MIRA
INFORM REPORT
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Report Date : |
19.03.2014 |
IDENTIFICATION DETAILS
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Name : |
INNER MONGOLIA CHANGSHENG PHARMACEUTICALS CO., LTD. |
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Registered Office : |
Jinlong Road,
Tuodian Industrial Park Zone, Tuoketuo County, Hohhot, Inner Mongolia
Autonomous Region, 010200 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
17.10.2003 |
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Com. Reg. No.: |
150100400000023 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged
in manufacturing and sales of pharmaceutical products |
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No. of Employees : |
1,200 |
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 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. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future.
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
Inner Mongolia Changsheng Pharmaceuticals Co., Ltd.
Jinlong road, tuodian industrial park zone,
tuoketuo County, Hohhot, Inner Mongolia Autonomous Region, 010200 PR CHINA
TEL:
86 (0) 471-8660628/8660666/8660624
FAX:
86 (0) 471-8660964
EXECUTIVE SUMMARY
INCORPORATION
DATE : oct. 17, 2003
REGISTRATION
NO. : 150100400000023
REGISTERED
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF
EXECUTIVE : MS. Tian
yumiao (legal representative)
STAFF
STRENGTH : 1,200
REGISTERED
CAPITAL : HKD 271,647,200
BUSINESS
LINE :
MANUFACTURING AND SALES
TURNOVER : CNY 574,250,000
(unaudited, AS OF DEC. 31, 2013)
EQUITIES : CNY 346,370,000
(unaudited, AS OF DEC. 31, 2013)
PAYMENT
: AVERAGE
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION : fair
OPERATIONAL
TREND : FAIRLY steady
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.1254 = 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
SC was registered
as a wholly foreign-owned enterprise at Hohhot Municipal Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Oct. 17, 2003.
Company Status: Wholly foreign-owned enterprise This
form of business in PR China is defined as a legal person. It is a limited
co. established within the territories of PR China with capital provided
totally by the foreign investors. More than one foreign investor may
jointly invest in a wholly foreign-owned enterprise. The investing
party/parties solely exercise management, reap profit and bear risks and
liabilities by themselves. This form of companies usually have a limited
duration is extendible upon approval of Examination and Approval
Authorities.
SC’s registered
business scope includes manufacture and sales of 6-APA, amoxicillin,
ampicillin, 7ADCA, deacteyl 7-aminocephalosporanic acid and 7-ACA; wastewater
treatment, manufacture and sales of organic fertilizer, mixed fertilizer and
related products; manufacture and sales of fine chemical products.
SC is mainly
engaged in manufacturing and sales of pharmaceutical products.
Ms. Tian
Yumiao is legal representative of SC at
present.
SC is known to have
approx. 1,200 employees at
present.
SC is currently
operating at the above stated address, and this address houses its operating
office and factory in the industrial zone of Hohhot. Detailed premise
information is not available at present.
SC is not known to
host web site of its own at present.
For the past two
years there is no record of litigation.
No significant changes were found during our checks with the Hohhot Administration for Industry and Commerce.
Subject passed the
annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code:
752587166
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Best Century Group
Limited (Hong Kong) 100
Registration No.:
1549788
Legal Form: Private
Legal Representative:
Ms. Tian Yumiao is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative.
SC is mainly
engaged in manufacturing and sales of pharmaceutical products.
SC’s products
mainly include: penicillin
SC sources its
materials 100% from domestic market. SC sells 70% of its products in domestic
market, and 30% to 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 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.
SC’s accountant
refused to release the bank details.
Balance Sheet (Unaudited)
Unit: CNY’000
|
|
As of Dec. 31, 2013 |
|
Cash & bank |
15,030 |
|
Inventory |
126,160 |
|
Accounts
receivable |
238,430 |
|
Note receivable |
45,950 |
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Advances to
suppliers |
109,170 |
|
Other receivables |
18,050 |
|
|
------------------ |
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Current assets |
552,790 |
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Disposal of fixed
assets |
156,790 |
|
Fixed assets net
value |
562,470 |
|
Long term
investment |
197,630 |
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Projects under
construction |
26,370 |
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Intangible and
other assets |
6,510 |
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|
------------------ |
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Total assets |
1,502,560 |
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|
=========== |
|
Short loan |
0 |
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Accounts payable |
275,320 |
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Advances from
customers |
700 |
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Payroll Payable |
5,760 |
|
Taxes payable |
1,170 |
|
Other accounts
payable |
793,240 |
|
|
------------------ |
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Current
liabilities |
1,076,190 |
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Long term
liabilities |
80,000 |
|
|
------------------ |
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Total liabilities |
1,156,190 |
|
Equities |
346,370 |
|
|
------------------ |
|
Total liabilities
& equities |
1,502,560 |
|
|
=========== |
Income Statement (Unaudited)
Unit: CNY’000
|
|
As of Dec. 31, 2013 |
|
Turnover |
574,250 |
|
Cost of goods
sold |
567,010 |
|
Taxes and additional of main operation |
1,650 |
|
Sales expense |
12,330 |
|
Management expense |
75,430 |
|
Finance expense |
3,410 |
|
Asset impairment
loss |
1,760 |
|
Non-operating
income |
410 |
|
Profit before tax |
-86,930 |
|
Less: profit tax |
0 |
|
Profits |
-86,930 |
Important Ratios
|
|
As of Dec. 31, 2013 |
|
*Current ratio |
0.51 |
|
*Quick ratio |
0.396 |
|
*Liabilities to
assets |
0.77 |
|
*Net profit
margin (%) |
-15.14 |
|
*Return on total
assets (%) |
-5.79 |
|
*Inventory
/Turnover ×365 |
81
days |
|
*Accounts
receivable/Turnover ×365 |
152
days |
|
*Turnover/Total
assets |
0.38 |
|
* Cost of goods
sold/Turnover |
0.99 |
PROFITABILITY: FAIR
·
The turnover of SC appears fairly good in its liner.
·
SC’s
net profit margin is poor.
·
SC’s
return on total assets is fair.
·
SC’s
cost of goods sold is high.
LIQUIDITY: FAIR
·
The
current ratio of SC is maintained in a fair level.
·
SC’s
quick ratio is maintained in a poor level.
·
The
inventory of SC appears average.
·
The
accounts receivable of SC is large.
·
SC has
no short loans in 2013.
·
SC’s
turnover is in a poor level, comparing with the size of its total assets.
LEVERAGE: FAIR
·
The
debt ratio of SC is fairly high.
·
The
risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered
large-sized in its line with fair financial conditions. The large amount of
accounts receivable could be a threat to SC’s financial situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.95 |
|
|
1 |
Rs.101.37 |
|
Euro |
1 |
Rs.84.89 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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 |
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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.