MIRA INFORM REPORT
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Report Date : |
13.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
QINGHAI GELATIN CO., LTD. |
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Registered Office : |
No. 18 Weiyi Road, Chengbei District, Xining, Qinghai Province, 810003
Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2014 |
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Date of Incorporation : |
24.09.1996 |
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Com. Reg. No.: |
630000100006984 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in investment, consultant and services for gelatin,
mechanism hard capsules, soft capsules mechanisms (health care products,
cosmetics), pharmaceuticals, miscellaneous bone acquisition and other related
industries; import and export commodities excluding the items prohibited by
the State and the designated company operating. |
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No of Employees : |
1,362 [Including Subsidiaries] |
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 |
|
Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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) |
|
China |
A2 |
A2 |
|
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.
|
Source
: CIA |
Company
Name & address
QINGHAI GELATIN CO., LTD.
NO. 18 WEIYI ROAD, CHENGBEI DISTRICT, XINING,
QINGHAI PROVINCE, 810003 PR CHINA
TEL: 86 (0) 971-8013495 FAX: 86 (0) 971-5226338
EXECUTIVE
SUMMARY
INCORPORATION DATE : SEP. 24, 1996
REGISTRATION NO. : 630000100006984
REGISTERED LEGAL FORM : SHARES
LIMITED COMPANY
CHIEF EXECUTIVE :
MR. lian lianggui (CHAIRMAN)
STAFF STRENGTH :
1,362 (including SUBSIDIARIES)
REGISTERED CAPITAL : CNY 472,113,600
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 253,377,000 (Consolidated, jan. 1 to sep. 30, 2014)
EQUITIES :
CNY 942,219,000 (Consolidated, as of sep. 30, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.1295 = 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 shares limited company at provincial
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that is
restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes investment, consultant and
services for gelatin, mechanism hard capsules, soft capsules mechanisms (health
care products, cosmetics), pharmaceuticals, miscellaneous bone acquisition and
other related industries; import and export commodities excluding the items
prohibited by the State and the designated company operating.
SC is mainly engaged in manufacturing and selling gelatin series
products, hollow hard capsules, soft capsule system products, Chinese herbal
medicine series, health products.
Mr. Lian Lianggui (连良桂) has been legal
representative and chairman of SC since May of 2014.
SC is known to have approx. 1,362 (including subsidiaries)
employees, including 1,004 production staff, 65 sales staff, 103 technologies
staff, 34 financial staff and 156 administration staff.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Xining. Our
checks reveal that SC owns the total premise about 110,000 square meters.
http://www.my0606.com.cn
The design is professional and the content is well organized. At present it is
in Chinese version.
E-mail: master@my0606.com.cn ; zongcb@my0606.com.cn
Note: the given website (www.ghmj0606.com) is not correct.
SC was listed in Shenzhen Stock Exchange with the stock code of 000606.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-6 |
Registered capital |
CNY 51,500,000 |
CNY 224,042,400 |
|
2008 |
CNY 224,042,400 |
CNY 270,642,400 |
|
|
Unknown |
Registered capital |
CNY 270,642,400 |
CNY 405,963,600 |
|
Registration no. |
6300001200698 |
Present one |
|
|
2012 |
Registered capital |
CNY 405,963,600 |
Present amount |
|
2014-5-15 |
Legal rep. |
Zhao Hua
赵华 |
Present one |
Tax Registration Certificate No.: 630102226592459
Organization Code: 22659245-9
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (As of Sep. 30, 2014)
Name %
of Shareholding
TEDA Venture Capital Corporation Limited 12.59
Qinghai Siwei Credit Guarantee Co., Ltd. (in Chinese Pinyin) 7.66
Xining Urban Investment Management Co., Ltd. 4.24
Xining Economic and Technological Development Zone
Investment Holding Group Co., Ltd. 2.12
Lu Hande 0.78
Wu Bin 0.64
China Construction Bank Corporation-Morgan Stanley Huaxin Multi-factors
Selected Strategy Equity Fund 0.61
Huang Yun 0.44
Lu Zhehan 0.39
Minmetals International Trust Co., Ltd. - Minmetals Trust-Southwest
Hengsheng Securities Investment Collective Fund Trust Plan 0.33
Other shareholders 70.2
*TEDA Venture Capital Corporation Limited
================================
With approximately CNY 600 million (nearly USD 80 million) under
management, Tianjin TEDA Venture Capital Co., Ltd (TEDAVC) has been one of the
largest local venture capital firms in China since its founding in 2000. TEDAVC
is located in Tianjin Economical and Technological Development Area (TEDA),
which is one of the most active areas in China Economy.
