MIRA
INFORM REPORT
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Report Date : |
12.05.2014 |
IDENTIFICATION DETAILS
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Name : |
ningxia qiyuan
pharmaceutical co., ltd. |
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Registered Office : |
No.1 Qiyuan Street, Wangyuan Industrial Area, Yinchuan, Ningxia Hui Autonomous
Region, 750101 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
21.01.2001 |
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Com. Reg. No.: |
640000000000414 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling chemical raw
materials, chemical raw materials intermediate (Erythromycin Thiocyanate),
chemical medicine preparation; Chinese medicine development, production,
marketing, the export business of technology; processing and selling medlar,
Qizhenxibao capsule, Qizhenshenbao capsule, Qiyuan Qisheng capsule, Fuyanning
plug; manufacturing and selling pesticides (Avermectin TC), feed, feed
additives, food additives, fertilizer; corn acquisition & processing and
its subsidiary product processing, marketing; engaging in import business of
its own products, the necessary raw and auxiliary materials, machinery and
equipment, instruments, spare parts and related technology; processing with
imported materials, processing with imported samples, assembling with
imported parts, and compensation trade in agreement; processing system box, barrel, gland;
packaging and decorating printed matters; heating. |
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No of Employees : |
1700 |
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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 & ADDRESS
ningxia qiyuan pharmaceutical co., ltd.
no.1 qiyuan street, wangyuan industrial area,
yinchuan,
Ningxia Hui Autonomous Region, 750101 PR CHINa
TEL: 86 (0)
951-4066592/4066938/4066000-8030 FAX:
86 (0) 951-4066968/4066866
EXECUTIVE SUMMARY
INCORPORATION DATE :
january 21, 2001
REGISTRATION NO. : 640000000000414
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
1,700
REGISTERED CAPITAL : CNY 292,910,000
BUSINESS LINE : manufacturing
TURNOVER :
CNY 795,350,000 (unaudited, AS OF DEC. 31, 2013)
EQUITIES :
CNY 989,220,000 (unaudited, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : Fairly
Stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.0606 = 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
Ningxia Hui Autonomous Region Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license) on January 21,
2001.
|
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
and selling chemical raw materials, chemical raw materials intermediate
(Erythromycin Thiocyanate), chemical medicine preparation; Chinese medicine
development, production, marketing, the export business of technology;
processing and selling medlar, Qizhenxibao capsule, Qizhenshenbao capsule,
Qiyuan Qisheng capsule, Fuyanning plug; manufacturing and selling pesticides
(Avermectin TC), feed, feed additives, food additives, fertilizer; corn
acquisition & processing and its subsidiary product processing, marketing;
engaging in import business of its own products, the necessary raw and
auxiliary materials, machinery and equipment, instruments, spare parts and
related technology; processing with imported
materials, processing with imported samples, assembling with imported parts,
and compensation trade in agreement; processing system box, barrel, gland;
packaging and decorating printed matters; heating.
SC is mainly engaged in manufacturing and
selling troche, capsule, granule, and bulk drug.
Mr. Hu Jidong has
been the legal representative, chairman and general manager of SC since 2001.
SC is known to
have approx. 1,700 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 Yinchuan. Our checks
reveal that SC owns the total premise about 170,000 square meters.
WEB SITE
http://www.china-qiyuan.com
The design is professional and the content is well organized. At present the
web site is in both Chinese and English versions.
E-mail: ie@china-qiyuan.com
KEY
EVENTS/RECENT DEVELOPMENT
SC has got the United States FDA certification and Europe COS
certification.
Honor:
National Enterprise Technology Center
National key high-tech enterprises
Total View of the 100 key export enterprises
Subject passed the annual inspection of 2012 with
Administration for Industry & Commerce.
