MIRA
INFORM REPORT
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Report Date : |
05.09.2014 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU
TOHOPE PHARMACEUTICAL CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
31.05.2002 |
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Com. Reg. No.: |
320581400007806 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing drugs, health food tablets, manufacturing and processing
soy lecithin granules, protein powder, collagen, soluble dietary fiber,
selling its owned products. |
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No. of Employees |
120 |
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 : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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.
|
Source
: CIA |
Company name and address
JIANGSU TOHOPE
PHARMACEUTICAL CO., LTD.
NO. 188
WUYISHAN ROAD, SOUTHEAST ECONOMIC DEVELOPMENT ZONE CHANGSHU, JIANGSU PROVINCE
215533 PR CHINA
TEL: 86 (0)
512-52300000/52300533
FAX: 86 (0)
512-52300579
EXECUTIVE SUMMARY
Date of Registration : may 31, 2002
REGISTRATION NO. : 320581400007806
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
CHIEF EXECUTIVE :
zou zhenrong (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : usd 1,764,000
staff :
120
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 174,887,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 229,688,000 (AS OF DEC. 31, 2013)
WEBSITE : www.wxchem.com
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
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 Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 320581400007806
on May 31, 2002.
SC’s Organization Code Certificate No.:
73784306-1
SC’s Tax No.: 320581737843061
SC’s Customs Registration No.: 3214930749
SC’s registered capital: usd 1,764,000
SC’s paid-in capital: usd 1,764,000 (CNY 14,286,533.49)
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Jiangsu Wanxing Venture Capital Co., Ltd. |
74.45 |
|
|
25.55 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Zou Zhenrong |
|
Vice Chairman |
Hsu Benjamin |
|
Director |
Yu Yongliang |
|
Qian Zhenqing |
|
|
Shi Dongming |
|
|
Supervisor |
Tan Zhongbao |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Jiangsu Wanxing Venture Capital Co., Ltd. 74.45
Hong Kong Man Han Trading Investment Limited 25.55
Jiangsu Wanxing Venture Capital Co., Ltd.
==================================
Registration No.: 320581000110949
Chief Executive: Zou Zhenrong
Registered Capital: CNY 55,000,000
Hong Kong Man Han Trading Investment Limited
========================================
Registration No.: 1644052
Legal Form: Private
MANAGEMENT
Zou Zhenrong, Legal Representative, Chairman and General
Manager
-------------------------------------------------------------------------------------------------------
Gender: M
Age: 54
ID# 32052019600408151X
Qualification: University
Working experience
(s):
From 2002 to present, working in SC as legal representative, chairman
and general manager, also working in Jiangsu Wanxing Venture Capital Co., Ltd.
as legal representative
Hsu Benjamin, Vice
Chairman
---------------------------------------------------
Gender: M
Nationality: U.S.A.
Passport No.: 096409490
Working experience
(s):
From 2002 to present, working in SC as vice chairman
Director
-----------
Yu Yongliang ID#
320520195811111530
Qian Zhenqing ID#
320520197010151515
Shi Dongming ID#
32052019781210151X
Supervisor
--------------
Tan Zhongbao ID#
320520196309021518
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
drugs, health food tablets, manufacturing and processing soy lecithin granules,
protein powder, collagen, soluble dietary fiber, selling its owned products.
SC is mainly engaged in manufacturing and selling drugs, health food
tablets.
Brand: TOHOPE
SC’s products mainly include:
10-Methoxyiminostilben
A -L.Ipoic Acid
Iminostilbene
Bezafibrate
Iminodibenzyl
Iminostilbene-5-Carbonyl Chloride
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 16% of its products in domestic market, and 84% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
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 Customers:
==============
Anmar International Ltd.
Fortune Bridge Co., Inc.
Meadows Wye & Co. Inc.
Swat International Inc.
Manus Abrasive System Inc.
Nutrichem Resources Co.
Staff &
Office:
--------------------------
SC is known to have approx. 120
staff at present.
SC rents an area as its operating office & factory of approx. 18,000
sq. meters at the heading address.
RELATED COMPANY
SC is known to
have 3 subsidiaries at present,
Hunan Dongting Pharmaceutical Co., Ltd.
Suzhou Shenlian Pharmaceutical Technology Co., Ltd.
Jiangsu Shengtang Technology Investment 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 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
The bank information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
5,587 |
14,267 |
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Held for trading
financial assets |
49,139 |
41,737 |
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Notes receivable |
0 |
150 |
|
Accounts receivable |
26,656 |
24,789 |
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Advances to suppliers |
2,018 |
998 |
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Other receivable |
1,041 |
75,436 |
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Inventory |
11,312 |
26,061 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
95,753 |
183,438 |
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Long-term investment |
160,543 |
91,040 |
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Fixed assets |
19,135 |
20,269 |
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Construction in progress |
0 |
0 |
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Intangible assets |
2,702 |
2,010 |
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Long-term prepaid expenses |
590 |
867 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
278,723 |
297,624 |
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============= |
============= |
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Short-term loans |
3,721 |
20,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
8,106 |
7,396 |
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Wages payable |
284 |
638 |
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Taxes payable |
5,819 |
3,370 |
|
Dividends payable |
51,874 |
34,772 |
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Advances from clients |
507 |
1,145 |
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Other payable |
115,076 |
508 |
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Other current liabilities |
85 |
107 |
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------------------ |
------------------ |
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Current liabilities |
185,472 |
67,936 |
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Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
185,472 |
67,936 |
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Equities |
93,251 |
229,688 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
278,723 |
297,624 |
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============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
165,825 |
174,887 |
|
Cost of sales |
85,291 |
97,422 |
|
Taxes and surcharges |
1,430 |
1,221 |
|
Sales expense |
864 |
984 |
|
Management expense |
14,591 |
18,363 |
|
Finance expense |
212 |
3,572 |
|
Income from investments |
10,698 |
393,255 |
|
Non-business income |
588 |
2,113 |
|
Non-business expenditure |
439 |
1,559 |
|
Profit before tax |
74,284 |
446,719 |
|
Less: profit tax |
9,449 |
60,876 |
|
64,835 |
385,843 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
*Current ratio |
0.52 |
2.70 |
|
*Quick ratio |
0.46 |
2.32 |
|
*Liabilities to assets |
0.67 |
0.23 |
|
*Net profit margin (%) |
39.10 |
220.62 |
|
*Return on total assets (%) |
23.26 |
129.64 |
|
*Inventory / Revenue ×365 |
25 days |
55 days |
|
*Accounts receivable/ Revenue ×365 |
59 days |
52 days |
|
*Revenue/Total assets |
0.59 |
0.59 |
|
*Cost of sales / Revenue |
0.51 |
0.56 |
FINANCIAL COMMENTS
PROFITABILITY: FAIRLY
GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of sales is low, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level in 2013.
SC’s quick ratio is maintained in a fairly good level in 2013.
The inventory of SC is maintained in an average level.
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: 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 Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.45 |
|
UK Pound |
1 |
Rs.99.46 |
|
Euro |
1 |
Rs.79.46 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
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 |
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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.