TEDAVC invests in high-quality companies in following principal areas:
biotechnology and pharmaceutical industry, information technology,
environmental sciences and material sciences.
Address: 3/F North Area, Software Building, No. 80 The 4th
Avenue, TEDA, Tianjin, China
Registration No.: 120000000003106
Legal rep.: Zhao Hua
Registered capital: CNY 654,210,000
Legal form: Shares limited co.
Tel: 86-22-6629 9990
Fax: 86-22-6629 7288
E-mail: public@tedavc.com.cn
Web: http://www.tedavc.com.cn/
Legal
Representative and Chairman:
Mr. Lian Lianggui, born in 1969, with Master’s degree. He is currently
responsible for the overall management of SC.
Working Experience(s):
From May of 2014 to present Working
in SC as legal representative and chairman
Vice Chairman:
Mr. Zhao Hua, with
Master’s degree. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to May of 2014 Worked
in SC as chairman and legal representative;
From May of 2014 to present Working
in SC as vice chairman
Also working in TEDA Venture Capital Corporation Limited as legal
representative.
President:
Mr. Zhao Xia, born in 1971, with Master’s degree. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2013 to present Working
in SC as president
Vice
President:
Mr. Huang Haiyong, born in 1971, with junior college education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2011 to present Working
in SC as vice president
Directors:
Zhang Tao
Cai Yongfeng
Han Chuanmo
Xu Yuanyuan
Supervisors:
Li Youzhu
Yang Gong
Li Meizhen
SC is mainly engaged in manufacturing and selling gelatin series products,
hollow hard capsules, soft capsule system products, Chinese herbal medicine
series, health products, etc.
SC’s products mainly include: gelatin series products, hard series
system products, soft capsule series products, traditional Chinese medicine and
bone grain.
SC sources its materials 70% from domestic market, and 30% from the
overseas market, mainly European countries. SC sells 100% of its products in
domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T and Credit of 30-60 days.
Trademarks & Patents
No record
Note: SC’s
management refused to release its major customers and suppliers.
SC is known to have the following subsidiaries:
Qinghai Gelatin Co., Ltd.
==================
Incorporation date: June 28, 2007
Registration no.: 633100110000119
Legal rep.: Wang Hongmin 王洪敏
Registered capital: CNY 172,738,800
Legal form: One-person Limited Liability Company
Tel: 86 0971-8013496
Fax: 86 0971-5318619
Qinghai Mingnuo Capsule Co., Ltd.
==========================
Incorporation date: Apr. 14, 2000
Registration no.: 630000400001974
Legal rep.: Wang Yuancheng 王元成
Registered capital: CNY 131,399,072.78
Legal form: One-person Limited Liability Company
Tel: 86 0971-8016677
Fax: 86 0971-8016847
Qinghai Mingxing Biology Engineering Co., Ltd.
====================================
Incorporation date: Oct. 17, 2000
Registration no.: 630000400002098
Legal rep.: Wang Yuancheng
Registered capital: CNY 16,600,000
Legal form: One-person Limited Liability Company
Tel: 86 0971-8018861
Fax: 86 0971-8018735
Qinghai Ningda Venture Capital Co., Ltd. (in Chinese Pinyin)
===========================================
Incorporation date: Aug. 4, 2010
Registration no.: 633100100003327
Legal rep.: Wang Wen’gang 王文刚
Registered capital: CNY 58,890,000
Legal form: Limited liabilities co.
Tianjin Hidea Venture Capital Management Co., Ltd.
