MIRA
INFORM REPORT
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Report Date : |
17.05.2014 |
IDENTIFICATION DETAILS
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Name : |
HENAN KANGTAI PHARMACEUTICAL GROUP CORPORATION |
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Registered Office : |
No. 338 Kangtai Road, Sishui Town, Xingyang, Henan Province 450141 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
15.01.1994 |
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Com. Reg. No.: |
410183000003793 |
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Legal Form : |
Collective-Owned Enterprise |
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Line of Business : |
Subject is engaged in the manufacturing and selling APIs (norfloxacin,
gatifloxacin mesylate, fleroxacin, and lomefloxacin hydrochloride); selling
pharmaceutical and chemical materials; exporting its products and related
technology; importing raw materials & accessories, meters &
instruments, machinery, components, and related technology; processing with
imported materials, processing with imported samples, assemblying with
imported parts, and compensation trade in agreement; wholesaling and
retailing pre packaged food. |
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No. of Employees : |
203 |
RATING & COMMENTS
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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 |
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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
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
|
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, growth of the
private sector, development of stock markets and a modern banking system, 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 considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China 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 and
expanded the daily trading band within which the RMB is permitted to fluctuate.
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. Several factors
are converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. 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
HENAN KANGTAI PHARMACEUTICAL GROUP
CORPORATION
NO. 338 KANGTAI
ROAD, SISHUI TOWN
XINGYANG, HENAN
PROVINCE 450141 PR CHINA
TEL: 86 (0)
371-64899527
FAX: 86 (0) 371-64899316
EXECUTIVE SUMMARY
Date of Registration : JANUARY 15, 1994
REGISTRATION NO. : 410183000003793
LEGAL FORM : COLLECTIVE-OWNED
ENTERPRISE
CHIEF EXECUTIVE :
ZHOU ZHENJIANG (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL : CNY 52,230,000
staff :
203
BUSINESS CATEGORY : MANUFACTURING & trading
Revenue :
CNY 102,920,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 45,480,000 (AS OF DEC. 31, 2013)
WEBSITE : www.ktpharm.com
E-MAIL :
info@ktpharm.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.25 = 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 collective-owned
enterprise of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 410183000003793 on January 15, 1994.
SC’s Organization Code Certificate No.:
17036778-8
SC’s registered capital: CNY 52,230,000
SC’s paid-in capital: CNY 52,230,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Henan Province Fine Chemical Factory |
86.79 |
|
Xingyang Kangtai Medicinal Factory |
12.92 |
|
Xingyang Chemical Synthesis Research Institute |
0.29 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Zhou Zhenjiang |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Henan Province Fine Chemical Factory 86.79
Xingyang Kangtai Medicinal Factory 12.92
Xingyang Chemical Synthesis Research Institute 0.29
Xingyang Kangtai Medicinal Factory
---------------------------------------------
Registration No.: 410183000008708
Legal Form: Collective-Owned
Enterprise
Registered Capital: CNY 5,000,000
Legal Representative: Zhou Hailong
Xingyang Chemical Synthesis Research Institute
-----------------------------------------------------------
Registration No.: 410183000008716
Legal Form: Collective-Owned
Enterprise
Registered Capital: CNY 108,000
Legal Representative: Zhou Hailong
MANAGEMENT
Zhou Zhenjiang, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------------
Gender: M
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and
selling APIs (norfloxacin, gatifloxacin mesylate, fleroxacin, and lomefloxacin
hydrochloride); selling pharmaceutical and chemical materials; exporting its
products and related technology; importing raw materials & accessories,
meters & instruments, machinery, components, and related technology;
processing with imported materials, processing with imported samples,
assemblying with imported parts, and compensation trade in agreement;
wholesaling and retailing pre packaged food.
SC is mainly engaged in manufacturing and selling APIs.
SC’s products mainly include:
Norfloxacin Lactate
Norfloxacin Nicotinate
Norfloxacin
Gatifloxacin mesylate
Pazufloxacin mesylate
Balofloxacin
Norfloxacin HCL
Norfloxacin Lactate
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 Check, T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 203
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
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 and Commercial Bank of China Xingyang
Sub-branch
AC#: 1702028809006639825
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Cash |
6,500 |
2,760 |
|
Notes receivable |
580 |
1,710 |
|
Accounts receivable |
-250 |
3,420 |
|
Advances to suppliers |
9,260 |
9,320 |
|
Other receivable |
2,180 |
430 |
|
Inventory |
12,480 |
16,120 |
|
Prepaid expenses |
0 |
0 |
|
Other current assets |
800 |
3,080 |
|
|
------------------ |
------------------ |
|
Current assets |
31,550 |
36,840 |
|
Fixed assets |
16,760 |
15,720 |
|
Construction in progress |
0 |
790 |
|
Intangible assets |
8,490 |
8,490 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
56,800 |
61,840 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
490 |
7,020 |
|
Wages payable |
710 |
1,550 |
|
Taxes payable |
80 |
40 |
|
Advances from clients |
0 |
0 |
|
Other payable |
16,380 |
18,250 |
|
Accrued expenses |
0 |
0 |
|
Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
17,660 |
26,860 |
|
Non-current liabilities |
6,800 |
6,800 |
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------------------ |
------------------ |
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Total liabilities |
24,460 |
33,660 |
|
Equities |
32,340 |
28,180 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
56,800 |
61,840 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
85,920 |
|
Cost of sales |
82,540 |
|
Taxes and surcharges |
60 |
|
Sales expense |
1,670 |
|
Management expense |
5,220 |
|
Finance expense |
140 |
|
Profit before tax |
-3,590 |
|
Less: profit tax |
0 |
|
Profits |
-3,590 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Total assets |
72,600 |
|
|
------------- |
|
Total liabilities |
27,120 |
|
Equities |
45,480 |
|
|
------------- |
|
Revenue |
102,920 |
|
Cost of sales |
73,010 |
|
Profits |
1,240 |
Important Ratios
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2013 |
|
*Current ratio |
1.79 |
1.37 |
-- |
|
*Quick ratio |
1.08 |
0.77 |
-- |
|
*Liabilities to assets |
0.43 |
0.54 |
0.37 |
|
*Net profit margin (%) |
-- |
-4.18 |
1.20 |
|
*Return on total assets (%) |
-- |
-5.81 |
1.71 |
|
*Inventory / Revenue ×365 |
-- |
69 days |
-- |
|
*Accounts receivable / Revenue ×365 |
-- |
15 days |
-- |
|
*Revenue / Total assets |
-- |
1.39 |
1.42 |
|
*Cost of sales / Revenue |
-- |
0.96 |
0.71 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears average in its line.
·
SC’s net profit margin is average in 2013.
·
SC’s return on total assets is average in 2013.
·
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level.
·
SC’s quick ratio is maintained in a normal level.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears average.
·
SC has no short-term loans.
·
SC’s revenue is in an average 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: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.86 |
|
|
1 |
Rs.98.82 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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|
Report Prepared
by : |
PDT |
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.