MIRA
INFORM REPORT
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Report Date : |
15.03.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG YONGNING PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 4 Meihuajing Road, Huangyan, Taizhou, Zhejiang Province 318020 Pr
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
01.01.1990 |
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Com. Reg. No.: |
331000000011260 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling chemical medicine
intermediates, raw medicine, chemical medicine products, Chinese
traditional patent medicine, healthy products, etc. |
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No. of Employees : |
998 employees |
RATING & COMMENTS
|
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 : |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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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 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.
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Source : CIA |
Company name & address
ZHEJIANG YONGNING PHARMACEUTICAL
CO., LTD.
NO. 4 MEIHUAJING ROAD, HUANGYAN
TAIZHOU, ZHEJIANG PROVINCE 318020 PR CHINA.
TEL: 86 (0) 576-84235597/84082095/84082098
FAX: 86 (0) 576-84235596
EXECUTIVE SUMMARY
Date of Registration : JANUARY 1, 1990
REGISTRATION NO. : 331000000011260
LEGAL FORM : SHARES
LIMITED COMPANY
REGISTERED CAPITAL :
CNY 49,000,000
staff : 998
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 502,633,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 138,455,000 (AS OF DEC. 31, 2011)
WEBSITE : www.ynpharm.com
E-MAIL :
zjynxsgs@zjyn.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.24 = 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
LEGAL STATUS & HISTORY
SC was
established as a shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 331000000011260 on January 1, 1990.
SC’s Organization Code Certificate
No.: 14814624-1
SC’s registered capital: CNY 49,000,000
SC’s paid-in capital: CNY 49,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ye Fengqi |
51.63 |
|
Mou Shengyao |
5.10 |
|
Fang Shanzong |
4.08 |
|
Qiu Gaopeng |
3.06 |
|
Fang Shengmin |
2.04 |
|
Lu Min |
2.04 |
|
Jie Qing |
2.04 |
|
Zhang Jianyu |
2.04 |
|
Lin Xiandong |
2.04 |
|
Xu Baohua |
1.02 |
|
Yang Tianyou |
1.02 |
|
Lu Xianyun |
1.02 |
|
Zhang Yueqin |
1.02 |
|
Ye Fenggao |
1.02 |
|
Yang Jinping |
1.02 |
|
Chen Xin |
1.02 |
|
Xiao Guoxun |
1.02 |
|
Chen Desheng |
1.02 |
|
Xu Jijun |
1.02 |
|
Other 50 individuals |
15.73 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Ye
Fengqi |
|
Deputy General Manager |
Xu Baohua |
|
Director |
Wang Shiyue |
|
Ye Tianjian |
|
|
Fang Shengmin |
|
|
Lin Xiandong |
|
|
Chen Xin |
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|
Xu Baohua |
|
|
Yang Jinping |
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Fang Shanzong |
|
|
Lu Xiuwei |
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|
Qi Youmao |
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|
Mou Shengyao |
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|
Ye Fenggao |
|
|
Lu Min |
|
|
Supervisor |
Ye Haiyong |
|
Xie Qingqing |
|
|
Dai Qunyan |
|
|
Zhang Wenyi |
|
|
Yang Tianyou |
RECENT DEVELOPMENT
SC has already developed all
kinds of more than 60 kinds new medicines, 6 among them have independent
intellectual property rights. There are 2 brand certificates and 10 patents for
invention of the national traditional Chinese medicine protected.
