MIRA INFORM REPORT
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Report Date : |
03.12.2014 |
IDENTIFICATION DETAILS
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Name : |
Zhejiang Shaxing PharmACEUTICAL & ChemICAL Co., Ltd. |
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Registered Office : |
Huangjiaoyantou, Yongquan Town, Linhai
City, Zhejiang Province, 317021 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
01.02.1996 |
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Com. Reg. No.: |
331082000017866 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and
Selling of Pharmaceutical and Chemical Products. |
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No. of Employees : |
295 |
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
|
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
Zhejiang Shaxing PharmACEUTICAL & ChemICAL Co., Ltd.
huangjiaoyantou,
Yongquan Town, Linhai city,
Zhejiang PROVINCE,
317021 PR CHINA
TEL: 86 (0) 576-85686899/85686837 FAX: 86 (0) 576-85686328
EXECUTIVE
SUMMARY
INCORPORATION DATE : FEBRUARY 1, 1996
REGISTRATION NO. : 331082000017866
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 295
REGISTERED CAPITAL : CNY 51,880,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER : CNY 126,540,000 (JAN. 1 TO JUN. 30, 2014)
EQUITIES : CNY 114,690,000 (AS OF JUN. 30, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION
: fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.1473 = 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
Renminbi
Note: SC’s complete name should be the
heading one.
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 February 1,
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 manufacturing cyclopropylamine, hydrochloric acid
(by-product), methanol (by-product), recycling methyl tert-butyl ether, ethyl
acetate, acetonitrile, n-butane, n-heptane. (License is valid until June 30,
2015). Organic intermediates manufacturing, sodium chloride recycling,
importing and exporting commodities and technology.
SC is mainly
engaged in manufacturing and selling pharmaceutical and chemical products.
Mr. Wang Wenbin is legal representative and chairman of SC at present.
SC is known to have approx. 295
employees at present.
SC is currently operating
at the above stated address, and this address houses its operating office and
factory in Linhai. Our checks reveal that SC owns the total premise about
27,000 square meters.
Note: The (Yongquan
Development Area of Linhai) refers to the same place as the heading one.
http://www.shaxing.com/ The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: shaxing1992@126.com
Honors
=======
In
2010, Zhejiang Province enterprise technology center
In 2010,
OHSAS18001 was accredited
In
2009, honored as Taizhou City Enterprise Technology center
In
2009 honored as Taizhou City Safety production Standardization city enterprise.
In
2007 listed as the High tech Highlight enterprise in the state torque plan
In
2006 honored as Zhejiang Province patent model company
In
2006 honored as Zhejiang Provincial middle and small size enterprise technology
center.
In
2005 honored as Zhejiang Province cleaning production periodic achievement
company
In Dec., 2004 ISO14001 was accredited
In July, 2000, ISO9001 was
accredited.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2009-9-24 |
Registered
capital |
CNY
21,880,000 |
CNY
31,880,000 |
|
2013-10-15 |
Registered
capital |
CNY
31,880,000 |
Present
amount |
|
2013-10-22 |
Company’s
name |
Zhejiang Shaxing Pharmaceutical &
Chemical Co., Ltd. |
Zhejiang Shaxing Industry Co., Ltd. |
|
2013-11-5 |
Company’s
name |
Zhejiang Shaxing Industry Co., Ltd. |
Present one |
Subject passed the annual inspection
of 2012 with Administration for Industry & Commerce.
Organization Code: 255222086
There is no record of litigation till
now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Wenxiu 38.6441
Jiang Xianxing 3.9627
Chen Yongsheng 6.2313
Zhou Guiyin 1.6949
Chen Zaichai 0.8475
Chen Yanfei 0.8475
Wang Wenbin 29.6881
Wang Hongsheng 18.0839
l Legal
representative and chairman:
Mr. Wang Wenbin, born in 1963. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as chairman
and legal representative.
Also working in Jiangsu Shaxing
Chemical Co., Ltd. as legal representative, and in Taizhou Shijia
Pharmaceutical & Chemical Co., Ltd. (in Chinese pinyin) as supervisor.
l General manager:
Wang Wenxiu is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
Also working in Taizhou
Shijia Pharmaceutical & Chemical Co., Ltd. (in Chinese pinyin) as legal
representative, and in Jiangsu Shaxing Chemical Co., Ltd. as director.
l Directors:
Jiang Xianxing
Chen Yongsheng
Zhou Guiyin
Wang Wenxiu
l Supervisor:
Wu Chunsang
SC is mainly engaged in manufacturing and selling pharmaceutical and
chemical products.
