MIRA INFORM REPORT
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Report Date : |
01.08.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG FANGMING PHARMACEUTICAL GROUP CO.,
LTD. |
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Registered Office : |
Fangming Part, Huanghe Road, Dongming County, Heze,
Shandong Province, 274500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
07.07.2000 |
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Com. Reg. No.: |
370000228006925 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling
pharmaceutical products |
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No. of Employees : |
1000 |
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
|
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
SHANDONG FANGMING PHARMACEUTICAL GROUP Co., Ltd.
FANGMING PART,
HUANGHE ROAD, DONGMING COUNTY,
heze, SHANDONG PROVINCE,
274500 PR CHINA
TEL: 86 (0)
530-7201766/7202968 FAX: 86 (0)
530-7201388
EXECUTIVE SUMMARY
INCORPORATION DATE : jul. 7, 2000
REGISTRATION NO. : 370000228006925
REGISTERED LEGAL FORM :
SHARES LIMITED CO.
STAFF STRENGTH : 1,000
REGISTERED CAPITAL :
CNY 210,000,000
BUSINESS LINE : Manufacturing &
SELLING
TURNOVER : N/A (AS OF DEC. 31, 2011)
EQUITIES : CNY 236,800,000 (AS OF DEC. 31,
2011)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE : CNY 6.18 = 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 Shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of sha reholding,
and the co. is liable for its debts only to the extent of its total assets.
The co has independent property of legal person and enjoys property rights
of legal person.
The characteristics of the shares limited
co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The
board of directors must consist of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
one year of the offer. A
state-owned enterprise that is restructured into a shares limited co. must comply with the conditions & requirements specified
under the law & administrative rule.
SC’s registered business scope includes pharmaceutical production within the
scope of pharmaceutical production enterprise license; production and sales of
hernia more; export business of
enterprise needed products and technology; import business of raw and auxiliary
materials, instruments, machinery and equipment, spare parts and technology; processing
with imported materials, processing with imported samples, assembling with
imported parts, and compensation trade in agreement; counter trade & transit trade. (with permit if
needed)
SC is mainly
engaged in manufacturing and selling pharmaceutical
products.
Mr. Yu
Hongzhi is legal
representative and chairman of SC at present.
SC is
known to have approx. 1,000 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
Heze. Detailed information of the premise is unspecified.
http://www.fangming.com/ The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
E-mail: ylb@fmhongfang.com
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
In March of 2002, SC had passed state GMP certification for the first
time; In 2003, it was honored as " Credit AAA Enterprise in Pharmaceutical
Industry" by China's Credit Evaluation Centre; In 2004, it was identified
as " High-tech enterprise" by Shandong Province Science and
Technology Agency; In 2009, it was appraised as "Advanced Private
Enterprise" and " Outstanding Enterprise in Pharmaceutical Industry
of Shandong Province" by the provincial government.; Brand "Dong
yao" and "Ai mie er" were successively awarded as "Shandong
Famous Brand"; In 2010, it was judged to be " Honoring Contracts and
Keeping Promises Enterprise" and "Patent Demonstration Enterprise of
Shandong Province"; It has been successively named to be " Consumer
Satisfied Unit of Shandong Province" for three times.
MAIN SHAREHOLDERS:
Name % of Shareholding
Yu Hongzhi 52.38
Ren Yan 23.81
Yu Xiaohong 23.81
Legal
Representative and Chairman:
Mr. Yu Hongzhi is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative and chairman.
General manager:
Mr. Xu Shaomin is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager.
*Officials:
=======
Name Title
Yu Xiaohong Director
Sun Yangtao Director
Wu Dongge Director
Chen Tongxi Supervisor
Ren Yan Supervisor
Yu Qingming Supervisor
SC is mainly
engaged in manufacturing and selling pharmaceutical
products.
SC’s products mainly include: small-dose
injections, tablets, hard capsules, ointments, creams, gels and APIs, etc.
SC sources its materials 90% from domestic
market and 10% from overseas market. SC sells 80% of its products 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 declined to release its major clients and suppliers.
According to SC’s
website, SC has the following subsidiaries:
Shandong Dongyao Pharmaceutical Co., Ltd.
=======================
Registration No.: 371700200010834
Shandong Hongfang Fine Chemical Co., Ltd.
======================
Registration
No.: 371700200009375
Web: http://zh.fmhongfang.com/
E-mail: ylb@fmhongfang.com
Tel.: 0530-7200366
Fax: 0530-7201388
Shandong Hongzhi Biotechnology Co., Ltd.
======================
Registration
No.: 371700200009383
Heze Fangming Pharmaceutical Co., Ltd.
======================
Registration
No.: 371700228017366
Web: http://www.hzfangming.com/
E-mail: hzfmzy@163.com
Tel.: 0530-5198368/5811888
Fax: 0530-5198399/5819991
Shandong Fangming Bangjia Pharmaceutical Co., Ltd.
======================
Registration
No.: 371700200000525
E-mail: sdfmbj@163.com
Tel.: 0530-7380068
Fax: 0530-7380067
Etc.
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 bank details.
Financial
Summary
Unit: CNY’000
|
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Current assets |
790,910 |
124,750 |
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---------------- |
---------------- |
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Total assets |
1,044,550 |
1,606,080 |
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============= |
============= |
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Current
liabilities |
733,600 |
/ |
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Long term loans |
72,500 |
/ |
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Other
liabilities |
1,660 |
/ |
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---------------- |
---------------- |
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Total
liabilities |
807,760 |
/ |
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Equities |
236,800 |
/ |
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-------------------- |
-------------------- |
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Total
liabilities & equities |
1,044,560 |
1,606,080 |
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============= |
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Note: SC’s management refused to release the detail of its
financial statement for Yr2011 & 2012. The financial reports for Yr2012 have not been
audited.
Important Ratios
=============
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as
of Dec. 31, 2011 |
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*Current ratio |
1.08 |
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*Liabilities
to assets |
0.77 |
l
The current ratio of SC is in a normal level in 2011.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high in 2011.
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. Taking into consideration of SC’s background and operation size, we
would rate SC as an average credit risk company.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.11 |
|
UK Pound |
1 |
Rs.92.97 |
|
Euro |
1 |
Rs.80.93 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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 |
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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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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.