MIRA
INFORM REPORT
|
Report Date : |
31.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
ZHUHAI UNITED
LABORATORIES CO., LTD. |
|
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|
|
Registered Office : |
Sanzao Science & Technology Park, National Hi-Tech Zone Zhuhai, Guangdong Province 519040 Pr |
|
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Country : |
China |
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|
|
|
Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
03.07.1993 |
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|
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Com. Reg. No.: |
440400400021954 |
|
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|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and Selling of chemical medicine materials and
preparations, antibiotic medicine materials and preparations and Chinese
medicine. |
|
|
|
|
No. of Employees : |
5,970 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
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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 |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 and address
ZHUHAI UNITED LABORATORIES CO., LTD.
SANZAO SCIENCE &
TECHNOLOGY PARK, NATIONAL HI-TECH ZONE
ZHUHAI, GUANGDONG
PROVINCE 519040 PR CHINA
TEL: 86 (0)
756-7787682/7766777
FAX: 86 (0)
756-7787958/7767377
EXECUTIVE SUMMARY
Date of Registration : JULY 3, 1993
REGISTRATION NO. : 440400400021954
LEGAL FORM : Shares limited company
REGISTERED CAPITAL : CNY 1,142,496,000
staff : 5,970
BUSINESS CATEGORY : manufacturing & TRADING
REVENUE : CNY 2,384,124,000 (JAN. 1, 2014 TO JUN.
30, 2014)
EQUITIES : CNY 2,497,616,000
(AS OF JUN. 30, 2014)
WEBSITE : www.tul.com.cn
E-MAIL : exp@tul.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.12 = 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 shares limited company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 440400400021954.
SC’s Organization Code Certificate No.:
61824951-0
SC’s Tax No.: 440404618249510
SC’s Customs Registration No.: 4404121034
SC’s registered capital: CNY 1,142,496,000
SC’s paid-in capital: CNY 1,142,496,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2006-12-25 |
Shareholder (s) |
Zhongshan Jinyi Food Co., Ltd. 1.5% Zhuhai Jindefu Co., Ltd. 3% Zhongshan Kangzhile Pharmaceutical Co.,
Ltd. 46% Cai Haishan 1.5% Bear World Limited (Hong
Kong) 48% |
Zhongshan Jinyi Food Co., Ltd. 1.5% Zhuhai Jindefu Enterprise Plan Co., Ltd.
3% Zhuhai Kangzhile Pharmaceutical Co., Ltd. 46% Bear World Limited (Hong Kong) 49.5% |
|
2008-12-15 |
Registered Capital |
CNY
254,600,000 |
CNY 313,600,000 |
|
% of Shareholding |
Zhongshan Jinyi Food Co., Ltd. 1.5% Zhuhai Jindefu Enterprise Plan Co., Ltd.
3% Zhuhai Kangzhile Pharmaceutical Co., Ltd. 46% Bear World
Limited (Hong Kong) 49.5% |
Zhongshan
Jinyi Food Co., Ltd. 1.22% Zhuhai
Jindefu Enterprise Plan Co., Ltd. 2.43% Zhuhai
Kangzhile Pharmaceutical Co., Ltd. 37.35% Bear World
Limited (Hong Kong) 59% |
|
|
2009 |
Registered Capital |
CNY
313,600,000 |
CNY 413,600,000 |
|
% of
Shareholding |
Zhongshan
Jinyi Food Co., Ltd. 1.22% Zhuhai Jindefu
Enterprise Plan Co., Ltd. 2.43% Zhuhai
Kangzhile Pharmaceutical Co., Ltd. 37.35% Bear World
Limited (Hong Kong) 59% |
Zhongshan Jinyi Food Co., Ltd. 0.92% Zhuhai Jindefu Enterprise Plan Co., Ltd.
1.85% Zhuhai Kangzhile Pharmaceutical Co., Ltd. 28.32% Bear World
Limited (Hong Kong) 68.91% |
|
|
-- |
Registration No. |
000361 |
440400400021954 |
|
2010-12 |
Registered Capital |
CNY 413,600,000 |
CNY 562,496,000 |
|
-- |
Registered Capital |
CNY 562,496,000 |
CNY 1,142,496,000 |
|
% of
Shareholding |
Zhongshan Jinyi Food Co., Ltd. 0.92% Zhuhai Jindefu Enterprise Plan Co., Ltd.
1.85% Zhuhai Kangzhile Pharmaceutical Co., Ltd.
28.32% Bear World
Limited (Hong Kong) 68.91% |
Zhongshan Jinyi Food Co., Ltd. 0.46% Zhuhai Jindefu Enterprise Plan Co., Ltd.
0.91% Zhuhai Kangzhile Pharmaceutical Co., Ltd.
