MIRA
INFORM REPORT
|
Report Date : |
29.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG GUOBANG PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 77 Xinghai Street, Advanced Manufacturing Industrial Park Binhai Economic Development Zone Weifang, Shandong Province 261000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
13.12.2006 |
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Com. Reg. No.: |
370700228073580 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling pharmaceutical raw materials, pharmaceutical intermediates, and chemical products. |
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No. of Employees : |
525 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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.
Source
: CIA
Company name and address
SHANDONG GUOBANG PHARMACEUTICAL CO., LTD.
NO. 77 XINGHAI STREET, ADVANCED MANUFACTURING INDUSTRIAL PARK BINHAI ECONOMIC DEVELOPMENT ZONE
WEIFANG, SHANDONG PROVINCE 261000 PR CHINA
TEL: 86 (0) 536-7573288/7573999/7575826/7575816
FAX: 86 (0) 536-7573288
EXECUTIVE SUMMARY
Date of Registration : december 13, 2006
REGISTRATION NO. : 370700228073580
LEGAL FORM : Shares limited company
REGISTERED CAPITAL : cny 104,730,000
staff :
525
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 511,560,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 211,140,000 (AS OF DEC. 31, 2012)
WEBSITE : www.sdgbpharm.com
E-MAIL :
gb@sdgbpharm.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : FAIRLY GOOD
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
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a shares limited company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 370700228073580 on december 13, 2006.
SC’s Organization Code Certificate No.:
79619661-8
SC’s registered capital: CNY 104,730,000
SC’s paid-in capital: CNY 104,730,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2013 |
Registered Capital |
cny 78,000,000 |
CNY 104,730,000 |
|
Shareholder (s) (% of Shareholding) |
Guobang Pharmaceutical Chemical Group Co.,
Ltd. 51.28% Gong Yuda 15.58% Zhu Yaqing 13.34% Qiu Jiajun14.74% Jin Biao 5.06 |
Guobang Pharmaceutical Chemical Group Co.,
Ltd. 44.30% Gong Yuda 13.45% Zhu Yaqing11.53% Qiu Jiajun12.74% Jin Biao4.37% Liao Shixue 13.61% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Guobang Pharmaceutical Chemical Group Co.,
Ltd. |
44.30 |
|
Gong Yuda |
13.45 |
|
Zhu Yaqing |
11.53 |
|
Qiu Jiajun |
12.74 |
|
Jin Biao |
4.37 |
|
Liao Shixue |
13.61 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Zhu Yaqing |
|
Directors/Supervisors |
Gong Yuda |
|
Qiu Jiajun |
|
|
Jin Biao |
|
|
Liao Shixue |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Guobang Pharmaceutical Chemical Group Co.,
Ltd. 44.30
Gong Yuda 13.45
Zhu Yaqing 11.53
Qiu Jiajun 12.74
Jin Biao 4.37
Liao Shixul 13.61
l Guobang
Pharmaceutical Chemical Group Co., Ltd.
--------------------------------------------------------------------
Date of Registration: March 29, 1996
Registration No.: 330600400009418
Legal Form: Chinese-foreign
Equity Joint Venture Enterprise
Registered Capital: USD 9,295,900
Address: No.2-12 Dongchang West Road,
Chengguan Town, Xinchang County, Shaoxing City, Zhejiang Province
Tel: 86 (0) 575-86124548
MANAGEMENT
Zhu Yaqing, Legal
Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 46
Ø
ID# 330624196701060012
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Also as director in Zhejiang Guobang
Pharmaceutical Co., Ltd., working in Xinchang Guobang Enterprise Management
Co., Ltd., and Xinchang Guobang Import and Export Co., Ltd. as legal
representative
Directors/Supervisors
-----------------------------
Gong Yuda
ID# 330623196807165414
(Working in Xinchang Guobang Financial Management Consulting Co., Ltd.
as legal representative)
Qiu Jiajun
ID# 320106196505012054
(Working in Zhejiang Guobang Pharmaceutical Co., Ltd. and Xinchang Hebao
Biotechnology Co., Ltd. as legal representative)
Jin Biao
ID# 330624194808050018
(Also as director of Zhejiang Guobang Pharmaceutical Co., Ltd.)
Liao Shixue
(Also
working in Shandong Zhijiang Bio-tech Co., Ltd. as legal representative)
BUSINESS OPERATION
SC’s registered business scope includes developing &
researching, manufacturing, and selling pharmaceutical raw materials,
pharmaceutical intermediates, and chemical products; importing and exporting
goods and technology.
SC is mainly
engaged in manufacturing and selling pharmaceutical raw materials,
pharmaceutical intermediates, and chemical products.
