MIRA INFORM REPORT
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Report Date : |
10.09.2013 |
IDENTIFICATION DETAILS
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Name : |
JIANGXI TIANXIN
PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Le’anjiang Industrial Zone, Leping, Jiangxi Province, 333300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
24.09.2004 |
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Com. Reg. No.: |
360200510000192 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject is engaged in producing and selling APIs and pharmaceutical
intermediates. |
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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.
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Source
: CIA |
Company name and address
JIANGXI TIANXIN PHARMACEUTICAL CO., LTD.
LE’ANJIANG INDUSTRIAL ZONE, LEPING, JIANGXI PROVINCE, 333300 PR CHINA
TEL: 86
(0) 798-6702238/6702118 FAX: 86 (0) 798-6702388
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 24, 2004
REGISTRATION NO. :
360200510000192
REGISTERED LEGAL FORM : Chinese-foreign
equity joint venture enterprise
CHIEF EXECUTIVE :
Mr. XU
JIANGNAN (LEGAL
REPRESENTATIVE)
STAFF STRENGTH : 650
REGISTERED CAPITAL : CNY 25,800,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 633,094,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 382,929,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD (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 Ren Min Bi
SC was registered as a Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC-The official body of
issuing and renewing business license) on Sep. 24, 2004.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes: manufacturing and selling
active pharmaceutical ingredients, food additives and feed additives;
manufacturing and selling pharmaceutical intermediates (excluding hazardous chemicals)
(in accordance with the permit).
SC is mainly engaged in producing and selling APIs and pharmaceutical
intermediates.
Mr. Xu Jiangnan has been
legal representative and chairman of SC since 2004.
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 factory in the industrial zone of Leping. Our
checks reveal that SC owns the total premise about 280,000 square meters.
http://www.txpharm.com/ The website belongs to SC and its related
companies. The design is professional and the content is well organized. At
present it is in Chinese and English versions.
E-mail: office2@txpharm.com
TAX NO. 310114784283220
Changes of its
registered information:
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Date of change |
Item |
After the change |
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2007-09 |
Chinese name |
Present one |
Note: SC changed its Chinese name in 2007, while its English name
remains the same.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of shareholdings
Xu Jiangnan 49.58
Qiu Qinyong 6.70
Wang Guangtian 10.72
Sinopharm International Company Limited (U.
K.) 33.00
Legal Representative and Chairman:
Mr. Xu Jiangnan, born in 1962,
he is currently responsible for the overall management of SC.
Working
Experience(s):
From 2004 to present
Working in SC as legal representative and chairman.
Also working in Zhejiang Tianxin Pharmaceutical Co., Ltd. as legal representative.
Vice Chairman:
Mr. Chen Weimin is
currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC
as vice chairman.
SC is mainly engaged in producing and selling APIs and pharmaceutical
intermediates.
SC’s products mainly include Vitamin
B6, Vitamin B1 (Thiamine Mononitrate), Vitamin B1 (Thiamine Hydrochloride), etc.
SC sources its materials 80% from domestic market and 20% 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’s
management declined to release its major clients and suppliers.
According to http://www.txpharm.com/
Zhejiang Tianxin Pharmaceutical Co., Ltd.
===============================
Incorporation date: Jan. 23, 1996
Registration no: 331023000035607
Legal form: Limited
Liabilities Company
Legal representative: Mr. Xu Jiangnan (Chairman)
Address: No. 215 Fengze Road, Tiantai County, Taizhou, Zhejiang Province,
317200 PR China
Postal code: 317200
Tel: +86-576-83993956
Fax: +86-576-83993679
E-mail: sales@txpharm.com
Baoji Tianxin Pharmaceutical Co., Ltd.
============================
Incorporation date: Sep. 14, 2004
Registration no.: 610323100001257
Legal form: Limited liabilities
co.
Legal representative: Mr. Qiu Junliang
Address: Caijiapo Economic & Technical Development Zone, Qishan
County, Baoji, Shaanxi Province, 722405 PR China
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.
SC’s accountant refused to release the bank details.
Financial Summary
Unit: CNY’000
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As of Dec. 31,
2010 |
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Total liabilities |
302,133 |
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Equities |
382,929 |
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Total assets |
685,062 |
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======== |
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Turnover |
633,094 |
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Profits |
204,296 |
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Net profits |
178,942 |
Note: We did not find SC’s detailed financial reports for Yr2010; SC’s
management refused to release the latest financial reports.
Important Ratios
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As of Dec. 31,
2010 |
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*Liabilities to assets |
0.44 |
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*Net profit margin (%) |
28.26 |
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*Return on total assets (%) |
26.12 |
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*Turnover/Total assets |
0.92 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears fairly good in 2010.
SC’s net profit margin appears good in 2010.
SC’s return on total assets appears good in 2010.
SC’s turnover is in an average level in 2010, comparing with the size of
its total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of SC is low in 2010.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good (as of Dec. 31, 2010)
SC is considered medium-sized in its line with a development history of
9 years. Due to lack of the latest financial status, we are unable to recommend
accurate credit limit for SC.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.65.96 |
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1 |
Rs.102.91 |
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Euro |
1 |
Rs.86.58 |
INFORMATION DETAILS
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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 |
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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 |
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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.