13.94% Bear World
Limited (Hong Kong) 84.69% |
|
|
2013 |
Legal
Representative |
Cai Jinle |
Cai Haishan |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhongshan
Jinyi Food Co., Ltd. |
0.46 |
|
Zhuhai
Jindefu Enterprise Plan Co., Ltd. |
0.91 |
|
Zhuhai
Kangzhile Pharmaceutical Co., Ltd. |
13.94 |
|
Bear World
Limited (Hong Kong) |
84.69 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Cai Haishan |
|
General
Manager |
Peng Wei |
|
Director |
Liang Yongkang |
|
Shen Huan |
RECENT DEVELOPMENT
SC has got the certificates of GMP, GMP Hong Kong, and GMP SFDA.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
Zhongshan Jinyi Food Co., Ltd. 0.46
Zhuhai Jindefu Enterprise Plan Co., Ltd. 0.91
Zhuhai Kangzhile Pharmaceutical Co., Ltd. 13.94
Bear World Limited (Hong Kong) 84.69
Zhongshan Jinyi
Food Co., Ltd.
==========================
Registration No.: 442000400026161
Legal Representative: Cai Haishan
Add: The No. 1 Industrial Zone, Tanzhou
Town, Zhongshan, Guangdong
Tel: 86 (0) 760-6655310/6655816-3543
Fax: 86 (0) 760-6655310
Zhuhai Jindefu
Enterprise Plan Co., Ltd.
================================
Registration No.: 440400000334963
Registered Capital: CNY 15,000,000
Legal Representative: Shen Huan
Zhuhai Kangzhile
Pharmaceutical Co., Ltd.
===================================
Registration No.: 440400000171471
Registered Capital: CNY 250,000,000
Legal Representative: Shen Huan
Bear World Limited
(Hong Kong)
============================
Registration No.: 0537887
Legal form: Private
MANAGEMENT
Cai Haishan, Legal Representative and Chairman
----------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# K665977(2)
Ø Qualification:
University
Ø Working experience
(s):
Before, as director of SC
From 2013 to present, working in SC as legal
representative and chairman
Peng Wei, General Manager
----------------------------------------------
Ø
Gender: F
Ø Qualification:
University
Ø Working experience
(s):
*1983 Graduated from the Xi'an Medical
College
*1983 to 1993 Worked in the Hanjiang
River Pharmaceutical Factory, and became a workshop directors
*1983 to 1993 Production Manager of Zhuhai Xinzhu
Pharmaceutical Company
*1995
Joined in The United Laboratories Co., Ltd.
*1995 Factory director of Zhuhai
United Laboratories (Zhongshan) Co., Ltd.
*1999
Vice-president of Zhuhai United Laboratories Co., Ltd. Factory Director
of Zhuhai United Laboratories Co., Ltd. Zhuhai United Laboratories (Zhongshan)
Co., Ltd.
*1997 to 1999 Labor Models of Zhongshan City
*2000
Labor Models of Guangdong Province
*2001
Outstanding Managers (Factory Director)
*Since 2002 General Manager of SC
*2004
Medical and Pharmaceutical Field Advanced Individuals of Guangdong
Province
*Since 2002 Chinese People's Political
Consultative Conference Standing Committee of Zhuhai City
*2006 Gained
the EMBA Degree of Zhongshan University (Lingnan College)
Director
-----------
Liang Yongkang ID# G277530 (A)
Shen Huan ID# 420104770302162
BUSINESS OPERATION
SC’s registered business scope includes researching,
developing, manufacturing and selling chemistry bulk drugs and preparations,
antibiotic bulk drugs and preparations, Chinese medicine preparations,
biological bulk drugs and preparations, biochemistry bulk drugs and
preparations, medical and chemical materials, medicinal packaging materials
(operating within the range authorized by License Guangdong Hab20060192);
operating 3rd category injection puncture devices, medical polymer
materials & products; producing & selling health food.
SC
is mainly engaged in manufacturing and selling chemical medicine materials and
preparations, antibiotic medicine materials and preparations and Chinese
medicine.
SC’s products
mainly include:
A01--Amoxicillin
Capsules
A02--Ampicillin
Capsules
A03--Amoxicillin
Granules
A04--Amoxicillin
Sodium for Injection
A05--Cefazolin
Sodium for Injection
A06--Cefradine for
Injection
A07--Cefotaxime
Sodium for Injection
A08--Cefoperazone
Sodium for Injection
A09--Ceftriaxone
Sodium for Injection
A10--Cefuroxime
Axetil tablets
A10--Cefuroxime
Axetil tablets
A11--Ceftazidime
for Injection
A12--Cefpirome
Sulfate for Injection
A13--Cefetamet
Pivoxil Hydrochloride Tablets
A14--Amoxicillin
Sodium and Clavulanate Potassium for Injection
A15--Amoxicillin
and Clavulanate Potassium Tablets
A16--Ampicillin
Sodium and Sulbactam Sodium for Injection
SC sources its
materials 100% from domestic market. SC sells 65% of its products in domestic
market, and 35% to the overseas market, mainly Southeast Asia, American and
European countries.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Lgm
Pharmaceuticals Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 5,970 staff
at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
The United Laboratories International Holdings Limited (Cayman Islands)
United Laboratories (Chengdu) Co., Ltd.
