MIRA
INFORM REPORT
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Report Date : |
31.12.2013 |
IDENTIFICATION DETAILS
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Name : |
NINGBO RENJIAN PHARMACEUTICAL GROUP CO., LTD.
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.12.1991 |
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Com. Reg. No.: |
330200400021817 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing and selling of pharmaceutical products such as Formulations, APIs & Intermediates |
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No. of Employees : |
200 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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
NINGBO RENJIAN PHARMACEUTICAL GROUP CO., LTD.
NO. 555 CHANGCHI ROAD, CIXI, ZHEJIANG PROVINCE, 315300 PR
CHINA
TEL: 86 (0) 574-63976065/63976073 FAX: 86 (0) 574-63976066
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 12, 1991
REGISTRATION NO. :
330200400021817
REGISTERED LEGAL FORM : SHARES LIMITED CO.
CHIEF EXECUTIVE :
MR. CEN YAOYUN (CHAIRMAN)
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 81,600,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 72,150,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 113,640,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.0794= 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 shareholding, 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 5M. while that of the co. with foreign investment is CNY 5M.
The total capital of a co. which propose to apply for publicly listed must
be no less than CNY 30M. 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 manufacturing
freeze-dried power injection, small-volume injection, crude drug; manufacturing
medical intermediates.
SC is mainly engaged in manufacturing
and selling pharmaceutical products.
Mr.
Cen Yaoyun is the legal representative and chairman of SC at present.
SC is known to
have approx. 200 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 Cixi. Detailed premise information is unspecified.
www.rjpharm.com The design is professional and the content is
well organized. At present it is in Chinese and English versions.
Email: sales@rjpharm.com
According to SC’s website, SC’s predecessor is Ningbo Biological
Chemical Pharmaceutical Factory
Changes
of its registered information are as follows:
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Date
of change |
Item |
Before the
change |
After the change |
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2012-9 |
Company name |
宁波人健药业集团有限公司 |
Present one |
Note: SC changed its Chinese name but with the same English name.
Honors
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SC passed ISO 14001:2004 and GMP
Tax No.: 330282713302594
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cen Jian 45
Cen Yaoyun 29.999
Maxgrowth International
Development Limited (Hong Kong) 15
Jiuding Makemake Limited (Hong
Kong) 8
Vertex China Capital Limited (Hong Kong) 2
Cixi Tianyi Building Materials Co., Ltd.
(literal translation) 0.001
Maxgrowth International
Development Limited (Hong Kong)
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Reg. No.: 1079806
Legal form: Private
Jiuding Makemake Limited (Hong
Kong)
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Reg. No.: 1513620
Legal form: Private
Vertex China Capital Limited (Hong Kong)
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Reg. No.: 1360883
Legal form: Private
Cixi Tianyi Building Materials Co., Ltd.
(literal translation)
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Reg. No.: 330200400070420
Legal representative: Cen Jian
Legal
representative and chairman:
Mr. Cen Yaoyun is currently responsible for the overall
management of SC.
Working
Experience(s):
At present Working
in SC as legal representative and chairman
President:
Mr. Cen Jian is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as president
Also working in
Cixi Tianyi Building Materials Co., Ltd. as legal representative
SC is mainly engaged in
manufacturing and selling pharmaceutical products.
SC’s products
mainly include:
Formulations
Chorionic gonadotrophin for injection
Menotrophin for injection
Oxytocin injection
Pamidronate disodium injection
Ethylenediamine diaceturate injection
APIs
Chorionic gonadotrophin
Menotrophin
Menotrophin
Heparin sodium
Powdered posterior pituitary
Oxytocin solution
Intermediates
Ambrisentan intermediate
Bazedoxifene intermediate
Bicalutamide intermediate
Fexofenadine intermediate
Etc.
SC
sources its materials 100% from domestic market. SC sells 40% of its products
in domestic market and 60% 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, Check, L/C and Credit of 30-60
days.
Note:
SC’s management refused to release its major suppliers and clients.
Ningbo Renjian Pharmaceutical Chemical Co., Ltd.
==================================
Reg.
No.: 330200400040946
Incorporation
date: USD 12,100,000
Legal
representative: Weng Weijie
Incorporation
date: Aug. 5, 2005
Ningbo
Janwell Pharmaceutical Co., Ltd.
==================================
Reg.
No.: 330200400039559
Incorporation
date: CNY 10,000,000
Legal
representative: Qian Xianbo
Incorporation
date: June 3, 2009
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’s management
refused to release its banking information.
Balance Sheet
Unit: CNY’000
Income Statement
Unit: CNY’000
Important Ratios
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As
of Dec. 31, 2012 |
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*Current ratio |
0.77 |
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*Quick ratio |
0.48 |
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*Liabilities
to assets |
0.47 |
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*Net profit margin
(%) |
2.73 |
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*Return on
total assets (%) |
0.91 |
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*Inventory
/Turnover ×365 |
151 days |
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*Accounts
receivable/Turnover ×365 |
29 days |
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*Turnover/Total
assets |
0.33 |
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* Cost of
goods sold/Turnover |
0.70 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average 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 goods sold is average, comparing with
its turnover.
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 large in 2012.
l
SC’s accounts receivable appears average in 2012
l
SC’s short loan is large in 2012.
l
SC’s turnover is in a poor level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
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. The large amount of short loan would be the threat to SC’s
financial condition. Taking into consideration of SC’s general performance and
operation size, we would rate SC as an average credit risk company.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.00 |
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UK Pound |
1 |
Rs.102.17 |
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Euro |
1 |
Rs.85.19 |
INFORMATION DETAILS
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Report Prepared
by : |
MNL |
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 |
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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 |
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NB |
New Business |
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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.