MIRA
INFORM REPORT
|
Report Date : |
26.08.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI DESANO
CHEMICAL PHARMACEUTICAL Co., Ltd. |
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Registered Office : |
No. 418 Binhai Road,
Binhai Town, Pudong New District, Shanghai
City, 201302 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
16.05.2002 |
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Com. Reg. No.: |
310225000273829 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling chemical
medical raw materials. |
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No. of Employees : |
1000 |
RATING & COMMENTS
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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 |
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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 |
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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.
Source
: CIA
COMPANY NAME AND ADDRESS
SHANGHAI DESANO CHEMICAL PHARMACEUTICAL Co.,
Ltd.
no. 418 binhai road, binhai town, PUDONG NEW district,
SHANGHAI CITY, 201302 PR CHINA
TEL: 86 (0) 21-58063300/60753300
FAX: 86 (0) 21-58063311
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 16, 2002
REGISTRATION NO. : 310225000273829
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 1,000
REGISTERED CAPITAL : CNY 500,000,000
BUSINESS LINE :
MANUFACTURING and selling
TURNOVER : CNY 1,330,340,000
(AS OF DEC. 31, 2012)
EQUITIES : CNY 733,460,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.1204 = 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
Note: The, telephone number and fax
number were SC’s former ones, and SC has moved to the heading address.
SC was registered as a limited
liabilities company at local Administration for Industry & Commerce (AIC –
The official body of issuing and renewing business license) on May 16, 2002.
Company Status: Limited liabilities co. This
form of business in PR China is defined as a legal person. No more than
fifty shareholders contribute its registered capital jointly. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to extent of its total assets. The characteristics of
this form of co. are as follows: Upon the establishment of the co., an investment
certificate is issued to the each of shareholders. The
board of directors is comprised of three to thirteen members. The
minimum registered capital for a co. is CNY 30,000. Shareholders
may take their capital contributions in cash or by means of tangible assets
or intangible assets such as industrial property and non-patented
technology. Cash
contributed by all shareholders must account for at least 30% of the
registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered
business scope includes selling chemical products (excluding hazardous chemicals, controlled chemicals,
fireworks, civil explosives, precursor chemicals); importing and exporting commodities and
technologies; manufacturing medical raw
materials (Stavudine, Zidovudine, Lamivudine, Nevirapine, Artemether,
Benflumetol, Efavirenz, Ritonavir, Emtricitabine, Fumaric acid tenofovir two
imidacloprid furosemide esters, valaciclovir hydrochloride, and Artesunate)
(with permits if needed).
SC is mainly
engaged in manufacturing and selling chemical medical raw materials.
Mr. Li
Jinliang has been legal representative and chairman of SC since 2002.
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
Shanghai. Our
checks reveal that SC owns the total premise about 130,000 square meters.
http://www.desano.com/ It is the
website of Desano. The design is professional and the content is well organized.
At present it is in both Chinese and English versions.
E-mail: info@desano.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registered capital |
CNY 100,000,000 |
CNY 200,000,000 |
|
|
Registered capital |
CNY 200,000,000 |
CNY 375,000,000 |
|
% of shareholding |
Shanghai Desano Biopharmaceutical Co., Ltd. 30%, Shanghai Desano
Pharmaceuticals Investment Co., Ltd. 70% |
Shanghai Desano Biopharmaceutical Co., Ltd. 16% Shanghai Desano Pharmaceuticals Investment Co., Ltd. 84% |
|
|
2011-4 |
Registered capital |
CNY 375,000,000 |
CNY 500,000,000 |
|
% of shareholding |
Shanghai Desano Biopharmaceutical Co., Ltd. 16% Shanghai Desano Pharmaceuticals Investment Co., Ltd. 84% |
Present ones |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shanghai Desano
Biopharmaceutical Co., Ltd. 12
Shanghai Desano Co., Ltd. 88
Shanghai Desano
Biopharmaceutical Co., Ltd.
Registration no.: 310115000575902
Legal representative: An Xiaoxia
Registered capital: CNY 80,000,000
Legal form: One-person Limited Liability Company
Incorporation date: July 27, 2000
No. 1479, Zhangheng Road, Zhangjiang
High-Tech Park, Shanghai
Tel: 86 (0) 21-51323300
Fax: 86 (0) 21-51323311
Shanghai
Desano Co., Ltd.
