MIRA
INFORM REPORT
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Report Date : |
01.02.2014 |
IDENTIFICATION DETAILS
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Name : |
Zhejiang Shaxing
PharmACEUTICAL & ChemICAL Co., Ltd. |
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Registered Office : |
Huangjiaoyantou, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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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 : |
Engaged in manufacturing cyclopropylamine hydrochloride (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. |
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No of Employees : |
295 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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With Financial |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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, 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 2012 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
demand; (b) sustaining adequate job growth for tens of millions of migrants and
new entrants to the work force; (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. In 2010-11, China
faced high inflation resulting largely from its credit-fueled stimulus program.
Some tightening measures appear to have controlled inflation, but GDP growth
consequently slowed to under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
Debt overhang from the stimulus program, particularly among local governments,
and a property price bubble challenge policy makers currently. 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 exports in the future. However, China has made only marginal
progress toward these rebalancing goals.
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Source
: CIA |
COMPANY NAME & ADDRESS
Zhejiang Shaxing PharmACEUTICAL & ChemICAL
Co., Ltd.
huangjiaoyantou, Yongquan Town, Linhai city,
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 315,270,000 (unaudited, AS OF DEC. 31, 2013)
EQUITIES :
CNY 110,470,000 (unaudited, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.0496 = 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
HISTORY
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.
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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
hydrochloride (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
WEB
SITE
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
KEY
EVENTS/RECENT DEVELOPMENT
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 |
|
Unknown |
Registered capital |
CNY 21,880,000 |
CNY 31,880,000 |
|
Unknown |
Company’s name |
Zhejiang Shaxing Pharmaceutical & Chemical Co., Ltd. |
Zhejiang Shaxing Industry Co., Ltd. |
|
2013 |
Registered capital |
CNY 31,880,000 |
Present amount |
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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
As of the end of 2013, SC’s paid-up capital is CNY
51,880,000.
LITIGATION
There is no record of litigation till now.
OWNERSHIP/MANAGEMENT
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
MANAGEMENT
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.
BUSINESS OPERATIONS
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.
RELATED COMPANIES
Subsidiary:
according to SC’s website
Jiangsu
Shaxing Chemical Co., Ltd.
====================
Registration
no.: 320922000015020
Registered
capital: CNY 50,000,000
Legal
representative: Wang Wenbin
Tel:
+86-515-84383143
Email:
shaxing1992@126.com
PAYMENT
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.
BANKING
Agricultural Bank of China Linhai Sub-branch
AC#：930101040003791
Relationship:
Normal.
FINANCIAL HIGHLIGHTS
Balance Sheet (as of Dec. 31, 2013)
Unit: CNY’000
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Cash & bank |
127,640 |
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Notes receivable |
4,670 |
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Inventory |
29,390 |
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Accounts
receivable |
40,600 |
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Advances to
suppliers |
11,110 |
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Other
receivables |
75,580 |
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Other current
assets |
340 |
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------------------ |
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Current assets |
289,330 |
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Fixed assets net
value |
49,710 |
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Projects under
construction |
6,240 |
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Project
materials |
810 |
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Long term
investment |
75,380 |
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Intangible
assets |
15,070 |
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Other assets |
10 |
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Total assets |
436,550 |
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============= |
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Short loans |
166,530 |
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Notes payable |
115,000 |
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Accounts payable |
32,980 |
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Advances from
customers |
0 |
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Accrued payroll |
230 |
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Taxes payable |
3,540 |
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Other payable |
5,980 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
324,260 |
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Long term
liabilities |
1,820 |
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Total
liabilities |
326,080 |
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Equities |
110,470 |
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------------------ |
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Total
liabilities & equities |
436,550 |
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============= |
Income Statement (as of Dec. 31, 2013)
Unit: CNY’000
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Turnover |
315,270 |
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Cost of goods sold |
238,610 |
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Taxes and additional of main operation |
2,100 |
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Sales expense |
6,120 |
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Management expense |
26,800 |
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Finance expense |
16,150 |
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Profit before
tax |
26,020 |
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Less: profit tax |
2,780 |
|
Profits |
23,240 |
Note: The above Financial Report hasn’t been audited.
Important Ratios
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|
|
as
of Dec. 31, 2013 |
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*Current ratio |
0.89 |
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*Quick ratio |
0.80 |
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*Liabilities
to assets |
0.75 |
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*Net profit
margin (%) |
7.37 |
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*Return on total
assets (%) |
5.32 |
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*Inventory
/Turnover ×365 |
34 days |
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*Accounts
receivable/Turnover ×365 |
47 days |
|
*Turnover/Total
assets |
0.72 |
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* Cost of
goods sold/Turnover |
0.76 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The turnover 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 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 fair 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 in 2013
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.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
REMARKS
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. A credit line up to would appear to be within SC’s capacities upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.47 |
|
|
1 |
Rs. 102.94 |
|
Euro |
1 |
Rs. 84.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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 |
|
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 |
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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.