MIRA
INFORM REPORT
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Report Date : |
01.03.2013 |
IDENTIFICATION DETAILS
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Name : |
STARWAY PHARM CO., LTD. |
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Registered Office : |
A1111-1112, A Tower, Union Square, Binhe Road, Futian District,
Shenzhen, Guangdong Province 518000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
08.04.2004 |
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Com. Reg. No.: |
4403012138909 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling pharmaceutical raw materials |
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No. of Employees : |
15 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
Slow but correct |
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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
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
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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 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.
Source
: CIA
Company name and address
STARWAY
PHARM CO., LTD.
A1111-1112, A
TOWER,
Union Square, BINHE ROAD, FUTIAN
DISTRICT,
SHENZHEN, GUANGDONG
PROVINCE 518000 PR CHINA
TEL: 86 (0)
755-83732895/82966316
FAX: 86 (0) 755-82966302
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 8, 2004
REGISTRATION NO. : 4403012138909
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
15
REGISTERED CAPITAL : CNY 4,400,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 70,850,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 6,740,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23= 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 is also registered in Hong Kong and the “Flat RM
1202, 12/F AT Tower 180 Electric Road, North Point China” is the registered
address in Hong Kong. According to SC’s staff, there is no business in Hong
Kong and all of SC’s business is operating in Shenzhen, mainland China.
SC was registered as a Limited liabilities co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Apr. 8, 2004.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute
its registered capital jointly. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to extent
of its total assets. The characteristics of this form of co. are as
follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s
registered business scope includes establishing enterprise; domestic commerce, goods
and materials supply and marketing (not including specially operated,
controlled and monopolized commodities); import and export business (in
accordance with the permit).
SC is mainly
engaged in selling pharmaceutical raw materials.
Mr. Liao Wenqing is legal representative, chairman and general
manager of SC at present.
SC is known to
have approx. 15 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Shenzhen. Our checks
reveal that SC rents the total premise about 150 square meters.
http://www.starwaypharm.com
The design is professional and the content is well organized. At present it is only
in English version.
Email: info@Starwaypharm.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Tax Registration Certificate No.: 440301760486963
Organization Code: 760486963
MAIN SHAREHOLDERS:
Name
% of Shareholding
Liao Wenqing 50
Shi Yanzhi 50
l
Legal representative, Chairman and General manager:
Mr. Liao Wenqing , about 43 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, chairman and general manager.
l
Supervisor:
Shi Yanzhi
SC is mainly
engaged in selling pharmaceutical raw materials.
SC’s products mainly include Human API, Biological Medicine and
Veterinary API.
SC sources its materials 100% from domestic
market. SC sells 100% of its products to overseas market, mainly Middle East
market.
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 declined to release its major suppliers and clients.
Starway Pharm Co., Limited (Hong Kong)
CR No.: 0986558
Date of Incorporation:
29-July-2005
Company Status: Private
Active Status: Live
SC
is said to invest in other companies, but the detail is not available.
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 Shenzhen Futian Sub-branch
AC#: 4000023309200143153
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash & bank |
2,910 |
14,750 |
|
Inventory |
850 |
1,520 |
|
Accounts
receivable |
13,060 |
8,180 |
|
Advances to
suppliers |
3,100 |
4,010 |
|
Other
receivables |
3,040 |
5,190 |
|
Other current
assets |
20 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
22,980 |
33,650 |
|
Fixed assets net
value |
310 |
250 |
|
Long term investment |
500 |
500 |
|
Projects under
construction |
0 |
0 |
|
Intangible and
other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
23,790 |
34,400 |
|
|
=========== |
=========== |
|
Short loan |
2,280 |
0 |
|
Accounts payable |
3,370 |
3,770 |
|
Bills payable |
0 |
9,320 |
|
Advances from
clients |
4,710 |
1,560 |
|
Taxes payable |
30 |
-10 |
|
Other Accounts
payable |
6,820 |
13,020 |
|
Other current
liabilities |
20 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
17,230 |
27,660 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
17,230 |
27,660 |
|
Equities |
6,560 |
6,740 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
23,790 |
34,400 |
|
|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Turnover |
83,780 |
70,850 |
|
Cost of goods sold |
76,060 |
63,680 |
|
Sales expense |
4,660 |
3,940 |
|
Management expense |
2,530 |
2,950 |
|
Finance expense |
200 |
20 |
|
Profit before tax |
310 |
260 |
|
Less: profit tax |
60 |
60 |
|
Profits |
250 |
200 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.33 |
1.22 |
|
*Quick ratio |
1.28 |
1.16 |
|
*Liabilities
to assets |
0.72 |
0.80 |
|
*Net profit
margin (%) |
0.30 |
0.28 |
|
*Return on
total assets (%) |
1.05 |
0.58 |
|
*Inventory
/Turnover ×365 |
4 days |
8 days |
|
*Accounts
receivable/Turnover ×365 |
57 days |
43 days |
|
*Turnover/Total
assets |
3.52 |
2.06 |
|
* Cost of
goods sold/Turnover |
0.91 |
0.90 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line, but it decreased in 2011.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is fairly high, 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.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears average in
2011.
l
SC has no short-term loan in 2011.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high in 2011.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.77 |
|
|
1 |
Rs.81.57 |
|
Euro |
1 |
Rs.70.68 |
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.