MIRA
INFORM REPORT
|
Report Date : |
11.05.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG NEW TIME PHARMACEUTICAL CO., LTD. |
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Formerly Known as: |
Linyi New Time Pharmaceutical
Co., Ltd. |
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Registered Office : |
No. 1 North Outer Ring Road, Feixian County, Shandong Province 273400
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
30.03.2001 |
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Com. Reg. No.: |
371300400000357 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling pharmaceutical products |
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No. of Employees : |
2,200 |
RATING & COMMENTS
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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.
|
Source : CIA |
Company name & address
SHANDONG NEW TIME PHARMACEUTICAL
CO., LTD.
NO. 1 NORTH OUTER RING ROAD, FEIXIAN county
SHANDONG PROVINCE 273400 PR CHINA
TEL: 86 (0) 539-5030558/5030628/5030788
FAX: 86 (0) 539-5030600
EXECUTIVE SUMMARY
Date of Registration : MARch 30, 2001
REGISTRATION NO. : 371300400000357
LEGAL FORM : CHINESE FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE : ZHAO ZHIQUAN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 189,000,000
staff : 2,200
BUSINESS CATEGORY :
manufacturing
Revenue : CNY 1,420,245,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 1,032,298,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
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
LEGAL STATUS & HISTORY
SC was
established as a Chinese foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 371300400000357 on March 30,
2001.
SC’s Organization Code Certificate
No.: 72755352-X
SC’s registered capital: CNY 189,000,000
SC’s paid-in capital: CNY 189,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2001-09-18 |
Company Name |
Linyi Lunan
Pharmaceutical Group Yimeng Pharmaceutical Co., Ltd. |
Linyi New Time Pharmaceutical
Co., Ltd. |
|
2002-06-11 |
Legal Representative |
Shen Xiaoguo |
Zhao Zhiquan |
|
Registered Capital |
CNY 3,200,000 |
CNY 30,000,000 |
|
|
2003-12-24 |
Company Name |
Linyi New Time Pharmaceutical Co., Ltd. |
Shandong New Time Pharmaceutical Co., Ltd. |
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2005-02-05 |
CNY 63,600,000 |
||
|
Shareholders Shareholding) |
Kunlun Properties, Inc. U.S.A. 25.00% Lunan Pharmaceutical Co., Ltd. 30.00% Long Guangxia 30.00% Yu Renchang 7.30% Beijing Tianheng Pharmaceutical Institute 3.00% Sun Xiaoliang 3.00% Wang Xueping 1.70% |
||
|
2005-06-01 |
Registered Capital |
CNY 63,600,000 |
CNY 105,000,000 |
|
Shareholders |
Kunlun Properties, Inc. U.S.A. 25.00% Lunan Pharmaceutical Co., Ltd. 30.00% Long Guangxia 30.00% Yu Renchang 7.30% Beijing Tianheng Pharmaceutical Institute 3.00% Sun Xiaoliang 3.00% Wang Xueping 1.70% |
Kunlun Properties, Inc. (USA) 25.00% Lunan Pharmaceutical Group Corporation
30.00% Long Guangxia 30.00% Yu Renchang 7.30% Beijing Tianheng Pharmaceutical Institute 3.00% Sun Xiaoliang 3.00% Wang Xueping 1.70% |
|
|
2005-08-30 |
Shareholders (%of Shareholding) |
Kunlun Properties, Inc. (USA) 25.00% Lunan Pharmaceutical Group Corporation 30.00% Long Guangxia 30.00% Yu Renchang 7.30% Beijing Tianheng Pharmaceutical Institute 3.00% Sun Xiaoliang 3.00% Wang Xueping 1.70% |
Kunlun Properties, Inc. (USA) 25.00% Lunan Pharmaceutical Group Corporation 32.05% Long Guangxia 30.00% Yu Renchang 8.25% Beijing Tianheng Pharmaceutical Institute 3.00% Wang Xueping 1.70% |
|
2006-08-31 |
(%of Shareholding) |
Kunlun Properties, Inc. (USA) 25.00% Lunan Pharmaceutical Group Corporation 32.05% Long Guangxia 30.00% Yu Renchang 8.25% Beijing Tianheng Pharmaceutical Institute 3.00% Wang Xueping 1.70% |