'Danle capsule' for protecting
the gallbladde, 'Dansuo slice' for relieving cough and phlegm obtain national
traditional Chinese medicine protection brand.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Ye Fengqi 51.63
Mou Shengyao 5.10
Fang Shanzong 4.08
Qiu Gaopeng 3.06
Fang Shengmin 2.04
Lu Min 2.04
Jie Qing 2.04
Zhang Jianyu 2.04
Lin Xiandong 2.04
Xu Baohua 1.02
Yang Tianyou 1.02
Lu Xianyun 1.02
Zhang Yueqin 1.02
Ye Fenggao 1.02
Yang Jinping 1.02
Chen Xin 1.02
Xiao Guoxun 1.02
Chen Desheng 1.02
Xu Jijun 1.02
Other 50 individuals 15.73
MANAGEMENT
Ye
Fengqi , Legal Representative,
Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 61
Ø
ID# 332622195102250070
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative, chairman and general manager
Also working in Zhejiang Yongning Medicine Imp.＆ Exp. Co., Ltd. Hainan Kangchen Pharmaceutical Co., Ltd. and Zhejiang Yongning Pharmaceutical No. 1 Factory as legal representative
Note:
Senior
Engineer
Senior
Economist
Deputy
of the Provincial People's Congress
Xu Baohua,
Deputy General Manager
-------------------------------------------------------------
Ø
Gender: M
Ø
ID# 332622480123001
Ø
Age: 64
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as deputy
general manager
Also as director of SC
Director
-----------
Wang Shiyue ID# 330724196001040016
Ye Tianjian ID# 331003198210110017
Fang Shengmin ID# 332622194910210013
Lin Xiandong ID# 332603196511240039
Chen Xin ID# 332603197708200019
Yang Jinping ID# 332603197108140016
Fang Shanzong ID# 310106194506100813
Lu Xiuwei ID# 332625197208122112
Qi Youmao ID# G36102187
Mou Shengyao ID# 332603194706280015
Ye Fenggao ID# 332622194608030011
Lu Min ID# 332603196108150025
Supervisor
-------------
Ye Haiyong ID# 332603196801040019
Xie Qingqing ID# 332603197711020027
Dai Qunyan ID# 332603197010120068
Zhang Wenyi ID# 332603196212160012
Yang Tianyou ID# 332622195305170054
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing small-capacity injection, powder
injection (cephalosporin), tablets (cephalosporin), granules (cephalosporin),
freeze-dried powder injection, hard capsules, granules, tablets, mixtures (oral
liquid), dry suspensions, capsules (cephalosporin), without bacteria medicine
raw medicine, raw medicine; manufacturing tablets, capsule health food (permits
validity period as of May 28, 2013); freight (common freight); parts of Grade A
& B medicine appliances (limited to branches manage); managing foodstuff:
retailing shaped packing foods (health foods) (limited to Yongning Pharmacy
manage); managing medicine (limited to
Yongning Pharmacy with permits); manufacturing medicine intermediate (excluding hazardous chemicals and poisonous
chemicals); importing raw materials, machines, instrument and meter,
components required in manufacturing, research & development.
SC is mainly
engaged in manufacturing and selling chemical medicine
intermediates, raw medicine, chemical medicine products, Chinese
traditional patent medicine, healthy products, etc.
SC’s
products mainly include:
Intermediates
Raw Materials
Finish Products
SC sources its materials 95%
from domestic market, and 5% from overseas market. SC sells 80% of its products
in domestic market, and 20% to overseas 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.
SC’s
clients:
=========
Zhejiang
Yongning Medicine Imp.＆
Exp. Co., Ltd.
Zhejiang Yongning Pharmaceutical Co.,
Ltd. Yongning Pharmacy
Staff & Office:
--------------------------
SC is
known to have approx. 998 staff at present.
SC owns an area as
its operating office & factory of approx. 120,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known
to have the following subsidiaries and branch:
-------------------------------------------------------------------------
Zhejiang Yongning Medicine
Imp.＆ Exp. Co., Ltd.
Registration No.: 331003000024380
Date of Registration: December 5, 2005
Legal Representative: Ye Fengqi
Legal Form: Limited Liabilities Company
Registered Capital: CNY 5,180,000
Hainan Kangchen Pharmaceutical Co., Ltd.
Registration No.: 460000000042269
Date of Registration: November 26, 1992
Legal Representative: Ye Fengqi
Legal Form: Limited Liabilities Company
Registered Capital: CNY 2,200,000
Yumin Yongning Honghua Technology Development Co., Ltd.