United Laboratories (Inner Mongolia) Co., Ltd.
SC is known to have
the following subsidiaries & branch at present,
Zhuhai Wanbang Laboratories Ltd.
Zhuhai Lekang Pharmaceutical Co., Ltd.
Guangxi Kangle Laboratories Co., Ltd.
Zhuhai United Laboratories Co., Ltd. Zhongshan Branch
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 Xiangzhou Sub-branch
AC#: 2002020429100169455
Bank of China
Zhuhai Branch
AC#: 730257752225
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Jun. 30, 2014 |
|
1,029,598 |
1,221,661 |
|
|
Trading financial assets |
6,605 |
0 |
|
Notes receivable |
189,690 |
313,032 |
|
Accounts receivable |
737,699 |
713,600 |
|
Advances to suppliers |
2,278,942 |
2,822,008 |
|
Other receivable |
104,686 |
107,951 |
|
Inventory |
628,969 |
787,643 |
|
Interest receivable |
12,094 |
7,599 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
500,000 |
500,000 |
|
|
------------------ |
------------------ |
|
Current assets |
5,488,283 |
6,473,494 |
|
Fixed assets |
978,496 |
937,443 |
|
Construction in progress |
69,462 |
74,174 |
|
Project materials |
87 |
55 |
|
Intangible assets |
56,755 |
55,907 |
|
Goodwill |
89 |
89 |
|
Long-term deferred expense |
14,332 |
11,909 |
|
Deferred income tax assets |
18,387 |
13,092 |
|
Other non-current assets |
52,956 |
53,458 |
|
|
------------------ |
------------------ |
|
Total assets |
6,678,847 |
7,619,621 |
|
|
============= |
============= |
|
Short-term loans |
1,079,800 |
1,474,530 |
|
Trading financial liabilities |
0 |
3,158 |
|
Notes payable |
1,007,245 |
1,243,901 |
|
Accounts payable |
514,775 |
537,372 |
|
Payroll payable |
46,929 |
20,384 |
|
Taxes payable |
35,233 |
63,596 |
|
Advances from clients |
22,712 |
32,590 |
|
Interest payable |
3,383 |
3,580 |
|
Other payable |
202,479 |
161,812 |
|
Non current liabilities due within one year |
231,614 |
233,626 |
|
Dividend payable |
52,340 |
77,340 |
|
Other current liabilities |
603,167 |
626,696 |
|
|
------------------ |
------------------ |
|
Current liabilities |
3,799,677 |
4,478,585 |
|
Non-current liabilities |
617,943 |
643,420 |
|
|
------------------ |
------------------ |
|
Total liabilities |
4,417,620 |
5,122,005 |
|
Equities |
2,261,227 |
2,497,616 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
6,678,847 |
7,619,621 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
Jan. 1, 2014 to Jun. 30, 2014 |
|
Revenue |
4,412,548 |
2,384,124 |
|
Cost of sales |
2,627,344 |
1,406,141 |
|
Taxes and surcharges |
28,795 |
16,354 |
|
Sales expense |
914,757 |
425,659 |
|
Management expense |
304,105 |
145,906 |
|
Finance expense |
130,729 |
92,099 |
|
Investment income |
29,508 |
16,540 |
|
Non-operating income |
20,271 |
13,571 |
|
Non-operating expense |
11,364 |
1,835 |
|
Profit before tax |
443,216 |
316,478 |
|
Less: profit tax |
67,842 |
55,094 |
|
375,374 |
261,384 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Jun. 30, 2014 |
|
*Current ratio |
1.44 |
1.45 |
|
*Quick ratio |
1.28 |
1.27 |
|
*Liabilities to assets |
0.66 |
0.67 |
|
*Net profit margin (%) |
8.51 |
10.96 |
|
*Return on total assets (%) |
5.62 |
3.43 |
|
*Inventory / Revenue ×365/180 |
53 days |
60 days |
|
*Accounts receivable / Revenue ×365/180 |
62 days |
54 days |
|
*Revenue / Total assets |
0.66 |
0.31 |
|
*Cost of sales / Revenue |
0.60 |
0.59 |
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: AVERAGE
l
The current ratio of SC is maintained in a normal
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
The short-term loans of SC appear large.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
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.61.46 |
|
|
1 |
Rs.98.21 |
|
Euro |
1 |
Rs.77.45 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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.