MIRA
INFORM REPORT
|
Report Date : |
29.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG TIANYU
PHARMACEUTICAL CO., LTD. |
|
|
|
|
Registered Office : |
Jiangkou Chemical Development Zone, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
14.02.2003 |
|
|
|
|
Com. Reg. No.: |
331003000003258 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing of pharmaceutical products and pharmaceutical
intermediates. |
|
|
|
|
No. of Employees : |
1,114 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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) |
|
|
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
Source
: CIA
Company Name and Address
ZHEJIANG TIANYU PHARMACEUTICAL CO., LTD.
JIANGKOU CHEMICAL
DEVELOPMENT ZONE, HUANGYAN
TAIZHOU, ZHEJIANG
PROVINCE 318020 PR CHINA
TEL: 86 (0)
576-84177669/84168770/89189669
FAX: 86 (0)
576-84172669
EXECUTIVE SUMMARY
Date of Registration : FEBRUARY 14, 2003
REGISTRATION NO. : 331003000003258
LEGAL FORM : Shares limited company
CHIEF EXECUTIVE : TU YONGJUN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 90,000,000
staff :
1,114
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 1,037,746,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 401,385,000 (AS OF DEC. 31, 2012)
WEBSITE : www.tianyupharma.com
E-MAIL :
tianyu@tianyupharma.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE :
CNY 6.08 = 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 on February 14, 2003. However, SC
changed to present legal form, and was registered as shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 331003000003258
on June 24, 2011.
SC’s Organization Code Certificate No.:
14814421-1
SC’s Tax No.: 331003148144211
SC’s registered capital: CNY 90,000,000
SC’s paid-in capital: CNY 90,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2000-3-15 |
Legal Representative |
Tu Shanzeng |
Lin Jie |
|
2001-6-29 |
Registered Capital |
CNY 380,000 |
CNY 2,000,000 |
|
2003-1-20 |
Registered Capital |
CNY 2,000,000 |
CNY 5,000,000 |
|
2003-2-14 |
Company Name |
Zhejiang Huangyan Tianyu Chemical Factory |
Zhejiang Tianyu Chemical Co., Ltd. |
|
2005-5-13 |
Registered Capital |
CNY 5,000,000 |
CNY 15,000,000 |
|
2005-7-21 |
Legal Representative |
Lin Jie |
Tu Yongjun |
|
Company Name |
Zhejiang Tianyu Chemical Co., Ltd. |
Zhejiang Tianyu Pharmaceutical Co., Ltd. |
|
|
2007-8-6 |
Registration No. |
3310032003078 |
331003000003258 |
|
2008-9-12 |
Registered Capital |
CNY 15,000,000 |
CNY 25,000,000 |
|
2009-12-21 |
Registered Capital |
CNY 25,000,000 |
CNY 50,000,000 |
|
2010-11-18 |
Registered Capital |
CNY 50,000,000 |
CNY 67,880,000 |
|
2010-11-23 |
Registered Capital |
CNY 67,880,000 |
CNY 81,290,000 |
|
2010-11-30 |
Registered Capital |
CNY 81,290,000 |
CNY 86,480,000 |
|
2011-6-24 |
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
Registered Capital |
CNY 86,480,000 |
CNY 90,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang Taizhou Shengting Investment Co.,
Ltd. |
8.91 |
|
Shanghai Jinglin |
4.00 |
|
Suzhou Huichuang Investment &
Development Co., Ltd. |
2.00 |
|
Tu Shanzeng |
4.34 |
|
Wang Juqing |
4.34 |
|
Tu Yongjun |
16.53 |
|
Cheng Rongde |
0.93 |
|
Fang Hongjun |
0.93 |
|
Li Meijun |
0.93 |
|
Zhang Yi |
0.93 |
|
Ma Cheng |
1.25 |
|
Yang Xuexian |
0.65 |
|
Wang Yaojie |
0.65 |
|
Zhou Yunfu |
0.17 |
|
Zhang Jialiu |
0.17 |
|
Lin Jie |
53.27 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Tu Yongjun |
|
Director |
Fang Hongjun |
|
Wen Zhijun |
|
|
Wu Chengye |
|
|
Wang Weisong |
|
|
Wang Yanguang |
|
|
Lin Jie |
|
|
Supervisor |
Wang Xiulin |
|
Yang Weiguo |
RECENT DEVELOPMENT
Honor
---------
SC becomes one of "top-10 enterprises" of Huangyan region in
2009.
