MIRA INFORM REPORT
|
Report Date : |
30.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG XINHUA MEDICAL
INSTRUMENT CO., LTD. |
|
|
|
|
Registered Office : |
Shinva Medical Scientific Zone,
No. 7 Taimei Road, Zibo Hi-Tech Zone Shandong Province 255086 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2012 |
|
|
|
|
Date of Incorporation : |
18.04.1993 |
|
|
|
|
Com. Reg. No.: |
370000018011499 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Subject engaged in manufacturing and selling medical
apparatus and instruments |
|
|
|
|
No. of Employees : |
2,011 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 – 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 & ADDRESS
SHANDONG
XINHUA MEDICAL INSTRUMENT CO., LTD.
SHINVA
MEDICAL SCIENTIFIC ZONE, NO. 7 TAIMEI ROAD, ZIBO HI-TECH ZONE
SHANDONG
PROVINCE 255086 PR CHINA
TEL: 86
(0) 533-3587720
FAX: 86
(0) 533-3587768
EXECUTIVE SUMMARY
Date of Registration : APRIL 18, 1993
REGISTRATION NO. : 370000018011499
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL :
cny 174,053,000
staff : 2,011
BUSINESS CATEGORY :
manufacturing
Revenue : CNY 2,108,579,000 (FROM
JAN. 1, 2012 TO SEP. 30, 2012)
EQUITIES : CNY 1,625,912,000 (AS OF SEP. 30, 2012)
WEBSITE : www.shinva.com
E-MAIL :
shinva@163.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE : CNY 6.22 = 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 determined
LEGAL STATUS & HISTORY
SC was
established as a shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 370000018011499 on April 18, 1993.
SC’s Organization Code Certificate
No.: 26717135-1
SC’s Tax No.: 370303267171351
SC’s registered capital: cny 174,053,000
SC’s paid-in capital: cny 174,053,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registration No. |
3700001801149 |
370000018011499 |
|
2012 |
Registered Capital |
CNY 134,394,000 |
cny 174,053,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (As of June 30, 2012) |
% of Shareholding |
|
Zibo Mining Group Co., Ltd. |
29.11 |
|
China Construction Bank-
Huaxia Advantage Rising Stock Securities Investment Funds |
4.21 |
|
Jinxin Securities Investment
Fund |
3.36 |
|
Financing New Blue-Chip
Securities Investment Fund |
2.01 |
|
Weigao Holding Company Limited |
1.98 |
|
ABC- Cathay Pacific Taurus Innovation Growth Securities
Investment Fund |
1.92 |
|
Bank of Communications- Kerui Securities Investment Funds |
1.84 |
|
Zibo Municipal Finance Bureau |
1.65 |
|
ICBC- Galaxy Intime financial dividend securities investment
funds |
1.62 |
|
Jiangxi International Trust
Co., Ltd.-Jinshi 120 Asset Trust Contract |
1.44 |
|
Other Shareholders |
50.86 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Zhao
Yixin |
|
General Manager |
Xu
Shangfeng |
|
Deputy General Managers |
Zhao Yong |
|
Ji Yuexiang |
|
|
Yang Zhaoxu |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600587.
Shinva Medical has passed the quality management certificate
such as ISO9001, ISO13485, CE and etc. Shinva Medical is the only enterprise
technology center at national class, the only enterprise with standardization
good behavior at class “AAAA”, and also one of the few listed companies in the
medical device industry.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As
of June 30, 2012)
---------------------------------
Zibo Mining Group Co., Ltd. 29.11
China Construction Bank- Huaxia Advantage
Rising Stock Securities Investment Funds 4.21
Jinxin Securities Investment Fund 3.36
Financing New Blue-Chip Securities
Investment Fund 2.01
Weigao Holding Company Limited 1.98
ABC- Cathay Pacific Taurus Innovation Growth
Securities Investment Fund 1.92
Bank of Communications- Kerui Securities
Investment Funds 1.84
Zibo Municipal Finance Bureau 1.65
ICBC- Galaxy Intime financial dividend
securities investment funds 1.62
Jiangxi International Trust Co., Ltd.-Jinshi
120 Asset Trust Contract 1.44
Other Shareholders 50.86
Zibo Mining Group
Co., Ltd.
