MIRA
INFORM REPORT
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Report Date : |
13.11.2014 |
IDENTIFICATION DETAILS
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Name : |
CHINA RESOURCES DOUBLE-CRANE PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 1 Lize East 2nd Road, Wangjing Chaoyang District, Beijing 100102 PR |
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Country : |
China |
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Financials (as on) : |
30.09.2014 |
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Date of Incorporation : |
16.05.1997 |
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Com. Reg. No.: |
110000005103198 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Processing and manufacturing bulk drugs, injections, tablets,
capsules, granules, soft capsules, pharmaceutical machinery and equipment;
selling its owned products, machinery and electrical equipment, health food;
technology development, technology transfer, technology services; exporting
its products and technology; importing materials, instrument, machinery and
equipment, parts and technology needed for its production; processing with
imported materials, processing with imported samples, assembling with imported
parts, and compensation trade in agreement. |
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No. of Employees : |
11,901 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
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, 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.
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Source
: CIA |
Company name and address
CHINA RESOURCES
DOUBLE-CRANE PHARMACEUTICAL CO., LTD.
No. 1 Lize East 2nd Road, Wangjing
Chaoyang District, Beijing 100102 PR China
TEL: 86 (0) 10-64742227
FAX: 86 (0) 10-64398166
***Note: The given
company name-Beijing Double-Crane Pharmaceutical Co. Ltd. was SC’s former one.
EXECUTIVE SUMMARY
Date of Registration : MAY 16, 1997
REGISTRATION NO. : 110000005103198
LEGAL FORM : SHARES
LIMITED COmpany
REGISTERED CAPITAL : CNY 571,695,948
staff : 11,901
BUSINESS CATEGORY : manufacturing & trading
REVENUE :
CNY 3,216,470,000 (JAN. 1, 2014
TO SEP. 30, 2014)
EQUITIES :
CNY 5,571,586,000 (AS OF SEP. 30, 2014)
WEBSITE : www.dcpc.com
E-MAIL :
mss@dcpc.com
PAYMENT : AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE : CNY 6.12 = USD
1
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 shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 110000005103198 on May
16, 1997.
SC’s Organization Code Certificate No.:
63379647-5
SC’s Tax No.: 110105633796475
SC’s registered capital: CNY
571,695,948
SC’s paid-in capital: CNY
571,695,948
Registration Change Record
|
Date |
Change of Contents |
Before the change |
After the change |
|
2001 |
Registered Capital |
CNY 147,000,000 |
CNY 441,075,700 |
|
-- |
Registration No. |
1100001510319 |
110000005103198 |
|
Registered Capital |
CNY 441,075,700 |
CNY 571,695,948 |
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Company Name |
Beijing Double-Crane
Pharmaceutical Co., Ltd. |
China Resources Double-Crane Pharmaceutical Co., Ltd. |
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|
Legal Representative |
Wei Huacheng |
Li Fuzuo |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (As of September 30, 2014) |
% of Shareholding |
|
Beijing Pharmaceutical Group
Co., Ltd. |
49.12 |
|
110 of The National Social
Security Fund Portfolio |
2.8 |
|
China Securities Investor
Protection Fund Corporation Limited |
2.45 |
|
Agricultural Bank of China- Great Wall Anxin Return of hybrid Securities Investment
Fund |
1.57 |
|
Shanghai Pudong Development
Bank-GF Small Cap Growth Stock Type Securities Investment Funds |
1.23 |
|
Chinese life insurance Co.,
Ltd.-
Traditional-General Insurance Products |
1.22 |
|
China Construction Bank- Great Wall Consumer Value-Added Equity Securities
Investment Fund |
1.05 |
|
Chinese life insurance Co.,
Ltd.
Dividends |
0.8 |
|
Chinese life insurance (Group)
Company- Traditional-General Insurance Products |
0.46 |
|
104 of The National Social
Security Fund Portfolio |
0.45 |
|
Other shareholders |
38.85 |
SC’s Chief Executives:
-
|
Position |
Name |
|
Legal Representative and Chairman |
Li
Fuzuo |
|
Vice Chairman |
He
Xuan |
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CEO |
Li
Xin |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market
with the code of 600062.
