MIRA
INFORM REPORT
|
Report Date : |
28.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
INNER MONGOLIA CHANGSHENG PHARMACEUTICAL CO., LTD. |
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Formerly Known As : |
CSPC ZHONGRUN PHARMACEUTICAL (INNER MONGOLIA)
CO. LTD, |
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Registered Office : |
Tuodian Industrial Zone, Tuoketuo County, Hohhot Inner Mongolia 010206 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 selling pharmaceutical
products. Products mainly include: 6-Aminopenicillanic acid, amoxicillin,
Ampicillin. |
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No. of Employees : |
1,500 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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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 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 and address
INNER MONGOLIA CHANGSHENG
PHARMACEUTICAL CO., LTD.
TUODIAN INDUSTRIAL ZONE, TUOKETUO COUNTY, HOHHOT
INNER MONGOLIA 010206 PR CHINA
TEL: 86 (0) 471-8660666/8661099
FAX: 86 (0) 471-8660964
***Note: The given company name (CPSC Zhongrun Pharmaceutical (Inner
Monogolia) Co Ltd) was SC’s
former one.
EXECUTIVE SUMMARY
Date of Registration : OCTober 17, 2003
REGISTRATION NO. : 150100400000023
LEGAL FORM : WHOLLY FOREIGN OWNED ENTERPRISE
CHIEF EXECUTIVE :
LU HUA (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : HKD 271,647,200
staff :
1,500
BUSINESS CATEGORY : MANUFACTURING & trading
REVENUE :
CNY 574,250,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 346,370,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = USD 1
Adopted abbreviations (as follows)
SC – Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established as a wholly foreign owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 150100400000023 on October 17, 2003.
SC’s Organization Code Certificate No.: 75258716-6
SC’s Tax No.: 150122752587166
SC’s Customs Registration No.: 1501940069
SC’s registered capital: HKD 271,647,200
SC’s paid-in capital: HKD 271,647,200
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered No. |
000404 |
150100400000023 |
|
Legal Representative |
Ji Jianming |
Liu Zhentao |
|
|
Registered Capital |
HKD 258,000,000 |
HKD 271,647,200 |
|
|
2013 |
Company Name |
CSPC Zhongrun Pharmaceutical (Inner Mongolia) Co., Ltd. |
Inner Mongolia Changsheng Pharmaceutical Co., Ltd. |
|
Legal Representative |
Liu Zhentao |
Tian Yumiao |
|
|
2014-2-26 |
Legal Representative |
Tian Yumiao |
Lu Hua |
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Shareholder (s) |
China Pharmaceutical Group Limited (Hong Kong) 100% |
Best Century Group Limited (Hong Kong) 100% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Best Century Group Limited (Hong Kong) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Lu Hua 卢华 |
|
Director |
Chen Xuejun |
|
Mu Shusheng |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Best Century Group Limited (Hong Kong) 100
----------------------------------
Date of Registration: January 7, 2011
Registration No.: 1549788
Legal Form: Private
MANAGEMENT
Lu Hua, Legal Representative, Chairman and General
Manager
-------------------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
At present, working in SC as legal reprehensive, chairman and general
manager
Director
-----------
Chen Xuejun
Mu Shusheng
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and selling 6 -
aminopenicillanic acid, amoxicillin, ampicillin, 7 - amino-3 the - off acetoxy
Cephalosporanic acid, deacetyl-7-ACA, 7 - aminocephalosporanic acid; industrial
wastewater treatment; manufacturing and selling organic fertilizer, blended
fertilizer and related products; manufacturing and selling fine chemical
products.
SC is mainly engaged in manufacturing and selling pharmaceutical
products.
SC’s products mainly include: 6-Aminopenicillanic acid, amoxicillin,
Ampicillin
SC sources its materials 90% from domestic market, and 10% from the
overseas market, mainly European countries. SC sells 66% of its products in
domestic market, and 34% to the overseas market, mainly Southeast Asia and
European countries.
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.
*Major Customer:
=============
Teva Pharmaceuticals USA
Staff &
Office:
--------------------------
SC is known to have approx. 1,500
staff at present.
SC owns an area as its operating office & factory of approx. 685,000
sq. meters at the heading address.
RELATED
COMPANY
SC is known to
invest in the following companies:
Inner Mongolia Changrong Sugar Industrial Co., Ltd.