In 2008, SC was approved as "example enterprise in Taizhou city for
technical innovation".
SC became a hi-tech enterprise of
SC was approved as "key hi-tech enterprise” of China torch program
in 2007.
In 2007, SC was approved as "good enterprise" for harmonious
labor relationships.
In 2006, SC has passed ISO9001, ISO14001, OHSASA18000 Certificates.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Zhejiang Taizhou Shengting Investment Co.,
Ltd. 8.91
Shanghai Jinglin Venture Capital Center
(Limited Partnership) 4.00
Suzhou Huichuang Investment &
Development Co., Ltd. 2.00
Tu Shanzeng 4.34
Wang Juqing 4.34
Tu Yongjun 16.53
Cheng Rongde 0.93
Fang Hongjun 0.93
Li Meijun 0.93
Zhang Yi 0.93
Ma Cheng 1.25
Yang Xuexian 0.65
Wang Yaojie 0.65
Zhou Yunfu 0.17
Zhang Jialiu 0.17
Lin Jie 53.27
Zhejiang Taizhou Shengting Investment Co., Ltd.
--------------------------------------------
Registration No.: 331003000063523
Legal Form: Limited Liabilities
Company
Registered Capital: CNY 20,500,000
Shanghai Jinglin Venture Capital Center (Limited
Partnership)
-------------------------------------------
Registration No.: 310115001196944
Suzhou Huichuang Investment & Development Co.,
Ltd.
--------------------------------------------
Registration No.: 320500000069913
MANAGEMENT
Tu Yongjun, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
ID# 332603196302180017
Ø
Qualification:
University
Ø
Working
experience (s):
From 2005 to present, working in SC as legal representative,
chairman and general manager
Director
------------
Fang Hongjun ID#
330106196210170030
Wen Zhijun ID#
110105197712237714
Wu Chengye ID#
410103194711182410
Wang Weisong ID#
310103195911232014
Wang Yanguang ID#
620102196411085354
Lin ID#
332603196901310063
Supervisor
--------------
Wang Xiulin ID#
342901197204033419
Yang Weiguo ID#
231021196712050018
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing 2,6-difluoroaniline, raw material drugs, candesartan cilexetil,
4'-methyl-2-cyanobiphenyl, 4-bromomethyl-2’-cyanobiphenyl, sartan,
biphenylacetic acid, candesartan cilexetil, irbesartan, telmisartan,
eprosartan; manufacturing N, N'-dicyclohexylcarbodiimide (DCC).
SC is mainly
engaged in manufacturing pharmaceutical products and pharmaceutical
intermediates.
SC’s products mainly include:
l
Candesartan Cilexetil
l
Valsartan
l
Losartan Potassium
l
Irbesartan
l
Telmisartan
l
Olmesartan Medoxomil
l
Eprosartan Methanesulfonate
l
Montelukast Sodium
SC sources its materials 100% from domestic
market. SC sells 40% of its products in domestic market, and 60% to overseas
market.
The buying terms of SC include Check, 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.
Staff & Office:
--------------------------
SC is known
to have approx. 1,114 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have the
following subsidiaries at present:
n
Taizhou Erkang Pharmaceutical Co., Ltd.
-----------------------------------------------------
Date of Registration: December 25, 2002
Registration No.: 331082000016154
Legal Form: One-person Limited
Liability Company
Registered Capital: CNY 58,880,000
n
Binhai Sanyong Pharmaceutical Chemical Co., Ltd.
Registration
No.: 320922000016934
Etc.
