MIRA
INFORM REPORT
|
Report Date : |
22.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
GUANGZHOU BAIRUI MEDICINE CO., LTD. |
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Registered Office : |
12/Ab, Xinyu Building, No. 81,
Nonglinxia Road, Yuexiu District,
Guangzhou, Guangdong Province 510080 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
19.02.2001 |
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Com. Reg. No.: |
440104000119967 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
selling medicine |
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No. of Employees : |
07 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
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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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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 & address
guangzhou bairui
medicine co., ltd.
(trade name: Powerful Chemicals Limited)
12/AB, XINYU BUILDING, NO. 81, NONGLINXIA ROAD
YUEXIU DISTRICT, GUANGZHOU, GUANGDONG PROVINCE 510080 PR CHINA
TEL: 86 (0) 20-87658479/87358016/37653626
FAX: 86 (0) 20-87659730
EXECUTIVE SUMMARY
Date of Registration : february 19, 2001
REGISTRATION NO. : 440104000119967
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
cny 1,800,000
staff : 7
BUSINESS CATEGORY :
trading
Revenue : CNY 13,112,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 541,000 (AS OF DEC. 31, 2012)
WEBSITE : www.gzbr.com.cn
E-MAIL :
webmaster@gzbr.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : FAIR
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : FAIR
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
Note: According to the, we locate SC.
SC’s name should be the heading one, while SC also
uses the given name-Powerful Chemicals Limited as its trade name.
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 440104000119967 on february 19, 2001.
SC’s Organization Code Certificate
No.: 726789768
Tax No.: 440106726789768
SC’s registered capital: cny 1,800,000
SC’s paid-in capital: cny 1,800,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
4401042016709 |
440104000119967 |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Cheng Hao |
84 |
|
Gu Kaifeng |
16 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Cheng Hao |
|
Supervisor |
Gu
Kaifeng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Cheng Hao 84
Gu Kaifeng 16
MANAGEMENT
Cheng Hao, Legal Representative, Chairman and General Manager
------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
From 2001 to present, working in SC as legal representative,
chairman and general manager
Gu
Kaifeng, Supervisor
------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes wholesale of
Chinese patent drugs, chemical bulk drugs, chemical medicine preparation,
antibiotics bulk drugs, antibiotic preparations, biochemical medicines, textile
machinery, construction equipment, chemical raw materials, goods import and
export.
SC is
mainly engaged in selling medicine.
SC’s products
mainly include: Artesunate, Artemisinin, Dihydroartemisinin, Artemether, ATCA, Cefdinir, D-2 Amino
Butanol, Lamivudine, Gemcitabine Hcl,
7-ANCA, Capecitabine, Lercanidipine, and
etc.
SC sources its materials 100% from domestic
market, mainly Guangdong. SC sells 65% of its products in domestic market,
mainly Guangzhou, and 35% to overseas market, mainly Southeast Asian market.
The
buying terms of SC include T/T and Credit of 30-60 days. The payment terms of
SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 7
staff at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED
COMPANY
Anhui
Bairui Biology Engineering Co., Ltd.
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
770 |
642 |
47 |
|
|
Accounts
receivable |
4,480 |
4,331 |
5,118 |
|
Advances to
suppliers |
0 |
666 |
666 |
|
Other receivable |
2,800 |
3,588 |
3,426 |
|
Inventory |
8,440 |
7,925 |
10,270 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
690 |
17 |
13 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
17,180 |
17,169 |
19,540 |
|
Long-term
investment |
0 |
884 |
884 |
|
Fixed assets |
610 |
44 |
11 |
|
Construction in
progress |
0 |
0 |
0 |
|
Intangible
assets |
0 |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other non-current
assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
17,790 |
18,097 |
20,435 |
|
|
============= |
============= |
============= |
|
Short-term loans |
0 |
0 |
0 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
16,200 |
16,039 |
19,038 |
|
Wages payable |
0 |
0 |
0 |
|
Welfares payable |
0 |
147 |
132 |
|
Taxes payable |
0 |
4 |
34 |
|
Advances from
clients |
0 |
0 |
0 |
|
Other payable |
660 |
1,368 |
690 |
|
Other current
liabilities |
250 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
17,110 |
17,558 |
19,894 |
|
Non-current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
17,110 |
17,558 |
19,894 |
|
Equities |
680 |
539 |
541 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
17,790 |
18,097 |
20,435 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
36,470 |
18,618 |
13,112 |
|
Cost of sales |
32,600 |
16,862 |
10,406 |
|
Sales expense |
1,020 |
922 |
875 |
|
Management expense |
2,790 |
911 |
1,793 |
|
Finance expense |
2 |
2 |
1 |
|
Profit before
tax |
11 |
-106 |
10 |
|
Less: profit tax |
3 |
15 |
3 |
|
8 |
-121 |
7 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.00 |
0.98 |
0.98 |
|
*Quick ratio |
0.51 |
0.53 |
0.47 |
|
*Liabilities
to assets |
0.96 |
0.97 |
0.97 |
|
*Net profit
margin (%) |
0.02 |
-0.65 |
0.05 |
|
*Return on
total assets (%) |
0.04 |
-0.67 |
0.03 |
|
*Inventory /
Revenue ×365 |
85 days |
156 days |
286 days |
|
*Accounts
receivable/ Revenue ×365 |
45 days |
85 days |
143 days |
|
*
Revenue/Total assets |
2.05 |
1.03 |
0.64 |
|
* Cost of
sales / Revenue |
0.89 |
0.91 |
0.79 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
average in its line, and it decreased year by year.
l
SC’s net profit margin is average in 2010 and 2012,
fair in 2011.
l
SC’s return on total assets is average in 2010 and
2012, fair in 2011.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level in three years.
l
SC’s quick ratio is maintained in a fair level in
three years.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
SC has no short-term loan in three years.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is high in three years.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial
conditions. The large amount of inventory and accounts receivable may be a
threat 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
|
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.