Brand: 
SC’s products
mainly include: cyclopropylamine, potassium borohydride, sodium borohydride,
sodium hydride.
SC sources its materials 100% from domestic market,
mainly Shandong. SC sells 65% of its products in domestic market, and 35% to
overseas market.
The buying terms
of SC include Check, 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. 525 staff at
present.
SC owns an area as
its operating office & factory of approx. 20,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have the
following subsidiaries, as follows,
-------------------------------------------------------------------------
u
Weifang Baolesheng Trade Co., Ltd.
u
Shandong Zhijiang Bio-tech Co., Ltd.
Related Companies:
-------------------------
u
Zhejiang Guobang Pharmaceutical Co., Ltd.
u
Xinchang Hebao Biotechnology Co., Ltd.
u
Xinchang Guobang Import and Export Co., Ltd.
u
Xinchang Guobang Financial Management Consulting Co., Ltd.
u
Xinchang Guobang Enterprise Management 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 Weifang Branch
AC#: 216902187603
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
7,680 |
12,590 |
19,360 |
24,910 |
|
|
Accounts
receivable |
15,190 |
19,070 |
51,980 |
74,880 |
|
Other receivable |
730 |
680 |
3,540 |
38,570 |
|
Inventory |
19,440 |
42,530 |
68,420 |
77,110 |
|
Non-current
assets within one year |
0 |
0 |
0 |
0 |
|
Other current
assets |
5,840 |
12,120 |
18,480 |
15,930 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current assets |
48,880 |
86,990 |
161,780 |
231,400 |
|
Fixed assets |
90,960 |
101,440 |
120,300 |
136,760 |
|
Construction in progress |
25,850 |
29,530 |
26,510 |
30,920 |
|
Long-term
investment |
0 |
1,000 |
1,000 |
8,500 |
|
Other
non-current assets |
10,800 |
10,680 |
9,710 |
8,880 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total assets |
176,490 |
229,640 |
319,300 |
416,460 |
|
|
============= |
============= |
============= |
============= |
|
Short-term loans |
15,000 |
30,000 |
65,000 |
90,000 |
|
Accounts payable |
16,180 |
13,970 |
41,950 |
89,920 |
|
Wages payable |
0 |
0 |
0 |
0 |
|
Taxes payable |
0 |
0 |
0 |
9,160 |
|
Advances from
clients |
0 |
0 |
0 |
0 |
|
Other payable |
28,580 |
25,920 |
34,180 |
4,230 |
|
Other current
liabilities |
2,240 |
8,360 |
5,880 |
2,010 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
62,000 |
78,250 |
147,010 |
195,320 |
|
Non-current
liabilities |
31,510 |
46,500 |
26,510 |
10,000 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
93,510 |
124,750 |
173,520 |
205,320 |
|
Equities |
82,980 |
104,890 |
145,780 |
211,140 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
176,490 |
229,640 |
319,300 |
416,460 |
|
|
============= |
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
240,810 |
439,190 |
511,560 |
|
Cost of sales |
188,120 |
329,750 |
374,970 |
|
Sales expense |
5,540 |
8,410 |
10,940 |
|
Management expense |
13,960 |
38,850 |
27,330 |
|
Finance expense |
3,090 |
5,750 |
7,490 |
|
Profit before
tax |
29,530 |
54,580 |
82,990 |
|
Less: profit tax |
7,480 |
13,650 |
21,020 |
|
22,050 |
40,930 |
61,970 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012
|
|
*Current ratio |
0.79 |
1.11 |
1.10 |
1.18 |
|
*Quick ratio |
0.47 |
0.57 |
0.64 |
0.79 |
|
*Liabilities
to assets |
0.53 |
0.54 |
0.54 |
0.49 |
|
*Net profit
margin (%) |
-- |
9.16 |
9.32 |
12.11 |
|
*Return on
total assets (%) |
-- |
9.60 |
12.82 |
14.88 |
|
*Inventory /
Revenue ×365 |
-- |
65 days |
57 days |
56 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
29 days |
44 days |
54 days |
|
*
Revenue/Total assets |
-- |
1.05 |
1.38 |
1.23 |
|
* Cost of
sales / Revenue |
-- |
0.78 |
0.75 |
0.73 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line, and it increased year by year.
l SC’s net profit
margin is fairly good in 2010 & 2011 & 2012.
l SC’s return on
total assets is fairly good in 2010 & 2011 & 2012.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair
level in 2009, normal in 2010 & 2011 & 2012.
l
SC’s quick ratio is maintained in a fair level in
four years.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loan of SC appears average.
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 four years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.70.67 |
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.