Registration no.: 310115000930770
Legal representative: Li
Jingpeng
Registered capital: CNY 578,837,404
Legal form: Chinese-foreign
equity joint venture enterprise
Incorporation date: December 28, 2005
Its former name was Shanghai Desano
Pharmaceuticals Investment Co., Ltd.
No. 1479, Zhangheng Road, Zhangjiang
High-Tech Park, Shanghai
Tel: 86
(0) 21-51323300
Fax: 86
(0) 21-51323311
l
Legal representative and chairman:
Mr. Li Jinliang born in 1972, with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as legal representative
and chairman.
l
General manager:
Mr. Ye Shilai, born in 1969. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2013 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling chemical medical raw materials.
Main Products: Stavudine,
Nevirapine, Zidovudine, Efavirenz, 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.
Shanghai
Desano Environment Co., Ltd.
Registration
no.: 310225000329610
Legal
representative: Xiong Anfu
Registered
capital: CNY 10,000,000
Legal
form: One-person Limited Liability
Company
Incorporation
date: April 24, 2003
Jiangsu
Desano Pharmaceuticals Co., Ltd.
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.
China Construction Bank Shanghai Zhangjiang Sub-branch
AC#：31001523211056003110
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Cash & bank |
269,420 |
|
Inventory |
246,070 |
|
Accounts
receivable |
94,400 |
|
Advances to
supplies |
92,380 |
|
Other
receivables |
87,820 |
|
Other current
assets |
50,000 |
|
|
------------------ |
|
Current assets |
840,090 |
|
Fixed assets net
value |
417,130 |
|
Projects under
construction |
99,230 |
|
Project
materials |
1,090 |
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Long-term
investments |
236,480 |
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Intangible
assets |
65,000 |
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Other assets |
70 |
|
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------------------ |
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Total assets |
1,659,090 |
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============= |
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Short loans |
210,000 |
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Notes payable |
167,490 |
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Accounts payable |
206,020 |
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Advances from
customers |
1,080 |
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Taxes payable |
-20,300 |
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Other Accounts
payable |
208,060 |
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Other
current liabilities |
0 |
|
|
------------------ |
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Current
liabilities |
772,350 |
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Long term
liabilities |
150,000 |
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Other
non-current liabilities |
3,280 |
|
|
------------------ |
|
Total
liabilities |
925,630 |
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Shareholders
equities |
733,460 |
|
|
------------------ |
|
Total
liabilities & equities |
1,659,090 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Turnover |
1,330,340 |
|
Cost of goods sold |
1,213,580 |
|
Taxes and additional of main
operation |
610 |
|
Sales expense |
22,810 |
|
Management expense |
71,190 |
|
Finance expense |
14,360 |
|
Investment
income |
3,560 |
|
Asset impairment loss |
590 |
|
Non-operating
income |
8,690 |
|
Non-operating expense |
70 |
|
Other operation
income |
4,560 |
|
Profit before
tax |
23,940 |
|
Less: profit tax |
3,540 |
|
Profits |
20,400 |
Important Ratios
=============
|
|
as of Dec. 31,
2012 |
|
*Current ratio |
1.09 |
|
*Quick ratio |
0.77 |
|
*Liabilities
to assets |
0.56 |
|
*Net profit
margin (%) |
1.53 |
|
*Return on
total assets (%) |
1.23 |
|
*Inventory
/Turnover ×365 |
68 days |
|
*Accounts
receivable/Turnover ×365 |
26 days |
|
*Turnover/Total
assets |
0.80 |
|
* Cost of
goods sold/Turnover |
0.91 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good in 2012.
l
SC’s net profit margin is average in 2012.
l
SC’s return on total assets is average in 2012.
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 fair level.
l
The inventory of SC appears fairly large in 2012.
l
The accounts receivable of SC appears average in
2012.
l
SC’s short-term loan is in an average level in
2012.
l
SC’s turnover is in a fair 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 large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 64.69 |
|
|
1 |
Rs. 100.80 |
|
Euro |
1 |
Rs. 86.30 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.