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 Huangyan Sub-branch
AC#:
840023559908091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
48,696 |
91,370 |
68,182 |
178,515 |
|
|
Held for trading financial assets |
0 |
0 |
1,360 |
199 |
|
Notes receivable |
0 |
0 |
9,362 |
17,618 |
|
Accounts
receivable |
50,345 |
64,784 |
112,227 |
150,019 |
|
Advances to
suppliers |
5 |
5 |
73,985 |
120,619 |
|
Subsidies
receivable |
0 |
143 |
0 |
0 |
|
Other receivable |
1,750 |
-325 |
2,717 |
2,552 |
|
Inventory |
39,973 |
71,936 |
119,192 |
150,987 |
|
Prepaid expenses |
1,869 |
1,250 |
0 |
0 |
|
Other current
assets |
0 |
4,221 |
0 |
8,111 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current assets |
142,638 |
233,384 |
387,025 |
628,620 |
|
Fixed assets |
49,569 |
105,370 |
109,761 |
142,404 |
|
Construction in
progress |
25,159 |
613 |
2,666 |
8,184 |
|
Intangible
assets |
14,392 |
14,787 |
28,203 |
27,714 |
|
Long-term
investment |
60,000 |
86,760 |
93,236 |
93,236 |
|
Deferred income
tax assets |
0 |
0 |
908 |
1,277 |
|
Other
non-current assets |
0 |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total assets |
291,758 |
440,914 |
621,799 |
901,435 |
|
|
============= |
============= |
============= |
============= |
|
Short-term loans |
56,497 |
53,210 |
144,221 |
261,983 |
|
Transaction
financial liabilities |
0 |
0 |
0 |
36 |
|
Notes payable |
35,000 |
96,000 |
98,000 |
132,000 |
|
Accounts payable |
5,809 |
9,645 |
60,484 |
81,090 |
|
Wages payable |
0 |
1,668 |
10,797 |
14,718 |
|
Taxes payable |
-447 |
11,361 |
3,650 |
1,526 |
|
Interest payable |
0 |
0 |
0 |
3,045 |
|
Advances from
clients |
0 |
0 |
1,950 |
3,563 |
|
Other payable |
3,155 |
7,877 |
2,145 |
1,783 |
|
Other current
liabilities |
527 |
480 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
100,541 |
180,241 |
321,247 |
499,744 |
|
Non-current
liabilities |
52,000 |
27,000 |
503 |
306 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
152,541 |
207,241 |
321,750 |
500,050 |
|
Equities |
139,217 |
233,673 |
300,049 |
401,385 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
291,758 |
440,914 |
621,799 |
901,435 |
|
|
============= |
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
263,837 |
441,209 |
759,558 |
1,037,746 |
|
Cost of sales |
206,382 |
340,689 |
573,568 |
776,027 |
|
Taxes and surcharges |
1,985 |
1,923 |
3,461 |
6,168 |
|
Sales expense |
4,855 |
3,624 |
9,155 |
15,581 |
|
Management expense |
15,797 |
35,122 |
55,725 |
94,482 |
|
Finance expense |
3,076 |
8,186 |
10,058 |
13,660 |
|
Subsidy income |
1,333 |
529 |
0 |
0 |
|
Investment
income |
0 |
0 |
3,093 |
1,456 |
|
Non-business
income |
256 |
951 |
1,338 |
3,120 |
|
Non-business expense |
557 |
1,297 |
1,891 |
2,272 |
|
Profit before
tax |
32,776 |
51,897 |
108,663 |
129,906 |
|
Less: profit tax |
4,917 |
9,457 |
18,669 |
17,739 |
|
27,859 |
42,440 |
89,994 |
112,167 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.42 |
1.29 |
1.20 |
1.26 |
|
*Quick ratio |
1.02 |
0.90 |
0.83 |
0.96 |
|
*Liabilities
to assets |
0.52 |
0.47 |
0.52 |
0.55 |
|
*Net profit
margin (%) |
10.56 |
9.62 |
11.85 |
10.81 |
|
*Return on
total assets (%) |
9.55 |
9.63 |
14.47 |
12.44 |
|
*Inventory /
Revenue ×365 |
56 days |
60 days |
58 days |
54 days |
|
*Accounts
receivable / Revenue ×365 |
70 days |
54 days |
54 days |
53 days |
|
*Revenue /
Total assets |
0.90 |
1.00 |
1.22 |
1.15 |
|
*Cost of sales
/ Revenue |
0.78 |
0.77 |
0.76 |
0.75 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good, and it was
rising year by year.
l
SC’s net profit margin is fairly good in four
years.
l
SC’s return on total assets is fairly good in four
years.
l
SC’s cost of sales is average, comparing with its
revenue.
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 maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is average in four years.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.50 |
|
|
1 |
Rs.99.94 |
|
Euro |
1 |
Rs.84.88 |
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.