MIRA INFORM REPORT
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Report Date : |
15.05.2013 |
IDENTIFICATION DETAILS
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Name : |
TAIZHOU
HIGHSUN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Zhejiang
National Chemical & Pharmaceutial Base Linhai Zone Taizhou, Zhejiang
Province 317016 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
27.12.2002 |
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Com. Reg. No.: |
331000400003201 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in manufacturing and selling active pharmaceutical
ingredient. |
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No. of Employees : |
220 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. 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
TAIZHOU HIGHSUN PHARMACEUTICAL CO., LTD.
ZHEJIANG
NATIONAL CHEMICAL & PHARMACEUTIAL BASE LINHAI ZONE TAIZHOU, ZHEJIANG
PROVINCE 317016 PR CHINA
TEL: 86 (0)
576-85588683
FAX: 86 (0)
576-85588152
EXECUTIVE SUMMARY
Date of Registration : december 27, 2002
REGISTRATION NO. : 331000400003201
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE :
wang haiping (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 50,000,000
staff :
220
BUSINESS CATEGORY : MANUFACTURING
Revenue :
CNY 80,569,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 11,306,000 (AS OF DEC. 31, 2012)
WEBSITE : www.highsunpharm.com
E-MAIL :
sales@highsunpharm.com
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : Ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.15 = 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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 331000400003201 on December 27, 2002.
SC’s Organization Code Certificate No.:
75119141-8
SC’s Tax No.: 331082751191418
SC’s registered capital: cny 50,000,000
SC’s paid-in capital: cny 50,000,000
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 |
|
Taizhou Boyang Investment Co., Ltd. |
50 |
|
Zheng Guoding |
5 |
|
Lin Hong |
18.5 |
|
Jiang Lijin |
3 |
|
Wang Haiping |
23.5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Wang Haiping |
|
Director |
Lin Hong |
|
Zheng Guoding |
|
|
Supervisor |
Wang Hairong |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Taizhou Boyang Investment Co., Ltd. 50
Zheng Guoding 5
Lin Hong 18.5
Jiang Lijin 3
Wang Haiping 23.5
Taizhou Boyang Investment Co., Ltd.
==============================
Date of Registration: June 23, 2009
Registration No.: 331000000020640
Legal Form: Limited Liability
Company
Chief Executive: Zhang Zhimin
Registered Capital: CNY 50,000,000
MANAGEMENT
Wang Haiping, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------------
Gender: M
Age: 47
ID# 332601196601070632
Qualification: University
Working experience (s):
From 2002 to present, working in SC as legal representative, chairman
and general manager
Director
-----------
Lin Hong ID#
332601196511270323
Zheng Guoding ID#
410305197001235319
Supervisor
--------------
Wang Hairong ID#
332601197512180615
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing
active pharmaceutical ingredient (glipizide, diacerein, Dapoxetine
hydrochloride), goods import and export.
SC is mainly engaged in manufacturing and selling active pharmaceutical
ingredient.
Brand: HIGHSUN
SC’s products mainly include:
Diacerein Series
Antibiotics Series
Antidepressant & Intermediates
Sulfonylureas Hypoglycemic Agents
Antiepileptic & Intermediates
Contrast Agents & Intermediates
Antiviral Drugs
SC sources its materials 100% from domestic market, mainly Zhejiang. SC sells 75% of its products in domestic market, and 25% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
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.
Staff &
Office:
--------------------------
SC is known to have approx. 220
staff at present.
SC owns an area as its operating office & factory of approx. 40,000
sq. meters at the heading address.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
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:
Bank of China Taizhou Branch
AC#: 357158335358
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
21,027 |
18,175 |
|
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Notes receivable |
0 |
4,725 |
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Accounts receivable |
10,914 |
12,925 |
|
Advances to suppliers |
2,918 |
1,920 |
|
Other receivable |
4,434 |
3,862 |
|
Inventory |
25,469 |
28,828 |
|
Deferred expenses |
119 |
1,229 |
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Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
64,881 |
71,664 |
|
Fixed assets |
45,413 |
46,547 |
|
Construction in progress |
16,603 |
15,660 |
|
Intangible assets |
11,760 |
11,503 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
301 |
943 |
|
Other non-current assets |
55 |
118 |
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|
------------------ |
------------------ |
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Total assets |
139,013 |
146,435 |
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|
============= |
============= |
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Short-term loans |
30,000 |
55,000 |
|
Notes payable |
20,000 |
25,600 |
|
Accounts payable |
5,996 |
9,106 |
|
Wages payable |
1,775 |
1,904 |
|
Taxes payable |
193 |
217 |
|
Advances from clients |
0 |
0 |
|
Other payable |
32,696 |
22,690 |
|
Accrued expenses |
211 |
273 |
|
Other current liabilities |
167 |
339 |
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------------------ |
------------------ |
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Current liabilities |
91,038 |
115,129 |
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Non-current liabilities |
40,000 |
20,000 |
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------------------ |
------------------ |
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Total liabilities |
131,038 |
135,129 |
|
Equities |
7,975 |
11,306 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
139,013 |
146,435 |
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Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
79,360 |
80,569 |
|
Cost of sales |
60,218 |
58,519 |
|
Taxes and surcharges |
135 |
485 |
|
Sales expense |
1,589 |
1,803 |
|
Management expense |
10,123 |
12,012 |
|
Finance expense |
4,654 |
5,078 |
|
Non-business income |
206 |
75 |
|
Non-business expenditure |
80 |
346 |
|
Profit before tax |
3,679 |
3,331 |
|
Less: profit tax |
0 |
0 |
|
3,679 |
3,331 |
Important Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
0.71 |
0.62 |
|
*Quick ratio |
0.43 |
0.37 |
|
*Liabilities to assets |
0.94 |
0.92 |
|
*Net profit margin (%) |
4.64 |
4.13 |
|
*Return on total assets (%) |
2.65 |
2.27 |
|
*Inventory / Revenue ×365 |
118 days |
131 days |
|
*Accounts receivable/ Revenue ×365 |
51 days |
59 days |
|
* Revenue/Total assets |
0.57 |
0.55 |
|
* Cost of sales / Revenue |
0.76 |
0.73 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears large.
The accounts receivable of SC is maintained in an average level.
The short-term loans of SC appear large.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions. The large amount of inventory and short-term loans may be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.63 |
|
|
1 |
Rs.83.67 |
|
Euro |
1 |
Rs.71.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>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 |
|
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NB |
New Business |
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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.