Main Products:
Antibiotic Drug
Anti-Virus Drug
Cardiovascular Drug
Other Products
SC sources its
materials 90% from domestic market, and 10% from overseas market. SC sells 50%
of its products in domestic market, and 50% to overseas market, mainly Indian
market.
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.
Note: SC’s management refused to release its
main suppliers and clients.
SC is known to invest in the following
companies:
Jiangsu Shaxing Chemical
Co., Ltd.
====================
Registration no.:
320922000015020
Registered capital: CNY
50,000,000
Legal representative: Wang
Wenbin
Tel: +86-515-84383143
Taizhou Shijia
Pharmaceutical & Chemical Co., Ltd. (in Chinese pinyin)
=========================
Registration no.:
331082000024012
Legal representative: Wang
Wenxiu
Incorporation date:
2006-06-08
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 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.
Agricultural Bank of China Linhai Sub-branch
AC#：930101040003791
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
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as of Jun. 30, 2014 |
as of Dec. 31, 2013 |
|
Cash & bank |
218,680 |
127,640 |
|
Notes receivable |
2,900 |
4,670 |
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Inventory |
28,610 |
29,390 |
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Accounts receivable |
19,750 |
40,600 |
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Advances to suppliers |
7,840 |
11,110 |
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Other receivables |
95,120 |
75,580 |
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Other current assets |
320 |
340 |
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------------------ |
------------------ |
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Current assets |
373,220 |
289,330 |
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Fixed assets net value |
50,790 |
49,710 |
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Projects under construction |
11,920 |
6,240 |
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Project materials |
0 |
810 |
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Long term investment |
75,380 |
75,380 |
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Intangible assets |
14,830 |
15,070 |
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Other assets |
280 |
10 |
|
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------------------ |
------------------ |
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Total assets |
526,420 |
436,550 |
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============= |
============= |
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Short loans |
147,420 |
166,530 |
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Notes payable |
230,000 |
115,000 |
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Accounts payable |
25,470 |
32,980 |
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Advances from customers |
0 |
0 |
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Accrued payroll |
10 |
230 |
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Taxes payable |
3,400 |
3,540 |
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Other payable |
3,610 |
5,980 |
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Specified payables |
1,820 |
0 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
411,730 |
324,260 |
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Long term liabilities |
0 |
1,820 |
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------------------ |
------------------ |
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Total liabilities |
411,730 |
326,080 |
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Equities |
114,690 |
110,470 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
526,420 |
436,550 |
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|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
Jan. 1 to Jun. 30, 2014 |
as of Dec. 31, 2013 |
|
Turnover |
126,540 |
315,270 |
|
Cost of goods sold |
96,400 |
238,610 |
|
Taxes and additional of main operation |
630 |
2,100 |
|
Sales expense |
2,270 |
6,120 |
|
Management expense |
13,340 |
26,800 |
|
Finance expense |
8,590 |
16,150 |
|
Profit before tax |
5,300 |
26,020 |
|
Less: profit tax |
780 |
2,780 |
|
Profits |
4,520 |
23,240 |
Important Ratios
=============
|
|
as of Jun. 30, 2014 |
as of Dec. 31, 2013 |
|
*Current
ratio |
0.91 |
0.89 |
|
*Quick
ratio |
0.84 |
0.80 |
|
*Liabilities
to assets |
0.78 |
0.75 |
|
*Net profit
margin (%) |
3.57 |
7.37 |
|
*Return on
total assets (%) |
0.86 |
5.32 |
|
*Inventory
/Turnover ×365 |
/ |
34 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
47 days |
|
*Turnover/Total
assets |
0.24 |
0.72 |
|
* Cost of
goods sold/Turnover |
0.76 |
0.76 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears fairly good in its line.
l SC’s net profit
margin is fairly good in 2013 but average in the first half of 2014.
l SC’s return on total
assets is fairly good in 2013 but average in the first half of 2014.
l SC’s cost of goods
sold is average, comparing with its turnover.
LIQUIDITY:
FAIR
l The current ratio
of SC is maintained in a fair level.
l SC’s quick ratio
is maintained in a normal level.
l The inventory of
SC is maintained in an average level.
l The accounts
receivable of SC appears average.
l SC’s short-term
loan appears large
l SC’s turnover is
in a fair level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l The debt ratio of
SC is average in 2013 but fairly high in the first half of 2014.
l The risk for SC to
go bankrupt is average.
Overall
financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line
with fairly stable financial conditions. The large amount of short loans could
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.93 |
|
|
1 |
Rs.97.39 |
|
Euro |
1 |
Rs.77.21 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
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 |
|
|
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 |
|
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
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.