MIRA
INFORM REPORT
|
Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG MEDICINES & HEALTH PRODUCTS
IMPORT & EXPORT CO., LTD. |
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Registered Office : |
Zmc Building,
No. 101-2, Zhongshan North Road, Hangzhou, Zhejiang Province 310003 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
29.06.1999 |
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Com. Reg. No.: |
330000000009213 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
importing and exporting medical
instruments. |
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No. of Employees : |
320 |
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 |
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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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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.
|
Source : CIA |
Company name & address
ZHEJIANG MEDICINES & HEALTH PRODUCTS
IMPORT & EXPORT CO., LTD.
ZMC BUILDING,
NO. 101-2, ZHONGSHAN NORTH ROAD, HANGZHOU
ZHEJIANG
PROVINCE 310003 PR CHINA
TEL: 86 (0)
571-87017661/87017663/28938381
FAX: 86 (0)
571-87016777/87792151
EXECUTIVE SUMMARY
Date of Registration : JUNE 29, 1999
REGISTRATION NO. : 330000000009213
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
cny 80,000,000
staff : 320
BUSINESS CATEGORY :
TRADING
Revenue :
CNY 3,503,054,000 (AS OF DEC. 31,
2011)
EQUITIES : CNY 290,645,000
(AS OF DEC. 31, 2011)
WEBSITE : www.zmchealthcare.com
E-MAIL :
wanglingli@zmcchina.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.18 = 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.: 330000000009213 on June 29, 1999.
SC’s Organization Code Certificate
No.: 14291264-6
SC’s Tax No.: 330165142912646
SC’s registered capital: cny 80,000,000
SC’s paid-in capital: cny 80,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered Capital |
CNY
43,000,000 |
CNY 47,437,000 |
|
|
Registered Capital |
CNY 47,437,000 |
CNY 55,455,500 |
|
|
Registered Capital |
CNY 55,455,500 |
CNY 61,069,375 |
|
|
Registered Capital |
CNY 61,069,375 |
CNY 65,000,000 |
|
|
Registered Capital |
CNY 65,000,000 |
CNY 69,000,000 |
|
|
Registered Capital |
CNY 69,000,000 |
CNY 40,000,000 |
|
|
Registered Capital |
CNY 40,000,000 |
CNY 56,000,000 |
|
|
Registered Capital |
CNY 56,000,000 |
CNY 63,000,000 |
|
|
Registration No. |
3300001005837 |
442000000384289 |
|
|
Registered Capital |
CNY 63,000,000 |
CNY 70,000,000 |
|
|
Legal Representative |
Li Fusheng |
Chen Zhangsheng |
|
2011 |
Registered Capital |
CNY 70,000,000 |
cny 80,000,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang International Business Group Co., Ltd. |
33.50 |
|
Employee Shareholders Association |
47.72 |
|
Bai Minzi |
1.17 |
|
Chen Zhangsheng |
1.13 |
|
Li Lin |
1.07 |
|
Wang Ping |
1.07 |
|
Other 33 individuals |
14.34 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Chen
Zhangsheng |
|
Director |
Li Lin |
|
Wang Baoping |
|
|
Liu Junguang |
|
|
Huang Hai |
|
|
Supervisor |
Wang Ping |
|
Gong Yougen |
|
|
Xie Weiran |
RECENT DEVELOPMENT
SC obtained GSP Certificate, ISO Certificate and JAS Certificate.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhejiang International Business
Group Co., Ltd. 33.50
Employee Shareholders Association 47.72
Bai Minzi 1.17
Chen Zhangsheng 1.13
Li Lin 1.07
Wang Ping 1.07
Other 33 individuals 14.34
n
Zhejiang International Business Group
Co., Ltd.
---------------------------------------------------------------
Zhejiang International Business
Group Co., Ltd. was establishes in 2008.
It is a sole state-owned enterprise invested by the provincial government. The
registered capital of the group is 980 million Yuan, which comes from the
capital of original Rongda Group, Zhongda Group, and Dongfang Group. The legal
residence of the group is 199 Qingchun Road, Hangzhou City, Zhejiang. Conduct
scope covers all the ranging in the authorization scope. It involve foreign
trading, economy cooperation, real estate, industry investment, trade service,
financial stock, and the import and export trade is the main business. The
group built up extensive and stable trade cooperative relationship with the
well-know companies from 213 nations and region. The group exports more than
210 series of products, mainly including textile products, clothing, primary
product, medical and chemical products, light industry article, machinery and
electricity product, and set equipments, etc.
