MIRA INFORM REPORT
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Report Date : |
29.05.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG KANGLE PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 208, Qujiang
Road, Economic and Technological Development Zone, Wenzhou, Zhejiang Province,
325011 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
19.01.2003 |
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Com. Reg. No.: |
330300000001310 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and
selling pharmaceutical raw materials, pharmaceutical intermediates,
injection, preparation, etc. |
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No. of Employees : |
650 |
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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 & address
Zhejiang Kangle Pharmaceutical
Co., Ltd.
5/F,
Kangle Building, No. 112 Maanchi West Road,
Wenzhou,
Zhejiang Province, 325028 PR China
TEL:
86 (0) 577-88514502/88517631 FAX: 86
(0) 577-88514502
EXECUTIVE SUMMARY
INCORPORATION DATE : JANUARY 19, 2001
REGISTRATION NO. :
330300000001310
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF
EXECUTIVE : Mr. Bai
Zhiping (Legal representative)
STAFF STRENGTH : 650
REGISTERED CAPITAL :
CNY 60,000,000
BUSINESS LINE : Manufacturing &
Trading
TURNOVER : CNY 497,000,000 (As of Dec. 31, 2011)
EQUITIES : CNY 228,760,000 (As of Dec. 31,
2011)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY
6.1261 = USD 1
Adopted abbreviations:
ANS - amount not
stated
NS - not stated
SC - subject
company (the company inquired by you)
NA - not available
CNY - China Yuan
Renminbi
Note: SC is also
known as Zhejiang Conler Pharmaceutical Co., Ltd.
SC was registered
as a limited liabilities company at local Administration for Industry &
Commerce (AIC-The official body of issuing and renewing business license) on January
19, 2001 and has been under present ownership since 2007.
Company Status: Shares
limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be
domiciled in China.. Natural person are allowed to serve as promoters. The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. The board of directors must
consist of five to nineteen directors. If
the co. raises capital by public offer, the promoters must not subscribe
less than 35% of the total shares. The promoters’ shares are restricted to
transfer- within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions & requirements specified under the law &
administrative rule.
SC’s registered business
scope includes manufacturing pharmaceutical raw materials and preparation,
packaging materials, hardware decorative materials; pharmaceutical technology
information consultant services; exporting self-made products and related
technologies; importing raw auxiliary materials, mechanical equipment,
instruments & meters, spare parts and related technologies needed in
manufacturing and researching.
SC is mainly
engaged in manufacturing and selling pharmaceutical raw materials,
pharmaceutical intermediates, injection, preparation, etc.
Mr.
Bai Zhiping is legal representative and
chairman at present.
SC is known to have approx. 650 employees at
present.
SC is currently
operating at the above stated address, and this address houses its operating
office and head office in the commercial zone of Whenzhou. Our checks reveal
that SC owns the total premise, but SC’s accountant refused to release the
gross area.
Registered/Factory
Address: No. 208, Qujiang Road, Economic and Technological Development Zone,
Wenzhou, Zhejiang Province, 325011 PR China
http://www.conlerpharm.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: zj@conlerpharm.com
Changes of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2007 |
Registered Legal Form |
Limited Liabilities Company |
Present one |
|
Chinese Name |
浙江康乐药业有限公司 |
Present one |
|
|
Unknown |
Legal representative |
Xie Yuandian) |
Present one |
Note: SC changed its Chinese name in 2007,
while its English name remains the same.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Huaping Investment Co.,
Ltd. 13.33
Shanghai Fute Investment Co., Ltd. 3.33
Chen Shengsu 1.27
Huang Huihui 1.40
Sun Yuqing 3.39
Wang Wudi 0.68
Yu Yonghua 2.05
Dai Jiajun 0.80
Chen Hongchun 0.27
Peng Yanbiao 0.47
Dai Xiaodong 2.28
Dai Li 1.55
Wang Xianping 1.62
Yao Yuanhai 1.01
Peng Qiande 10.13
Dong Yu 1.33
Wang Yuefei 3.08
Xie Yuandian 22.26
Ye Wei 0.93
Wu Shaochang 1.78
Yang Xiaoming 10.5
Chen Zhenhua 8.82
Mao Liping 1.17
Hu Shengrong 4.95
Yu Ruqian 0.32
Jiang Ru 1.28
Zhejiang Huaping Investment Co.,
Ltd. (in Chinese Pinyin)
==========================================
Legal representative: Shen Binhua
Registration No.: 330000000024109
Incorporation Date: 2007-04-24
Shanghai Fute Investment Co., Ltd. (in Chinese
Pinyin)
========================================
Legal representative: Jin
Weifeng
Registration No.: 310107000396090
Incorporation Date: 2003-11-14
Registered Capital: CNY 10,000,000
Legal Representative and Chairman:
Mr. Bai Zhiping , born in 1956, with Master’s degree. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative and chairman
Also working in Fuding Kangle Pharmaceutical Co., Ltd. and Lianyungang Kangle Pharmaceutical Co., Ltd. as
legal representative.