Organization Code: 715070619
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2008-8 |
Registration No. |
6400001200229 |
Present one |
|
Registered capital |
CNY 129,700,000 |
Present amount |
|
|
Shareholders |
State-owned Assets Supervision and Administration Commission of
Ningxia Hui Autonomous Region
Government 3.14%; Employee Shareholders Association
96.86% |
Present ones |
LITIGATION
See below for SC as executive party (defendant).
|
Executed Party |
Ningxia Qiyuan Pharmaceutical Co., Ltd. |
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Court |
Yinchuan Jinfeng District People's Court |
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Date
of Case |
Jan. 11, 2011 |
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Case Number |
(2011) 00173 |
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Claim
Amount |
RMB 20,000 |
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Case
Status |
Completed |
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Executed Party |
Ningxia Qiyuan Pharmaceutical Co., Ltd. |
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Court |
Yinchuan Yongning County People's Court |
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Date
of Case |
Aug. 16, 2010 |
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Case Number |
(2010) 01028 |
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Claim
Amount |
RMB 100 |
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Case
Status |
Completed |
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Executed Party |
Ningxia Qiyuan Pharmaceutical Co., Ltd. |
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Court |
Yinchuan Jinfeng District People's Court |
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Date
of Case |
Aug. 13, 2010 |
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Case Number |
(2010) 01295 |
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Claim
Amount |
RMB 30,000 |
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Case
Status |
Completed |
Etc.
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
OWNERSHIP/MANAGEMENT
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ningxia Funing Investment Group Co., Ltd.
(In Chinese Pinyin) 1.39
Employee Shareholders Association (including 47 individuals) 98.61
Ningxia Funing Investment Group Co., Ltd.
================================
Tel: 0951-7888870
Fax: 0951-6719806
Address: 14F Touzi Mansion, Hubin West Street, Yinchuan City, Ningxia
MANAGEMENT
l
Legal representative, Chairman and General Manager:
Mr. Hu Jidong, about 62 years old with
university education, he is currently responsible for the overall management of
SC.
Working Experience(s):
Before 2001 Worked in Ningxia Pharmaceutical Factory
as factory director;
From 2001 to present Working
in SC as legal representative, chairman and general manager
l
Vice General Manager:
Ms. Ju Lihong, about 47 years old with university education, she is
currently responsible for the daily management of SC.
Working Experience(s):
From 2001 to present
Working in SC as vice general
manager.
Also working in Ningxia Qiyuan Chinese Medicine Co., Ltd. as
general manager.
BUSINESS OPERATIONS
SC is mainly
engaged in manufacturing and selling troche, capsule, granule, and bulk drug.
SC’s products mainly include: tetracycline
hydrochloride, tetracycline, carbenoxolone sodium, 18-β-glycyrrhetinic
acid, erythromycin thiocyanate, tetracycline hydrochloride capsules, marine,
etc.
SC sources its materials 100% from domestic
market, mainly Ningxia. SC sells 70% of its products in domestic market, and
30% to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T 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:
==============
Ningxia Qiyuan Chinese Medicine Co., Ltd.
Note: SC’s management declined to release its main suppliers.
RELATED COMPANIES
SC
is known to have 2 subsidiaries at present:
Ningxia Qiyuan Chinese Medicine Co., Ltd.
Registration no.: 640000000002657
Ningxia
Qiyuan Dayaofang Pharmaceutical Co., Ltd. (In translation)
Trading
Department: (according to SC’s website)
====================
Tel:
0086-951-5070288 ext 8418
Fax:
0086-951-5070185
E-mail:
fmpharm@china-qiyuan.com
Address:
No. 85 Ningan Street, Jinfeng District, Yinchuan, Ningxia
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
Industrial
and Commercial Bank of China Yinchuan Branch
AC#：2902009209021003861
Relationship:
Normal.
FINANCIAL HIGHLIGHTS
Financial Summary
===============
Unit: CNY’000
|
|
As of Dec. 31, 2013 |
|
Total assets |
2,014,860 |
|
|
========= |
|
Total liabilities |
1,025,640 |
|
Equities |
989,220 |
|
|
-------------- |
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Total liabilities & equities |
2,014,860 |
|
|
========= |
|
Turnover |
795,350 |
|
Profits |
450 |
Note:
SC’s management refused to release its detailed financial reports, and the above Financial Report hasn’t been audited.
Important Ratios
=============
|
|
as
of Dec. 31, 2013 |
|
*Liabilities
to assets |
0.51 |
|
*Net profit
margin (%) |
0.06 |
|
*Return on
total assets (%) |
0.02 |
|
*Turnover/Total
assets |
0.39 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
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 low.
Overall financial
condition of the SC: Fairly Stable.
REMARKS
SC is considered large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.05 |
|
|
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.07 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
|
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.