Anderson Investment Co., Ltd. (B.V.I.) 25.00% Lunan Pharmaceutical Group Corporation 32.05% Long Guangxia 30.00% Yu Renchang 8.25% Beijing Tianheng Pharmaceutical Institute 3.00% Wang Xueping 1.70% |
|
2007-03-23 |
Registered capital |
CNY 105,000,000 |
CNY 189,000,000 |
|
Shareholders (%of Shareholding) |
Anderson Investment Co., Ltd. (B.V.I.) 25.00% Lunan Pharmaceutical Group Corporation 32.05% Long Guangxia 30.00% Yu Renchang 8.25% Beijing Tianheng Pharmaceutical Institute 3.00% Wang Xueping 1.70% |
Anderson Investment Co., Ltd. (B.V.I.) 25.00% Lunan Pharmaceutical Group Corporation 32.05% Beijing Tianheng Pharmaceutical Institute 3.00% Long Guangxia 30.00% Yu Renchang 8.28% Wang Xueping 1.67% |
|
|
2011-08-29 |
Shareholders (%of Shareholding) |
Anderson Investment Co., Ltd. (B.V.I.) 25.00% Lunan Pharmaceutical Group Corporation 32.05% Beijing Tianheng Pharmaceutical Institute 3.00% Long Guangxia 30.00% Yu Renchang 8.28% Wang Xueping 1.67% |
Anderson Investment Co., Ltd. (B.V.I.) 25.00% Lunan Pharmaceutical Group Corporation 35.00% Long Guangxia 广霞 34.80% Beijing Tianheng Pharmaceutical Institute 3.53% Wang Xueping 1.67% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Anderson Investment Co., Ltd.
(B.V.I.) |
25.00 |
|
Lunan Pharmaceutical Group
Corporation |
35.00 |
|
Long Guangxia |
34.80 |
|
Beijing Tianheng
Pharmaceutical Institute |
3.53 |
|
Wang Xueping |
1.67 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Zhao Zhiquan |
|
Director |
Long
Guangxia |
|
Wang
Xueping |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Anderson Investment Co., Ltd.
(B.V.I.) 25.00
Lunan Pharmaceutical Group
Corporation 35.00
Long Guangxia 34.80
Beijing Tianheng Pharmaceutical
Institute 3.53
Wang Xueping 1.67
Lunan Pharmaceutical Group Corporation
-------------------------------------------------------------
Registration No.: 370000400002298
Chief Executive: Zhao Zhiquan (Legal Representative)
Address: No. 209, Hongqi Rd, Linyi City,
Shandong Province
Tel: 86 (0) 539-8331258
Fax: 86 (0) 539-8331269
Website: www.lunan.com.cn
E-mail: ibo@lunan.com.cn
Beijing Tianheng Pharmaceutical
Institute
-------------------------------------------------------------
Registration No.: 110102000823740
Date of Registration: July 27, 1998
Legal Form: Collective-owned enterprise
Registered Capital: CNY 2,000,000
Chief Executive: Liu Quanzhi (Legal Representative)
MANAGEMENT
Zhao Zhiquan , Legal Representative and Chairman
-------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø Qualification:
University
Ø Working experience
(s):
From
2002 to present, working in SC as legal representative and chairman
Also
working in Lunan Pharmaceutical Group Corporation as chairman and general
manager, in Lunan Hope Pharmaceutical Co., Ltd. and Lunan Better Pharmaceutical
Co., Ltd. as legal representative
Director
-----------
Long Guangxia
Wang Xueping
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling:
granular formulation, tablet, injection, dry powder, hard capsule, large volume
parenteral solutions, small volume parenteral solutions,
suppository, pill, soft capsules, capsule powder inhalation, dry suspension,
inhalation, API(active pharmaceutical ingredients), sterile APIs,
bio-engineering product, spirit drug; chemical materials and chemical products
( excluding hazardous chemicals); package material ( excluding items limited by
state).
SC is mainly
engaged in manufacturing and selling pharmaceutical products.
SC’s products
mainly include: Faropenem Sodium,Ketorolac Tromethamine, 4-AA , Tamsulosin HCI,
Sevoflurane, Isoflurane, clavulanate potassium, 7-adca,Isosorbide Mononitrate,
Isosorbide Dinitrate, Milrinone, Moclobemide, Mosapride Citrate, Sotalol
Hydrochloride,Acipimox, Alfuzosin Hydrochloride, Aniracetam, Cetirizine
Hydrochloride, Chlorzoxazone, Epirubicin Hydrochloride.
