MIRA INFORM REPORT
|
Report Date : |
29.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
QINGHAI GELATIN CO., LTD. |
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|
|
|
Registered Office : |
No. 18 Weiyi Road, Chengbei District, Xining, Qinghai Province, 810003 Pr |
|
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Country : |
China |
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|
|
|
Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
24.09.1996 |
|
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Com. Reg. No.: |
630000100006984 |
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|
Legal Form : |
Shares Limited Company |
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|
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Line of Business : |
Manufacturing and selling gelatin series products, hollow hard capsules, soft capsule system products, Chinese herbal medicine series, health products, etc. |
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|
|
|
No. of Employees : |
1,133 (Including
Subsidiaries) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
QINGHAI GELATIN CO.,
LTD.
NO. 18 WEIYI ROAD, CHENGBEI DISTRICT,
XINING,
QINGHAI PROVINCE, 810003 PR CHINA
TEL: 86 (0) 971-8013495 FAX: 86 (0) 971-5226338
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 24, 1996
REGISTRATION NO. : 630000100006984
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
1,133 (including SUBSIDIARIES)
REGISTERED CAPITAL : CNY 472,113,600
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 315,068,000 (Consolidated, as of dec. 31, 2012)
EQUITIES :
CNY 1,076,825,000 (Consolidated, as of dec. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.1535 = 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 complete name should be the heading one.
SC was registered as a shares limited company
at provincial 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 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 investment, consultant and services for gelatin,
mechanism hard capsules, soft capsules mechanisms (health care products,
cosmetics), pharmaceuticals, miscellaneous bone acquisition and other related industries;
import and export commodities excluding the items prohibited by the State and
the designated company operating.
SC is mainly
engaged in manufacturing and selling gelatin series products, hollow hard
capsules, soft capsule system products, Chinese herbal medicine series, health
products, etc.
Mr. Zhao Hua has
been legal representative and chairman of SC since 2004.
SC is known to have approx. 1,133 (including subsidiaries)
employees, including 852 production staff, 57 sales staff, 69 technologies
staff, 27 financial staff and 128 administration staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Xining. Our checks
reveal that SC owns the total premise about 110,000 square meters.
http://www.my0606.com.cn
The design is professional and the content is well organized. At present it is
in Chinese version.
E-mail: master@my0606.com.cn
; zongcb@my0606.com.cn
SC was listed in Shenzhen Stock Exchange with the stock code of 000606.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-6 |
Registered capital |
CNY 51,500,000 |
CNY 224,042,400 |
|
2008 |
CNY 224,042,400 |
CNY 270,642,400 |
|
|
Unknown |
Registered capital |
CNY 270,642,400 |
CNY 405,963,600 |
|
Registration no. |
6300001200698 |
Present one |
|
|
2012 |
Registered capital |
CNY 405,963,600 |
Present amount |
Tax Registration Certificate No.: 630102226592459
Organization Code: 22659245-9
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (As of Mar. 31, 2013)
Name %
of Shareholding
TEDA Venture Capital Corporation Limited 13.11
Qinghai Siwei Credit Guarantee Co., Ltd. (in
Chinese Pinyin) 7.66
Xining Urban Investment Management Co., Ltd. 4.24
Qinghai State-owned Assets Investment
Management Co., Ltd. 2.34
Xining Economic and Technological
Development Zone Investment
Holding Group Co., Ltd. 2.12
Xining Water (Group) Co., Ltd. 0.62
Lu Hande 0.55
Huang Yun 0.44
Liu Yufang 0.42
Wang Weidong 0.41
Other shareholders 68.09
*TEDA Venture Capital Corporation Limited
================================
With approximately CNY 600 million (nearly
USD 80 million) under management, Tianjin TEDA Venture Capital Co., Ltd
(TEDAVC) has been one of the largest local venture capital firms in China since
its founding in 2000. TEDAVC is located in Tianjin Economical and Technological
Development Area (TEDA), which is one of the most active areas in China
Economy.