----------------------------------------
Date of Registration: January 25, 1992
Registration No.: 370000018073926
Legal Form: Sole State-Owned
Enterprise
Registered Capital: CNY 629,572,000
MANAGEMENT
Zhao
Yixin, Legal
Representative and Chairman
---------------------------------------------------------------------------
Ø
Gender: F
Ø
Age: 57
Ø Qualification: University
Ø Working experience
(s):
From 1993 to 1998, worked in SC
as director and vice general manager
From 1998 to 2001, worked in SC
as director and general manager
From 2001 to present, working in
SC as legal representative and chairman
Xu
Shangfeng, General Manager
------------------------------------------------------
Ø
Gender: M
Ø
Age: 53
Ø Qualification: Master’s degree
Ø Working experience
(s):
From 1993 to 2001, worked in SC
as vice general manager
From 2001 to present, working in
SC as general manager
Also working in Shanghai Taimei Medical Equipment Co., Ltd.
as legal representative
Zhao Yong, Deputy General Managers
-----------------------------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø Qualification: University
Ø Working experience
(s):
From 1999 to 2001, as director of SC
From 2001 to present, working in SC as deputy
general manager
Ji Yuexiang, Deputy General Managers
---------------------------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø Qualification: University
Ø Working experience
(s):
From 2001 to present, working in SC as deputy
general manager
Yang Zhaoxu, Deputy General Managers
-----------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø Qualification: University
Ø Working experience
(s):
From 2006 to 2008, as director of SC
From 2008 to present, working in SC as deputy
general manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing &
selling class 2 disinfection & sterilization equipment (6857), class 3
medical high-energy rays equipment (6332), class 3 medical radionuclide
equipment (6833), class 2&3 medical X-ray equipment (6830), class 2&3
surgical room, emergency room and clinic equipment (6854), class 2 dental
equipment and apparatus (6855), class 2 medical ultrasound equipment and
related equipment (6823), class 2 ward nursing equipment and apparatus (6856);
selling class 2&3 medical devices products; manufacturing & selling
disinfectants, disinfection equipment. Pharmaceutical equipment; selling
environmental equipment; manufacturing instruments & related software;
designing, constructing and decorating houseroom engineering, air purification
and indoor decoration engineering; medical & pharmaceutical equipment
installation and intelligent construction.
SC is
mainly engaged in manufacturing and selling medical apparatus and instruments.
SC’s
products mainly include: sterilizer, Pharmaceutical Machine, Radiotherapy
Equipment, Surgical Instrument, Air Disinfector, disposable medical products,
etc.
Brand:
SHINVA
SC sources its materials 97% from domestic market and 3%
from the overseas market. SC sells 4% of its products to overseas market and 96% 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 Check, T/T, L/C and Credit of 30-60
days.
Major
Supplier:
============
Beijing Haisen Medicine I/E Co., Ltd.
Major
Clients:
==========
Zibo Mining Group Co., Ltd. Central Hospital
Central Hospital of Zibo
Shandong Qidu Pharmaceutical Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 2,011
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:
n
Shinva Medical Instrument Co., Ltd.
n
Shanghai Shinva Shupu Purification
Technology Co., Ltd.
n
Shandong Shinva Medical Environmental
Equipment Co., Ltd.
n
Shanghai Taimei Medical Equipment Co.,
Ltd.
n
Shinva GE Medical System Co., Ltd.
n
Shandong Shinva Qilin Software
Technology Co., Ltd.
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’s suppliers
declined to make any comments.
