MIRA
INFORM REPORT
|
Report Date : |
30.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG BETTER PHARMACEUTICALS CO., LTD. |
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Registered Office : |
Sanjiang Road, Paojiang Industry Zone, Shaoxing City, Zhejiang Province 312071 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
10.11.2004 |
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Com. Reg. No.: |
330600400006501 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in the manufacturing freeze-dried powder injection,
powder-injection, tablet, capsule, active pharmaceutical ingredients; selling
self-made products. |
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No. of Employees : |
288 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
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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 |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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
ZHEJIANG BETTER PHARMACEUTICALS CO., LTD.
SANJIANG ROAD,
PAOJIANG INDUSTRY ZONE, SHAOXING CITY
ZHEJIANG
PROVINCE 312071 PR CHINA
TEL: 86 (0)
575-88919702/88919750
FAX: 86 (0)
575-88919750
EXECUTIVE SUMMARY
Date of Registration : november 10, 2004
REGISTRATION NO. : 330600400006501
LEGAL FORM : wholly foreign-owned enterprise
CHIEF EXECUTIVE :
TANG
XIAOBO (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 22,000,000
staff :
288
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 91,570,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY -34,140,000 (AS OF DEC. 31, 2013)
WEBSITE : www.betterpharma.com
E-MAIL :
foreign_trade@betterpharma.com
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : poor
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.24 = 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.: 330600400006501
on November 10, 2004.
SC’s Organization Code Certificate No.:
76523627-7
SC’s Tax No.: 330602765236277
SC’s registered capital: USD 22,000,000
SC’s paid-in capital: USD 22,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Shareholder (s) |
H.K. Yauchong Int'l Investment Group Limited 100% |
H.K. Takchong Int'l Trading Limited |
|
Legal Representative |
Han Songliang |
Tang Xiaobo |
|
|
|
Registered Capital |
USD 10,000,000 |
USD 22,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
H.K. Takchong Int'l Trading Limited |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and General Manager |
Tang Xiaobo |
|
Chairman |
Wu Jianlong |
|
Director |
Han Songliang |
|
Zhang Baoxiang |
|
|
Zhou Qilin |
|
|
Wu Jianxin |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
H.K. Takchong Int'l Trading Limited 100
-----------------------------------
CR No.: 1033538
Legal Form: Private
Status: Live
MANAGEMENT
Tang Xiaobo, Legal Representative and General Manager
---------------------------------------------------------------------------------------
Gender: M
ID# 430521197210131932
Age: 42
Qualification: University
Working experience
(s):
At present, working in SC as legal representative and general manager
Wu Jianlong, Chairman
-------------------------------------------
Gender: M
ID# 330625670119071
Age: 47
Qualification: University
Working experience
(s):
At present, working in SC as chairman
Director
----------
Han Songliang ID# 330621197212050572
Zhang Baoxiang ID# 330621196102270019
Zhou Qilin ID#
330621196309180299
Wu Jianxin ID# 140112195906191312
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing freeze-dried
powder injection, powder-injection, tablet, capsule, active pharmaceutical
ingredients; selling self-made products.
SC is mainly engaged in manufacturing and selling active pharmaceutical
ingredients.
SC’s products mainly include: APIs, pharmaceutical preparations, and
pharmaceutical intermediates.
Clarithromycin (USP28/USP29/EP5)
Azithromycin (USP28/USP29/EP5)
Telithromycin (Enterprise Standard)
Erythromycin Cyclic11,12-Carbonate (Enterprise Standard)
Mycophenolic Acid (Enterprise Standard)
Mycophenolic Mofetil (Enterprise Standard)
Orlistat (Enterprise Standard)
Adefovir Dipivoxil (Enterprise Standard)
Pantoprazole (Enterprise Standard)
SC sources its materials 100% from domestic market. SC sells 53% in domestic market and 47% to overseas market, mainly Korea, India, Pakistan, Iran, Thailand, and Germany.
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. 288
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED
COMPANY
SC is known to have
a subsidiary at present,
Shaoxing Beinuoxin Trading Co., Ltd.
