MIRA
INFORM REPORT
|
Report Date : |
20.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
NINGXIA TAIRUI PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Wangyuan Economic Development Zone, Yongning County, Yinchuan,
Ningxia, 750101 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
21.01.2000 |
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Com. Reg. No.: |
640000200004472 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling of Livestock Antibiotic. |
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No. of Employees : |
1,850 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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.
Source
: CIA
Company Name and Address
NINGXIA TAIRUI PHARMACEUTICAL CO., LTD.
WANGYUAN ECONOMIC
DEVELOPMENT ZONE, YONGNING COUNTY,
YINCHUAN, NINGXIA,
750101 PR CHINA
TEL: 86 (0)
951-8462677
FAX: 86 (0)
951-8462577
EXECUTIVE SUMMARY
INCORPORATION DATE : JANUARY 21, 2000
REGISTRATION NO. : 640000200004472
REGISTERED LEGAL
FORM : Shares limited company
CHIEF EXECUTIVE : MR. WANG YI (CHAIRMAN and general manager)
STAFF STRENGTH : 1,850
REGISTERED CAPITAL : CNY 234,642,857
BUSINESS LINE : MANUFACTURING AND SELLING
TURNOVER :
CNY 709,300,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 949,230,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION
: fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.09707 =
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 limited liabilities company at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on January 21, 2000, and has been under present legal form since 2010.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be
domiciled in China. Natural person are allowed to serve as promoters. The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. The board of directors must
consist of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within one year
of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered
business scope includes manufacturing and selling of Non-sterile API (tiamulin
fumarate, tylosin tartrate, tylosin phosphate, tylosin, tilmicosin, thiocyanate
red enzyme), feed additive (betaine (I), betaine hydrochloride (I)), premix,
powder, single feed, thiocyanate red enzyme chemical intermediates,
hydrochloric acid gold enzyme, spectinomycin hydrochloride enzyme, soil enzyme
intermediates; exporting its products and technology; importing raw materials,
machines, components and related technology for its production, excluding the
items limited or prohibited by the state; supplying heating (in accordance with
the business scope on the qualification certificate).
SC is mainly engaged in manufacturing and selling livestock antibiotic.
Mr. Wang Yi is legal representative, chairman and general manager of SC at present.
SC is known to have approx. 1,850 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the economic development zone of Yongning County. SC’s accountant refused to release the detailed information of the area.
www.tairuiworld.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: tairuiren0908@163.com
SC has passed the Certificate of Good
Manufacturing Practices for Animal Drugs.
Changes of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
Unknown |
Registered no. |
6400002202425 |
640000200004472 |
|
2010-9 |
Company name |
Ningxia Duoweitairui Pharmaceutical Co.,
Ltd. |
Ningxia Tairui Pharmaceutical Co., Ltd. |
|
Legal form |
Limited
Liabilities Company |
Shares Limited Company |
|
|
2011-7 |
Registered capital |
CNY 139,860,000 |
Present amount |
|
Shareholdings |
Wang Yi王义10% Qi Xiuping90% |
Present ones |
For the past two years there is no record of
litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Qi Xiuping 69.45
Wang Yi 8.45
Guangdong China Science
Baiyun Venture Investment Co., Ltd. 5.12
Shenzhen
Wei’erkexing Investment Co., Ltd. (in Chinese Pinyin) 2.5
Anhui Guofu
Industry Investment Fund Management Co., Ltd. 2.56
Ma Changjiang 1.69
Other shareholders 10.17
l
Legal representative, chairman and general manager:
Mr. Wang Yi, born in 1970. 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.
SC is mainly engaged in manufacturing and selling livestock antibiotic.
Brand: Tairui.
SC’s products mainly include: Vitamin B12 Feed agent, Salinomycin
premixes, Tylosin premix, etc.
SC sources its materials
60% from domestic market and 40% from oversea market. SC sells 40% of its
products in domestic market, and 60% to overseas market, mainly Southeast Asian
market.
The buying terms of SC include Check, T/T,
L/C 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.
Ningxia Duowei Pharmaceutical Co Ltd.
Incorporation date: January 4, 1999
Registration no.: 640121200001542
SC has a marketing department in Beijing:
(according to SC’s website)
Tel: +86-10-82684966
Fax: +86-10-82684961
Note:
The subsidiaries information about SC is unknown.
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 management declined to release its bank
details.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
Cash & bank |
75,190 |
20,870 |
|
Inventory |
50,480 |
89,440 |
|
Accounts receivable |
35,090 |
78,230 |
|
Advances to suppliers |
142,480 |
58,150 |
|
Other receivables |
82,610 |
211,720 |
|
Other current assets |
1,170 |
6,470 |
|
|
------------------ |
------------------ |
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Current assets |
387,020 |
464,880 |
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Fixed assets net value |
563,210 |
1,049,780 |
|
Long-term investment |
10,000 |
207,650 |
|
Projects under construction |
255,070 |
213,390 |
|
Intangible and other assets |
50,030 |
30,730 |
|
|
------------------ |
------------------ |
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Total assets |
1,265,330 |
1,966,430 |
|
|
============= |
============= |
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Short loans |
271,000 |
430,000 |
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Accounts payable |
56,650 |
44,640 |
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Advances from clients |
14,830 |
5,610 |
|
Taxes payable |
61,730 |
64,460 |
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Other Accounts payable |
13,660 |
167,380 |
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Other current liabilities |
5,570 |
41,530 |
|
|
------------------ |
----------------- |
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Current liabilities |
423,440 |
753,620 |
|
Long term liabilities |
317,890 |
263,580 |
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|
------------------ |
------------------ |
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Total liabilities |
741,330 |
1,017,200 |
|
Shareholders equities |
524,000 |
949,230 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
1,265,330 |
1,966,430 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
Turnover |
540,770 |
709,300 |
|
Cost of goods sold |
281,840 |
408,260 |
|
Sales expense |
10,510 |
12,370 |
|
Management expense |
34,620 |
50,170 |
|
Finance expense |
19,270 |
34,330 |
|
Investment income |
-2,840 |
0 |
|
Profit before tax |
189,850 |
217,050 |
|
Less: profit tax |
17,290 |
28,860 |
|
Profits |
172,560 |
188,190 |
Note: SC’s financial details for Yr2012 are not
available at present.
Important Ratios
=============
|
|
As of Dec. 31,
2010 |
As of Dec. 31, 2011 |
|
*Current ratio |
0.91 |
0.62 |
|
*Quick ratio |
0.79 |
0.50 |
|
*Liabilities to assets |
0.59 |
0.52 |
|
*Net profit margin (%) |
31.91 |
26.53 |
|
*Return on total assets (%) |
13.64 |
9.57 |
|
*Inventory /Turnover ×365 |
35 days |
47 days |
|
*Accounts receivable/Turnover ×365 |
24 days |
41 days |
|
*Turnover/Total assets |
0.43 |
0.36 |
|
* Cost of goods sold/Turnover |
0.52 |
0.58 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good and it
increased in 2011.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of goods sold is low, comparing with its
turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in both years.
l
The inventory of SC is average in both years.
l
The accounts receivable of SC is average in both
years.
l
The short-term loan of SC is fairly large in both years.
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.
SC is considered
large-sized in its line with fairly stable financial conditions. Taking
into consideration of SC’s general performance, reputation as well as market
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.10 |
|
|
1 |
Rs.101.41 |
|
Euro |
1 |
Rs.84.08 |
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 |
-- |
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.