MIRA
INFORM REPORT
|
Report Date : |
12.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI
MODERN PHARMACEUTICAL CO., LTD. |
|
|
|
|
Registered Office : |
no. 378 Jianlu Road, Pudong New Area, Shanghai 200137 PR |
|
|
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Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2012 |
|
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|
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Date of Incorporation : |
20.12.2000 |
|
|
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Com. Reg. No.: |
310000000048680 |
|
|
|
|
Legal Form : |
Shares
Limited Company |
|
|
|
|
Line of Business : |
Manufacturing medicines and health products; wholesaling
and retailing medical raw materials, accessories, and pharmaceutical
machinery |
|
|
|
|
No. of Employees : |
942 |
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 : |
No complaints |
|
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 (31.03.2012) |
Current Rating (30.06.2012) |
|
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 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
SHANGHAI MODERN PHARMACEUTICAL CO.,
LTD.
no. 378
jianlu road, pudong new area, SHANGHAI 200137 PR CHINA
TEL: 86
(0) 21-62510990
FAX: 86
(0) 21-62510787
EXECUTIVE SUMMARY
Date of Registration : decEMBER 20, 2000
REGISTRATION NO. : 310000000048680
LEGAL FORM :
shares limited company
REGISTERED CAPITAL :
cny 287,733,402
staff : 942
BUSINESS CATEGORY :
MANUFACTURING & trading
Revenue : CNY 1,477,072,000 (CONSOLIDATED, JAN. 1 TO SEP. 30, 2012)
EQUITIES : CNY 1,141,451,000 (CONSOLIDATED, AS OF SEP. 30, 2012)
WEBSITE : www.shyndec.cn
E-MAIL : shyndec@shyndec.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE : CNY 6.23 = USD 1
Adopted abbreviations (as follows)
SC -
Subject Company (the company inquired by you)
N/A – Not
available
CNY –
China Yuan Ren Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC
in respect of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determine
LEGAL
STATUS & HISTORY
SC was
established as a shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 310000000048680
on December 20, 2000.
SC’s Organization Code Certificate
No.: 63045992-4
SC’s Tax No.: 310115630459924
SC’s registered capital: cny 287,733,402
SC’s paid-in capital: cny 287,733,402
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2004-08 |
Registered Capital |
CNY 54,191,940 |
CNY 87,191,940 |
|
2005-11 |
Registered Capital |
CNY 87,191,940 |
CNY 130,787,910 |
|
2006-08 |
Registered Capital |
CNY 130,787,910 |
CNY 261,575,820 |
|
2008-11 |
Registration
No. |
3100001006572 |
310000000048680 |
|
Registered Capital |
CNY 261,575,820 |
cny 287,733,402 |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) (As of June 30, 2012) |
% of Shareholding |
|
Shanghai Institute of Pharmaceutical Industry |
41.62 |
|
Industrial
Bank Co., Ltd-Xingquan Trend Investment Mixed Security Investment Found |
2.99 |
|
Shanghai Gaodong Economic Development Co., Ltd. |
2.90 |
|
Shanghai Pudong Development Bank-Guangfa Xiaopan Growth
Stock Securities Investment Fund |
2.84 |
|
Shanghai Guangci Medicine Hi-tech Co., Ltd. |
2.75 |
|
0.75 |
|
|
Caitong Securities Co., Ltd |
0.58 |
|
Wang Mei |
0.53 |
|
China Life Insurance Co.,
Ltd.-Dividends- Individual Dividends |
0.52 |
|
Bank of China-Huaxia Dapan Selected
Securities Investment Fund |
0.49 |
|
Other Shareholders |
44.03 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Zhou
Bin |
|
General Manager |
Wei
Baokang |
|
Director |
Wang
Hao |
|
Liu
Cunzhou |
|
|
Feng
Ming |
|
|
Chen
Wenhao |
|
|
Supervisor |
Jia Jinwen |
|
Lu Weigen |
|
|
Ji Xiaoming |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market
with the code of 600420
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
(As of June 30, 2012)
----------------------------------
Shanghai Institute of
Pharmaceutical Industry
41.62
Industrial Bank Co.,
Ltd-Xingquan Trend Investment Mixed Security Investment Found
2.99
Shanghai Gaodong Economic
Development Co., Ltd.
2.90
Shanghai Pudong Development
Bank-Guangfa Xiaopan Growth Stock Securities Investment Fund
2.84
Shanghai Guangci Medicine
Hi-tech Co., Ltd.
