MIRA
INFORM REPORT
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Report Date : |
29.09.2012 |
IDENTIFICATION DETAILS
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Name : |
SHINEWAY PHARMACEUTICAL GROUP LTD. |
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Registered Office : |
Chengnankou, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
30.12.2003 |
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Com. Reg. No.: |
130000400001047 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in researching, developing, manufacturing and selling Chinese patent drug and chemical medicine preparation |
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No. of Employees : |
2,000 |
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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 : |
Good |
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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
shineway pharmaceutical GROUP ltd.
CHENGNANKOU,
LUANCHENG COUNTY, SHIJIAZHUANG CITY,
HEBEI PROVINCE,
051430 PR CHINA
TEL: 86 (0)
311-88030066/88036299 FAX: 86 (0)
311-88030088
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 30, 2003
REGISTRATION NO. : 130000400001047
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
enterprise
STAFF STRENGTH :
2,000
REGISTERED CAPITAL : USD 57,600,000
BUSINESS LINE :
r&d, MANUFACTURE AND TRADE
TURNOVER :
CNY 979,120,000
(AS OF DEC. 31, 2011)
EQUITIES :
CNY 1,427,380,000 (AS OF DEC. 31, 2011)
PAYMENT :
average
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.3038 =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: The given name was SC’s former name.
SC was registered as a wholly foreign-owned enterprise at Hebei Provincial Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Dec. 30, 2003.
Company Status: Wholly foreign-owned enterprise
This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scope includes researching, developing, manufacturing and selling Chinese patent drug and
chemical medicine preparation; (specific business scope in
accordance with the approved drug production licenses: tablets (including
cephalosporins), hard capsules, granules (including cephalosporins), soft
capsules, pills (pill), oral solution, mixture, small volume injection, drop
pills") (validity period as of Dec.
31, 2015)
SC is mainly
engaged in researching, developing, manufacturing
and selling Chinese
patent drug and chemical medicine preparation.
Mr. Chen
Zhong has been the legal representative,
chairman and general manager of SC since 2008.
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 Luancheng County. Our
checks reveal that SC owns the total premise about 260,000 square meters.
http://www.shineway.com
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: international@shineway.com ; info@shineway.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the
change |
After the change |
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Legal representative |
Li Zhenjiang |
Chen Zhong |
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Registered capital |
USD 25,000,000 |
Present amount |
|
2012-8 |
Company name |
Shineway
Pharmaceutical Co., Ltd. |
Present one |
SC has got the certificates:
Etc.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yuanda International Co., Ltd. (in Chinese
Pinyin) (B.V.I.) 100
l
Legal Representative, Chairman and
General Manager:
Mr. Chen Zhong , born in 1967, graduated from Hebei Medical University
in 1990 with a bachelor's degree in pharmacy. He is currently responsible for
the overall management of SC.
Working Experience(s):
From 2008 to present Working
in SC as legal representative, chairman and general manager
SC is mainly
engaged in researching, developing, manufacturing
and selling Chinese
patent drug and chemical medicine preparation.
SC’s products
mainly include: Xinnaoqing Soft Capsules, Xuanmai Ganjie Lozenge, Qingkailing
Soft Capsules and Huoxiang Zhengqi Soft Capsules, etc.
SC sources its materials 95% from domestic
market, and 5% from overseas market. SC sells 99% of its products in domestic
market and 1% to overseas market, mainly Southeast Asia.
The buying terms of SC include Check, T/T, L/C 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 refused to release its major suppliers and clients.
According
to SC’s website:
China
Shineway Pharmaceutical Group Ltd.
It
is listed on the Main Board of the Stock Exchange of Hong Kong (2877.HK).
Hebei
Shineway Pharmaceutical Co., Ltd.
==============================
Incorporation
date: Dec. 30, 2003
Registration
no.: 130000400001039
Legal
rep.: Wang Qinli
Legal
form: Wholly Foreign-Owned Enterprise
Shineway
Pharmaceutical (Sichuan) Co., Ltd.
===============================
Incorporation
date: Sep. 15, 2003
Registration
no.: 510182000016259
Legal
rep.: Liu Tiejun
Etc.
According
to http://www.shineway.com.hk,
SC has invested in the following company:
Shineway
Pharmaceutical (Chengdu) Co., Ltd.
==================================
Incorporation
date: Dec. 25, 2009
Registration
no.: 510183000023404
Legal
rep.: Hu Qingfeng
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 Shijiazhuang Luancheng County Sub-branch
AC#：13001617408050500149
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 |
336,840 |
208,370 |
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Notes receivable |
2,880 |
22,400 |
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Inventory |
151,000 |
214,590 |
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Accounts
receivable |
17,180 |
70 |
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Advances to
suppliers |
72,170 |
47,680 |
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Other
receivables |
163,980 |
212,920 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
744,050 |
706,030 |
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Long-term
investments |
66,760 |
89,820 |
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Fixed assets net
value |
314,910 |
332,540 |
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Projects under
construction |
243,510 |
449,060 |
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Material for
construction |
2,630 |
0 |
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Long-term
deferred expenses |
13,800 |
19,230 |
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Intangible assets |
54,860 |
54,910 |
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Other assets |
0 |
0 |
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------------------ |
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Total assets |
1,440,520 |
1,651,590 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
142,100 |
197,290 |
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Advances from
customers |
75,780 |
800 |
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Accrued Payroll |
5,200 |
5,270 |
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Taxes payable |
12,760 |
16,140 |
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Accrued expenses |
540 |
4,330 |
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Other accounts
payable |
670 |
380 |
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Other current
liabilities |
0 |
0 |
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----------------- |
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Current
liabilities |
237,050 |
224,210 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
237,050 |
224,210 |
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Shareholders
equities |
1,203,470 |
1,427,380 |
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------------------ |
------------------ |
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Total
liabilities & equities |
1,440,520 |
1,651,590 |
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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 |
971,260 |
979,120 |
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Cost of goods
sold |
481,680 |
560,450 |
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Taxes and
additional of main operation |
340 |
5,420 |
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Income from
other operation |
21,540 |
3,060 |
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Sales expense |
57,430 |
49,770 |
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Management expense |
120,160 |
141,920 |
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Finance expense |
-12,820 |
-15,420 |
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Investment
income |
0 |
13,880 |
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Non-operating
income |
7,840 |
10,130 |
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Non-operating expense |
110 |
390 |
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Profit before
tax |
353,740 |
263,660 |
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Less: profit tax |
51,500 |
39,550 |
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Net profit |
302,240 |
224,110 |
Important Ratios
=============
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
3.14 |
3.15 |
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*Quick ratio |
2.50 |
2.19 |
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*Liabilities
to assets |
0.16 |
0.14 |
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*Net profit
margin (%) |
31.12 |
22.89 |
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*Return on
total assets (%) |
20.98 |
13.57 |
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*Inventory
/Turnover ×365 |
57 days |
80 days |
|
*Accounts
receivable/Turnover ×365 |
7 days |
1 day |
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*Turnover/Total
assets |
0.67 |
0.59 |
|
* Cost of goods
sold/Turnover |
0.50 |
0.57 |
PROFITABILITY:
GOOD
l
The turnover of SC appears fairly good in its line
in both years.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is good in both years.
l
SC’s cost of goods sold is low in both years,
comparing with its turnover.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s quick ratio is maintained in a fairly good
level in both years.
l
The inventory of SC is maintained in an average
level in both years.
l
The accounts receivable of SC is maintained in an
average level in 2010 and small in 2011.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fair level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
SC is considered well-known in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.69 |
|
|
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.68.15 |
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.