MIRA INFORM REPORT
|
Report Date : |
17.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
Chengdu
Diao Pharmaceutical Group Co., Ltd. |
|
|
|
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Registered Office : |
NO. 26 Hi-Tech Venture Road, High-Tech Zone, Chengdu, Sichuan Province 610041 PR |
|
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|
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Country : |
China |
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|
|
Financials (as on) : |
30.06.2013 |
|
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|
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Date of Incorporation : |
25.08.1988 |
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Com. Reg. No.: |
510100000072064 |
|
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|
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Legal Form : |
Limited Liabilities Company |
|
|
|
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Line of Business : |
Engaged in
researching, manufacturing, processing, and selling active pharmaceutical
ingredient & preparation, health care products. |
|
|
|
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No. of Employees : |
2,000 |
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 |
|
Maximum Credit Limited : |
USD 5,000,000 |
|
Status : |
Satisfactory |
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 and address
Chengdu Diao Pharmaceutical Group
Co., Ltd.
NO. 26
Hi-Tech Venture Road
High-Tech
Zone, chengdu, sichuan PROVINCE 610041 PR CHINA
TEL: 86
(0) 28-82900556/85195043/82900482/82855217
FAX: 86
(0) 28-85181150
EXECUTIVE SUMMARY
Date of Registration : august 25, 1988
REGISTRATION NO. : 510100000072064
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
CNY 728,000,000
staff : 2,000
BUSINESS CATEGORY :
RESEARCHING & MANUFACTURING & PROCESSING & TRADING
Revenue : CNY 228,001,000 (FROM JAN. 1, 2013 TO JUN. 30, 2013)
EQUITIES : CNY 1,550,021,000 (AS OF JUN. 30, 2013)
WEBSITE : www.diao.com
E-MAIL :
N/A
RECOMMENDED
CREDIT LIMIT: UP TO USD 5,000,000 (PERIODICAL REVIEW)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRly steady
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.12 = USD
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 with State Administration
of Industry & Commerce (SAIC) under registration No.: 510100000072064.
SC’s Organization Code Certificate No.:
20193914-5
SC’s Tax No.: 510198201939145
SC’s registered capital: CNY 728,000,000
SC’s paid-in capital: CNY 728,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
China Sciences Group (Holding)
Co., Ltd. |
10 |
|
Chengdu Institute of Biology,
Chinese Academy of Sciences |
30 |
|
Chengdu Hi-Tech Investment Group Co., Ltd. |
6 |
|
Chengdu Aofeng Investment Co.,
Ltd. |
27 |
|
Chengdu Hongao Investment Co.,
Ltd. |
27 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Li
Bogang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
China Sciences Group (Holding)
Co., Ltd.
10
Chengdu Institute of Biology,
Chinese Academy of Sciences
30
Chengdu Hi-Tech Investment Group
Co., Ltd.
6
Chengdu Aofeng Investment Co.,
Ltd.
27
Chengdu Hongao Investment Co.,
Ltd.
27
China Sciences Group (Holding)
Co., Ltd.
--------------------------------------------------
Registration No.: 110000011085541
Legal Representative: Zhou Xiaoning
Registered Capital: CNY 1,248,314,700
Web: www.csh.com.cn
Chengdu Institute of Biology,
Chinese Academy of Sciences
--------------------------------------
Registration No.: 110000000768
Legal Form: Public Institution
Add: No.9 Section 4,Renmin Nan Road,Chengdu,
Sichuan, P.R. China
Post Add: P.O. Box 416, Chengdu, Sichuan,
P.R. China
Tel: +86 28 82890289
Fax: +86 28 82890288
Zip code: 610041
Web: www.cib.cas.cn
E-mail: swsb@cib.ac.cn
Chengdu Hi-Tech Investment Group
Co., Ltd.
------------------------------------------
Registration No.: 510109000029925
Legal Representative: Ping Xing
Registered Capital: CNY 11,084,262,697.03
Web: www.cdhtgroup.com
Chengdu Aofeng Investment Co.,
Ltd.
-------------------------------------------
Registration No.: 510109000022047
Legal Representative: Li Bogang
Registered Capital: CNY 3,932,000
Chengdu Hongao Investment Co.,
Ltd.
---------------------------------------------
Registration No.: 510109000022039
Legal Representative: Li Bogang
Registered Capital: CNY 3,932,000
MANAGEMENT
Li
Bogang, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative, chairman and
general manager
Also working in Chengdu Aofeng Investment Co., Ltd., Chengdu Hongao
Investment Co., Ltd., Chengdu Diao Nine Hong Pharmaceutical Factory, Diao Group
Chengdu Pharmaceutical Co., Ltd., Chengdu Diao Pharmaceutical Chain Co., Ltd.,
Chengdu Diao Cosmetics Co., Ltd., Chengdu Diao Health Products Sales Co., Ltd.,
and Chengdu Diao Property Co., Ltd. as legal representative
BUSINESS OPERATION
SC’s
registered business scope includes researching, manufacturing, processing, and
selling active pharmaceutical ingredient & preparation, health care
products, supply materials, electronic products, chemical products, mechanical
equipment, instrument & meter, auto parts, computer & peripheral
equipment, building & auxiliary materials, furniture, leather products,
sports goods, office supplies, sanitary equipment, instruments, flowers, and
grocery; commodities packaging and environmental protection services; computer
programming; science & technology consulting service; importing and
exporting commodities and technology.
