MIRA
INFORM REPORT
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Report Date : |
01.12.2014 |
IDENTIFICATION DETAILS
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Name : |
REYOUNG PHARMACEUTICAL CO., LTD. |
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Formerly Known as : |
Shandong
Reyoung Pharmaceutical Co., Ltd. |
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Registered Office : |
No. 6
Erlangshan Road, Yiyuan County, Zibo, Shandong Province 256100 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
20.03.1998 |
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Com. Reg. No.: |
370300400001078 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in manufacturing powder for injection, small volume injection,
lyophilized powder for injection, tablets, capsules, granules, suppositories,
oral liquid, mixture, sterile bulk drugs and bulk drugs as well as selling
self-made commodities. Subject product
ranges includes: ·
Powder for Injection ·
Active
Pharmaceutical Ingredients (APIs) ·
Solid Preparation |
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No of Employees : |
2,955
(Approximately) |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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, 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 & address
REYOUNG PHARMACEUTICAL CO., LTD.
NO. 6 ERLANGSHAN ROAD, YIYUAN
COUNTY, ZIBO
SHANDONG PROVINCE 256100 PR CHINA
TEL: 86 (0)
533-3223935/3257894/3227488
FAX: 86 (0) 533-3224277
EXECUTIVE SUMMARY
Date of Registration : march 20, 1998
REGISTRATION NO. : 370300400001078
LEGAL FORM : WHOLLY
FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE : he maoqun (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL : CNY 78,560,000
staff : 2,955
BUSINESS CATEGORY : manufacturing & trading
Revenue : CNY 5,651,718,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 806,998,000 (AS OF DEC. 31, 2013)
WEBSITE : www.reyoung.cn
E-MAIL :
web@reyoung.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.14 = 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
LEGAL
STATUS & HISTORY
SC was
established as a wholly foreign-owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 370300400001078
on March
20, 1998.
SC’s Organization Code Certificate
No.: 16861218-2
SC’s Tax No.: 370323168612182
SC’s Customs Registration No.:
3703941838
SC’s registered capital: CNY 78,560,000
SC’s paid-in capital: CNY 78,560,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before the change |
After the change |
|
2008 |
Company Name |
Shandong Reyoung Pharmaceutical
Co., Ltd. |
Reyoung Pharmaceutical Co.,
Ltd. |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
B.V.I. Jufu Co. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
He Maoqun |
|
Director |
Miao Dezu |
|
Cui Weishen |
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|
Zhang Jinke |
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|
Xu Chuansheng |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
% of Shareholding
B.V.I. Jufu Co. 100
MANAGEMENt
He
Maoqun , Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Also working in Reyoung (Shanghai) New
Medicine R & D Co., Ltd. and Reyoung (Shanghai)
Pharmaceutical Co., Ltd. as legal representative
Director
-----------
Miao Dezu
Cui Weishen
Zhang Jinke
Xu Chuansheng
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing powder for
injection, small volume injection, lyophilized powder for injection, tablets,
capsules, granules, suppositories, oral liquid, mixture, sterile bulk drugs and
bulk drugs; selling self-made commodities.
SC is mainly
engaged in manufacturing and selling pharmaceuticals.
SC’s products mainly include:
Powder for
Injection
Active
Pharmaceutical Ingredients (APIs)
Solid
Preparation
SC sources its materials 100% from domestic
market. SC sells 99% of its products in domestic market, and 1% to overseas
market, mainly Africa, etc.
The
import & export status of SC in 2013 is as follows,
|
Country |
Amount
of Exports (USD) |
Amount of Imports (USD) |
|
Africa |
17,840,000 |
-- |
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.
*Major
Clients*
------------------
Melojallot
Medical
BCN
Medical S.A.
Staff & Office:
--------------------------
SC is
known to have approx. 2,955 staff
at present.
SC rents an area
as its operating office & factory of approx. 362,204 sq. meters at the
heading address.
RELATED
COMPANY
SC is known to have the
following subsidiaries and office at present,
Reyoung
Pharmaceutical Inc.
Reyoung
(Shanghai) New Medicine R & D Co., Ltd.
------------------------------------------
Registration
No.: 310115001910565
Date
of Registration: December 13, 2011
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 5,000,000
Legal
Representative: He Maoqun
Reyoung (Shanghai) Pharmaceutical Co., Ltd.
------------------------------------
Registration No.: 310227001312779
Date of Registration: November 27, 2006
Legal Form: Limited Liabilities Company
Registered
Capital: CNY 102,880,000
Legal
Representative: He Maoqun
Reyoung
Pharmaceutical Co., Ltd. Jinan Office
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
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
275,566 |
255,079 |
|
|
Notes receivable |
49,943 |
35,306 |
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Accounts
receivable |
63,114 |
85,928 |
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Advances to
suppliers |
0 |
0 |
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Other receivable |
107,495 |
124,476 |
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Inventory |
243,251 |
236,327 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
955 |
1,066 |
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------------------ |
------------------ |
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Current assets |
740,324 |
738,182 |
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Long-term
investment |
72,133 |
86,045 |
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Fixed assets |
533,475 |
572,974 |
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Construction in
progress |
143,373 |
281,753 |
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Intangible
assets |
95,137 |
135,763 |
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Long-term
prepaid expenses |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
1,584,442 |
1,814,717 |
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============= |
============= |
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Short-term loans |
185,000 |
235,000 |
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Notes payable |
179,310 |
177,455 |
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Accounts payable |
114,202 |
92,930 |
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Wages payable |
2,832 |
2,358 |
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Taxes payable |
22,824 |
35,900 |
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Advances from
clients |
0 |
0 |
|
Other payable |
142,976 |
150,959 |
|
Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
647,144 |
694,602 |
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Non-current
liabilities |
310,799 |
313,117 |
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------------------ |
------------------ |
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Total
liabilities |
957,943 |
1,007,719 |
|
Equities |
626,499 |
806,998 |
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------------------ |
------------------ |
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Total
liabilities & equities |
1,584,442 |
1,814,717 |
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============= |
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Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
4,907,603 |
5,651,718 |
|
Cost of sales |
4,073,806 |
4,672,833 |
|
Taxes and surcharges |
13,790 |
12,483 |
|
Sales expense |
263,726 |
350,045 |
|
Management expense |
332,665 |
375,870 |
|
Finance expense |
22,711 |
19,508 |
|
Non-business
income |
2,463 |
6,161 |
|
Non-business expenditure |
5,423 |
5,661 |
|
Profit before
tax |
197,945 |
221,479 |
|
Less: profit tax |
29,692 |
33,222 |
|
168,253 |
188,257 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.14 |
1.06 |
|
*Quick ratio |
0.77 |
0.72 |
|
*Liabilities
to assets |
0.60 |
0.56 |
|
*Net profit
margin (%) |
3.43 |
3.33 |
|
*Return on
total assets (%) |
10.62 |
10.37 |
|
*Inventory /
Revenue ×365 |
19 days |
16 days |
|
*Accounts
receivable/ Revenue ×365 |
5 days |
6 days |
|
*Revenue/Total
assets |
3.10 |
3.11 |
|
*Cost of sales
/ Revenue |
0.83 |
0.83 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair 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
The short-term loans of SC appear average.
l
SC’s revenue is in an
average 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: Stable.
CONCLUSIONS
SC is considered large-sized its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.97 |
|
UK Pound |
1 |
Rs.97.37 |
|
Euro |
1 |
Rs.77.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
MNL |
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.