MIRA
INFORM REPORT
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Report Date : |
18.06.2013 |
IDENTIFICATION DETAILS
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Name : |
THE UNITED LABORATORIES ( |
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Registered Office : |
No. 1 South Section, Fuyuan Road, Linhe Economic & Technology Park, Bayan Nur City, Inner Mongolia, 015000 Pr |
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Country : |
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Financials (as on) : |
2010 |
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Date of Incorporation : |
09.02.2007 |
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Com. Reg. No.: |
150000400000092 |
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Legal Form : |
Wholly Foreign Owned |
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Line of Business : |
producing and selling chemical medicine materials and preparations, antibiotic medicine materials and preparations and Chinese medicine |
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No. of Employees : |
2600 |
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 – March 31st 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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
The United Laboratories (Inner MongolIa) Co., Ltd.
NO. 1 SOUTH
SECTION, FUYUAN ROAD, LINHE ECONOMIC & TECHNOLOGY PARK,
Bayan Nur CITY, Inner MongolIa, 015000 PR CHINA
TEL: 86 (0)
478-2266333 FAX: 86 (0) 478-2266985
EXECUTIVE SUMMARY
INCORPORATION DATE :
FEB. 9, 2007
REGISTRATION NO. : 150000400000092
REGISTERED LEGAL
FORM : WHOLLY FOREIGN OWNED ENTERPRISE
STAFF STRENGTH : 2,600
REGISTERED CAPITAL :
CNY 1,380,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY
1,461,516,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 1,152,996,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY
STABLE (AS OF DEC. 31, 2010)
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.12 = 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
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SC was registered as a wholly foreign owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Feb. 9, 2007.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise management,
reap profit and bear risks and liabilities by themselves. This form of
companies usually have a limited duration is extendible upon approval of
Examination and Approval Authorities.
SC’s registered
business scope includes production of raw material medicine, tablets, hard
capsules, granules; the production of 6--APA, potassium clavulanate, new energy
saving and environmental protection building materials; high-strength
lightweight wall materials, high-grade environment-friendly decoration, decoration
material, high quality waterproof sealing material, effective thermal
insulation materials and products produced in domestic, international
pharmaceutical business.
SC
is mainly engaged in producing and selling chemical medicine materials and preparations,
antibiotic medicine materials and preparations and Chinese medicine.
Mr. Cai Jinle has
been chairman of SC since 2007.
SC is known to
have approx. 2,600 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the development zone of Bayan Nur City. Our
checks reveal that SC owns the total premise about 280,000 square meters.
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SC
is not known to host website of its own at present.
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Changes of its
registered information are as follows:
|
Date |
Item |
Before the
change |
After the change |
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2007-9 |
Registered capital |
CNY 50,000,000 |
CNY 160,000,000 |
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Registered no. |
000998 |
Present one |
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2007-11 |
Registered capital |
CNY 160,000,000 |
CNY 320,000,000 |
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2009-5 |
Registered capital |
CNY 320,000,000 |
CNY 480,000,000 |
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2011-1 |
Registered capital |
CNY 480,000,000 |
CNY 680,000,000 |
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2011-9 |
Registered capital |
CNY 680,000,000 |
Present amount |
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MAIN
SHAREHOLDERS:
Name %
of Shareholding
Bear World Limited (Hong Kong) 100
Registered number: 0537887
Incorporated date: Feb. 1, 1996
Legal form: Private
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Chairman and General
Manager:
Mr. Cai Jinle, Hong Kong resident, ID# G119081(3), in his 50’s with
university education. He is currently responsible for the overall management of
SC.
Working
Experience(s):
From 2007 to present Working
in SC as chairman and general manager.
*1990 Founded Hong Kong United Laboratories Co., Ltd. and took up the post of Board Chairman & General Manager
*1991 The products of Hong Kong United Laboratories Co., Ltd entered the mainland market of China; successfully introduced the advanced management experience, and promoted development of the domestic pharmaceutical industry
*1993 To establish SC.
*1994 Established the United Laboratories (China) sales department.
*1995 Assumed the office of Shenyang Pharmaceutical University deputy board chairman and Prof. Hon. Of its Business Administration Academe.
*1996 Assumed the office of China Pharmaceutical University deputy board chairman
*1996 Assumed the office of Wuhan Tongji Pharmaceutical University Prof. Hon.
*1997 Awarded as "Honorary citizen of Zhuhai City" by Zhuhai Municipal People's government
*1998 Engaged by 36 medicine academies as their Prof. Hon.
*1998 Assumed the office of Guangdong Overseas Friendship Association Vice Chairman
*1999 Assumed the office of Council Member of the Guangdong Political Consultative Conference
*2002 Have made outstanding achievements in Patriotism theory and practice, be awarded as “Patriotic Star” by Chinese Patriotic Association Works.
Also working in United
Laboratories (Chengdu) Co., Ltd. and Zhuhai United Laboratories Co., Ltd. as
legal representative, and in Zhuhai United Laboratories Co., Ltd. Zhongshan
Branch as principal.
Directors:
========
Cai Haishan
Liang Yongkang
%20CO%20,%20LTD%20%20-%20225272%2018-Jun-2013_files/image018.gif){kind=small}
SC is mainly engaged in producing and selling chemical medicine materials and preparations, antibiotic medicine materials and preparations and Chinese medicine.
SC’s products mainly include: chemical medicine materials and preparations, antibiotic medicine materials and preparations and Chinese medicine.
SC sources its materials 99% from domestic market, and 1% from the overseas market, mainly European countries. SC sells 90% of its products in domestic market, and 10% to the overseas market, mainly Southeast Asia, American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note: SC’s management declined to release its main clients and
suppliers.
%20CO%20,%20LTD%20%20-%20225272%2018-Jun-2013_files/image019.gif){kind=small}
The
United Laboratories International Holdings Limited (Cayman Islands)
·
United Laboratories (Chengdu) Co., Ltd.
Zhuhai United
Laboratories Co., Ltd.
%20CO%20,%20LTD%20%20-%20225272%2018-Jun-2013_files/image020.gif){kind=small}
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.
%20CO%20,%20LTD%20%20-%20225272%2018-Jun-2013_files/image021.gif){kind=small}
SC’s management
declined to release its bank information.
%20CO%20,%20LTD%20%20-%20225272%2018-Jun-2013_files/image022.gif){kind=small}
Financial summary
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Unit CNY’000
2009 2010
Total
liabilities 1,635,834 1,809,507
Equities 510,847 1,152,996
Total
liabilities & equities 2,146,681 2,962,503
Turnover 880,054 1,461,516
Profit before
tax 146,041 288,170
Profits 146,041 258,119
Note: SC’s management declined to release the latest financial
information.
Important
Ratios
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2009 |
2010 |
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*Liabilities
to assets |
0.76 |
0.61 |
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*Net profit
margin (%) |
16.59 |
17.66 |
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*Return on total
assets (%) |
6.80 |
8.71 |
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*Turnover/Total
assets |
0.41 |
0.49 |
%20CO%20,%20LTD%20%20-%20225272%2018-Jun-2013_files/image023.gif){kind=small}
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2009, and
good in 2010.
l
SC’s net profit margin is good.
l
SC’s return on total assets is fairly good.
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 in 2010.
l
The risk for SC to go bankrupt is average.
Overall financial condition
of the SC: Fairly stable.
%20CO%20,%20LTD%20%20-%20225272%2018-Jun-2013_files/image024.gif){kind=small}
SC is considered large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.57.73 |
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UK Pound |
1 |
Rs.90.61 |
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Euro |
1 |
Rs.76.96 |
INFORMATION DETAILS
|
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.