MIRA
INFORM REPORT
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Report Date : |
06.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHOUGUANG
FUKANG PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 5, College East Street, Economy & Technology Development Zone, Shouguang, Shandong Province 262700 PR |
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Country : |
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Financials (as on) : |
30.09.2013 |
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Date of Incorporation : |
08.07.1997 |
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Com. Reg. No.: |
370783400000776 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Engaged in manufacturing and selling API, pharmaceutical
intermediates, bromine compounds, color formers for thermal paper |
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No. of Employees : |
1,000 |
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 : |
Good |
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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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the private sector,
development of stock markets and a modern banking system, 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 considered important to "economic security,"
explicitly looking to foster globally competitive industries. After keeping its
currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading
band within which the RMB is permitted to fluctuate. 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. Several factors are converging to slow China's growth, including
debt overhang from its credit-fueled stimulus program, industrial overcapacity,
inefficient allocation of capital by state-owned banks, and the slow recovery
of China's trading partners. The government's 12th Five-Year Plan, adopted in
March 2011 and reiterated at the Communist Party's "Third Plenum"
meeting in November 2013, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent in
the future on fixed investments, exports, and heavy industry. 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 and address
SHOUGUANG FUKANG PHARMACEUTICAL
CO., LTD.
NO. 5, COLLEGE
EAST STREET, ECONOMY & TECHNOLOGY DEVELOPMENT ZONE, SHOUGUANG, SHANDONG
PROVINCE 262700 PR CHINA
TEL: 86
(0) 536-5102364/5107650
FAX: 86
(0) 536-5101568/5107886
EXECUTIVE SUMMARY
Date of Registration : JULy 8, 1997
REGISTRATION NO. : 370783400000776
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
REGISTERED CAPITAL : USD 1,400,000
staff : 1,000
BUSINESS CATEGORY : manufacturing & TRADING
REVENUE :
CNY 1,873,567,000 (JAN. 1, 2013
TO SEP. 30, 2013)
EQUITIES :
CNY 1,437,531,000 (AS OF SEP. 30, 2013)
WEBSITE : www.fukangpharm.com
E-MAIL :
info@shouguangpharm.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.17 = 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 Chinese-foreign equity joint venture
enterprise of PRC with State Administration of Industry & Commerce (SAIC)
under registration No.: 370783400000776 on July 8, 1997.
SC’s Organization Code Certificate
No.: 61358895-1
SC’s Tax No.: 370783613588951
SC’s registered capital: USD 1,400,000
SC’s paid-in capital: USD 1,400,000 (CNY 11,590,000)
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Shareholder (s) |
Shandong Shouguang Pharmaceutical Factory Hong Kong Chaoxing Colza (Literal
Translation) |
Shouguang Huakang Pharmaceutical Co., Ltd. Hong Kong Yidong International Co., Ltd. (Literal
Translation) |
|
|
Shareholder (s) |
Shouguang Huakang Pharmaceutical Co., Ltd. Hong Kong Yidong International Co., Ltd. (Literal
Translation) |
Hong Kong Yidong International Co., Ltd. (Literal
Translation) 45% Shouguang Fukang Chemical Industry Co., Ltd. 55% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hong Kong Yidong International Co., Ltd. (Literal Translation) |
45 |
|
Shouguang Fukang Chemical Industry Co.,
Ltd. |
55 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman,
and General Manager |
Yang Weiguo |
|
Vice Chairman |
Miao Yuan |
RECENT DEVELOPMENT
SC has been honored as the Hi-tech enterprise in Shandong province, the
world-largest manufacturer and exporter of TMP and also the famous manufacturer
of bromine compounds in the world. SC has got the ISO 9001, GMP, COS, ISO
14001, OHSAS 18001, etc. certificates.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Hong Kong Yidong International Co., Ltd. (Literal Translation) 45
Shouguang Fukang Chemical Industry Co., Ltd.
55
Shouguang Fukang Chemical Industry Co., Ltd.
==================================
Registration No.: 370783228001248
Legal Form: Limited Liabilities Company
Registered Capital: CNY 3,080,000
Legal Representative: Yang Weiguo
MANAGEMENT
Yang Weiguo, 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 Shouguang Fukang Chemical Industry Co., Ltd. as legal representative
Miao Yuan, Vice Chairman
---------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing & selling trimethoprim,
disinfectants, phenylamino, methyl, ODB, sulfamethoxazole, omeprazole,
metformin hydrochloride, itraconazole, hydrochloric acid buflomedil, clozapine,
lansoprazole, pantoprazole sodium, health food: spirulina; selling its
self-made products.
SC is mainly
engaged in manufacturing and selling API, pharmaceutical intermediates, bromine
compounds, color formers for thermal paper.