TEDAVC invests in high-quality companies in
following principal areas: biotechnology and pharmaceutical industry,
information technology, environmental sciences and material sciences.
Address: 3/F North Area, Software Building,
No. 80 The 4th Avenue, TEDA, Tianjin, China
Registration No.: 120000000003106
Legal rep.: Zhao Hua
Registered capital: CNY 410,210,000
Legal form: Shares limited co.
Tel: 86-22-6629 9990
Fax: 86-22-6629 7288
E-mail: public@tedavc.com.cn
Web: http://www.tedavc.com.cn/
Add: 3/F, North Area, Software Building, No.
80, 4th Avenue, TEDA, Tianjin
l Legal
Representative and Chairman:
Mr. Zhao Hua ,
born in 1971, with Master’s degree. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2004 to present Working in SC as chairman and
legal representative;
Also working in TEDA Venture Capital
Corporation Limited as legal representative.
l Vice Chairman:
Mr. Yang Gong , born in 1959, MBA, senior
economist. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2006 to present Working
in SC as vice chairman.
l President:
Mr. Zhao Xia , born in 1971, MBA. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2013 to present Working in SC as president
Also working in Tianjin Haida Venture
Investment Management Co., Ltd. as legal representative.
l Vice President:
Mr. Huang Haiyong , born in 1971, with
junior college education. He is currently responsible for the daily management
of SC.
Working Experience(s):
From 2011 to present Working in SC as vice president
l Directors:
Zhang Tao
Cai Yongfeng
Han Chuanmo
Xu Yuanyuan
l Supervisors:
Li Youzhu
Hao Chun
Li Meizhen
SC is mainly
engaged in manufacturing and selling gelatin series products, hollow hard capsules,
soft capsule system products, Chinese herbal medicine series, health products,
etc.
SC’s products
mainly include: gelatin series products, hard series system products, soft
capsule series products, traditional Chinese medicine and bone grain.
SC sources its
materials 70% from domestic market, and 30% from the overseas market, mainly
European countries. SC sells 100% of its products in domestic market.
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 and Credit of 30-60 days.
Note:
SC’s management refused to release its major customers and suppliers.
SC
is known to have the following subsidiaries:
Qinghai
Gelatin Co., Ltd.
==================
Incorporation date: June 28, 2007
Registration no.: 633100110000119
Legal rep.: Wang Hongmin
Registered capital: CNY 172,738,800
Legal form: Limited liabilities co.
Tel:
86 0971-8013496
Fax:
86 0971-5318619
Qinghai
Mingnuo Capsule Co., Ltd.
==========================
Incorporation date: Apr. 14, 2000
Registration no.: 630000400001974
Legal rep.: Wang Yuancheng
Registered capital: CNY 17,544,300
Legal form: Limited liabilities co.
Tel:
86 0971-8016677
Fax:
86 0971-8016847
Qinghai
Mingxing Biology Engineering Co., Ltd.
====================================
Incorporation date: Oct. 17, 2000
Registration no.: 630000400002098
Legal rep.: Wang Yuancheng
Registered capital: CNY 1,500,000
Legal form: Limited liabilities co.
Tel:
86 0971-8018861
Fax:
86 0971-8018735
Qinghai
Ningda Venture Capital Co., Ltd. (in Chinese Pinyin)
===========================================
Incorporation date: Aug. 4, 2010
Registration no.: 633100100003327
Legal rep.: Wang Wengang
Registered capital: CNY 58,890,000
Legal form: Limited liabilities co.
Tianjin
Haida Venture Investment Management Co., Ltd.
========================================
Incorporation date: Nov. 29, 2007
Registration no.: 120191000014795
Legal rep.: Zhao Xia
Registered capital: CNY 10,000,000
Legal form: Limited liabilities co.