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 and
Commercial Bank of China Zhangdian Sub-branch
AC#: 1603002129200114688
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Sep. 30, 2012 |
|
316,831 |
349,975 |
636,263 |
|
|
Notes receivable |
37,708 |
13,360 |
7,611 |
|
Accounts
receivable |
276,929 |
418,381 |
528,148 |
|
Advances to
suppliers |
34,194 |
93,913 |
160,664 |
|
Interest
receivable |
0 |
0 |
0 |
|
Other receivable |
41,012 |
54,867 |
98,277 |
|
Inventory |
403,777 |
509,880 |
759,034 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
3 |
20,034 |
9,141 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
1,110,454 |
1,460,410 |
2,199,138 |
|
Long term equity
investment |
25,488 |
33,787 |
28,726 |
|
Investment real
estate |
63 |
6,656 |
6,489 |
|
Fixed assets |
205,179 |
244,723 |
320,232 |
|
Construction in
progress |
87,364 |
104,117 |
134,726 |
|
Project
materials |
0 |
0 |
0 |
|
Intangible
assets |
41,502 |
70,534 |
92,906 |
|
Long-term
prepaid expenses |
0 |
3,829 |
5,265 |
|
Deferred income
tax assets |
16,305 |
20,073 |
20,357 |
|
Other non-current
assets |
4,655 |
8,134 |
279,704 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
1,491,010 |
1,952,263 |
3,087,543 |
|
|
============= |
============= |
============= |
|
Short-term loans |
50,000 |
278,000 |
387,500 |
|
Notes payable |
50,148 |
41,717 |
18,384 |
|
Accounts payable |
253,072 |
332,024 |
478,722 |
|
Advances from
clients |
299,398 |
344,574 |
449,691 |
|
Payroll payable |
3,837 |
5,670 |
15,374 |
|
Taxes payable |
-13,259 |
-1,251 |
1,678 |
|
Other payable |
41,749 |
40,621 |
72,839 |
|
Non-current
liabilities within one year |
0 |
0 |
0 |
|
Other current
liabilities |
4,148 |
11,069 |
9,378 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
689,093 |
1,052,424 |
1,433,566 |
|
Non-current
liabilities |
24,858 |
28,666 |
28,065 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
713,951 |
1,081,090 |
1,461,631 |
|
Equities |
777,059 |
871,173 |
1,625,912 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
1,491,010 |
1,952,263 |
3,087,543 |
|
|
============= |
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
From
Jan. 1, 2012 to Sep. 30, 2012 |
|
Revenue |
1,342,233 |
2,106,132 |
2,108,579 |
|
Cost of sales |
1,017,524 |
1,626,630 |
1,637,749 |
|
Business Taxes and Surcharges |
6,095 |
9,882 |
9,509 |
|
Sales expense |
147,412 |
201,379 |
167,969 |
|
Management expense |
89,812 |
117,577 |
123,912 |
|
Finance expense |
-1,422 |
7,003 |
16,192 |
|
Assets Devaluation |
12,818 |
13,401 |
10,496 |
|
Investment
income |
4,283 |
3,584 |
6,264 |
|
Non-operating
income |
4,055 |
11,321 |
6,188 |
|
Non-operating expense |
410 |
1,234 |
1,097 |
|
Profit before
tax |
77,895 |
143,899 |
154,106 |
|
Less: profit tax |
13,269 |
26,261 |
27,753 |
|
64,626 |
117,638 |
126,353 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Sep. 30, 2012 |
|
*Current ratio |
1.61 |
1.39 |
1.53 |
|
*Quick ratio |
1.03 |
0.90 |
1.00 |
|
*Liabilities
to assets |
0.48 |
0.55 |
0.47 |
|
*Net profit
margin (%) |
4.81 |
5.59 |
5.99 |
|
*Return on
total assets (%) |
4.33 |
6.03 |
4.09 |
|
*Inventory /
Revenue ×365/270 |
110 days |
89 days |
98 days |
|
*Accounts
receivable/ Revenue ×365/270 |
76 days |
73 days |
68 days |
|
*Revenue /
Total assets |
0.90 |
1.08 |
0.68 |
|
*Cost of sales
/ Revenue |
0.76 |
0.77 |
0.78 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly 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 sales 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 loan of SC appears 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 large-sized in its line with fairly good financial
conditions. Taking into consideration of SC’s good background, general
performance, reputation as well as market conditions,
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.38 |
|
UK Pound |
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.