SC is mainly
engaged in manufacturing and selling pharmaceutical raw materials, pharmaceutical
intermediates, injection, preparation, etc.
SC’s products
mainly include Pharmaceutical raw materials (Paractamol, Malic Acid,
Glucosamine, Gluconates, Hesperidine, H2-Antagon, Silymarin, Fermentation
Products, Belladonna, Plant and Animal, Nucleoside, Angiocardiopathy, Veterinary Medicine,
Chemical Products), Intermediates, etc.
SC sources its materials
60% from domestic market, and 40% from overseas market. SC sells 30% of its
products in domestic market, and 70% 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.
Note: SC declined
to release its major suppliers and clients.
Fuding
Kangle Pharmaceutical Co., Ltd.
Registered
no.: 350982100000409
Legal
representative: Bai Zhiping
Lianyungang
Kangle Pharmaceutical Co., Ltd.
Legal
representative: Bai Zhiping
Etc.
Overall
payment appraisal:
(
) Excellent ( ) Good
(X) Average ( ) Fair
( ) Poor (
) Not yet 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.
Agricultural Bank of China Wenzhou Branch
AC#：N/A
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
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as
of Dec. 31, 2011 |
|
Cash & bank |
73,100 |
|
Inventory |
30,720 |
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Accounts
receivable |
84,710 |
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Other
receivables |
61,750 |
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Other current
assets |
6,430 |
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------------------ |
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Current assets |
256,710 |
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Fixed assets net
value |
109,490 |
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Projects under construction |
2,880 |
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Long term
investment |
17,510 |
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Other assets |
53,020 |
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------------------ |
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Total assets |
439,610 |
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============= |
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Short loans |
130,000 |
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Accounts payable |
17,270 |
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Other payable |
7,510 |
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Bills
payable |
55,600 |
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Taxes payable |
-3,320 |
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Advances from
customers |
760 |
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Other current
liabilities |
3,030 |
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------------------ |
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Current
liabilities |
210,850 |
|
Long term
liabilities |
0 |
|
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------------------ |
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Total
liabilities |
210,850 |
|
Equities |
228,760 |
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------------------ |
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Total
liabilities & equities |
439,610 |
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============= |
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2011 |
|
Turnover |
497,000 |
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Cost of goods
sold |
390,400 |
|
Sales expense |
13,190 |
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Management expense |
35,800 |
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Finance expense |
11,130 |
|
Profit before
tax |
42,720 |
|
Less: profit tax |
6,850 |
|
Profits |
35,870 |
Important Ratios
=============
|
|
as
of Dec. 31, 2011 |
|
*Current ratio |
1.22 |
|
*Quick ratio |
1.07 |
|
*Liabilities
to assets |
0.48 |
|
*Net profit
margin (%) |
7.22 |
|
*Return on
total assets (%) |
8.16 |
|
*Inventory
/Turnover ×365 |
23 days |
|
*Accounts
receivable/Turnover ×365 |
63 days |
|
*Turnover/Total
assets |
1.13 |
|
* Cost of goods
sold/Turnover |
0.79 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears fairly good.
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 turnover.
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 is average.
l
The accounts receivable of SC is average.
l
The short-term loan of SC is fairly large.
l
SC’s turnover is in an average 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.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.74 |
|
UK Pound |
1 |
Rs.84.17 |
|
Euro |
1 |
Rs.72.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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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 |
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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.