MIRA
INFORM REPORT
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Report Date : |
28.06.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG XIANJU PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 1, Xianyao Road, Xianju County, Taizhou, Zhejiang Province, 317300 Pr |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
26.06.2000 |
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Com. Reg. No.: |
330000000001311 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject engaged in manufacturing and selling API and pharmaceutical preparation. |
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No. of Employees : |
2,836 (including MAIN subsidiaries) |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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Risk Category |
ECGC
Classification |
|
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
Source
: CIA
Company name and address
ZHEJIANG XIANJU PHARMACEUTICAL Co., Ltd.
NO. 1, XIANYAO
ROAD, XIANJU COUNTY, Taizhou,
ZHEJIANG PROVINCE,
317300 PR CHINA
TEL: 86 (0)
576-87731178 FAX: 86 (0)
576-87731187
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 26, 2000
REGISTRATION NO. : 330000000001311
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
2,836 (including MAIN subsidiaries)
REGISTERED CAPITAL : CNY 341,400,000
BUSINESS LINE :
MANUFACTURING & SELLING
TURNOVER :
CNY 1,992,192,000 (CONSOLIDATED, AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,202,611,000 (CONSOLIDATED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
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: SC’s correct name should be the heading one.
SC was registered as a limited liability company at Zhejiang
Provincial Administration for Industry & Commerce (AIC - The official body
of issuing and renewing business license) on June 26, 2000, and has been under
present ownership since 2001.
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 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 medicine and pharmaceutical intermediates,
selling chemicals, hardware and packing materials; technology services,
installing equipment; importing and exporting business.
SC is mainly
engaged in manufacturing and selling API and pharmaceutical preparation.
Mr. Jin
Jingde has been legal representative and
chairman of SC since 2000.
SC is known
to have approx. 2,836 employees at present, including the ones in its main
subsidiaries.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Taizhou. The detailed
information of the premise is unspecified.
http://www.xjpharma.com/ The design is professional and the content is
well organized. At present it is in Chinese and English versions.
Email: online@xjpharma.com
Changes
of its registered information:
|
Date |
Item |
Before the change |
After the change |
|
2001 |
Company name |
Xianju Pharmaceutical Co., Ltd. |
Present one |
|
Registered legal form |
Limited Liability Company |
Present one |
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|
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Registration number |
3300001008383 |
Present one |
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Registered capital |
CNY 256,000,000 |
Present amount |
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002332.
Tax Registration Certificate No.: 331024704789222
Organization Code: 70478922-2
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (as of Mar. 31, 2013)
Name %
of Shareholding
Xianju State-owned Assets Investment Group Co., Ltd. 21.55
Jin Jingde
10.41
Zhejiang Medicine Co., Ltd. 6.75
Wang Huanyong 2.69
New China Life Insurance Company Limited – Dividend - Individual
Dividend
Zhang Qi 1.84
Gu Shiyun 1.71
Fan Minhua 1.43
Industrial and Commercial Bank of China - Huitianfu Growth Focus
Equity Securities Investment Fund 1.39
Zhang Guoan
1.35
Other shareholders 48.42
Xianju State-owned Assets Investment Group Co., Ltd.
========================================
Registration No.: 331024000015429
Chairman: Chen Jian
Incorporation Date: June 17, 1993
Its former name was Zhejiang Xianju Assets Administration &
Management Corporation
Zhejiang Medicine Co., Ltd.
====================
It is a listed company in Shanghai Stock
Exchange Market with the code of 600216
Registration No.: 330000000048605
Chairman: Li Chunbo
Incorporation Date: May 16, 1997
Web: http://www.china-zmc.com/
Add: 268 Dengyun Road, Gongshu District,
Hangzhou, Zhejiang
Tel: (+86)-571-87220660 Fax: (+86)-571-87213793
l
Legal representative and Chairman:
Mr. Jin Jingde , senior engineer, born in 1948,
with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
Mr. Jin Jingde was the representative of the 8th
National People’s Congress and the senior engineer. Having injected significant
vigor and vitality into the company’s development and prosperity, he has been
conferred numerous glorious titles including “May
From 2000 to present Working
in SC as chairman and legal representative
Also
working in Zhejiang Tiantai Pharmaceutical Co., Ltd., Shanghai Sanhe
Biotechnology Co., Ltd., Hangzhou Nengke Love Medical Technology Co., Ltd.,
Beijing Xianju Kechuang Gene Technology Co., Ltd. as legal representative and
chairman, etc.
l
General manager:
Mr. Zhang Yusong , engineer, born in 1970
with university education. He is currently responsible for the daily management
of SC.
Working Experience(s):
From 2000 to present Working
in SC as general manager
Also
working in Zhejiang Xianju Pharmaceutical Sales Co., Ltd., Taizhou Haisheng
Chemicals Co., Ltd., Taizhou Xianju Pharmaceutical Co., Ltd. as legal
representative and chairman, etc.
*Officials:
=======
Name Title
Zhang Nan Director
Zhang Guojun Director
Chen Weiwu Director
Guo Jianying Director
Etc.
SC is mainly
engaged in manufacturing and selling API and pharmaceutical preparation.
SC’s products mainly include: corticoid, Androgen, Estradiol Benzate, Medroxy
Progesterone Acetate, Progesterone, Freeze-drying injection, Dexamethasone
Acetate, and Small capacity injection, etc. SC maintains an annual production
scale of 100 tons of raw material, 100 million capsules and 30 million Aqua
injections.
