MIRA INFORM REPORT
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Report Date : |
19.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG SHENZHOU PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 14, Chuancheng South Road, Chengguan Town, Xianju County,
Taizhou, Zhejiang Province, 317300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
24.09.2004 |
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Com. Reg. No.: |
331024000005958 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling active pharmaceutical ingredients (API) and
related Intermediates |
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No. of Employees : |
160 |
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 : |
Unknown |
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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 (31.03.2012) |
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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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
ZHEJIANG SHENZHOU PHARMACEUTICAL CO., LTD.
NO. 14, CHUANCHENG
SOUTH ROAD, CHENGGUAN TOWN, XIANJU COUNTY, TAIZHOU, ZHEJIANG PROVINCE, 317300
PR CHINA
TEL: 86
(0)576-87784451 FAX: 86 (0)
576-87774559
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 24, 2004
REGISTRATION NO. : 331024000005958
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. WANG JUNLIANG (CHAIRMAN)
STAFF STRENGTH : 160
REGISTERED CAPITAL : CNY 7,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 162,561,000 (AS OF DEC. 31,
2009)
EQUITIES :
CNY 47,267,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE (AS OF DEC. 31, 2009)
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.20 = 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
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 Sep. 24, 2004.
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 manufacturing active pharmaceutical ingredients
(progesterone and spironolactone), and nabumetone intermediates; international
trade (excluding the items prohibited or limited by law and administrative
regulations) (validity period as of Jul. 28, 2014).
SC is mainly
engaged in manufacturing and selling active pharmaceutical ingredients (API)
and related Intermediates.
Mr. Wang Junliang
has been the legal representative, chairman and general manager of SC since
2004.
SC is known to
have approximately 160 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 Taizhou. Our checks
reveal that SC owns the premise.
http://www.szpharma.com/ The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
E-mail: xjzy2@mail.tzptt.zj.cn
SC has obtained Spironolactone COS Certificate.
Changes of its
registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
Unknown |
Registration no. |
3310242401371 |
331024000005958 |
According to SC’s website, its predecessor is the Second Branch Factory
of Xianju Pharmaceutical Factory.
MAIN SHAREHOLDERS:
Name % of Shareholding
Wang Junliang
51.00
ID#: 332624570728001
Wang Rong 47.57
ID# 33262419850626001X
Zhejiang Xianju Xiehe Pharmaceutical and Chemical Plant (in Chinese
Pinyin) 1.43
Zhejiang Xianju
Xiehe Pharmaceutical and Chemical Plant
Registered number: 331024000000074
Legal representative: Cheng
Meihua
Add.: No. 14, Chuancheng South
Road, Chengguan Town, Xianju County, Taizhou, Zhejiang
Tel.: 86-576-87794326
Legal representative,
chairman and general manager:
Mr. Wang Junliang, ID#: 332624570728001, 53 years old with university education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2004 to present Working in SC as legal representative, chairman and general manager
SC
is mainly engaged in manufacturing and selling active pharmaceutical
ingredients (API) and related Intermediates.
SC’s products mainly include: Progesterone, Spironolactone, Potassium
canrenoate, Desoxycorticosterone acetate, Algestone acetophenide, Canrenone,
etc.
SC sources its materials 100% from domestic
market. SC sells 50% of its products in domestic market, and 50% 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, L/C, T/T, and Credit of 30-60 days.
SC’s management refused to release its subsidiaries.
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 refused to release any information of
its suppliers and the trade reference was not available.
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.
SC’s management refused to release the
detailed information of the banking.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2008 |
as
of Dec. 31, 2009 |
|
4,880 |
3,835 |
|
|
Bills receivable |
760 |
880 |
|
Accounts receivable |
21,830 |
18,643 |
|
Advances to suppliers |
990 |
449 |
|
Other receivables |
4,550 |
470 |
|
Inventory |
36,720 |
39,630 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
69,730 |
63,907 |
|
Fixed assets net
value |
24,150 |
22,534 |
|
Liquidation of
fixed assets |
120 |
101 |
|
Projects under
construction |
1,250 |
975 |
|
Long term
investment |
0 |
6,000 |
|
Intangible and
other assets |
3,760 |
3,678 |
|
|
------------------ |
------------------ |
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Total assets |
99,010 |
97,195 |
|
|
============= |
============= |
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Short loans |
24,700 |
12,250 |
|
Bills payable |
4,000 |
1,000 |
|
Accounts payable |
22,190 |
16,443 |
|
Advances from
clients |
0 |
0 |
|
Accrued payroll |
0 |
0 |
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Welfare payable |
0 |
153 |
|
Tax payable |
0 |
387 |
|
Other accounts
payable |
950 |
299 |
|
Other unpaid
expense |
40 |
149 |
|
Drawing expense
in advance |
4,650 |
19,247 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
56,530 |
49,928 |
|
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Long term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
56,530 |
49,928 |
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Equities |
42,480 |
47,267 |
|
|
------------------ |
------------------ |
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Total liabilities
& equities |
99,010 |
97,195 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
Note: SC’s management
declined to release the latest financial information.
Important Ratios
=============
|
|
as
of Dec. 31, 2008 |
as
of Dec. 31, 2009 |
|
*Current ratio |
1.23 |
1.28 |
|
*Quick ratio |
0.58 |
0.49 |
|
*Liabilities
to assets |
0.57 |
0.51 |
|
*Net profit
margin (%) |
5.27 |
1.79 |
|
*Return on
total assets (%) |
6.00 |
3.00 |
|
*Inventory
/Turnover ×365 |
119 days |
89 days |
|
*Accounts
receivable/Turnover ×365 |
71 days |
42 days |
|
*Turnover/Total
assets |
1.14 |
1.67 |
|
* Cost of goods
sold/Turnover |
0.78 |
0.74 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good in its line, and it increased in 2009.
l
SC’s net profit margin is fairly good in 2008 but
average in 2009.
l SC’s return on
total assets is fairly good in 2008 but average in 2009.
l
SC’s cost of goods sold appears average, compared
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC was maintained in a normal
level in both two years.
l
SC’s quick ratio was maintained in a fair level in
both 2 years.
l
The inventory of SC appears large in both 2 years.
l
The accounts receivable of SC appears fairly large
in 2008, but average in 2009.
l
The short loan of SC appears fairly large in 2008,
but average in 2009.
l
SC’s turnover is in an average level, compared with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both 2 years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory could be threats to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
UK Pound |
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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.