MIRA INFORM REPORT
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Report Date : |
04.04.2013 |
IDENTIFICATION DETAILS
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Name : |
GUANGZHOU TOSUN PHARMACEUTICAL LTD. |
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Registered Office : |
Room 2010-2011, Tower C, Baoli World Trade Center, No. 1000 Xingang East Road, Haizhu
District, Guangzhou, Guangdong Province 510335 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
28.12.1999 |
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Com. Reg. No.: |
440106000175501 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
selling active pharmaceutical ingredients |
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No. of Employees : |
45 |
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 but Correct |
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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) |
|
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
GUANGZHOU TOSUN PHARMACEUTICAL
LTD.
room 2010-2011, tower c, Baoli World Trade
Center
no. 1000 xingang east road, haizhu district
guangzhou, guangdong PROVINCE 510335 PR
CHINA
TEL: 86 (0) 20-89097086/89097055/89097082/89097105
FAX: 86 (0) 20-89097076/89097163
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 28, 1999
REGISTRATION NO. : 440106000175501
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : ZHANG TONGLI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY
10,000,000
staff : 45
BUSINESS CATEGORY :
TRADING
Revenue : CNY 12,188,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 10,179,000 (AS OF DEC. 31, 2012)
WEBSITE : www.tosunpharm.com
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.22 = 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
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 440106000175501 on December 28,
1999.
SC’s Organization Code Certificate
No.: 71817401-8
SC’s Tax No.: 440102718174018
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
4401061102196 |
440106000175501 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Feng Guilan |
50 |
|
Guangzhou Tongxi Trading Co., Ltd. |
50 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhang
Tongli |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name
%
of Shareholding
Feng Guilan 50
Guangzhou Tongxi Trading Co.,
Ltd. 50
n Guangzhou
Tongxi Trading Co., Ltd.
---------------------------------------------------
Registration No.: 440106000495444
Date of Registration: May 27, 1998
Legal Form: Limited Liabilities Company
Registered Capital: CNY 10,000,000
Legal Representative: Feng Guilan
MANAGEMENT
Zhang
Tongli, Legal
Representative, Chairman and General Manager
------------------------------------------------------------------------------------------------------
Ø
Gender: F
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative, chairman and
general manager
BUSINESS OPERATION
SC’s
registered business scope includes wholesaling proprietary Chinese medicines,
chemical raw materials, chemical preparation, antibiotic, antibiotic
preparations, biochemical medicines, and biological products; capital
investment; pharmaceutical technology research, development, and transfer;
wholesale & retail trade; importing and exporting commodities and
technology.
SC is mainly
engaged in selling active pharmaceutical ingredients.
SC’s products mainly include:
Fluvastatin
Sodium Capsules
Voriconazole
Capsules
Omeprazole
Enteric-Coated Capsules
Meloxicam
Tablets
Cefixime
Capsules
Cefminox
Sodiumfor Injection
SC sources its materials 80% from domestic market, and 20% from overseas market. SC sells 70% in domestic market, and 30% to overseas market.
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.
Staff & Office:
--------------------------
SC is
known to have approx. 45 staff
at present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is not known to have the subsidiary at present.
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:
Guangzhou Commercial Bank Zhongtian Sub-branch
AC#:
308800458533
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
2,283 |
3,067 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
1,760 |
1,670 |
|
Advances to
suppliers |
3,224 |
3,617 |
|
Other receivable |
1,039 |
469 |
|
Inventory |
3,141 |
3,072 |
|
Deferred
expenses |
151 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
11,598 |
11,895 |
|
Fixed assets |
4,051 |
3,853 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
125 |
125 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
15,774 |
15,873 |
|
|
============= |
============= |
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Short-term loans |
5,500 |
5,500 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
0 |
0 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
-37 |
34 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
150 |
150 |
|
Other current
liabilities |
11 |
10 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
5,624 |
5,694 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
5,624 |
5,694 |
|
Equities |
10,150 |
10,179 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
15,774 |
15,873 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
23,393 |
12,188 |
|
Cost of sales |
20,373 |
9,812 |
|
Taxes and surcharges |
82 |
85 |
|
Sales expense |
885 |
0 |
|
Management expense |
1,825 |
1,420 |
|
Finance expense |
167 |
418 |
|
Profit before
tax |
259 |
41 |
|
Less: profit tax |
63 |
10 |
|
196 |
31 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
2.06 |
2.09 |
|
*Quick ratio |
1.50 |
1.55 |
|
*Liabilities
to assets |
0.36 |
0.36 |
|
*Net profit
margin (%) |
0.84 |
0.25 |
|
*Return on
total assets (%) |
1.24 |
0.20 |
|
*Inventory /
Revenue ×365 |
50 days |
92 days |
|
*Accounts receivable/
Revenue ×365 |
28 days |
51 days |
|
* Revenue /
Total assets |
1.48 |
0.77 |
|
* Cost of
sales / Revenue |
0.87 |
0.81 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears average, and it decreased in 2012.
l SC’s net profit
margin is average in both years.
l SC’s return on
total assets is average in both years.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans appear fairly large.
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 above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable
financial conditions. The fairly large amount of short-term loans may be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
|
UK Pound |
1 |
Rs.82.05 |
|
Euro |
1 |
Rs.69.59 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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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.