MIRA INFORM REPORT
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Report Date : |
18.10.2014 |
IDENTIFICATION DETAILS
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Name : |
Suzhou Tianlu Bio-pharmaceutical CO., LTD. |
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Registered Office : |
No. 1128 Yin Zhong South Road, Wuzhong Economic Development Zone, Suzhou, Jiangsu Province, 215124 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.12.1999 |
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Com. Reg. No.: |
320506000018441 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing and selling API, pharmaceutical intermediates |
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No. of Employees : |
125 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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) |
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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
Suzhou Tianlu Bio-pharmaceutical CO., LTD.
no. 1128
Yin Zhong South Road, Wuzhong Economic Development Zone, Suzhou, Jiangsu
province, 215124 PR CHINA
TEL: 86
(0) 512-65657288/66982065 FAX: 86
(0) 512-65653288
EXECUTIVE
SUMMARY
INCORPORATION DATE : dec. 28, 1999
REGISTRATION NO. : 320506000018441
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
125
REGISTERED CAPITAL : CNY 43,145,300
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 38,940,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 70,990,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.1257 = 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
Note: the given
contact no. (86-532-55683075 / 86-532-55683077) belongs to SC’s international
business department.
SC was registered as a limited liabilities
co. at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Dec. 28, 1999.
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 manufacturing & selling API
(ursodeoxycholic acid, hyodeoxycholic, cholic acid); manufacturing &
selling biological products, pharmaceutical intermediates; importing and
exporting commodities and technology (excluding the goods prohibited or limited
by the country).
SC is mainly
engaged in manufacturing and selling API, pharmaceutical intermediates, etc.
Mr. Lu Qihua is
legal representative, chairman and general manager of SC at present.
SC is known to
have approx. 125 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the Economic Development zone of Suzhou. SC’s
employee
refused to release the detailed information of the premise.
\
http://www.sz-tlzy.com/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: sales@sz-tlzy.com
Enterprise Honor
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◆ |
December, 2008-------‘Cephalosporins’ was
approved by Suzhou Science and Technology Bureau as ‘International Technology
Cooperative Project’ |
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July, 2009-------‘Cephalosporins’ was
approved by Suzhou Science and Technology Bureau as ‘International Technology
Cooperative Project’ |
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July, 2009-------‘Ursodeoxycholic Acid’
attain the project approval by Suzhou Science and Technology Bureau as ‘Scientific
and Technological Supporting Plan (Social Development) Project ’ |
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August, 2009------- ‘Ursodeoxycholic Acid’
is approved by Suzhou Economy and Information Technology Commission as
‘Circular Economy Project’ |
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September,2009------- SC obtained the
National GMP Certificate for UDCA |
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December, 2009------- SC was designated by
Jiangsu Non-public Scientific and Technological Enterprises Association as
‘Jiangsu Non-public Scientific and Technological Enterprise’ |
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January, 2010--------‘Ursodeoxycholic
Acid’ is awarded by Wuzhong district, Suzhou city as ‘2009 Scientific and
Technological Progress Top Grade Award’ |
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April, 2010-------- SC is designated by
The People’s Government of Suzhou as ‘Suzhou City Circular Economy
Experimental Enterprise’ |
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May, 2010--------‘Ursodeoxycholic Acid’
attain the project approval by Technical Innovation Fund of Ministry of
Science and Technology |
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May, 2010--------‘a method to produce ursodeoxycholic
acid from pig bile’ is awarded as patent of invention. |
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November，2010------- SC
got the patent of ‘ the refining methods of crude cholic acid’. |
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December，2010-------- SC
got the patent of ‘ the preparation methods of ursodeoxycholic acid and
chenodeoxycholic acid, trihydrate magnesium salt’. |
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December, 2010-------- SC was certified as
‘high and new tech enterprises’ by Science and Technology Department of
Jiangsu Province |
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May 2011 --- SC obtained the certificate of
ISO 9001, ISO14001 and OHSAS18001. |
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Oct., 2011 SC was awarded the CEP. |
No significant changes were found during our checks with the local AIC.
Subject passed the annual inspection of 2012
with Administration for Industry & Commerce.
Organization Code: 714996831
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name Amount
(CNY) % of Shareholding
Lu Qihua 23,200,000
53.77
Zhang Yougen 1,300,000
3.01
Xu Jianping 15,500,000
35.93
Suzhou Gaoquan Venture Capital Enterprises
(Limited Partnership) (in Chinese pinyin)
2,673,500
6.20
Suzhou Juchuang Technology Microfinance
Co., Ltd. (in Chinese pinyin)
471,800
1.09
l
Legal representative, chairman and
general manager:
Mr. Lu Qihua is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, chairman and general manager.
