MIRA
INFORM REPORT
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Report Date : |
02.12.2014 |
IDENTIFICATION DETAILS
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Name : |
NANTONG KAIXIN PHARMA CHEMICAL CO., LTD. |
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Registered Office : |
Room 1103, Block 2, Huachen Mansion, No. 111, Gongnong Road, Nantong,
Jiangsu Province, 226007 Pr |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
09.12.1996 |
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Com. Reg. No.: |
320600000030173 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in trading of Pharmaceutical and Chemical Products. |
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No. of Employees : |
8 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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
|
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 and address
NANTONG KAIXIN PHARMA CHEMICAL CO., LTD.
ROOM 1103, BLOCK 2, HUACHEN MANSION, NO.
111, GONGNONG ROAD,
NANTONG, JIANGSU PROVINCE, 226007 PR CHINA
TEL: 86 (0)
513-85250786 FAX: 86 (0) 513-85255380
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 9, 1996
REGISTRATION NO. : 320600000030173
REGISTERED LEGAL
FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH : 8
REGISTERED CAPITAL :
CNY 4,880,000
BUSINESS LINE : TRADING
TURNOVER : CNY 61,090,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 5,520,000
(AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION
: FAIRLY stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.15= 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 limited liabilities company at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Dec. 9, 1996.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have pre-exemption
right to purchase shares of the co. offered for sale by the other
shareholders and to subscribe for the newly increased registered capital of
the co.
SC’s registered business scope includes wholesaling chemical materials;
selling feed, food additives, pharmaceutical intermediates, rubber products,
plastic products, building materials, decoration materials, metal materials,
textiles and raw materials (except cotton), garments, footwear and machinery;
import and export various goods and technology, excluding the goods and
technology prohibited or limited by the country.
SC is mainly engaged in trading of pharmaceutical and chemical products.
Mr. Cai Jianbing is the legal representative, chairman and general
manager of SC at present.
SC is known to have approx. 8 employees at present.
SC is currently operating
at the above stated address, and this address houses its operating office in
the commercial zone of Nantong. Our checks reveal that SC rents the total
premise about 50 square meters.
http://www.nt-kx.com/ The design is professional and the content is
well organized. At present the web site is both in Chinese and English
versions.
E-Mail: info@nt-kx.com
Changes
of its registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
2010-3 |
Registered
capital |
CNY
1,080,000 |
Present
amount |
|
Shareholdings |
Cai
Jianbing 61.48% Lu
Ping 38.52% |
Present
ones |
Organization Code: 251872508
For the past two years there is no record of
litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cai Jianbing 50.49
Lu Ping 49.51
l
Legal Representative, Chairman and General Manager:
Mr. Cai Jianbing, born in 1966, he is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative,
chairman and general manager
l
Supervisor:
Lu Ping
SC is mainly engaged in trading of pharmaceutical and chemical products.
SC’s products mainly include: Guanylthiourea,
EMCAE, CDA, CAM, Phosphorous acid, Imidazole, Peach gum powder refined,
p-Hydroxy benzoic acid esters, Famotidine intermediates, Sodium ethylate,
p-Cyanophenol, etc.
SC sources its materials 100% from domestic market. SC sells 10% of its
products in domestic market and 90% to the overseas market.
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.
Note: SC declined to release its major suppliers
and clients.
SC is not known to have any
subsidiary at present.
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 refused to release any
information of its suppliers and the trade reference was not available.
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.
Bank of Communications Nantong Branch
AC#：326008601010141040855
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
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Cash & bank |
20 |
3,470 |
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Inventory |
80 |
0 |
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Accounts receivable |
7,490 |
3,170 |
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Other receivables |
0 |
0 |
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Export drawback receivable |
950 |
700 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
8,540 |
7,340 |
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Fixed assets net value |
70 |
50 |
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Long term investment |
0 |
0 |
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Projects under construction |
0 |
0 |
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Intangible and other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
8,610 |
7,390 |
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=========== |
=========== |
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Short loan |
0 |
0 |
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Accounts payable |
1,000 |
670 |
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Advances from clients |
2,210 |
1,220 |
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Taxes payable |
20 |
-20 |
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Other Accounts payable |
0 |
0 |
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Other current liabilities |
10 |
0 |
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------------------ |
------------------ |
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Current liabilities |
3,240 |
1,870 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
3,240 |
1,870 |
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Equities |
5,370 |
5,520 |
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------------------ |
------------------ |
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Total liabilities & equities |
8,610 |
7,390 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
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Turnover |
102,420 |
61,090 |
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Cost of goods sold |
100,890 |
59,920 |
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Taxes and additional of main operations |
20 |
10 |
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Sales expense |
800 |
620 |
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Management expense |
460 |
260 |
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Finance expense |
20 |
80 |
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Profit before tax |
230 |
200 |
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Less: profit tax |
40 |
40 |
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Profits |
190 |
160 |
Important Ratios
=============
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As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
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*Current ratio |
2.64 |
3.93 |
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*Quick ratio |
2.61 |
3.93 |
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*Liabilities to assets |
0.38 |
0.25 |
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*Net profit margin (%) |
0.19 |
0.26 |
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*Return on total assets (%) |
2.21 |
2.17 |
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*Inventory /Turnover ×365 |
1 day |
/ |
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*Accounts receivable/Turnover ×365 |
27 days |
19 days |
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*Turnover/Total assets |
11.90 |
8.27 |
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* Cost of goods sold/Turnover |
0.99 |
0.98 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in both years,
but appears a declining trend.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is high, comparing with its
turnover.
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
SC’s inventory appears small in 2012 and SC has no
inventory in 2013.
l
The accounts receivable of SC appears large in 2012
and average in 2013.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a good 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.
SC is considered small-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
|
1 |
Rs.97.05 |
|
Euro |
1 |
Rs.77.37 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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.