---------------------------------
Date of Registration: April 19, 2004
Registration No.: 150107000000029
Legal Form: Limited Liabilities
Company
Chief Executive: Lu Hua
Registered Capital: CNY 33,000,000
CSPC Inner Mongolia Xinhui Pharmaceutical Co., Ltd.
---------------------------------------------
Date of Registration: October 20, 2009
Registration No.: 150107000005161
Legal Form: Limited Liabilities
Company
Chief Executive: Tian Yumiao
Registered Capital: CNY 66,867,900
PAYMENT
Overall payment appraisal: ( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor
( ) Not yet be 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
Basic Bank:
Industrial & Commercial Bank of China Hohhot Tuoketuo County Electronic
Factory Office
AC#: 0602121209000000486
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
30,905 |
33,369 |
15,030 |
|
|
Notes receivable |
44,921 |
49,476 |
45,950 |
|
Accounts receivable |
268,653 |
214,489 |
238,430 |
|
Advances to suppliers |
123,864 |
118,028 |
109,170 |
|
Other receivable |
81,633 |
21,416 |
18,050 |
|
Inventory |
172,758 |
139,375 |
126,160 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Current assets |
722,734 |
576,153 |
552,790 |
|
Long-term investment |
191,315 |
167,747 |
197,630 |
|
Fixed assets |
641,930 |
683,408 |
562,470 |
|
Construction in progress |
25,251 |
18,994 |
26,370 |
|
Intangible assets |
440 |
6,963 |
156,790 |
|
Long-term prepaid expenses |
1,165 |
765 |
6,510 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
1,582,835 |
1,454,030 |
1,502,560 |
|
|
============= |
============= |
============= |
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Short-term loans |
0 |
0 |
0 |
|
Notes payable |
29,860 |
59,790 |
0 |
|
Accounts payable |
260,604 |
266,012 |
275,320 |
|
Wages payable |
11,750 |
12,840 |
5,760 |
|
Taxes payable |
-23,573 |
-19,249 |
1,170 |
|
Advances from clients |
5,598 |
16,313 |
700 |
|
Other payable |
617,858 |
611,332 |
793,240 |
|
Other current liabilities |
0 |
53,000 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
902,097 |
1,000,038 |
1,076,190 |
|
Non-current liabilities |
151,680 |
169,728 |
80,000 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
1,053,777 |
1,169,766 |
1,156,190 |
|
Equities |
529,058 |
284,264 |
346,370 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
1,582,835 |
1,454,030 |
1,502,560 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Revenue |
1,125,738 |
885,858 |
574,250 |
|
Cost of sales |
1,042,430 |
951,931 |
567,010 |
|
Taxes and surcharges |
949 |
494 |
1,650 |
|
Sales expense |
15,839 |
12,806 |
12,330 |
|
Management expense |
66,184 |
54,735 |
75,430 |
|
Finance expense |
5,592 |
5,670 |
3,410 |
|
Profit before tax |
472 |
-138,246 |
-86,930 |
|
Less: profit tax |
0 |
0 |
0 |
|
472 |
-138,246 |
-86,930 |
Important Ratios
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.80 |
0.58 |
0.51 |
|
*Quick ratio |
0.61 |
0.44 |
0.40 |
|
*Liabilities to assets |
0.67 |
0.80 |
0.77 |
|
*Net profit margin (%) |
0.04 |
-15.61 |
-15.14 |
|
*Return on total assets (%) |
0.03 |
-9.51 |
-5.79 |
|
*Inventory / Revenue ×365 |
57 days |
58 days |
81 days |
|
*Accounts receivable/ Revenue ×365 |
88 days |
89 days |
152 days |
|
*Revenue/Total assets |
0.71 |
0.61 |
0.38 |
|
*Cost of sales / Revenue |
0.93 |
1.07 |
0.99 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is poor.
·
SC’s return on total assets is fair.
·
SC’s cost of sales is high, comparing with its
revenue.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a fair
level.
·
SC’s quick ratio is maintained in a fair level.
·
The inventory of SC is maintained in an average
level.
·
The accounts receivable of SC appears large in
2013.
·
SC has no short-term loans.
·
SC’s revenue is in a poor level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is average.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
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.60.13 |
|
|
1 |
Rs.99.65 |
|
Euro |
1 |
Rs.82.91 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.