Also
working in Suzhou Huarong Pharmaceutical & Chemical Import & Export
Co., Ltd. (in Chinese pinyin) as legal representative.
l
Directors:
Xu Hua
Xu Jianping
l
Supervisors:
Sun Chunhua
Tang Weijuan
Lin Gen
SC is mainly
engaged in manufacturing and selling API, pharmaceutical intermediates.
SC’s products mainly include:
Biological APIs
APIs by Chemical Synthesis
Cephalosporin Intermediates
Sartan APIs
SC sources its materials 100% from domestic
market. SC sells 20% of its products in domestic market, and 80% 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.
Note: SC’s management refused to release its
main suppliers and clients.
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TRADEMARKS & PATENTS |
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Registration No. |
6704525 |
6704522 |
6704526 |
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Registration Date |
Feb. 7, 2011 |
May 14, 2010 |
Nov. 7, 2010 |
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Trademark Design |
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Suzhou
Huarong Pharmaceutical & Chemical Import & Export Co., Ltd. (in Chinese
pinyin)
===============================
Registration
no.: 320504000011481
Legal
representative: Lu Qihua
Incorporation
date:
SC’s international
business department:
=======================
Tel:
86-532-55683075
Fax:
86-532-55683077
Add:
12/F, Bandao International Building, No. 182-8 Haier Road, Qingdao
The
information on SC’s subsidiaries is not available 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 declined to
release its banking details.
Balance Sheet
Unit: CNY’000
|
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As of Dec. 31, 2013 |
|
Cash & bank |
8,190 |
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Inventory |
8,900 |
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Accounts
receivable |
3,100 |
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Bills receivable |
0 |
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Other Accounts
receivable |
41,670 |
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Advances to
suppliers |
6,530 |
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To be
apportioned expense |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
68,390 |
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Fixed assets net
value |
26,380 |
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Projects under construction |
1,600 |
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Long-term
investment |
30,000 |
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Intangible and
other assets |
2,650 |
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------------------ |
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Total assets |
129,020 |
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============= |
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Short loans |
26,880 |
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Accounts payable |
0 |
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Advance from
customers |
0 |
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Other Accounts
payable |
12,900 |
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Notes payable |
6,920 |
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Accrued payroll |
1,120 |
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Taxes payable |
-40 |
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Withdraw the
expenses in advance |
230 |
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Surcharge
payable |
10 |
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Other current
liabilities |
10 |
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------------------ |
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48,030 |
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Long term
liabilities |
10,000 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
58,030 |
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Equities |
70,990 |
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------------------ |
|
129,020 |
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============= |
Income Statement
Unit: CNY’000
|
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As of Dec. 31, 2013 |
|
Turnover |
38,940 |
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Cost of goods sold |
33,370 |
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Taxes and additional of main
operation |
50 |
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Sales expense |
1,510 |
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Management expense |
10,510 |
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Finance expense |
3,010 |
|
Subsidy income |
1,070 |
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Non-operating
income |
80 |
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Non-operating expense |
130 |
|
Profit before
tax |
-8,500 |
|
Less: profit tax |
0 |
|
Profits |
-8,500 |
Important Ratios
=============
|
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As
of Dec. 31, 2013 |
|
*Current ratio |
1.42 |
|
*Quick ratio |
1.24 |
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*Liabilities
to assets |
0.45 |
|
*Net profit
margin (%) |
-21.83 |
|
*Return on
total assets (%) |
-6.59 |
|
*Inventory
/Turnover ×365 |
84 days |
|
*Accounts
receivable/Turnover ×365 |
30 days |
|
*Turnover/Total
assets |
0.30 |
|
* Cost of
goods sold/Turnover |
0.86 |
PROFITABILITY:
FAIR
l The turnover of SC
appears average in its line.
l SC’s net profit
margin is poor.
l SC’s return on
total assets is fair.
l SC’s cost of goods
sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal 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’s short-term loan appears fairly large in 2013.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
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 short loans could be a threat to SC’s financial
condition. A credit line up to USD 100,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.61 |
|
|
1 |
Rs.99.11 |
|
Euro |
1 |
Rs.78.89 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
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Report Prepared
by : |
PDT |
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 |
|
|
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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.