MIRA
INFORM REPORT
|
Report Date : |
18.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHOUGUANG FUKANG PHARMACEUTICAL CO., LTD. |
|
|
|
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Registered Office : |
No. 5,
College East Street, Economy & Technology Development Zone, Shouguang,
Shandong Province 262700 Pr |
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|
Country : |
China |
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|
Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
08.07.1997 |
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Com. Reg. No.: |
370783400000776 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
|
|
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Line of Business : |
manufacturing & selling
of trimethoprim, disinfectants, phenylamino, methyl, ODB, sulfamethoxazole,
omeprazole, metformin hydrochloride, itraconazole, hydrochloric acid
buflomedil, clozapine, lansoprazole, pantoprazole sodium, health food:
spirulina |
|
|
|
|
No. of Employees : |
1,000 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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|
|
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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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
SHOUGUANG FUKANG PHARMACEUTICAL CO., LTD.
NO. 5, COLLEGE
EAST STREET, ECONOMY & TECHNOLOGY DEVELOPMENT ZONE, SHOUGUANG, SHANDONG PROVINCE
262700 PR CHINA
TEL: 86 (0)
536-5102364 / 5107650
FAX: 86 (0)
536-5101568 / 5107886
EXECUTIVE SUMMARY
Date of Registration : JULy 8, 1997
REGISTRATION NO. : 370783400000776
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE : YANG WEIGUO (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
USD 1,400,000
staff : 1,000
BUSINESS CATEGORY :
manufacturing & TRADING
REVENUE :
CNY 374,985,000 (JAN. 1 2013 TO JUN. 30, 2013)
EQUITIES :
CNY 71,068,000 (AS OF JUN. 30, 2013)
WEBSITE : www.fukangpharm.com
E-MAIL :
info@shouguangpharm.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.09 = 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 Chinese-foreign equity joint venture
enterprise of PRC with State Administration of Industry & Commerce (SAIC)
under registration No.: 370783400000776 on July 8, 1997.
SC’s Organization Code Certificate
No.: 61358895-1
SC’s Tax No.: 370783613588951
SC’s registered capital: USD 1,400,000
SC’s paid-in capital: USD 1,400,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After the change |
|
2001-1-16 |
Shareholder (s) |
Shandong Shouguang Pharmaceutical Factory Hong Kong Chaoxing Colza (Literal Translation) |
Shouguang Huakang Pharmaceutical Co., Ltd. Hong Kong Yidong International Co., Ltd. (Literal Translation) |
|
2005-6-18 |
Shareholder (s) |
Shouguang Huakang Pharmaceutical Co., Ltd.
Hong Kong Yidong International Co., Ltd. (Literal Translation) |
Hong Kong Yidong International Co., Ltd. (Literal Translation) 45% Shouguang Fukang Chemical Industry Co.,
Ltd. 55% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hong Kong Yidong International Co., Ltd. (Literal Translation) |
45 |
|
Shouguang Fukang Chemical Industry Co.,
Ltd. |
55 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Yang Weiguo |
|
Vice Chairman |
Miao Yuan |
RECENT
DEVELOPMENT
SC has been honored as the Hi-tech enterprise in Shandong province, the
world-largest manufacturer and exporter of TMP and also the famous manufacturer
of bromine compounds in the world. SC has got the ISO 9001, GMP, COS, ISO
14001, OHSAS 18001, etc. certificates.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
Hong Kong Yidong International Co., Ltd. (Literal Translation) 45
Shouguang Fukang Chemical Industry Co., Ltd.
55
Shouguang Fukang Chemical Industry Co., Ltd.
----------------------------------------
Registration No.: 370783228001248
Legal Form: Limited Liabilities Company
Registered Capital: CNY 3,080,000
Legal Representative: Yang Weiguo
MANAGEMENT
Yang Weiguo, Legal Representative, Chairman, and General
Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman,
and general manager
Also
working in Shouguang Fukang Chemical Industry Co., Ltd. as legal representative
Miao Yuan, Vice Chairman
---------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing & selling trimethoprim,
disinfectants, phenylamino, methyl, ODB, sulfamethoxazole, omeprazole,
metformin hydrochloride, itraconazole, hydrochloric acid buflomedil, clozapine,
lansoprazole, pantoprazole sodium, health food: spirulina; selling its
self-made products.
SC is mainly
engaged in manufacturing and selling API, pharmaceutical intermediates, bromine
compounds, color formers for thermal paper.
