MIRA INFORM REPORT
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Report Date : |
09.11.2013 |
IDENTIFICATION DETAILS
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Name : |
NANTONG KAIXIN PHARMA CHEMICAL CO., LTD. |
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Registered Office : |
Room 1103, Block 2, Huachen Mansion, No. 111, Gongnong Road, Nantong, Jiangsu
Province, 226007 PR China |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
09.12.1996 |
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Com. Reg. No.: |
320600000030173 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject mainly engaged in exporting pharmaceutical and chemical
products. |
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No. of Employees : |
Approximately 4 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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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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 |
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.
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Source
: CIA |
company name & address
NANTONG KAIXIN PHARMA CHEMICAL CO., LTD.
ROOM 1103, BLOCK 2, HUACHEN MANSION, NO. 111, GONGNONG ROAD, NANTONG,
JIANGSU PROVINCE, 226007 PR CHINA
TEL :
86 (0) 513-85250786
FAX :
86 (0) 513-85255380
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 9, 1996
REGISTRATION NO. : 320600000030173
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
CHIEF EXECUTIVE :
MR. CAI JIANBING (CHAIRMAN)
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 4,880,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 102,420,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 5,370,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.11= 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 Ren Min Bi
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 Dec. 9, 1996.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have pre-exemption
right to purchase shares of the co. offered for sale by the other
shareholders and to subscribe for the newly increased registered capital of
the co.
SC’s registered business scope includes wholesaling chemical materials;
selling feed, food additives, pharmaceutical intermediates, rubber products,
plastic products, building materials, decoration materials, metal materials,
textiles and raw materials (except cotton), garments, footwear and machinery;
import and export various goods and technology, excluding the goods and
technology prohibited or limited by the country.
SC is mainly engaged in exporting pharmaceutical and chemical products.
Mr. Cai Jianbing is the legal representative, chairman and general
manager of SC at present.
SC is known to have approx. 4 employees
at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Nantong. Our checks
reveal that SC rents the total premise about 50 square meters.
http://www.nt-kx.com/ The design is professional and the content is well
organized. At present the web site is both in Chinese and English versions.
E-Mail: info@nt-kx.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2010-3 |
Registered capital |
CNY 1,080,000 |
Present amount |
|
Shareholdings |
Cai Jianbing 蔡建兵61.48% Lu Ping 陆平38.52% |
Present ones |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cai Jianbing 50.49
Lu Ping 49.51
·
Legal
Representative, Chairman and General Manager:
Mr. Cai Jianbing, born in 1966, he is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman and general
manager
·
Supervisor:
Lu Ping
SC is mainly engaged in exporting pharmaceutical and chemical products.
SC’s products mainly include: Guanylthiourea,
EMCAE, CDA, CAM, Phosphorous acid, Imidazole, Peach gum powder refined,
p-Hydroxy benzoic acid esters, Famotidine intermediates, Sodium ethylate,
p-Cyanophenol, etc.
SC sources its materials 100% from domestic market. SC sells 10% of its
products in domestic market and 90% to the overseas market.
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.
Note: SC declined
to release its major suppliers and clients.
SC is not known to have any subsidiary at present.
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
refused to release any information of its suppliers and the trade reference was
not available.
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.
Bank of Communications Nantong Branch
AC#：326008601010141040855
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash & bank |
400 |
20 |
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Inventory |
0 |
80 |
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Accounts receivable |
5,730 |
7,490 |
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Other receivables |
30 |
0 |
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Export drawback receivable |
800 |
950 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
6,960 |
8,540 |
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Fixed assets net value |
90 |
70 |
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Long term investment |
0 |
0 |
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Projects under construction |
0 |
0 |
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Intangible and other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
7,050 |
8,610 |
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=========== |
=========== |
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Short loan |
0 |
0 |
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Accounts payable |
360 |
1,000 |
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Advances from clients |
1,470 |
2,210 |
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Taxes payable |
20 |
20 |
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Other Accounts payable |
0 |
0 |
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Other current liabilities |
10 |
10 |
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------------------ |
------------------ |
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Current liabilities |
1,860 |
3,240 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
1,860 |
3,240 |
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Equities |
5,190 |
5,370 |
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------------------ |
------------------ |
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Total liabilities & equities |
7,050 |
8,610 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
|
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As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
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Turnover |
58,490 |
102,420 |
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Cost of goods sold |
57,620 |
100,890 |
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Taxes and additional of main operations |
/ |
20 |
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Sales expense |
610 |
800 |
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Management expense |
80 |
460 |
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Finance expense |
40 |
20 |
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Profit before tax |
100 |
230 |
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Less: profit tax |
20 |
40 |
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Profits |
80 |
190 |
Important Ratios
=============
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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*Current ratio |
3.74 |
2.64 |
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*Quick ratio |
3.74 |
2.61 |
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*Liabilities to assets |
0.26 |
0.38 |
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*Net profit margin (%) |
0.14 |
0.19 |
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*Return on total assets (%) |
1.13 |
2.21 |
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*Inventory /Turnover ×365 |
/ |
1 day |
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*Accounts receivable/Turnover ×365 |
36 days |
27 days |
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*Turnover/Total assets |
8.30 |
11.90 |
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* Cost of goods sold/Turnover |
0.99 |
0.99 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears average in both years,
and appears a rising trend.
·
SC’s net profit margin is average in both years.
·
SC’s return on total assets is average in both
years.
·
SC’s cost of goods sold is high, comparing with its
turnover.
·
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a fairly
good level.
·
SC’s quick ratio is maintained in a fairly good
level.
·
SC has no inventory in 2011 but it appears small in
2012.
·
The accounts receivable of SC appears large in both
years.
·
SC has no short-term loan in both years.
·
SC’s turnover is in a good level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is low.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.73 |
|
|
1 |
Rs.100.92 |
|
Euro |
1 |
Rs.84.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIA |
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 |
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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 |
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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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<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.