2.75
Tibet Danhong Pharmaceutical
Technology Co., Ltd.
0.75
Caitong Securities Co., Ltd
0.58
Wang Mei
0.53
China Life Insurance Co.,
Ltd.-Dividends- Individual Dividends
0.52
Bank of China-Huaxia Dapan
Selected Securities Investment Fund
0.49
Other shareholders
44.03
Shanghai Institute of Pharmaceutical
Industry
---------------------------
Registered No.: 310106000120699
Legal Representative: Lu Weigen
Registered Capital: CNY
536,920,000
Legal Form: State-owned
enterprise
Website: www.sipi.com.cn
Address: No. 1320 Beijing West Road, Jing’an District,
Shanghai, 200040 PR China
Tel: +86(0)21-62479808
Fax: +86(0)21-62791715
Shanghai Institute of
Pharmaceutical Industry, held by the State-owned Assets, Supervision and
Administration Commission of the State Council (SASAC), is one of the largest
and most comprehensive research institutes in Chinese
pharmaceutical industry. SIPI was granted more than 300 awards from local,
provincial and national agencies, including 13 National Science Invention
Awards and 13 National Science and Technology Progress Awards. SIPI was granted
209 New Drug Certificates, holds 27 approved patents and has additional 157
patents pending. The products transferred from SIPI are the primary products
manufactured in over 20 public pharmaceutical companies listed on the Shanghai
and Shenzhen Stock Exchange. Over 95% of all projects are commercialized.
Shanghai Gaodong Economic Development
Co., Ltd.
------------------------------------
Registered No.: 3101151013967
Legal Representative: Chen
Youxiang
Registered
Capital: CNY 50,000,000
Legal Form: Limited liabilities
co.
Date of Registration: September 15, 1997
Shanghai Guangci Medicine Hi-tech Co.,
Ltd.
---------------------------------
Registration No.:
310103000059178
Legal Representative: Zhou
Wenjing
Registered Capital: CNY
10,000,000
Legal Form: State-owned
enterprise
Date of Registration: December
24, 1996
Address: 2/F, Bldg. 30, Ruijin Er
Road, Luwan District, Shanghai
Tel: +86(0)21-64370000
MANAGEMENT
Zhou
Bin, Legal Representative and Chairman
--------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 45
Ø
Qualification: University
Ø
Working experience (s):
From 2009 until now, working in SC as legal
representative and chairman
Also working in China State Institute of Pharmaceutical
Industry and Shanghai Number Chart Healthy Pharmaceutical Technology Co., Ltd.
as legal representative
Wei
Baokang, General Manager
-----------------------------------------------------
Ø
Gender: M
Ø
Age: 45
Ø
Qualification: University
Ø
Working experience (s):
From 2009 until now, working in SC as general
manager & director
Also working in Shanghai SIPI
Pharmaceutical Co., Ltd. as legal representative
Director
-----------
Wang Hao
Liu Cunzhou
Feng Ming
Chen Wenhao
Supervisor
---------------
Jia Jinwen
Lu Weigen
Ji Xiaoming
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing medicines and health products;
wholesaling and retailing medical raw materials, accessories, and
pharmaceutical machinery; technical development, transfer, consultation,
services, and training of medicines and health products; import and export of
goods and technologies; manufacturing garlic oil soft capsule, Lecithin soft
capsule, fish oil soft capsule. (with permit if needed)
SC is
mainly engaged in manufacturing and selling various new pharmaceutical
preparations, biological pharmaceuticals, chemical APIs and traditional Chinese
medicine preparation.
SC’s products mainly include:
chemical medicine, biological and chemical raw material medicine, microbial
fermentation products and tablets, capsules, granules, injections, suspensions,
suppositories and ointments, etc.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 80% of its
products in domestic market, mainly Shanghai, and 20% to overseas market,
mainly European and American countries.
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 Customer:
=============
Apotex Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 942 staff
at present.
SC
rents an area as its operating office & factory of approx. 260,000 sq.
meters at the heading address.
RELATED COMPANY
n
China State Institute of Pharmaceutical Industry
n
Shanghai Number Chart Healthy Pharmaceutical Technology Co.,
Ltd. (literal translation)
n
Shanghai SIPI Pharmaceutical Co., Ltd.
n
China National Medicines Guorui Pharmaceutical Co., Ltd.
n
Shenzhen Zhijun Pharmaceutical Co., Ltd.
n
China National Accord Medicines Corporation Ltd.
n
Sinopharm Chemical Reagent Co., Ltd.
n
Shanghai Polymer Pharmaceutical & Excipient Co., Ltd.
n
Shanghai Modern Pharmaceutical Co., Ltd. Jiading
Manufacturing Plant
Etc.