SHAREHOLDER CHART & BACKGROUND
Name (As of September 30, 2014)
%
of Shareholding
Beijing Pharmaceutical Group Co., Ltd. 49.12
110 of the National Social Security Fund
Portfolio 2.8
China Securities Investor Protection Fund
Corporation Limited 2.45
Agricultural Bank of China- Great Wall Anxin
Return 1.57
of hybrid Securities Investment Fund
Shanghai Pudong Development Bank-GF Small
Cap Growth Stock Type Securities Investment
Funds 1.23
Chinese Life Insurance Co.,
Ltd.-Traditional-General
Insurance Products
China Construction Bank- Great Wall Consumer
Value-Added Equity Securities Investment
Fund 1.05
Chinese life insurance Co., Ltd. Dividends
Chinese life insurance (Group) Company-
Traditional-General Insurance Products 0.46
104 of the National Social Security Fund
Portfolio
0.45
Other shareholders 38.85
Beijing
Pharmaceutical Group Co., Ltd.
Date of Registration: March 28, 1987
Registration No.: 110000005004896
Legal Form: Shares Limited Company
Registered Capital: CNY 2,320,000,000
China Securities
Investor Protection Fund Corporation Limited
Date of Registration: August 30, 2005
Registration No.: 100000000039745
Legal Form: Sole State-Owned Enterprise
Registered Capital: CNY 6,300,000,000
MANAGEMENT
Li
Fuzuo, Legal
Representative and Chairman
Ø
Gender: M
Ø
Age: 50
Ø Qualification: MBA
Ø Working experience
(s):
From 2012 to present, working in SC as legal representative and chairman,
also working in China Resources Pharmaceutical Group Limited as chairman,
working in China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. and
Shan Dong Dong-E E-Jiao Co. Ltd. as legal representative
He
Xuan, Vice Chairman
Ø
Gender: M
Ø
Age: 53
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as vice
chairman, also working in China Resources Wandong Medical Equipment Co., Ltd.
as chairman
Li Xin, CEO
Ø
Gender: M
Ø
Age: 57
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as CEO, also as director of Beijing
Pharmaceutical Group Co., Ltd.
BUSINESS OPERATION
SC’s registered business scope includes processing and manufacturing
bulk drugs, injections, tablets, capsules, granules, soft capsules,
pharmaceutical machinery and equipment; selling its owned products, machinery
and electrical equipment, health food; technology development, technology
transfer, technology services; exporting its products and technology; importing
materials, instrument, machinery and equipment, parts and technology needed for
its production; processing with imported materials, processing with imported
samples, assembling with imported parts, and compensation trade in agreement.
SC is
mainly engaged in manufacturing and selling bulk drugs, injections, tablets, capsules,
granules, soft capsules, pharmaceutical machinery and equipment.
Brand:
Double-Crane
SC’s products mainly include: infusion
solutions, cardiovascular drugs and endocrine secretion drugs, including
vitamin E and C granules, ofloxacin (antimicrobial drug), levofloxacin mesylate
(antimicrobial drugs) and metformin hydrochloride tablets, etc.
SC sources its materials 100% from domestic market, mainly
Beijing. SC sells 25% of its products to overseas market, mainly U.S.A., Europe and
Africa, and 75% in domestic 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 Customers
Hubei Hengkang Double-Crane Pharmaceutical Co., Ltd.
Guangdong Mingqiang Pharmaceutical Co., Ltd.
Wuhan Shenkang Medicine Co., Ltd.
Ningxia Xincheng Medicinal Materials Co.
*Major Suppliers
Beijing Beimao
Natural Medicines Sales Co., Ltd.
Shandong Dong-E
E-Jiao Co., Ltd.
Anhui Huayuan
Pharmaceutical Co., Ltd.
China Resources
Kunshan Pharmaceutical Co., Ltd.
Beijing Shuangji
Pharmaceutical Co., Ltd.
Staff & Office
SC is
known to have approx. 11,901 staff at present.
SC owns an area as its
operating office and factory, but the detailed information is unknown.
RELATED COMPANY
Subsidiaries:
Beijing Double-Crane Pharmaceutical Business Co., Ltd.
Beijing Double-Crane Modern Pharmaceutical Technology Co.,
Ltd.
Wanhui Beijing Double-Crane Pharmaceutical Co., Ltd.
Beijing Beijing Double-Crane Pharmaceutical Equipment Co.,
Ltd.
Anhui Double-Crane Pharmaceutical Co., Ltd.