======================================
Incorporation date: Nov. 29, 2007
Registration no.: 120191000014795
Legal rep.: Wang Wen’gang
Registered capital: CNY 10,000,000
Tel: 022-59852166 /59852167
Fax: 022-59852168
E-mail: tjhd@hideavc.com
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 management declined to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Sep. 30,
2014 |
as of Dec. 31,
2013 |
|
Cash & bank |
203,809 |
255,695 |
|
Notes receivable |
19,258 |
38,352 |
|
Inventory |
187,427 |
189,743 |
|
Accounts receivable |
75,765 |
48,016 |
|
Advances to supplies |
23,631 |
19,790 |
|
Other receivables |
15,604 |
14,904 |
|
Other current assets |
0 |
6,086 |
|
|
------------------ |
------------------ |
|
Current assets |
525,494 |
572,586 |
|
Financial assets available for sale |
168,557 |
0 |
|
Long-term investments |
85,924 |
263,431 |
|
Fixed assets |
505,633 |
531,487 |
|
Projects under construction |
14,282 |
16,277 |
|
Intangible assets |
37,738 |
36,518 |
|
Goodwill |
33,772 |
33,772 |
|
Long-term deferred expenses |
1,381 |
550 |
|
Deferred income tax assets |
1,340 |
1,364 |
|
Other assets |
565 |
617 |
|
|
------------------ |
------------------ |
|
Total assets |
1,374,686 |
1,456,602 |
|
|
============= |
============= |
|
Short loans |
89,500 |
105,500 |
|
Accounts payable |
81,469 |
88,444 |
|
Advances from customers |
2,001 |
14,302 |
|
Employee pay payable |
6,761 |
18,223 |
|
Taxes payable |
-547 |
11,244 |
|
Interest payable |
1,714 |
1,468 |
|
Dividends payable |
295 |
295 |
|
Other Accounts payable |
32,197 |
34,860 |
|
Non-current liabilities due with in one year |
27,117 |
94,817 |
|
Other current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current liabilities |
240,507 |
369,153 |
|
Long term liabilities |
191,960 |
99,430 |
|
|
------------------ |
------------------ |
|
Total liabilities |
432,467 |
468,583 |
|
Shareholders equities |
942,219 |
988,019 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,374,686 |
1,456,602 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
Jan. 1 to Sep.
30, 2014 |
as of Dec. 31,
2013 |
|
Turnover |
253,377 |
376,400 |
|
Cost of goods sold |
247,524 |
303,468 |
|
Taxes and additional of main operation |
-2,001 |
8,923 |
|
Sales expense |
11,890 |
18,884 |
|
Management expense |
30,111 |
75,937 |
|
Finance expense |
17,202 |
23,017 |
|
Asset impairment loss |
0 |
5,473 |
|
Investment income |
1,586 |
84,506 |
|
Non-operating income |
387 |
6,476 |
|
Non-operating expense |
403 |
2,023 |
|
Operation Profit |
-49,779 |
29,657 |
|
Less: profit tax |
87 |
6,518 |
|
Net profit |
-49,866 |
23,139 |
Important
Ratios
=============
|
|
as of Sep. 30,
2014 |
as of Dec. 31,
2013 |
|
*Current ratio |
2.18 |
1.55 |
|
*Quick ratio |
1.41 |
1.04 |
|
*Liabilities to assets |
0.31 |
0.32 |
|
*Net profit margin (%) |
-19.68 |
6.15 |
|
*Return on total assets (%) |
-3.63 |
1.59 |
|
*Inventory /Turnover ×365 |
/ |
184 days |
|
*Accounts receivable/Turnover ×365 |
/ |
47 days |
|
*Turnover/Total assets |
0.18 |
0.26 |
|
* Cost of goods sold/Turnover |
0.98 |
0.81 |
PROFITABILITY:
FAIR
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fairly good in 2013, but poor in the 1st
three quarters of 2014.
SC’s return on total assets is average in 2013, but fair in the 1st
three quarters of 2014.
SC’s cost of goods sold is average in 2013 but high in the 1st
three quarters of 2014, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in 2013 and
fairly good in the 1st three quarters of 2014.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears fairly large.
The accounts receivable of SC appears average.
SC’s short-term loan is in an average level.
SC’s turnover is in a poor level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is well-known in its industry with fairly stable financial conditions. The large amount of inventory could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.48 |
|
|
1 |
Rs.97.92 |
|
Euro |
1 |
Rs.76.79 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.