MIRA
INFORM REPORT
|
Report Date : |
26.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG JINCHENG PHARMACEUTICAL &
CHEMICAL CO., LTD. |
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|
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Registered Office : |
3/F, Office Building Of Jincheng Group, Economic,
Development Zone, Zichuan District,
Zibo, Shandong Province, 255100 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.01.2004 |
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Com. Reg. No.: |
370300018517205 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling pharmaceutical and chemical products |
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No. of Employees : |
1602 |
RATING & COMMENTS
|
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 |
|
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 |
|
Insignificant |
A1 |
|
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 & address
SHANDONG JINCHENG PHARMACEUTICAL & CHEMICAL CO., LTD.
3/f, office
building of jincheng group, economic development zone, ZICHUAN DISTRICT, ZIBO, SHANDONG PROVINCE,
255100 PR CHINA
TEL: 86 (0)
533-5773517/13853311387
FAX: 86 (0)
533-5776517
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 12, 2004
REGISTRATION NO. : 370300018517205
REGISTERED LEGAL FORM : SHARES
LIMITED COMPANY
CHIEF EXECUTIVE : MR. ZHAO YEQING (CHAIRMAN)
STAFF STRENGTH : 1,602
REGISTERED CAPITAL :
CNY 121,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 799,332,000 (Consolidated, AS OF DEC. 31, 2012)
EQUITIES : CNY 975,565,000 (Consolidated, AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.15 = 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 - room 310 is the address of SC’s one department.
SC was registered as a Limited Liability Company at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Jan. 12, 2004 and has been under present legal form since 2008.
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 China.. Natural person are allowed to
serve as promoters. 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 shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope
includes manufacturing and selling controlled chemicals (ATMAA, carbodiimide,
TAEM, MAEM, TTZ and SMIA); import and export business.
SC is mainly engaged
in manufacturing and selling pharmaceutical and chemical products.
Mr. Zhao Yeqing has been legal representative and chairman of SC since
2008.
SC is known to have approx. 1,602 employees at present,
including 348 technicians, 258 management staff, 909 workers, 19 sales
representatives and 68 other staffs.
SC
is currently operating at the above stated address, and
this address houses its operating office in the economic development zone of
Zibo. The detailed information of the premise is unspecified.
Factory
address: No. 26, Kunxin Road, Kunlun Town, Zichuan District, Zibo, Shandong
Province
http://www.jinchengpharm.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: jcpc@jinchengpharm.com
SC was awarded as The Key High-New Tech Enterprise of National Torch
plans, Top 500 of Chinese Chemical Enterprises, TOP 100 of Chinese
Pharmaceutical API Industry, TOP100 of Chinese Chemical API and Intermediates
Industry, The National Post-doctoral Scientific research station Cefixime item
has been list in the “National Spark plan”, Enterprise technical centre of
Shandong Province, The Engineering and Technology Research Center of
Cephalosporin intermediates of Shandong Province, Abide Contract and Regard for
Credit Enterprise of Shandong Province, The patent star enterprise of Shandong
Province, Excellent Enterprise of Shandong Province for Management Innovation,
The Advanced Unit for Secure Production and Management of Zibo City, The
products of Ceftazidime and Cefixime has been listed in the “National Key New
Products”, DCC won Golden Prize of National High-New Technical Patents, MAEM、SMIA has been listed in the “National Torch Plan”, The
Star Industry Enterprise of Zibo City, etc.
Changes of its
registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
2006-4-29 |
Registered capital |
CNY 10,000,000 |
CNY 36,000,000 |
|
2007-11-22 |
Registered capital |
CNY 36,000,000 |
CNY 45,000,000 |
|
2008-2-28 |
SC’s Chinese name |
山东金城医药化工有限公司 |
山东金城医药化工股份有限公司 |
|
Registered legal form |
Limited liability company |
Shares limited company |
|
|
Registered capital |
CNY 45,000,00 |
CNY 90,000,000 |
|
|
Legal representative |
Zhao Hongfu |
Zhao Yeqing |
|
|
2011-6 |
Registered capital |
CNY 90,000,000 |
Present amount |
Note: SC changed its Chinese name in 2008, while its English name
remains the same.
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 300233.
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS: (As of Mar. 31, 2013)
Name %
of Shareholding
Zibo Jincheng Industry Co., Ltd. 39.32
Shanghai Fosun Pharmaceutical Development Co., Ltd. 9.87
Zhao Hongfu 5.69
Qingdao Fuhe Investment Co., Ltd. 5.45
Industrial & Commercial Bank of China
– Nuoan Stock Securities Investment Fund 2.75
Zhang Xuebo 2.68
Zhao Yeqing 1.79
Industrial Bank Co., Ltd.
– Xingquan Tendency Investment
Mixed Securities Investment Fund 1.05
Huang Hongzhi 0.94
Zhang Dongjin 0.91
Other shareholders 29.55
Zibo Jincheng Industry Co., Ltd.
=======================
Registered no.: 370000018043621
Legal representative: Zhao Hongfu
Registered capital: CNY 23,846,550
Date of incorporation: 1993-7-8
Tel: 0533-5415977 Fax: 0533-5439726
Address: Zichuan Economic Development
Zone, Zibo, Shandong Province
Web: http://www.jinchenggroup.com/
Email: zibojincheng@126.com
Legal
representative and Chairman:
Mr. Zhao Yeqing, ID#
370302197605067713, born in 1976, with Master’s Degree. He is currently
responsible for the overall management of SC.