Zhejiang Yongning Pharmaceutical Co., Ltd. Yongning Pharmacy
Registration No.: 331000000000698
Date of Registration: March 27, 2003
Principal: Chen Zhongyi
Legal Form: Branch
Related Company:
==============
Zhejiang Yongning Pharmaceutical No. 1 Factory
Registration No.: 331003000020926
Date of Registration: May 31, 2007
Legal Representative: Ye Fengqi
Legal Form: State-owned Enterprise
Registered Capital: CNY 1,492,000
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:
Industrial & Commercial Bank of China Huangyan
Sub-branch
AC#: 1207031109021012477
Bank of China Huangyan Sub-branch
AC#: 840010432808093001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
163,830 |
164,890 |
71,761 |
|
|
Notes receivable |
8,670 |
5,640 |
9,373 |
|
Accounts
receivable |
43,770 |
46,440 |
38,925 |
|
Advances to
suppliers |
0 |
0 |
14,328 |
|
Other receivable |
24,470 |
42,280 |
80,553 |
|
Inventory |
107,340 |
113,350 |
123,424 |
|
Prepaid expenses |
820 |
310 |
335 |
|
Other current
assets |
11,280 |
3,090 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
360,180 |
376,000 |
338,699 |
|
Fixed assets |
116,440 |
103,530 |
139,097 |
|
Construction in
progress |
7,660 |
7,890 |
458 |
|
Intangible
assets |
72,920 |
44,360 |
43,527 |
|
Long term
investment |
10,220 |
11,030 |
11,729 |
|
Other
non-current assets |
10 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
567,430 |
542,810 |
533,510 |
|
|
============= |
============= |
============= |
|
Short-term loans |
186,200 |
182,300 |
158,800 |
|
Notes payable |
162,480 |
141,640 |
49,166 |
|
Accounts payable |
23,680 |
50,420 |
37,663 |
|
Payroll payable |
0 |
0 |
439 |
|
Taxes payable |
2,260 |
5,140 |
9,555 |
|
Advances from
clients |
1,090 |
0 |
25,653 |
|
Other payable |
44,600 |
50,340 |
83,636 |
|
Other current
liabilities |
440 |
730 |
543 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
420,750 |
430,570 |
365,455 |
|
Non-current
liabilities |
57,900 |
40,410 |
29,600 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
478,650 |
470,980 |
395,055 |
|
Equities |
88,780 |
71,830 |
138,455 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
567,430 |
542,810 |
533,510 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
336,220 |
344,870 |
502,633 |
|
Cost of sales |
250,700 |
249,610 |
292,899 |
|
Taxes and additional of main
operation |
1,750 |
2,130 |
4,358 |
|
Income
from other operations |
690 |
37,040 |
1,388 |
|
Sales expense |
20,100 |
20,490 |
45,697 |
|
Management expense |
47,930 |
62,560 |
85,017 |
|
Finance expense |
17,470 |
22,120 |
15,476 |
|
Investment
income |
-440 |
280 |
498 |
|
Subsidy income |
2,550 |
910 |
1,532 |
|
Non-operating
income |
200 |
50 |
1,992 |
|
Non-operating expense |
1,160 |
2,030 |
4,738 |
|
Profit before
tax |
110 |
24,210 |
59,857 |
|
Less: profit tax |
20 |
2,360 |
8,446 |
|
90 |
21,850 |
51,411 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
0.86 |
0.87 |
0.93 |
|
*Quick ratio |
0.60 |
0.61 |
0.59 |
|
*Liabilities
to assets |
0.84 |
0.87 |
0.74 |
|
*Net profit
margin (%) |
0.03 |
6.34 |
10.23 |
|
*Return on
total assets (%) |
0.02 |
4.03 |
9.64 |
|
*Inventory /
Revenue ×365 |
117 days |
120 days |
90 days |
|
*Accounts
receivable/ Revenue ×365 |
48 days |
50 days |
29 days |
|
*
Revenue/Total assets |
0.59 |
0.64 |
0.94 |
|
* Cost of
sales / Revenue |
0.75 |
0.72 |
0.58 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The
revenue of SC appears fairly good, and it was rising year by year.
l SC’s
net profit margin is average in 2009 and fairly good in 2010 and 2011.
l SC’s return on
total assets is average in 2009 and fairly good in 2010 and 2011.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level in three years.
l
SC’s quick ratio is maintained in a fair level in
three years
l
The inventory of SC appears large in three years.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loan of SC appears large in three
years.
l
SC’s revenue 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 average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions. The large amount of inventory and
short-term loan may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
|
UK Pound |
1 |
Rs.81.33 |
|
Euro |
1 |
Rs.70.50 |
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.