MIRA INFORM REPORT
|
Report Date : |
01.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
NOVAST LABORATORIES (CHINA) LTD. |
|
|
|
|
Registered Office : |
No. 1 Guangxing Road, Export Processing Zone Economic & Technical
Development Zone Nantong, Jiangsu Province 226009 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
10.01.2005 |
|
|
|
|
Com. Reg. No.: |
320600400011697 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
Subject is engaged in researching, manufacturing and selling tablets,
capsules, technology consultation of new drug formulations |
|
|
|
|
No of Employees : |
234 |
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 : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Debt overhang from its credit-fueled stimulus program in 2008-10, particularly among local governments, and soaring property prices challenge policy makers currently. Their efforts to cool a red-hot property market in 2011 appear to have curbed inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.
|
Source
: CIA |
COMPANY
NAME & ADDRESS
NOVAST LABORATORIES
(CHINA) LTD.
NO. 1 GUANGXING ROAD,
EXPORT PROCESSING ZONE
ECONOMIC &
TECHNICAL DEVELOPMENT ZONE
NANTONG, JIANGSU PROVINCE
226009 PR CHINA
TEL: 86 (0)
513-85986600/85986612
FAX: 86 (0)
513-85986659
EXECUTIVE
SUMMARY
Date of Registration : january 10, 2005
REGISTRATION NO. : 320600400011697
LEGAL FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL : usd 84,000,000
staff :
234
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 49,060,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 521,260,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21 = 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 wholly foreign-owned enterprise of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 320600400011697 on January
10, 2005.
SC’s Organization Code Certificate No.:
76987414-5
%20LTD%20%20-%20260234%2001-Apr-2014_files/image006.jpg)
SC’s Tax No.: 320601769874145
SC’s registered capital: USD 84,000,000
SC’s paid-in capital: USD 84,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2012-7-17 |
Registered
Capital |
USD 64,000,000 |
USD 84,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Novast Holdings Limited (Cayman Islands) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and General Manager |
Zhang Guohua |
|
Chairman |
Yang Zhi |
|
Director |
Prasadraju
Pinnamaraju |
|
Bernice Wing-yu
Leung |
|
|
Shi Yi |
|
|
Hang Michael Xu |
|
|
Jiang Xiaodong |
|
|
Lu Qinchao |
|
|
Liu Wanlin |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name % of
Shareholding
Novast Holdings Limited (Cayman Islands) 100
MANAGEMENT
Zhang Guohua, Legal Representative and General Manager
-----------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
From 2005 to present, working in SC as legal
representative and general manager
Yang
Zhi, Chairman
------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as chairman
Director
----------
Prasadraju Pinnamaraju
Bernice Wing-yu Leung
Shi Yi
Hang Michael Xu
Jiang Xiaodong
Lu Qinchao
Liu Wanlin
BUSINESS
OPERATION
***Note:
SC started its normal operation in 2012.
SC’s registered business scope includes researching,
manufacturing and selling tablets, capsules, technology consultation of new
drug formulations.
SC is mainly
engaged in manufacturing and selling tablets and capsules.
Brand: Novast
SC’s products
mainly include: tablets and capsules.
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly USA, etc.
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.
*Major Customer:
=============
Rainbow Gold
Products Inc. (USA)
Staff & Office:
--------------------------
SC is known
to have approx. 234 staff at
present.
SC owns an area as
its operating office & factory of approx. 60,100 sq. meters at the heading
address.
RELATED
COMPANY
SC
is not known to have any subsidiary at present.
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 Nantong Development Zone Sub-branch
AC#:
532658202757
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
Cash |
161,520 |
|
Accounts
receivable |
10,770 |
|
Other receivable |
950 |
|
Inventory |
19,920 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
4,530 |
|
|
------------------ |
|
Current assets |
197,690 |
|
Fixed assets |
144,600 |
|
Construction in progress |
8,090 |
|
Intangible
assets |
150,540 |
|
Other
non-current assets |
101,620 |
|
|
------------------ |
|
Total assets |
602,540 |
|
|
============= |
|
Short-term loans |
0 |
|
Notes payable |
0 |
|
Accounts payable |
2,450 |
|
Wages payable |
4,220 |
|
Advances from
clients |
0 |
|
Other payable |
1,060 |
|
Non-current
liabilities due within one year |
12,190 |
|
Other current
liabilities |
500 |
|
|
------------------ |
|
Current
liabilities |
20,420 |
|
Non-current
liabilities |
60,860 |
|
|
------------------ |
|
Total
liabilities |
81,280 |
|
Equities |
521,260 |
|
|
------------------ |
|
Total
liabilities & equities |
602,540 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
49,060 |
|
Cost of sales |
40,280 |
|
Sales expense |
470 |
|
Management expense |
13,150 |
|
Finance expense |
-30 |
|
Profit before
tax |
4,280 |
|
Less: profit tax |
640 |
|
Profits |
3,640 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
|
*Current ratio |
9.68 |
|
*Quick ratio |
8.71 |
|
*Liabilities
to assets |
0.13 |
|
*Net profit
margin (%) |
7.42 |
|
*Return on
total assets (%) |
0.60 |
|
*Inventory /
Revenue ×365 |
149 days |
|
*Accounts
receivable/ Revenue ×365 |
81 days |
|
*Revenue/Total
assets |
0.08 |
|
*Cost of sales
/ Revenue |
0.82 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears average in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is average.
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 is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans.
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 low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.09 |
|
|
1 |
Rs. 99.84 |
|
Euro |
1 |
Rs. 82.57 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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.