Legal Representative: Wang Tingge
Registration No.: 330000000018008
Tel: 86 (0) 571-87385921
Fax: 86 (0) 571-87385988
E-mail: info@zibchina.com
Website: www.zibchina.com
MANAGEMENT
Chen
Zhangsheng, Legal
Representative, Chairman and General Manager
------------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø
ID# 330105195610290313
Ø
Qualification:
University
Ø
Working
experience (s):
From 1999 to April of 2010, worked in SC as vice chairman and general manager
From April of 2010 to present, working in SC as legal representative, chairman and general manager
Director
-----------
Li Lin ID#
330102195210010336
Wang Baoping ID#
610104196309090115
Liu Junguang ID#
33010219540320003X
Huang Hai ID#
330103196312161339
Supervisor
-------------
Wang Ping ID# 330103195606170025
Gong Yougen ID# 330106196211301565
Xie Weiran ID# 330106196504100134
BUSINESS OPERATION
SC’s registered business scopes include operating medical machinery (validity
period as of Jun. 14, 2014; selling Chinese traditional medicinal crops,
Chinese patent medicines, traditional Chinese medicines prepared in
ready-to-use forms, chemical raw materials, chemical agent, antibiotic,
biochemical, acetic anhydride, and phenyl acetic acid; selling dangerous chemical products; operating non-medicine poisonous
chemicals (validity period as of Oct. 11, 2012), and potassium permanganate; importing and exporting business.
SC is mainly
engaged in importing and exporting medical instruments.
SC’s products mainly include: medical
instruments, pharmaceuticals & intermediates, natural plant extracts &
food additives, medicines & preparations, etc.
SC
sources its materials 70% from domestic market, and 30% from U.S.A. and Europe.
SC sells 30% of its products in domestic market, and 70% to Asian, Europe,
America, etc.
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.
*Major Customers:
==============
Divatex Home
Fashions Inc.
Better Brake Parts
Inc.
A&S
International Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 320 staff at present.
SC owns an area as
its operating office of approx. 2,000 sq. meters at the heading address.
RELATED COMPANY
SC is known to invest in
the following companies:
· Zhejiang Yibao Health Products Co., Ltd.
Zhejiang International
Business Group Logistics Co., Ltd.
Zhejiang Shangshang
Medicine and Health Products Co., Ltd.
Ningbo Huana Chemical
Co., Ltd.
Jiangsu Meinuo Medical Instrument
Co., Ltd.
Quzhou Chemsyn Pharm.
Co., Ltd.
Shandong Liyuan
Pharmaceutical Co., Ltd.
Zhejiang Hisun Chemical Co., Ltd.
Pinghu Xinjiyuan
Raiment 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:
Bank of China Zhejiang Branch
AC#:
800100024308091001
fINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
57,070 |
32,713 |
|
|
Notes receivable |
0 |
2,050 |
|
Accounts
receivable |
321,441 |
424,112 |
|
Advances to
suppliers |
89,207 |
91,925 |
|
Other receivable |
121,055 |
95,181 |
|
Inventory |
171,857 |
182,118 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
4,947 |
5,244 |
|
|
------------------ |
------------------ |
|
Current assets |
765,577 |
833,343 |
|
Fixed assets |
19,591 |
16,863 |
|
Construction in
progress |
9,256 |
9,256 |
|
Intangible
assets |
0 |
0 |
|
Long-term prepaid
expenses |
337 |
1,012 |
|
Deferred income
tax assets |
5,537 |
7,533 |
|
Other
non-current assets |
76,978 |
87,145 |
|
|
------------------ |
------------------ |
|
Total assets |
877,276 |
955,152 |
|
|
============= |
============= |
|
Short-term loans |
27,159 |
148,386 |
|
Notes payable |
380,074 |
237,219 |
|
Accounts payable |
62,794 |
102,949 |
|
Wages payable |
14,401 |
14,451 |
|
Taxes payable |
-16,241 |
-15,977 |
|
Advances from
clients |
155,551 |
166,338 |
|
Other payable |
20,561 |
11,141 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
644,299 |
664,507 |
|
Non-current
liabilities |
93 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
644,392 |
664,507 |
|
Equities |
232,884 |
290,645 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
877,276 |
955,152 |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
3,441,598 |
3,503,054 |
|
Cost of sales |
3,261,392 |
3,330,007 |
|
Taxes and surcharges |
1,167 |
959 |
|
Sales expense |
67,335 |
71,892 |
|
Management expense |
44,677 |
54,759 |
|
Finance expense |
-22,491 |
-56,586 |
|
Non-business
income |
3,877 |
4,815 |
|
Non-business expenditure |
4,096 |
1,450 |
|
Profit before
tax |
90,649 |
102,612 |
|
Less: profit tax |
22,862 |
25,088 |
|
67,787 |
77,524 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.19 |
1.25 |
|
*Quick ratio |
0.92 |
0.98 |
|
*Liabilities
to assets |
0.73 |
0.70 |
|
*Net profit
margin (%) |
1.97 |
2.21 |
|
*Return on
total assets (%) |
7.73 |
8.12 |
|
*Inventory /
Revenue ×365 |
19 days |
19 days |
|
*Accounts
receivable/ Revenue ×365 |
35 days |
45 days |
|
*
Revenue/Total assets |
3.92 |
3.67 |
|
* Cost of
sales / Revenue |
0.95 |
0.95 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good, and it was
rising in 2011.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
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 average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in a
fairly good level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
stable financial conditions.
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
|
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.