Working
Experience(s):
From 2008 to present Working in SC as legal representative and chairman
Also working in Shandong Jincheng
Bio-pharmaceutical Co., Ltd. as legal representative
General Manager:
Mr. Zhang Xuebo, born in 1963, with MBA
Degree, engineer. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager
Directors:
Guo Fangshui
Zhao Hongfu
Li Jiaquan
Etc.
Supervisors:
Wang Kai
Yang Zhiyuan
Hu Yanping
SC is mainly engaged in manufacturing and selling pharmaceutical and chemical products.
SC’s products mainly include: basic chemical, pharmaceutical intermediates, etc.
SC sources its materials 70% from
domestic market, and 30% from overseas market. SC sells 60% of its products in
domestic market, and 40% to overseas market, mainly Europe, America, and
Southeast Asia.
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.
*Major Supplier:
=============
Shandong Jincheng Construction Co., Ltd.
*Major Customers:
==============
Harbin Pharmaceutical Group Co., Ltd. General Pharm. Factory
Qilu Antibiotics Pharmaceutical Co., Ltd.
Zhuhai United Laboratories Co., Ltd.
SC is known to have the following subsidiaries:
Shandong Jincheng Kerui Chemical Co., Ltd.
-------------------------------------------------------
Registered no.: 370300018517369
Shandong Huihai Pharmaceutical & Chemical Co., Ltd.
-------------------------------------------------------------------
Registered no.: 370503018053238
Shandong
Jincheng Bio-pharmaceutical Co., Ltd.
-----------------------------------------------------------
Registered
no.: 370300000001063
Legal
representative: Zhao Yeqing
Web:
http://www.jinchengbiopharm.com
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’s
supplier declined to make any commends, so the trade reference is not
available.
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
declined to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Cash & bank |
458,051 |
441,351 |
|
Bills receivable |
25,690 |
27,179 |
|
Inventory |
106,486 |
94,580 |
|
Accounts
receivable |
213,088 |
264,493 |
|
Interest
receivable |
0 |
1,763 |
|
Advances to
suppliers |
35,139 |
33,548 |
|
Other
receivables |
3,049 |
2,235 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
--------------- |
|
Current assets |
841,503 |
865,149 |
|
Fixed assets net
value |
452,779 |
475,908 |
|
Projects under
construction |
19,930 |
44,899 |
|
Long-term
investment |
0 |
0 |
|
Project
materials |
0 |
160 |
|
Intangible assets |
79,625 |
80,169 |
|
Deferred tax
debit |
4,358 |
3,539 |
|
Other assets |
0 |
0 |
|
|
------------------ |
-------------- |
|
Total assets |
1,398,195 |
1,469,824 |
|
|
============= |
============ |
|
Short loans |
201,000 |
247,900 |
|
Bills payable |
22,200 |
8,000 |
|
Accounts payable |
148,612 |
152,185 |
|
Advances from
clients |
607 |
1,349 |
|
Taxes payable |
-4,004 |
7,081 |
|
Salaries and
welfare payable |
14,171 |
19,762 |
|
Other payable |
3,765 |
4,799 |
|
Due within one year
of non-current liabilities |
0 |
7,000 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------- |
|
Current
liabilities |
386,351 |
448,076 |
|
Long term
liabilities |
53,004 |
46,183 |
|
|
------------------ |
------------------- |
|
Total
liabilities |
439,355 |
494,259 |
|
Equities |
958,840 |
975,565 |
|
|
------------------ |
------------------- |
|
Total
liabilities & equities |
1,398,195 |
1,469,824 |
|
|
============= |
=========== |
Consolidated
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Turnover |
788,421 |
799,332 |
|
Cost of goods
sold |
616,684 |
610,254 |
|
Taxes
and additional of main operation |
3,371 |
4,739 |
|
Sales expense |
14,781 |
14,781 |
|
Management expense |
84,318 |
118,208 |
|
Finance expense |
19,830 |
8,221 |
|
Asset impairment loss |
1,242 |
3,440 |
|
Non-operating
income |
17,639 |
15,421 |
|
Non-operating expense |
474 |
5,378 |
|
Profit before
tax |
65,360 |
49,732 |
|
Less: profit tax |
9,369 |
8,121 |
|
Profits |
55,991 |
41,611 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
2.18 |
1.93 |
|
*Quick ratio |
1.90 |
1.72 |
|
*Liabilities
to assets |
0.31 |
0.34 |
|
*Net profit
margin (%) |
7.10 |
5.21 |
|
*Return on
total assets (%) |
4.00 |
2.83 |
|
*Inventory
/Turnover ×365 |
50 days |
44 days |
|
*Accounts
receivable/Turnover ×365 |
99 days |
121 days |
|
*Turnover/Total
assets |
0.56 |
0.54 |
|
* Cost of
goods sold/Turnover |
0.78 |
0.76 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
and it increased in 2012.
l
SC’s net profit margin is fairly good in both
years.
l
SC’s return on total assets is average in both
years.
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 in 2012.
l
SC’s quick ratio is maintained in a fairly good
level in both years.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears fairly large
in both years.
l
The short-term loan of SC appears fairly large in
both years.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly stable
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of short-term loan and accounts receivable could
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
UK Pound |
1 |
Rs.92.25 |
|
Euro |
1 |
Rs.78.38 |
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.