MIRA
INFORM REPORT
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Report Date : |
12.05.2014 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG AUSUN
PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 5 Donghai 4th Avenue,
Linhai Park, Chemical Materials Base, Taizhou City, Zhejiang Province, 318000
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
22.04.2010 |
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Com. Reg. No.: |
331082000047854 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
API (entecavir), manufacturing of organic intermediates (entecavir crude
products, lubiprostone crude products, latanoprost crude products, pranlukast
crude products, succinate crude products, levetiracetam crude products,
BPCPD, selective fluorine reagent); wholesale and retail of chemical
materials, technology research of pharmaceutical and chemical products,
consulting service; import and export of goods and technology. Subject products
ranges includes prostaglandins and intermediates, API, fluorine series and
intermediates |
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No of Employees : |
260 (Approximately) |
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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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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 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
Zhejiang Ausun Pharmaceutical Co., Ltd.
No. 5
donghai 4th avenue, linhai park, chemical materials base, taizhou
city, zhejiang PROVINCE, 318000 PR CHINA
TEL: 86 (0)
576-85589335/85589355 FAX: 86 (0) 576-85589168
EXECUTIVE SUMMARY
INCORPORATION DATE : April
22, 2010
REGISTRATION NO. : 331082000047854
REGISTERED LEGAL FORM : Limited liabilities co.
CHIEF EXECUTIVE : Mr. Zheng zhiguo (legal representative)
STAFF STRENGTH : 260
REGISTERED CAPITAL : CNY 15,000,000
BUSINESS LINE : R & D, manufacturing
TURNOVER :
CNY 120,950,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 37,280,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2282 = 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 April
22, 2010.
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 licensed business items: manufacture of API (entecavir)
(the license is valid until Jan. 3, 2017). General operating items: manufacture
of organic intermediates (entecavir crude products, lubiprostone crude
products, latanoprost crude products, pranlukast crude products, succinate
crude products, levetiracetam crude products, BPCPD, selective fluorine
reagent); wholesale and retail of chemical materials, technology research of
pharmaceutical and chemical products, consulting service; import and export of
goods and technology.
SC is mainly engaged in R & D, manufacturing and sales of
pharmaceutical products.
Mr. Zheng Zhiguo
is legal representative, executive director and general manager of SC at
present.
SC is
known to have approx. 260 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 Taizhou. Detailed premise
information is not available at present.
http://www.ausunpharm.com/ The
design is professional and the content is well organized. At present it is in
English and Chinese versions.
Email: sales@ausunpharm.com
For the past two years there is no record of litigation.
No significant changes were found during our checks
with the local Administration for Industry and Commerce.
Subject
passed the annual inspection of 2012 with Administration for Industry &
Commerce.
Organization
Code: 554754592
MAIN SHAREHOLDERS:
Name
% of Shareholding
Zheng Zhiguo 94
Mou Lizhi 4
Liu Bing 2
Legal
Representative, Executive Director and General Manager:
Mr. Zheng Zhiguo is currently responsible for the overall and daily management of SC.
Working
Experience(s):
At present Working
in SC as legal representative, executive director and general manager.
Supervisor:
Liu Bing
SC is mainly engaged in R & D, manufacturing and sales of
pharmaceutical products.
SC’s products
mainly include: prostaglandins and intermediates, API, fluorine series and
intermediates
SC sources its materials 100% from domestic
market. SC sells 80% of its products in domestic market, and 20% 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 the 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
Unit: CNY’000
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As
of Dec. 31, 2013 |
|
Cash & bank |
7,370 |
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Inventory |
31,610 |
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Accounts
receivable |
4,400 |
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Notes receivable |
50 |
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Advances to
suppliers |
630 |
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Other
receivables |
3,720 |
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Other current
assets |
960 |
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------------------ |
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Current assets |
48,740 |
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Deferred tax
asset |
170 |
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Fixed assets net
value |
80,890 |
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Long term
investment |
500 |
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Projects under
construction |
9,370 |
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Engineering
materials |
1,600 |
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Intangible and
other assets |
37,550 |
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------------------ |
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Total assets |
178,820 |
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=========== |
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Short loan |
26,500 |
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Accounts payable |
56,310 |
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Advances from
customers |
200 |
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Taxes payable |
1,170 |
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Other accounts
payable |
4,120 |
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Notes payable |
6,700 |
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Welfare payable |
2,400 |
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Interest payable |
140 |
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Non-current
liabilities due within one year |
16,830 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
114,370 |
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Long term loan |
27,170 |
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------------------ |
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Total
liabilities |
141,540 |
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Equities |
37,280 |
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------------------ |
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Total
liabilities & equities |
178,820 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2013 |
|
Turnover |
120,950 |
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Cost of goods
sold |
64,780 |
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Taxes and additional of main operation |
170 |
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Sales expense |
2,160 |
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Management expense |
25,880 |
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Finance expense |
4,860 |
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Asset impairment loss |
1,120 |
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Non-operating
income |
50 |
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Non-operating expense |
330 |
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Profit before
tax |
21,700 |
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Less: profit tax |
2,670 |
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Profits |
19,030 |
Important
Ratios
=============
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As
of Dec. 31, 2013 |
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*Current ratio
|
0.43 |
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*Quick ratio |
0.15 |
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*Liabilities
to assets |
0.79 |
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*Net profit
margin (%) |
15.73 |
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*Return on
total assets (%) |
10.64 |
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*Inventory
/Turnover ×365 |
96 days |
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*Accounts
receivable/Turnover ×365 |
14 days |
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*Turnover/Total
assets |
0.68 |
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* Cost of
goods sold/Turnover |
0.54 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears
fairly good in its line.
l
SC’s net profit margin is good.
l
SC’s return on total assets is good.
l
SC’s cost of goods sold is low.
LIQUIDITY: POOR
l
The current ratio of SC is maintained in a poor
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short loans are large in 2013.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial conditions.
The large amount of inventory and short loans could be a threat to SC’s
financial situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.05 |
|
UK Pound |
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.08 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
MNL |
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 |
|
<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.