MIRA
INFORM REPORT
|
Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
NINGBO RENJIAN PHARMACEUTICAL CHEMICAL co., ltd. |
|
|
|
|
Registered Office : |
No. 255 Beihai Road, Xiepu Town, Zhenhai
District, Ningbo, Zhejiang Province, 315204 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
05.08.2005 |
|
|
|
|
Com. Reg. No.: |
330200400040946 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
|
|
|
|
Line of Business : |
Manufacturing, processing and selling midazolam intermediate products. |
|
|
|
|
No. of Employees : |
300 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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 (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
Source
: CIA
Company name and address
NINGBO RENJIAN PHARMACEUTICAL CHEMICAL co., ltd.
NO. 255 BEIHAI ROAD, XIEPU TOWN, ZHENHAI
DISTRICT, NINGBO,
ZHEJIANG PROVINCE, 315204 PR CHINA
TEL: 86 (0)
574-86509658
FAX: 86 (0)
574-86509868
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 5, 2005
REGISTRATION NO. :
330200400040946
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH :
300
REGISTERED CAPITAL : USD 12,100,000
BUSINESS LINE :
MANUFACTURING, PROCESSING & TRADING
TURNOVER :
CNY 395,200,000 (UNAUDITED, AS
OF DEC. 31, 2012)
EQUITIES :
CNY 182,990,000 (UNAUDITED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1805 = 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 Chinese-foreign equity joint venture enterprise at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on Aug. 5, 2005.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business
scope includes manufacturing and processing midazolam intermediate products
(excluding hazardous chemicals).
SC is mainly
engaged in manufacturing, processing and selling midazolam intermediate
products.
Mr. Weng
Weijie is legal representative and
chairman of SC at present.
SC is known to
have approx. 300 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 Ningbo. Detailed premise
information is not available at present.
New
plant address: No. 1568 Beihai Road，Xiepu, Ningbo, Zhejiang
http://www.rjpharm.com/
The website belongs to Ningbo Renjian Pharmaceutical Group Co., Ltd., and it
includes the introduction about SC and its related companies. The design is professional and the content is
well organized. At present, the web is both in Chinese and English versions.
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Ningbo Renjian Pharmaceutical Group Co.,
Ltd. 75
Renjian (Hongkong) Development Limited 25
Ningbo Renjian Pharmaceutical Group Co.,
Ltd.
===================================
Its former Chinese name was 宁波人健药业集团有限公司.
Ningbo Renjian Pharmaceutical Group Co.,
Ltd. is located in one of the most prosperously growing areas—Ningbo City,
Zhejiang Province. Since the establishment in 1988, the company is persistently
taking the technical innovation as the basis. Started from biochemical raw
material, the company has developed to Formulations Company with intermediates,
API, and preparations. The product steps in biochemical, synthetic chemical and
bioengineering domain.
Incorporation Date : Dec. 12, 1991
Registration No. : 330200400021817
Chief Executive : Mr. Cen Yaoyun
(Chairman)
Registered Capital : CNY 60,000,000
Add.: No. 555, Changchi Road, Cixi, Ningbo,
Zhejiang Province, 315300 Pr China
Tel: 86 (0) 574-63976073 / 63976058
Fax: 86 (0)574-63976066
Email: sales@rjpharm.com
Renjian (Hongkong) Development Limited
==================================
Registration No.:
1678551
Legal form: private
l
Legal representative and chairman:
Mr. Weng Weijie is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
SC is mainly
engaged in manufacturing, processing and selling midazolam intermediate
products.
SC’s products mainly include: midazolam
intermediate products.
SC sources its materials 98% from domestic
market, and 2% from overseas market. SC sells its products 80% in domestic
market, and 20% 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.
Note: SC’s management refused to release its
main suppliers and clients.
Ningbo Janwell Pharmaceutical Co., Ltd.
===============================
Registration no.: 330200400039559
Registered capital: CNY 40,000,000
Legal representative: Qian Xianbo
Add: 599 Changchi Road, Cixi, Ningbo,
Zhejiang 315300, P.R.China
Tel: +86-574-63999800
Fax: +86-574-63999806
Cixi Renjian Biochemical Materials Co., Ltd.
===============================
Registration no.: 330282000119887
Registered capital: CNY 500,000
Legal representative: Cen Guifen
Ningbo Renjian Import and Export Co., Ltd.
===============================
Registered capital: CNY 5,000,000
Legal representative: Cen Jian
Shanghai Jianrui Biotech Co., Ltd. (in
Chinese pinyin)
===============================
Registration no.: 310114001760397
Registered capital: CNY 1,000,000
Legal representative: Qian Xianbo
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.
SC declined to
release its banking details.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
|
Cash & bank |
4,060 |
|
Notes receivable |
17,750 |
|
Inventory |
79,070 |
|
Accounts
receivable |
66,630 |
|
Other Accounts
receivable |
11,100 |
|
Advances to
suppliers |
910 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
179,520 |
|
Fixed assets net
value |
109,560 |
|
Projects under
construction |
61,640 |
|
Long term
investment |
0 |
|
Deferred tax
debit |
440 |
|
Intangible and
other assets |
24,760 |
|
|
------------------ |
|
Total assets |
375,920 |
|
|
============= |
|
Short loans |
78,010 |
|
Notes payable |
920 |
|
Accounts payable |
7,460 |
|
Accrued payroll |
5,710 |
|
Taxes payable |
-2,960 |
|
Other Accounts
payable |
36,990 |
|
Advances from
clients |
0 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
126,130 |
|
Long-term loans |
66,800 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
192,930 |
|
Equities |
182,990 |
|
|
------------------ |
|
Total
liabilities & equities |
375,920 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2012 |
|
Turnover |
395,200 |
|
Cost of goods sold |
293,990 |
|
Taxes and additional of main operation |
940 |
|
Sales expense |
1,500 |
|
Management expense |
25,050 |
|
Finance expense |
11,130 |
|
Incomes from
other operations |
230 |
|
Subsidy income |
1,510 |
|
Non-operational
income |
0 |
|
Non-operational expense |
360 |
|
Profit before
tax |
63,970 |
|
9,600 |
|
|
Profits |
54,370 |
Note: The Financial Report for Year 2012 hasn’t
been audited.
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
|
*Current ratio |
1.42 |
|
*Quick ratio |
0.80 |
|
*Liabilities
to assets |
0.51 |
|
*Net profit
margin (%) |
13.76 |
|
*Return on
total assets (%) |
14.46 |
|
*Inventory
/Turnover ×365 |
74 days |
|
*Accounts
receivable/Turnover ×365 |
62 days |
|
*Turnover/Total
assets |
1.05 |
|
* Cost of goods
sold/Turnover |
0.74 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin appears fairly good
l
SC’s return on total assets appears fairly good.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loan of SC appears fairly large in
2012.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
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 and short-term loan could be a threat to SC’s
financial condition
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.