SC sources its
materials 100% from domestic market. SC sells 70% of its products in domestic
market, and 30% to the overseas market, mainly India, Korea, Pakistan, Iran,
Egypt, Brazil, Spain, Syria, Turkey, and Philippines.
The
import & export status of SC in 2011 is as follows,
|
Country |
Amount
of Exports (USD) |
Amount of Imports (USD) |
|
India |
20,438,800 |
-- |
|
Korea |
13,071,400 |
-- |
|
Pakistan |
4,406,200 |
-- |
|
Iran |
3,111,600 |
-- |
|
Egypt |
1,926,700 |
-- |
|
Brazil |
1,815,800 |
-- |
|
Spain |
1,428,300 |
-- |
|
Syria |
1,124,900 |
-- |
|
Turkey |
976,000 |
-- |
|
Philippines |
628,700 |
-- |
|
|
----------------- |
----------------- |
|
Total |
48,928,400 |
-- |
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Lunan Hope Pharmaceutical Co., Ltd.
Lunan Better Pharmaceutical Co., Ltd.
Keystone
Healthcare Inc. (U.S.A.)
Staff & Office:
--------------------------
SC is
known to have approx. 2,200 staff
at present.
SC owns an area as
its operating office & factory of approx. 1,182,250 sq. meters at the
heading address.
RELATED COMPANY
Related Companies,
u
Lunan Hope Pharmaceutical Co., Ltd.
---------------------------------------------------
Registration No.: 371300400000429
Date of Registration: December 16, 2003
Legal Form: Chinese-foreign equity joint venture enterprise
Registered Capital: CNY 50,000,000
Legal Representative: Zhao Zhiquan
u
Lunan Better Pharmaceutical Co., Ltd.
----------------------------------------------------
Registration
No.: 371300400000437
Date of Registration: December 16, 2003
Legal Form: Chinese-foreign equity joint venture enterprise
Registered Capital: CNY 50,000,000
Legal Representative: Zhao Zhiquan
SC is known to
have the following subsidiaries at present,
u
Lunan New Time Biotechnology Co., Ltd.
u
Chongqing Fujin Bio-Medicine Co., Ltd.
u
Lunan New Time Pharmaceutical Co., Ltd.
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 Feixian Sub-branch
AC#:
1610020809022107543
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
62,869 |
|
|
Notes receivable |
18,895 |
|
Accounts
receivable |
145,546 |
|
Advances to
suppliers |
77,057 |
|
Other receivable |
667 |
|
Inventory |
550,114 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
855,148 |
|
Long-term
investment |
145,379 |
|
Fixed assets |
933,171 |
|
Construction in
progress |
1,012,692 |
|
Engineering
materials |
331 |
|
Intangible
assets |
178,508 |
|
Long-term
prepaid expenses |
157 |
|
Deferred income
tax assets |
323 |
|
Other
non-current assets |
0 |
|
|
------------------ |
|
Total assets |
3,125,709 |
|
|
============= |
|
Short-term loans |
648,000 |
|
Notes payable |
100,000 |
|
Accounts payable |
217,852 |
|
Wages payable |
9,942 |
|
Taxes payable |
10,753 |
|
Advances from
clients |
0 |
|
Other payable |
311,479 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
1,298,026 |
|
Non-current
liabilities |
795,385 |
|
|
------------------ |
|
Total
liabilities |
2,093,411 |
|
Equities |
1,032,298 |
|
|
------------------ |
|
Total
liabilities & equities |
3,125,709 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
1,420,245 |
|
Cost of sales |
580,230 |
|
Sales expense |
220,760 |
|
Management expense |
159,662 |
|
Finance expense |
108,933 |
|
345,250 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
|
*Current ratio |
0.66 |
|
*Quick ratio |
0.23 |
|
*Liabilities
to assets |
0.67 |
|
*Net profit
margin (%) |
24.31 |
|
*Return on
total assets (%) |
11.05 |
|
*Inventory /
Revenue ×365 |
142 days |
|
*Accounts
receivable/ Revenue ×365 |
38 days |
|
* Revenue/Total
assets |
0.45 |
|
* Cost of
sales / Revenue |
0.41 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
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 low, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear fairly large.
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. 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.54.54 |
|
UK Pound |
1 |
Rs.84.19 |
|
Euro |
1 |
Rs.71.11 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
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.