MIRA
INFORM REPORT
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Report Date : |
15.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
BAOJI TIANXIN PHARMACEUTICAL CO., LTD. |
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Formerly Known
as: |
Baoji Tianxin Pharmaceutical
Industry Co., Ltd. |
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Registered Office : |
Caijiapo Economic & Technical Development Zone, Qishan
County, Baoji, Shaanxi Province, 722405 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
14.09.2004 |
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Com. Reg. No.: |
610323100001257 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling of pharmaceutical chemicals
inlcuding Mefenamic Acid |
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No. of Employees : |
104 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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With Financials |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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
|
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 & address
BAOJI TIANXIN
PHARMACEUTICAL CO., LTD.
CAIJIAPO ECONOMIC & TECHNICAL
DEVELOPMENT ZONE, QISHAN COUNTY, BAOJI, SHAANXI PROVINCE, 722405 PR CHINA
TEL: 86 (0) 917-2968778/2968099 FAX: 86 (0) 917-2968099
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 14, 2004
REGISTRATION NO. : 610323100001257
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
CHIEF EXECUTIVE : MR. QIU JUNLIANG
(CHAIRMAN)
STAFF STRENGTH : 104
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE : MANUFACTURING &
TRADING
TURNOVER :
CNY 46,670,000 (UNAUDITED, AS OF DEC. 31, 2010)
EQUITIES :
CNY 29,160,000 (UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
STABLE (AS OF DEC. 31, 2010)
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY
6.12 = 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
SC was registered as a limited liabilities co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Sep. 14, 2004.
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 producing and
selling pontal midbody (including Mefenamic Acid), chlofenamic acid midbody,
2-methyl-3-nitrobenzoic acid, 2- methyl-3- aminobenzoic acid; exporting its
products and technologies, importing materials, apparatus & instrument,
equipment, spare parts and relative technology for its production, processing
with the imported materials (excluding
commodities limited or
prohibited by the state) (excluding the items needed permit
according to laws, administrative regulation and State Council).
SC is
mainly engaged in manufacturing and selling pharmaceutical chemicals.
Mr.
Qiu Junliang has been legal representative and chairman of SC since 2008.
SC is known to have approx. 104 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the economic & technical
development zone of Baoji. Our checks reveal that SC owns the total premise
about 25,000 square meters.
http://www.txpharm.com
The website belongs to Zhejiang Tianxin Pharmaceutical Co., Ltd. and it
includes the information on SC and its related companies. The design is
professional and the content is well organized. At present it is both in
Chinese and English versions.
E-Mail: office3@txpharm.com
Honors:
======
SC was honored as “Business Work Advanced Enterprise” by Baoji municipal
government in 2010; and “Exchequer Construction Advanced Enterprise” by Qishan
county government in 2007 and 2008.
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
Unknown |
Registered no. |
6103232000735 |
610323100001257 |
|
2008-9-2 |
Shareholders |
Xu Jiangnan 81.8% Wang Guangtian 11.2% Qiu Qinyong7% |
Xu Jiangnan 51.8% Wang Guangtian 11.2% Qiu Qinyong 7% Qiu Junliang 30% |
|
Legal representative |
Xu Jiangnan |
Qiu Junliang |
|
|
2008-9-26 |
Name |
Baoji Tianxin Pharmaceutical
Industry Co., Ltd. |
Baoji Tianxin Pharmaceutical
Co., Ltd. |
MAIN SHAREHOLDERS:
Name
% of
Shareholding
Xu Jiangnan 51.8
Wang Guangtian 11.2
Qiu Qinyong 7
Qiu Junliang 30
Legal
representative and chairman:
Mr. Qiu Junliang, born in 1961, with university education.
He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2008 to present Working in SC as chairman and legal representative.
General manager:
Mr. Xia Cailian, born in 1967, he is currently responsible for the daily management of SC.
Working Experience(s):
At present
Working in SC as general manager.
SC is
mainly engaged in manufacturing and selling pharmaceutical chemicals.
SC’s products mainly include: Mefenamic Acid.
SC sources its
materials 97% from domestic market, and 3% from overseas markets. SC sells 10%
of its products in domestic market, and 90% to overseas market, mainly
Southeast Asia.