Registration No.: 330600000131219
Date of Registration: August 3, 2011
Legal Form: One-person Limited Liabilities Company
Registered Capital: CNY 500,000
Legal Representative: Zhang Baoxiang
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
The bank information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
96,329 |
97,625 |
70,780 |
|
|
Notes receivable |
30,000 |
2,094 |
12,360 |
|
Accounts receivable |
11,705 |
11,044 |
12,420 |
|
Advances to suppliers |
8,296 |
3,150 |
-2,750 |
|
Interest receivable |
8,919 |
0 |
0 |
|
Other receivable |
134,234 |
275,641 |
161,910 |
|
Inventory |
26,402 |
29,762 |
33,240 |
|
Deferred expenses |
0 |
0 |
0 |
|
Other current assets |
0 |
0 |
590 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
315,885 |
419,316 |
288,550 |
|
Long-term investment |
500 |
500 |
500 |
|
Fixed assets |
66,231 |
61,473 |
56,030 |
|
Construction in progress |
7,937 |
16,235 |
39,750 |
|
Engineering materials |
7,694 |
10,836 |
420 |
|
Intangible assets |
15,710 |
15,358 |
20,510 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
413,957 |
523,718 |
405,760 |
|
|
============= |
============= |
============= |
|
Short-term loans |
240,800 |
350,480 |
165,000 |
|
Notes payable |
134,500 |
102,200 |
20,000 |
|
Accounts payable |
14,272 |
19,733 |
15,550 |
|
Wages payable |
0 |
0 |
0 |
|
Taxes payable |
-389 |
-2,533 |
-800 |
|
Advances from clients |
372 |
372 |
0 |
|
Other payable |
59,600 |
123,100 |
11,230 |
|
Other current liabilities |
0 |
0 |
-10,080 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
449,155 |
593,352 |
200,900 |
|
Non-current liabilities |
0 |
0 |
239,000 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
449,155 |
593,352 |
439,900 |
|
Equities |
-35,198 |
-69,634 |
-34,140 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
413,957 |
523,718 |
405,760 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Revenue |
115,476 |
142,316 |
91,570 |
|
Cost of sales |
98,089 |
136,375 |
85,960 |
|
Taxes and surcharges |
37 |
7 |
10 |
|
Sales expense |
7,006 |
4,638 |
3,990 |
|
Management expense |
24,729 |
19,828 |
15,490 |
|
Finance expense |
7,588 |
16,264 |
21,320 |
|
Non-operating income |
307 |
496 |
510 |
|
Non-operating expense |
221 |
134 |
150 |
|
Profit before tax |
-21,889 |
-34,436 |
-34,190 |
|
Less: profit tax |
0 |
0 |
0 |
|
-21,889 |
-34,436 |
-34,190 |
Important Ratios
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.70 |
0.71 |
1.44 |
|
*Quick ratio |
0.64 |
0.66 |
1.27 |
|
*Liabilities to assets |
1.09 |
1.13 |
1.08 |
|
*Net profit margin (%) |
-18.96 |
-24.20 |
-37.34 |
|
*Return on total assets (%) |
-5.29 |
-6.58 |
-8.43 |
|
*Inventory / Revenue ×365 |
84 days |
77 days |
133 days |
|
*Accounts receivable / Revenue ×365 |
37 days |
29 days |
50 days |
|
*Revenue / Total assets |
0.28 |
0.27 |
0.23 |
|
*Cost of sales / Revenue |
0.85 |
0.96 |
0.94 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
·
The revenue of SC appears average in its line.
·
SC’s net profit margin is poor in three years.
·
SC’s return on total assets is fair in three years.
·
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a normal
level in 2013.
·
SC’s quick ratio is maintained in a fairly good
level in 2013.
·
The inventory of SC appears average.
·
The accounts receivable of SC is maintained in an
average level.
·
SC’s short-term loans appear too large.
·
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: POOR
·
The debt ratio of SC is high in three years.
·
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered medium-sized in its line with poor financial
conditions. Too large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.84 |
|
|
1 |
Rs.98.41 |
|
Euro |
1 |
Rs.80.03 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.