Tel:
022-59852166 /59852167
Fax:
022-59852168
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 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 declined
to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as
of Dec. 31, 2011 |
|
Cash & bank |
331,572 |
48,687 |
|
Notes receivable |
34,263 |
29,402 |
|
Inventory |
116,328 |
91,583 |
|
Accounts
receivable |
40,290 |
110,059 |
|
Advances to
supplies |
60,184 |
27,957 |
|
Dividends
receivable |
10,210 |
0 |
|
Other
receivables |
7,992 |
12,257 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
600,839 |
319,945 |
|
Long-term
investments |
280,042 |
263,713 |
|
Financial assets
available for sale |
141,063 |
64,496 |
|
Fixed assets |
419,006 |
445,014 |
|
Projects under
construction |
41,386 |
23,707 |
|
Material for
construction |
687 |
0 |
|
Intangible
assets |
22,001 |
23,170 |
|
Long-term
deferred expenses |
631 |
1,971 |
|
Deferred income
tax assets |
2,208 |
3,048 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,507,863 |
1,145,064 |
|
|
============= |
============= |
|
Short loans |
136,000 |
103,500 |
|
Accounts payable |
45,027 |
79,509 |
|
Advances from
customers |
23,841 |
22,796 |
|
Employee pay
payable |
2,602 |
2,971 |
|
Taxes payable |
5,849 |
8,101 |
|
Interest payable |
1,154 |
882 |
|
Dividends
payable |
295 |
2,603 |
|
Other Accounts
payable |
31,832 |
23,026 |
|
Non-current
liabilities due with in one year |
61,000 |
54,500 |
|
Other current
liabilities |
3,214 |
3,571 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
310,814 |
301,459 |
|
Long term
liabilities |
120,224 |
142,911 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
431,038 |
444,370 |
|
Shareholders
equities |
1,076,825 |
700,694 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,507,863 |
1,145,064 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as
of Dec. 31, 2011 |
|
Turnover |
315,068 |
585,570 |
|
Cost of goods sold |
233,638 |
349,164 |
|
Taxes and additional of main operation |
2,631 |
6,193 |
|
Sales expense |
22,990 |
230,342 |
|
Management expense |
40,462 |
38,553 |
|
Finance expense |
25,400 |
18,156 |
|
Asset impairment loss |
191 |
471 |
|
Investment
income |
16,831 |
25,624 |
|
Non-operating
income |
5,108 |
25,644 |
|
Non-operating expense |
1,201 |
7,752 |
|
Operation Profit |
10,494 |
-13,793 |
|
Less: profit tax |
8,444 |
4,094 |
|
Net profit |
2,050 |
-17,887 |
Important Ratios
=============
|
|
as of Dec. 31,
2012 |
as
of Dec. 31, 2011 |
|
*Current ratio |
1.93 |
1.06 |
|
*Quick ratio |
1.56 |
0.76 |
|
*Liabilities
to assets |
0.29 |
0.39 |
|
*Net profit
margin (%) |
0.65 |
-3.05 |
|
*Return on
total assets (%) |
0.14 |
-1.56 |
|
*Inventory
/Turnover ×365 |
135 days |
58 days |
|
*Accounts
receivable/Turnover ×365 |
47 days |
69 days |
|
*Turnover/Total
assets |
0.21 |
0.51 |
|
* Cost of goods
sold/Turnover |
0.74 |
0.60 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line,
but it declined in 2012.
l
SC’s net profit margin is fair in 2011, and average
in 2012.
l
SC’s return on total assets is fair in 2011, and
average in 2012.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a fair level in
2011 and normal in 2012.
l
The inventory of SC appears average in 2011 but
fairly large in 2012.
l
The accounts receivable of SC appears average in
both years.
l
SC’s short-term loan is in an average level in both
years.
l
SC’s turnover is in a fair level in 2011 but poor
in 2012, 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 average.
Overall financial
condition of the SC: Fairly Stable.
SC is well-known in its industry with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
|
1 |
Rs.91.14 |
|
Euro |
1 |
Rs.77.97 |
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.