MIRA
INFORM REPORT
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Report Date : |
10.01.2013 |
IDENTIFICATION DETAILS
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Name : |
HE’NAN KANGTAI PHARMACEUTICAL GROUP CORP. |
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Registered Office : |
No. 338, Kangtai Road, Sishui Town, Xingyang,
He’nan Province, 450141 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
15.01.1994 |
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Com. Reg. No.: |
410183000003793 |
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Legal Form : |
Collective-Owned
Enterprise |
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Line of Business : |
manufacturing and selling bulk drugs |
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No. of Employees : |
203 employees |
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 : |
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 – June 30th, 2012
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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 2010 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 near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. 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
HE’NAN
KANGTAI PHARMACEUTICAL GROUP CORP.
NO. 338, KANGTAI ROAD, SISHUI TOWN,
XINGYANG, HE’NAN PROVINCE, 450141 PR CHINA
TEL: 86 (0) 371-64899527 FAX: 86 (0) 371-64899316
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN.
15, 1994
REGISTRATION NO. : 410183000003793
REGISTERED LEGAL FORM : COLLECTIVE-OWNED
ENTERPRISE
STAFF STRENGTH : 203
REGISTERED CAPITAL : CNY 52,230,000
BUSINESS LINE : MANUFACTURING AND TRADING
TURNOVER :
CNY 85,920,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 28,180,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.2461=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 Ren Min Bi
SC was registered as a collective-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Jan. 15, 1994.
Company Status: Collective-owned enterprise This form of business in PR
China is defined as a legal person. It is a private held entity owned by a
set number of private individuals (usually employees of the co., residents
of a village or town), domestic business organizations or domestic
institutions. The general manager who was appointed by the employees
representative meeting manages the co. The laboring masses work together
based on the principle of distribution according to work, reasonably share
the profit, and win certain accumulated public fund. The collective-owned
enterprise is independent economic organization and legal corporation
engaged in production & operation activities and independent
accounting, with self-management and self-responsibility for the profit and
loss.
SC’s registered business scope includes manufacturing and selling: bulk drugs (norfloxacin, mesylate gatifloxacin) (with permit if needed), exporting self-produced products and related technologies; importing raw and auxiliary materials, instruments, machinery, equipment, spare parts and related technologies needed by production and research (excluding the items limited or prohibited by the state).
SC is mainly engaged in manufacturing and selling bulk drugs.
Mr. Zhou Zhenjiang is the legal representative, chairman and general manager at present.
SC is known to have approx. 203 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in Xingyang. Our checks reveal that SC owns the
total premise about 10,000 square meters.
http://www.ktpharm.com The design
is professional and the content is well organized. At present it is in Chinese
and English versions.
E-mail: info@ktpharm.com
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
SC has got the certificates of
Etc.
MAIN
SHAREHOLDERS:
Name
% of shareholdings
He’nan Province Fine Chemical Factory 86.79
Xingyang Kangtai Medicinal Factory 12.92
Xingyang Chemical Synthesis Research Institute 0.29
Legal
Representative, Chairman and General Manager:
Mr. Zhou Zhenjiang, in his
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager.
SC is mainly engaged in manufacturing and selling bulk drugs.
SC’s products mainly include: norfloxacin lactate, norfloxacin nicotinate, norfloxacin, gatifloxacin mesylate, pazufloxacin mesylate, balofloxacin, norfloxacin hcl, norfloxacin lactate, etc.
SC sources its materials 100% from domestic market. SC sells 80% of its products in domestic market, and 20% to overseas market, mainly India.
The buying terms of SC include Check, T/T 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 suppliers and clients.
SC is not known to have any subsidiary at present.
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.
Industrial and Commercial Bank of China Xingyang Sub-branch
AC#：1702028809006639825
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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as of Dec. 31, 2010 |
as of Dec. 31, 2011 |
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Cash & bank |
6,500 |
2,760 |
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Notes receivable |
580 |
1,710 |
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Inventory |
12,480 |
16,120 |
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Accounts
receivable |
-250 |
3,420 |
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Advances to
suppliers |
9,260 |
9,320 |
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Other
receivables |
2,180 |
430 |
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Other current
assets |
800 |
3,080 |
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------------------ |
------------------ |
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Current assets |
31,550 |
36,840 |
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Long-term
investments |
0 |
0 |
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Fixed assets net
value |
16,760 |
15,720 |
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Projects under
construction |
0 |
790 |
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Intangible
assets |
8,490 |
8,490 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
56,800 |
61,840 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
490 |
7,020 |
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Advances from
customers |
0 |
0 |
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Employee
payable |
710 |
1,550 |
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Taxes payable |
80 |
40 |
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Other accounts
payable |
16,380 |
18,250 |
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Other
current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
17,660 |
26,860 |
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Long term
liabilities |
6,800 |
6,800 |
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------------------ |
------------------ |
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Total
liabilities |
24,460 |
33,660 |
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Shareholders
equities |
32,340 |
28,180 |
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------------------ |
------------------ |
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Total
liabilities & equities |
56,800 |
61,840 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
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Turnover |
85,920 |
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Cost of goods
sold |
82,540 |
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Taxes
and additional of main operation |
60 |
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Sales expense |
1,670 |
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Management expense |
5,220 |
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Finance expense |
140 |
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Non-operating
income |
120 |
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Non-operating expense |
0 |
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Profit before
tax |
-3,590 |
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Less: profit tax |
0 |
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Net profit |
-3,590 |
Important
Ratios
=============
|
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
*Current ratio |
1.79 |
1.37 |
|
*Quick ratio |
1.08 |
0.77 |
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*Liabilities
to assets |
0.43 |
0.54 |
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*Net profit
margin (%) |
/ |
-4.18 |
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*Return on
total assets (%) |
/ |
-5.81 |
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*Inventory
/Turnover ×365 |
/ |
69 days |
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*Accounts
receivable/Turnover ×365 |
/ |
15 days |
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*Turnover/Total
assets |
/ |
1.39 |
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* Cost of
goods sold/Turnover |
/ |
0.96 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line in
2011.
l
SC’s net profit margin is fair in 2011.
l
SC’s return on total assets is fair in 2011.
l
SC’s cost of goods sold is high in 2011, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
The quick ratio of SC is maintained in a normal
level in 2010, but fair in 2011.
l
The inventory of SC appears fairly large in both
years.
l
The accounts receivable of SC appears average in 2011.
l
SC has no short-term loan in both years.
l
SC’s turnover is in an average level in 2011,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low in 2010 and average 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.96 |
|
UK Pound |
1 |
Rs.88.23 |
|
Euro |
1 |
Rs.71.92 |
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 |
|
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.