SC sources its materials 70% from domestic
market, and 30% from overseas market, mainly USA and Europe. SC sells 80% of
its products in domestic market, and 20% to overseas market, mainly Southeast
Asian market.
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.
Note:
SC’s management declined to release its major clients.
*Major Suppliers:
=============
Zhejiang Tiantai Pharmaceutical Co., Ltd.
Taizhou Xianju Pharmaceutical Co., Ltd.
Branch:
Zhejiang Xianju
Pharmaceutical Co., Ltd. Shengnuo Branch
Principal: Wang Junzheng
Incorporation date: July
26, 2007
Registration No.:
331024000000664
Hangzhou Office
Add.: No. 40 Wenyi Road, Hangzhou, Zhejiang
Tel.: 0086-571-88900980
Fax: 0086-571-88900190
SC is known to
invest in the following companies:
Zhejiang Xianju International Co., Ltd.
Zhejiang
Xianju Pharmaceutical Sales Co., Ltd.
Zhejiang
Xianju Pharmaceutical Technology Development Co., Ltd.
Hangzhou
Nengke Love Medical Technology Co., Ltd.
Taizhou
Haisheng Chemicals Co., Ltd.
Zhejiang
Tiantai Pharmaceutical Co., Ltd.
Zhejiang
Xianju Sunshine Biological Products Co., Ltd.
Shanghai
Sanhe Biotechnology Co., Ltd.
Taizhou
Xianju Pharmaceutical Co., Ltd.
Beijing Xianju Kechuang Gene Technology Co.,
Ltd.
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.
Industrial & Commercial Bank of China Xianju Sub-branch
AC#：1207051109021018877
Bank of China
Xianju Sub-branch
AC#：11044608093001
Relationship:
Normal.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
as
of Dec. 31, 2011 |
|
Cash & bank |
304,872 |
437,235 |
|
Inventory |
465,402 |
421,876 |
|
Accounts
receivable |
291,704 |
231,808 |
|
Advances to suppliers |
28,232 |
32,150 |
|
Notes receivable |
157,679 |
66,827 |
|
Other
receivables |
22,474 |
14,780 |
|
Dividends
receivable |
10,689 |
3,360 |
|
Other current
assets |
366 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,281,418 |
1,208,036 |
|
Fixed assets net
value |
387,589 |
353,271 |
|
Projects under
construction |
576,163 |
319,814 |
|
Project
materials |
290 |
154 |
|
Long term
investment |
108,422 |
45,801 |
|
Investment real
estate |
26,164 |
26,997 |
|
Intangible
assets |
49,694 |
52,207 |
|
Long-term
prepaid expenses |
6,007 |
4,077 |
|
Deferred tax
asset |
7,239 |
3,173 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
2,442,986 |
2,013,530 |
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|
============= |
============= |
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Short loans |
442,262 |
424,771 |
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Accounts payable |
202,238 |
195,167 |
|
Notes payable |
70,240 |
33,250 |
|
Other payable |
45,958 |
37,680 |
|
Advances from
customers |
26,105 |
9,240 |
|
Accrued payroll |
12,751 |
17,955 |
|
Taxes payable |
50,946 |
57,838 |
|
Interest payable |
1,159 |
1,266 |
|
Non-current
liabilities due with in one yea |
65,000 |
|
|
Other current
liabilities |
208,347 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,125,006 |
777,167 |
|
Long term
liabilities |
115,369 |
82,850 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,240,375 |
860,017 |
|
Equities |
1,202,611 |
1,153,513 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,442,986 |
2,013,530 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
as
of Dec. 31, 2011 |
|
Turnover |
1,992,192 |
1,689,210 |
|
Cost of goods sold |
1,201,860 |
1,009,791 |
|
Taxes and additional of main operation |
9,966 |
9,228 |
|
Sales expense |
391,875 |
325,146 |
|
Management expense |
188,927 |
162,934 |
|
Finance expense |
39,134 |
19,359 |
|
Investment
income |
11,650 |
11,104 |
|
Asset impairment loss |
11,828 |
10,293 |
|
Non-operating
income |
5,763 |
10,384 |
|
Non-operating expenses |
12,066 |
6,669 |
|
Profit before
tax |
153,949 |
167,278 |
|
Less: profit tax |
29,723 |
35,245 |
|
Profits |
124,226 |
132,033 |
Important Ratios
=============
|
|
as of Dec. 31, 2012 |
as of Dec. 31, 2011 |
|
*Current ratio |
1.14 |
1.55 |
|
*Quick ratio |
0.73 |
1.01 |
|
*Liabilities
to assets |
0.51 |
0.43 |
|
*Net profit
margin (%) |
6.24 |
7.82 |
|
*Return on
total assets (%) |
5.09 |
6.56 |
|
*Inventory
/Turnover ×365 |
86 days |
92 days |
|
*Accounts
receivable/Turnover ×365 |
54 days |
51 days |
|
*Turnover/Total
assets |
0.82 |
0.84 |
|
* Cost of
goods sold/Turnover |
0.60 |
0.60 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears good in its line, and appears a rising trend.
l
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is low, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level in
2011, but fair in 2012.
l
The inventory of SC appears fairly large in both years.
l
The accounts receivable of SC appears average in both years.
l
SC’s short-term loan appears fairly large in both
years.
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.
l
The risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Stable.
SC is considered
large-sized in its line with stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
|
1 |
Rs.92.25 |
|
Euro |
1 |
Rs.78.38 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.