MIRA INFORM REPORT

 

 

Report Date :

04.09..2014

 

IDENTIFICATION DETAILS

 

Name :

TIANJIN PACIFIC CHEMICAL & PHARMACEUTICAL CO., LTD.

 

 

Registered Office :

No. 27 Baoyuan Road, Development Zone, Jinnan District Tianjin 300350

 

 

Country :

China

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

19.01.2005

 

 

Com. Reg. No.:

120112000019733

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing Apis; Importing And Exporting Goods And Technology

 

 

No of Employees :

377

 

 

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 :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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

 

 

sc’s INFO.

================

TIANJIN PACIFIC CHEMICAL & PHARMACEUTICAL CO., LTD.

NO. 27 BAOYUAN ROAD, DEVELOPMENT ZONE, JINNAN DISTRICT

TIANJIN 300350 PR CHINA

TEL: 86 (0) 22-88518581/88519200/88530226

FAX: 86 (0) 22-88518582

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : january 19, 2005

REGISTRATION NO.                  : 120112000019733

LEGAL FORM                           : Limited Liability Company

CHIEF EXECUTIVE                    : song decheng (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : CNY 36,995,927.03

staff                                      : 377

BUSINESS CATEGORY             : MANUFACTURING & TRADING

Revenue                                : CNY 93,510,000 (AS OF DEC. 31, 2013)

EQUITIES                                 : CNY 73,440,000 (AS OF DEC. 31, 2013)

WEBSITE                                 : www.tj-pacific.com

E-MAIL                                     : sale@tj-pacific.com

PAYMENT                                : AVERAGE

MARKET CONDITION                : average

FINANCIAL CONDITION             : fairly stable

OPERATIONAL TREND              : fairly STEADY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                     : CNY 6.15 = 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 limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 120112000019733 on January 19, 2005.

 

SC’s Organization Code Certificate No.: 77060997-1

SC’s Tax No.: 120112770609971

 

SC’s registered capital: CNY 36,995,927.03

 

SC’s paid-in capital: CNY 36,995,927.03

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

2014-3-25

Registered Capital

CNY 20,000,000

CNY 36,995,927.03

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Tianjin Pacific Medical Technology Group Co., Ltd.

91.89

Song Xiangyi

5.41

Liu Caitian

2.70

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative, Chairman, and General Manager

Song Decheng

Vice Chairman

Qian Weiguo

Director

Song Chuntai

Song Xiangyi

Liu Caitian

Supervisor

Liu Chunheng

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                          % of Shareholding

 

Tianjin Pacific Medical Technology Group Co., Ltd.           91.89

 

Song Xiangyi                                                                 5.41

 

Liu Caitian                                                                     2.70

 

 

Tianjin Pacific Medical Technology Group Co., Ltd.

=========================================

Date of Registration: November 25, 2004

Registration No.: 120000000023853

Legal Form: Limited Liability Company

Chief Executive: Song Decheng

Registered Capital: CNY 40,000,000

 

 

MANAGEMENT

 

Song Decheng, Legal Representative, Chairman and General Manager

---------------------------------------------------------------------------------------------------------

Gender: M

Qualification: University

Working experience (s):

 

From 2005 to present, working in SC as legal representative, chairman and general manager, also working in Tianjin Pacific Medical Technology Group Co., Ltd. as legal representative

 

Qian Weiguo, Vice Chairman

--------------------------------------------------

Gender: M

Qualification: University

Working experience (s):

 

At present, working in SC as vice chairman

 

Director

-----------

Song Chuntai

Song Xiangyi

Liu Caitian

 

Supervisor

--------------

Liu Chunheng

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing APIs; importing and exporting goods and technology.

 

SC is mainly engaged in manufacturing and selling APIs.

 

SC’s products mainly include: steroid hormone drugs, anti-malarial drugs, hepatobiliary agents, uninary system drugs, hypoglycemic drugs, etc.

 

SC sources its materials 100% from domestic market, mainly Tianjin. SC sells 40% of its products in domestic market, and 60% to overseas market.

 

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.

 

Staff & Office:

--------------------------

SC is known to have approx. 377 staff at present.

 

SC owns an area as its operating office & factory of approx. 39,000 sq. meters at the heading address.

 

 

RELATED COMPANY

 

SC is not known to have any subsidiary at present.

 

 

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 Xiqing Development Zone Sub-branch

 

AC#: 0302085219300041780

 

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2013

Cash

2,010

Notes receivable

0

Accounts receivable

7,370

Advances to suppliers

5,060

Other receivable

4,940

Inventory

79,010

Non-current assets within one year

0

Other current assets

2,920

 

------------------

Current assets

101,310

Fixed assets

27,280

Long-term prepaid expenses

0

Deferred income tax assets

0

Other non-current assets

6,950

 

------------------

Total assets

135,540

 

=============

Short-term loans

26,000

Notes payable

0

Accounts payable

28,610

Advances from clients

0

Other payable

6,830

Other current liabilities

660

 

------------------

Current liabilities

62,100

Non-current liabilities

0

 

------------------

Total liabilities

62,100

Equities

73,440

 

------------------

Total liabilities & equities

135,540

 

=============

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2013

Revenue

93,510

     Cost of sales

71,900

     Sales expense

1,200

     Management expense

11,340

     Finance expense

1,170

Profit before tax

7,320

Less: profit tax

1,830

Profits

5,490

 

Important Ratios

=============

 

As of Dec. 31, 2013

*Current ratio

1.63

*Quick ratio

0.36

*Liabilities to assets

0.46

*Net profit margin (%)

5.87

*Return on total assets (%)

4.05

*Inventory / Revenue ×365

309 days

*Accounts receivable/ Revenue ×365

29 days

*Revenue/Total assets

0.69

*Cost of sales / Revenue

0.77

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: AVERAGE

The revenue of SC appears average in its line.

SC’s net profit margin is average.

SC’s return on total assets is average.

SC’s cost of sales is average, comparing with its revenue.

 

LIQUIDITY: FAIR

The current ratio of SC is maintained in a normal level.

SC’s quick ratio is maintained in a fair level.

The inventory of SC appears large.

The accounts receivable of SC is maintained in an average level.

SC’s short-term loans are in an average level.

SC’s revenue is in a fair level, comparing with the size of its total assets.

 

LEVERAGE: AVERAGE

The debt ratio of SC is low.

The risk for SC to go bankrupt is average.

 

Overall financial condition of the SC: Fairly Stable.

 

 

CONCLUSIONS

 

SC is considered medium-sized in its line with fairly stable financial conditions. The large amount of inventory may be a threat to SC’s financial condition.

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.54

UK Pound

1

Rs.99.73

Euro

1

Rs.79.54

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SHG

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.