Wuhan Binhu Double-Crane Pharmaceutical Co., Ltd.
Xi’an Jingxi Double-Crane Pharmaceutical Co., Ltd.
Changsha Double-Crane Pharmaceutical Co., Ltd.
Shanxi Jinxin Double-Crane Pharmaceutical Co., Ltd.
Beijing Double-Crane Pharmaceutical Sales Co., Ltd.
Zhengzhou Double-Crane Pharmaceutical Co., Ltd.
Heilongjiang Double-Crane Pharmaceutical Co., Ltd.
Double-Crane Pharmaceutical (Shenyang) Co., Ltd.
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’s suppliers declined to make any comments.
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 SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Sep. 30, 2014 |
|
1,410,018 |
1,096,299 |
|
|
Accounts
receivable |
615,052 |
831,646 |
|
Notes receivable |
989,321 |
596,942 |
|
Advances to
suppliers |
160,813 |
215,182 |
|
Interest
receivable |
0 |
1,727 |
|
Other receivable |
121,645 |
34,871 |
|
Inventory |
566,127 |
636,876 |
|
Dividend
receivable |
0 |
0 |
|
Other current
assets |
18,199 |
442,859 |
|
|
------------------ |
------------------ |
|
Current assets |
3,881,175 |
3,856,402 |
|
Fixed assets |
1,864,868 |
1,836,492 |
|
Construction in
progress |
152,614 |
176,962 |
|
Project
materials |
0 |
0 |
|
Intangible
assets |
241,640 |
237,920 |
|
Long-term
investment |
0 |
0 |
|
Development
expenditure |
143,089 |
156,091 |
|
Goodwill |
109,509 |
109,509 |
|
Long-term
deferred expense |
2,903 |
6,803 |
|
Deferred income
tax assets |
29,939 |
23,042 |
|
Other
non-current assets |
55,179 |
47,077 |
|
|
------------------ |
------------------ |
|
Total assets |
6,480,916 |
6,450,298 |
|
|
============= |
============= |
|
Short-term loans |
210,000 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
428,544 |
460,512 |
|
Wages payable |
65,303 |
63,099 |
|
Taxes payable |
112,320 |
69,042 |
|
Interest payable |
0 |
0 |
|
Advances from
clients |
89,622 |
66,542 |
|
Other payable |
123,066 |
108,265 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,028,855 |
767,460 |
|
Non-current
liabilities |
115,835 |
111,252 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,144,690 |
878,712 |
|
Equities |
5,336,226 |
5,571,586 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
6,480,916 |
6,450,298 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
Jan.
1, 2014 to Sep. 30, 2014 |
|
Revenue |
6,834,574 |
3,216,470 |
|
Cost of sales |
4,469,957 |
1,653,702 |
|
Taxes and surcharges |
55,626 |
38,008 |
|
Sales expense |
1,043,594 |
666,417 |
|
Management expense |
467,502 |
344,254 |
|
Finance expense |
12,415 |
-10,587 |
|
Assets impairment loss |
22,877 |
-10,588 |
|
Investment
income |
271,289 |
808 |
|
Non-operating
income |
46,431 |
22,459 |
|
Non-operating
expense |
13,542 |
9,051 |
|
Profit before
tax |
1,066,778 |
525,223 |
|
Less: profit tax |
193,333 |
94,343 |
|
873,445 |
430,880 |
Important Ratios
|
|
As of Dec. 31, 2013 |
As of Sep. 30, 2014 |
|
*Current ratio |
3.77 |
5.02 |
|
*Quick ratio |
3.22 |
4.20 |
|
*Liabilities
to assets |
0.18 |
0.14 |
|
*Net profit
margin (%) |
12.78 |
13.40 |
|
*Return on
total assets (%) |
13.48 |
6.68 |
|
*Inventory /
Revenue ×365/270 |
31 days |
54 days |
|
*Accounts
receivable / Revenue ×365/270 |
33 days |
70 days |
|
*Revenue / Total
assets |
1.05 |
0.50 |
|
*Cost of sales
/ Revenue |
0.65 |
0.51 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is low, comparing with its revenue.
LIQUIDITY:
FAIRLY GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is low
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with
fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.48 |
|
|
1 |
Rs.97.92 |
|
Euro |
1 |
Rs.76.77 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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|
|
Report Prepared
by : |
SNT |
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.