SC is mainly
engaged in researching, manufacturing, processing, and selling active
pharmaceutical ingredient & preparation, health care products
SC’s
products mainly include:
Modern
Chinese Medicine
Chemical
drugs
Biological
medicine
Health care
products
Cosmetics
Etc.
Brand: “Diao”.
SC sources its materials 80% from domestic market, and 20% from overseas market. SC sells 70% in domestic market and 30% to overseas market, mainly Southeast Asia, etc.
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.
Staff & Office:
--------------------------
SC is
known to have approx. 2,000 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,
Chengdu Diao Nine Hong Pharmaceutical Factory
Diao Group Chengdu Pharmaceutical Co., Ltd.
Diao Group Tianfu Pharmaceutical Co., Ltd.
Sichuan Tianqi Pharmaceutical Co., Ltd.
Chengdu Diao Pharmaceutical Chain Co., Ltd.
Chengdu Diao Cosmetics Co., Ltd.
Chengdu Diao Health Products Sales Co., Ltd.
Chengdu Diao Mining Industry Energy Resources Co., Ltd.
Chengdu Diao Property Co., Ltd.
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:
Industrial
and Commercial Bank of China Chengdu Yongfeng Sub-branch
AC#:
23984912372
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Jun. 30, 2013 |
|
130,683 |
149,900 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
11,961 |
19,246 |
|
Advances to
suppliers |
3,002 |
7,604 |
|
Dividend
receivable |
12,319 |
12,319 |
|
Other receivable |
1,206,585 |
1,578,111 |
|
Inventory |
138,510 |
162,332 |
|
Deferred
expenses |
0 |
0 |
|
Other current
assets |
32 |
486 |
|
|
------------------ |
------------------ |
|
Current assets |
1,503,092 |
1,929,998 |
|
Financial assets
available for sale |
543 |
543 |
|
Held-to-maturity
investment |
37,429 |
35,429 |
|
Long-term
investment |
729,161 |
729,161 |
|
Investment real
estate |
25,761 |
25,761 |
|
Fixed assets |
95,729 |
90,863 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
12,994 |
12,723 |
|
Long-term prepaid
expenses |
431 |
431 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
2,405,140 |
2,824,909 |
|
|
============= |
============= |
|
Short-term loans |
500,000 |
350,000 |
|
Notes payable |
1,943 |
2,682 |
|
Accounts payable |
26,351 |
105,596 |
|
Payroll payable |
15,067 |
14,153 |
|
Taxes payable |
10,907 |
6,593 |
|
Dividends
payable |
8,487 |
8,487 |
|
Advances from
clients |
4 |
63 |
|
Other payable |
43,209 |
51,027 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
605,968 |
538,601 |
|
Non-current
liabilities |
240,787 |
736,287 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
846,755 |
1,274,888 |
|
Equities |
1,558,385 |
1,550,021 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,405,140 |
2,824,909 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
From
Jan. 1, 2013 to Jun. 30, 2013 |
|
Revenue |
228,001 |
|
Cost of sales |
114,072 |
|
Taxes and surcharges |
3,391 |
|
Sales expense |
31,326 |
|
Management expense |
68,331 |
|
Finance expense |
23,083 |
|
Investment
income |
6,551 |
|
Non-operating
income |
25 |
|
Non-operating expense |
1,519 |
|
Profit before
tax |
-7,144 |
|
Less: profit tax |
88 |
|
-7,232 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Jun. 30, 2013 |
|
*Current ratio |
2.48 |
3.58 |
|
*Quick ratio |
2.25 |
3.28 |
|
*Liabilities
to assets |
0.35 |
0.45 |
|
*Net profit
margin (%) |
-- |
-3.17 |
|
*Return on
total assets (%) |
-- |
-0.26 |
|
*Inventory /
Revenue ×365/180 |
-- |
260 days |
|
*Accounts
receivable / Revenue ×365/180 |
-- |
31 days |
|
* Revenue /
Total assets |
-- |
0.08 |
|
* Cost of
sales / Revenue |
-- |
0.50 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC
appears fairly good.
l SC’s net profit
margin is fair.
l SC’s return on
total assets is fair.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans appear average.
l
SC’s revenue is in a
fair 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 low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable
financial conditions. Taking into consideration of SC’s good background, general performance,
reputation as well as market conditions, a credit
line up to USD 5,000,000 would
appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.48 |
|
|
1 |
Rs.99.66 |
|
Euro |
1 |
Rs.83.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.