The buying terms of SC include Check, L/C, T/T 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’s employee refused to release its
major customers or supplies.
Related companies: (according to http://www.txpharm.com/)
Zhejiang Tianxin Pharmaceutical Co., Ltd.
Jiangxi Tianxin Pharmaceutical Co., Ltd.
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.
Note:
SC’s employee refused to release its major customers or supplies, so the trade
reference is not available.
Agricultural
Bank of China Qishan County Caijiapo Station Branch Office
AC#:
316201040002019
Relationship:
Normal
Unaudited Balance
Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Cash & bank |
7,390 |
12,250 |
|
Notes receivable |
0 |
990 |
|
Inventory |
4,130 |
5,860 |
|
Accounts
receivable |
6,050 |
4,950 |
|
Advances to
suppliers |
0 |
1,130 |
|
Other
receivables |
2,400 |
6,560 |
|
Prepaid expenses |
0 |
30 |
|
Subsidies
receivable |
0 |
80 |
|
Other current assets |
20 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
19,990 |
31,850 |
|
Fixed assets net
value |
7,660 |
7,440 |
|
Long-term
investment |
0 |
0 |
|
Projects under
construction |
230 |
510 |
|
Intangible and
other assets |
3,010 |
4,720 |
|
|
------------------ |
------------------ |
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Total assets |
30,890 |
44,520 |
|
|
============= |
============= |
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Short loans |
0 |
0 |
|
Accounts payable |
110 |
1,720 |
|
Advances from
clients |
0 |
530 |
|
Accrued
payroll |
0 |
0 |
|
Dividends
payable |
0 |
12,000 |
|
Other Accounts
payable |
-580 |
710 |
|
Surcharge
payable |
0 |
30 |
|
Taxes payable |
210 |
370 |
|
Other
current liabilities |
30 |
0 |
|
|
----------------- |
------------------ |
|
Current
liabilities |
-230 |
15,360 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
-230 |
15,360 |
|
Shareholders
equities |
31,120 |
29,160 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
30,890 |
44,520 |
|
|
============= |
============= |
Unaudited Income
Statement
Unit: CNY’000
|
|
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Turnover |
48,590 |
46,670 |
|
Cost of goods sold |
28,700 |
29,080 |
|
Taxes and additional of main
operation |
0 |
290 |
|
Sales expense |
1,820 |
2,170 |
|
Management expense |
2,720 |
3,500 |
|
Finance expense |
250 |
330 |
|
Subsidy income |
0 |
800 |
|
Non-operating
income |
0 |
0 |
|
Non-operating expense |
0 |
220 |
|
Other expense |
310 |
0 |
|
Profit before
tax |
14,790 |
11,880 |
|
Less: profit tax |
2,220 |
1,810 |
|
Profits |
12,570 |
10,070 |
Note: SC’s management declined to release the
latest financial information.
Important Ratios
=============
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
*Current ratio |
-86.91 |
2.07 |
|
*Quick ratio |
-68.96 |
1.69 |
|
*Liabilities
to assets |
-0.01 |
0.35 |
|
*Net profit
margin (%) |
25.87 |
21.58 |
|
*Return on
total assets (%) |
40.69 |
22.62 |
|
*Inventory
/Turnover ×365 |
31 days |
46 days |
|
*Accounts
receivable/Turnover ×365 |
45 days |
39 days |
|
*Turnover/Total
assets |
1.57 |
1.05 |
|
* Cost of
goods sold/Turnover |
0.59 |
0.62 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears average in its line in
both 2 years.
l
SC’s net profit margin is good in both 2 years.
l
SC’s return on total assets is good in 2009, but it
decreased in 2010.
l
SC’s cost of goods sold is average in both 2 years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in 2010.
l
SC’s quick ratio is maintained in a normal level in
2010.
l
The inventory of SC appears average in both 2
years.
l
The accounts receivable of SC appears average in
both 2 years.
l
SC has no short-term loan in both 2 years.
l
SC’s turnover is in an average level average in
both 2 years, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low in 2010.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.30 |
|
UK Pound |
1 |
Rs.97.99 |
|
Euro |
1 |
Rs.83.15 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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.