SC’s products mainly include:
*Pharmaceutical
Material
Trimethopim(TMP)
Sulfamethoxazole
Itraconazole
Omeprazole
Trimethoprim
lactic Acid
Hydroxyurea
Tramadol
Hydrochloride
*Intermediates
2,3,4,5-tetramethoxytoluene
3,4,5-Trimethoxybenzaldehyde
3,4,5-Trimethoxytoluene
1,3,5-Trimethoxybenzene
2,4-Dihydro-4-[[4-hydroxyphenyl)-1-piperazinyl]-phenyl]-2-(1-methylpropyl)-3H-
89848-21-5
3,5-Dibromo-4-Hydroxybenzaldehyde
P-Bromoanisole
Sodium methoxide
Cis-bromo-ester(Cis-BBD)
1,3,5-Tribromobenzene
2,4,5-Trimethoxybenzaldehyde
4460-86-0
2,4,5-Trimethoxybenzoic
acid
1,2,4-Trimethoxybenzene
M-Bromonitrobenzene
Guanidine nitrate
4-Bromo-3-methyl-anisole
3,4,5-Trimethoxy-2-(methoxymethyl)cinnamonitrile
*Bromine Compounds
Sodium Bromide
N-butyl bromide
Hydrobromic Acid
N-Propyl Bromide
Iso-propyl bromide(2-bromopropane)
Bromoethane (Ethyl
bromide)
1-Bromo-3-Chloropropane
Potassium Bromid
1,2-Dibromoethane(Ethylene
bromide)
*Color formers for
thermal paper
2-phenylamino-3-methyl-6-di-n-butylaminofluoran
(odb-2; senor-2) Color formers for thermal paper 89331-94-2
4-hydroxy-4'-isopropoxydiphenylsulfone(D-8)
developer
2-(2'-4'-dimethylbenzeneamido)-3-methyl-6-(diethyl
amino) fluorine
Benzyl 2-naphthyl
ether(BON) sensitizer
Ethylene glycol
bis m-tolye ether (EGTE) sensitizer
TMP is the main
product of SC; it covers 80% of Chinese market and 55% of total output around
world. SC’s TMP can meet the standards of BP98 & EP4; the annual output is
1,600 tons. At present, SC’s TMP has been well-received by over 300 clients in
26 provinces of China, and has been exported to over 42 countries such as
Germany, USA, Japan and Britain.
SC sources its
materials 100% from domestic market. SC sells 60% of its products in domestic
market and 40% to overseas market, mainly Germany, U.S.A., Japan and U.K.
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. 1,000 staff
at present.
SC owns an area as
its operating office & factory of approx. 16,000 sq. meters at the heading
address.
RELATED COMPANY
Shandong Ruikang Specialty Chemicals Co., Ltd. (literal translation)
Registration No.: 370783400000274
Date of Registration: July 23, 2004
Legal Form: One-person Limited Liabilities
Company
Registered Capital: CNY 54,330,000
Legal Representative: Yang Lei
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:
Construction Bank of China Shouguang Sub-Branch
AC#: 3600165225000100451
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
155,295 |
271,837 |
|
|
Short-term investment |
100 |
150 |
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
95,935 |
100,194 |
|
Advances to
suppliers |
8,506 |
8,506 |
|
Other receivable |
170,896 |
229,342 |
|
Subsidy
receivable |
0 |
0 |
|
Inventory |
172,779 |
159,344 |
|
Prepaid
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
603,511 |
769,373 |
|
Long-term
investment |
10,240 |
10,240 |
|
Fixed assets |
208,148 |
206,846 |
|
Construction in
progress |
35,485 |
59,917 |
|
Intangible
assets |
5,145 |
34,065 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
862,529 |
1,080,441 |
|
|
============= |
============= |
|
Short-term loans |
503,503 |
622,504 |
|
Notes payable |
233,287 |
396,829 |
|
Accounts payable |
-5,284 |
-94,111 |
|
Wages payable |
29 |
29 |
|
Taxes payable |
-6,388 |
-12,778 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
10,109 |
1,430 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
735,256 |
913,903 |
|
Non-current
liabilities |
368 |
100,368 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
735,624 |
1,014,271 |
|
Equities |
126,905 |
66,170 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
862,529 |
1,080,441 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
1,004,887 |
|
Cost of sales |
983,359 |
|
Taxes and surcharges |
2,116 |
|
Sales expense |
16,275 |
|
Management expense |
42,099 |
|
Finance expense |
39,828 |
|
Profit before
tax |
-59,744 |
|
Less: profit tax |
0 |
|
-59,744 |
Financial Summary
|
Unit: CNY’000 |
As
of Jun. 30, 2013 |
|
Long term investment |
10,240 |
|
Total assets |
987,532 |
|
|
------------- |
|
Total
liabilities |
916,464 |
|
Equities |
71,068 |
|
|
------------- |
|
Unit: CNY’000 |
Jan. 1 2013 to Jun. 30, 2013 |
|
Revenue |
374,985 |
|
Profit before
tax |
1,652 |
|
Less: profit tax |
0 |
|
Profits |
1,652 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Jun. 30, 2013 |
|
*Current ratio |
0.82 |
0.84 |
-- |
|
*Quick ratio |
0.59 |
0.67 |
-- |
|
*Liabilities
to assets |
0.85 |
0.94 |
0.93 |
|
*Net profit
margin (%) |
-- |
-5.95 |
0.44 |
|
*Return on total
assets (%) |
-- |
-5.53 |
0.17 |
|
*Inventory /
Revenue ×365 |
-- |
58 days |
-- |
|
*Accounts
receivable / Revenue ×365 |
-- |
37 days |
-- |
|
*Revenue /
Total assets |
-- |
0.93 |
0.38 |
|
*Cost of sales
/ Revenue |
-- |
0.98 |
-- |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is fairly high in 2011,
comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear large.
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 fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with
fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.96 |
|
UK Pound |
1 |
Rs.101.14 |
|
Euro |
1 |
Rs.85.33 |
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.