PAYMENT
Overall payment appraisal:
( ) Excellent ( )
Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
CITIC
Bank Shanghai Branch
AC#: 086780-82600061164
FINANCIALS
Consolidated Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2011 |
As of Sep. 30, 2012 |
|
275,582 |
500,877 |
|
|
Accounts
receivable |
226,839 |
267,137 |
|
Notes
receivable |
87,962 |
121,622 |
|
Advances
to suppliers |
59,027 |
66,023 |
|
Interest
receivable |
0 |
0 |
|
Other
receivable |
5,618 |
11,310 |
|
Inventory |
291,147 |
367,196 |
|
Non-current
assets within one year |
0 |
0 |
|
Other
current assets |
0 |
262 |
|
|
------------------ |
------------------ |
|
Current
assets |
946,175 |
1,334,427 |
|
Long-term
investments |
1,000 |
1,000 |
|
Development
expenditure |
18,320 |
34,703 |
|
Real
estate investment |
0 |
0 |
|
Fixed
assets |
333,687 |
516,011 |
|
Construction
in progress |
58,425 |
243,336 |
|
Project
materials |
264 |
10,663 |
|
Fixed
assets in liquidation |
0 |
0 |
|
Intangible
assets |
127,512 |
184,515 |
|
Goodwill |
0 |
0 |
|
Long-term
deferred expense |
0 |
0 |
|
Deferred
income tax assets |
6,534 |
5,627 |
|
Other
non-current assets |
412 |
303 |
|
|
------------------ |
------------------ |
|
Total
assets |
1,492,329 |
2,330,585 |
|
|
============= |
============= |
|
Short-term
loans |
173,776 |
327,603 |
|
Notes
payable |
39,658 |
51,460 |
|
Accounts
payable |
169,501 |
144,029 |
|
Payroll
payable |
14,028 |
20,208 |
|
Taxes
payable |
18,028 |
14,042 |
|
Interest
payable |
210 |
539 |
|
Dividends
payable |
0 |
26,182 |
|
Advances
from clients |
22,377 |
23,038 |
|
Other
payable |
48,484 |
97,765 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
486,062 |
704,866 |
|
Non-current
liabilities |
|
|
|
|
------------------ |
------------------ |
|
Total
liabilities |
544,700 |
1,189,134 |
|
Equities |
947,629 |
1,141,451 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,492,329 |
2,330,585 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2011 |
Jan.
1 to Sep. 30, 2012 |
|
Revenue |
1,702,623 |
1,477,072 |
|
Cost of sales |
1,173,537 |
976,926 |
|
Business Taxes and Surcharges |
6,391 |
6,527 |
|
Sales expense |
235,884 |
262,261 |
|
Management expense |
116,169 |
100,727 |
|
Finance expense |
9,334 |
11,229 |
|
Asset impairment loss |
7,423 |
714 |
|
Investment
income |
-144 |
-108 |
|
Non-operating
income |
16,453 |
7,745 |
|
Non-operating expense |
607 |
862 |
|
Profit
before tax |
169,587 |
125,463 |
|
Less:
profit tax |
22,670 |
22,655 |
|
146,917 |
102,808 |
Important
Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Sep. 30, 2012 |
|
*Current
ratio |
1.95 |
1.89 |
|
*Quick
ratio |
1.35 |
1.37 |
|
*Liabilities
to assets |
0.36 |
0.51 |
|
*Net
profit margin (%) |
8.63 |
6.96 |
|
*Return
on total assets (%) |
9.84 |
4.41 |
|
*Inventory
/ Revenue ×365/270 |
62 days |
68 days |
|
*Accounts
receivable/ Revenue ×365/270 |
49 days |
49 days |
|
*Revenue/Total
assets |
1.14 |
0.63 |
|
*Cost
of sales / Revenue |
0.69 |
0.66 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears good in its
line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly
good.
l
SC’s cost of goods sold is average,
comparing with its revenue.
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.
l
The accounts receivable of SC appears
average.
l
The short-term loans of SC appear
average
l
SC’s revenue is in an average 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 Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.81.08 |
|
Euro |
1 |
Rs.70.61 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.