SC’s products
mainly include:
*Pharmaceutical
Material
Trimethopim(TMP)
Sulfamethoxazole
Itraconazole
Omeprazole
Trimethoprim
lactic Acid
Hydroxyurea
Tramadol
Hydrochloride
*Intermediates
2,3,4,5-tetramethoxytoluene
3,4,5-Trimethoxybenzaldehyde
3,4,5-Trimethoxytoluene
1,3,5-Trimethoxybenzene
2,4-Dihydro-4-[[4-hydroxyphenyl)-1-piperazinyl]-phenyl]-2-(1-methylpropyl)-3H-
89848-21-5
3,5-Dibromo-4-Hydroxybenzaldehyde
P-Bromoanisole
Sodium methoxide
Cis-bromo-ester(Cis-BBD)
1,3,5-Tribromobenzene
2,4,5-Trimethoxybenzaldehyde
4460-86-0
2,4,5-Trimethoxybenzoic
acid
1,2,4-Trimethoxybenzene
M-Bromonitrobenzene
Guanidine nitrate
4-Bromo-3-methyl-anisole
3,4,5-Trimethoxy-2-(methoxymethyl)cinnamonitrile
*Bromine Compounds
Sodium Bromide
N-butyl bromide
Hydrobromic Acid
N-Propyl Bromide
Iso-propyl
bromide(2-bromopropane)
Bromoethane (Ethyl
bromide)
1-Bromo-3-Chloropropane
Potassium Bromid
1,2-Dibromoethane(Ethylene
bromide)
*Color formers for
thermal paper
2-phenylamino-3-methyl-6-di-n-butylaminofluoran
(odb-2; senor-2) Color formers for thermal paper 89331-94-2
4-hydroxy-4'-isopropoxydiphenylsulfone(D-8)
developer
2-(2'-4'-dimethylbenzeneamido)-3-methyl-6-(diethyl
amino) fluorine
Benzyl 2-naphthyl
ether(BON) sensitizer
Ethylene glycol
bis m-tolye ether (EGTE) sensitizer
TMP is the main
product of SC; it covers 80% of Chinese market and 55% of total output around
world. SC’s TMP can meet the standards of BP98 & EP4; the annual output is
1,600 tons. At present, SC’s TMP has been well-received by over 300 clients in
26 provinces of China, and has been exported to over 42 countries such as
Germany, USA, Japan and Britain.
SC sources its
materials 100% from domestic market. SC sells 60% of its products in domestic
market and 40% to overseas market, mainly Germany, U.S.A., Japan and U.K.
The buying terms of SC include 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 Customers:
==============
Sofix
Corporation
MK
Monomers LLC.
Bhavika
Chemicals Corporation
Black
Rose Industries Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 1,000 staff
at present.
SC owns an area as
its operating office & factory of approx. 16,000 sq. meters at the heading
address.
RELATED COMPANY
Shandong
Ruikang Specialty Chemicals Co., Ltd. (literal translation)
-----------------------------
Registration No.: 370783400000274
Date of Registration: July 23, 2004
Legal Form: One-person Limited Liabilities
Company
Registered Capital: CNY 54,330,000
Legal Representative: Yang Lei
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:
Construction Bank of China Shouguang Sub-Branch
AC#: 3600165225000100451
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Sep. 30, 2013 |
|
187,060 |
231,058 |
|
|
Short-term investment |
300 |
300 |
|
Notes receivable |
90,460 |
145,962 |
|
Accounts
receivable |
233,523 |
253,912 |
|
Advances to
suppliers |
70,257 |
70,257 |
|
Other receivable |
80,438 |
82,417 |
|
Subsidy
receivable |
0 |
0 |
|
Inventory |
244,403 |
282,180 |
|
Prepaid
expenses |
0 |
0 |
|
Other current
assets |
7,740 |
14,240 |
|
|
------------------ |
------------------ |
|
Current assets |
914,181 |
1,080,326 |
|
Long-term
investment |
0 |
0 |
|
Fixed assets |
1,156,149 |
1,082,052 |
|
Construction in
progress |
0 |
157,626 |
|
Intangible assets |
55,098 |
54,547 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
2,125,428 |
2,374,551 |
|
|
============= |
============= |
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Short-term loans |
609,700 |
654,700 |
|
Notes payable |
130,000 |
168,000 |
|
Accounts payable |
5,039 |
2,817 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
-11,505 |
976 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
10,405 |
10,527 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
743,639 |
837,020 |
|
Non-current
liabilities |
100,000 |
100,000 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
843,639 |
937,020 |
|
Equities |
1,281,789 |
1,437,531 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,125,428 |
2,374,551 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
Jan.
1, 2013 to Sep. 30, 2013 |
|
Revenue |
1,873,567 |
|
Cost of sales |
1,578,064 |
|
Taxes and surcharges |
11,031 |
|
Sales expense |
15,716 |
|
Management expense |
51,262 |
|
Finance expense |
36,142 |
|
Profit before
tax |
183,226 |
|
Less: profit tax |
27,484 |
|
155,742 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Sep. 30, 2013 |
|
*Current ratio |
1.23 |
1.29 |
|
*Quick ratio |
0.90 |
0.95 |
|
*Liabilities
to assets |
0.40 |
0.39 |
|
*Net profit margin
(%) |
-- |
8.31 |
|
*Return on
total assets (%) |
-- |
6.56 |
|
*Inventory /
Revenue ×270 |
-- |
41 days |
|
*Accounts
receivable / Revenue ×270 |
-- |
37 days |
|
*Revenue /
Total assets |
-- |
0.79 |
|
*Cost of sales
/ Revenue |
-- |
0.84 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
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 appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear large.
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 low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with
fairly good financial conditions. The large amount of short-term loans
may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.86 |
|
|
1 |
Rs.102.67 |
|
Euro |
1 |
Rs.81.69 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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|
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.