euro |
1 |
Rs.68.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
|
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 |
|
---- |
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.