MIRA
INFORM REPORT
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Report Date : |
23.09.2014 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG GUOBANG PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 6, Weiwu Road, Shangyu Industrial Park, Hangzhou Bay, Shangyu, Zhejiang Province, 312369 PR |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
06.08.2004 |
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Com. Reg. No.: |
330600400010566 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling API, chemical
intermediates and animal medicine. |
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No. of Employees : |
1,000 |
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
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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
Zhejiang Guobang Pharmaceutical Co., Ltd.
NO. 6, WEIWU ROAD, SHANGYU INDUSTRIAL Park,
HANGZHOU bay, SHANGYU, zhejiang PROVINCE,
312369 PR CHINA
TEL: 86 (0) 575-82738579/82738278
FAX: 86 (0) 575-82738579
EXECUTIVE SUMMARY
INCORPORATION DATE : august 6, 2004
REGISTRATION NO. : 330600400010566
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
CHIEF EXECUTIVE :
MR. qiu jiajun (CHAIRMAN)
STAFF STRENGTH :
1,000
REGISTERED CAPITAL : CNY 138,800,000
BUSINESS LINE :
manufacturing & Trading
TURNOVER :
CNY 1,260,560,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 525,710,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.2326 = 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 wholly foreign-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on august 6, 2004 and has been under present
legal form since 2009.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing animal powder
drug/premix, peroral solution, non-sterile bulk drugs; bulk drugs
(doxifluridine, hydrochloric acid, ciprofloxacin, azithromycin, roxithromycin,
clarithromycin, norfloxacin, ciprofloxacin lactate, simvastatin, L besylate
amlodipine besylate); selling its products.
SC is mainly engaged in manufacturing and selling API, chemical
intermediates and animal medicines.
Mr. Qiu Jiajun has been the legal representative, chairman and general
manager of SC since 2004.
SC is known to have approx. 1,000 employees at present.
Sc is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Shangyu. Our
checks reveal that SC owns the total premise but SC’s accountant Ms. Wang
refused to release its gross area.
Note: The is incorrect.
SC’s another office in Hangzhou is located in 12/F, Chaorenhui
Building, No. 3688 Jiangnan Road, Binjiang District, Hangzhou City,
Zhejiang
Tel.: 86 571 81396131
Fax: 86 571 81396111
http://www.gbpharm.com The design is
professional and the content is well organized. At present it is both in
Chinese and English versions.
E-mail: gb@gbpharm.com
SC has passed ISO9001:2000 quality system and ISO14001environment quality
system certification as a whole. All products are strictly manufactured
according to ICH Q
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2004-10-26 |
Registered Capital |
CNY 20,000,000 |
CNY 32,000,000 |
|
2004-12-17 |
Legal representative |
Zhang Qiong |
Qiu Jiajun |
|
2005-9-14 |
Company Name |
Zhejiang Guobang Veterinary Drug
Co., Ltd. |
Zhejiang Guobang Pharmaceutical Co., Ltd. |
|
2005-12-23 |
Registered Capital |
CNY 32,000,000 |
CNY 80,800,000 |
|
2008-6-27 |
Registration No. |
003124 |
330600400010566 |
|
2009-5-8 |
Legal form |
Wholly foreign-owned enterprise |
Chinese-foreign equity joint venture enterprise |
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Shareholders and % of shareholdings |
Yubang Investment Limited (B.V.I.) 100% |
Yubang Investment Limited (B.V.I.) 60% Guobang Pharmaceutical & Chemical Group Co., Ltd. 40% |
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|
Unknown |
Registered capital |
CNY 80,800,000 |
CNY 138,800,000 |
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Shareholders (shareholding) |
Yubang Investment Limited (B.V.I.) 60% Guobang Pharmaceutical & Chemical Group Co., Ltd. 40% |
Yubang Investment Limited (B.V.I.) 36%; Guobang Pharmaceutical & Chemical Group Co., Ltd. 40%； Antou Holding Co., Ltd. (in Chinese Pinyin) 24% |
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Shareholders (shareholding) |
Yubang Investment Limited (B.V.I.) 36%; Guobang Pharmaceutical & Chemical Group Co., Ltd. 40%； Antou Holding Co., Ltd. (in Chinese Pinyin) 24% |
Present one |
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 725889863
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yubang Investment Limited (B.V.I.) 19.922
Guobang Pharmaceutical & Chemical Group Co., Ltd. 40
Antou Holding Co., Ltd. (in Chinese Pinyin)
40.078
Guobang Pharmaceutical & Chemical Group Co., Ltd.:
=====================================
Legal representative: Qiu Jiajun
Registration No.: 330600400009418
Incorporation date: Mar. 29, 1996
Address: No. 2-12 Dongchang West Road, Chengguan Town, Xinchang County,
Shaoxing City, Zhejiang Province
Tel: 86 0575-86124548/86133852
Legal Representative, Chairman and General Manager:
Mr. Qiu Jiajun, born in 1965 with university
education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2004 to present Working
in SC as legal representative, chairman and general manager;
Also working in Guobang Pharmaceutical & Chemical Group Co., Ltd.,
Hangzhou Guobang Enterprise Management Co., Ltd., Xinchang Hebao Bio-tech Co.,
Ltd., Zhejiang Dongying Pharmaceutical Co., Ltd., Xinchang Ande Trade Co.,
Ltd., etc. as legal representative
Supervisor:
Gao Yuntai ID# 33062419510327xxxx
Directors:
Gong Yuda
Jin Xiaoyong ID# 33062419760301xxxx
Jin Biao ID# 33062419480805xxxx
Zhu Yaqing ID# 33062419670106xxxx
SC is mainly engaged in manufacturing and selling API, chemical
intermediates and animal medicine.
SC’s products mainly include: Azaerythromycin Order, Azithromycin USP /
Ph. Eup., Clarithromycin USP / Ph. Eup., Roxithromycin Ph. Eup. /CP2005,
Ciprofloxacin Hcl USP / Ph. Eup., Ciprofloxacin Lactate, Cyclopropylamine
(CPA), Cyclopropyl Carboxylic Acid (Q-Acid), Levofloxacin, Levofloxacin
Carboxylic Acid
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 50% of its products in domestic market, and 50% to overseas market,
mainly Southeast Asian 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.
*Major Supplier:
============
Henan Topfond Pharmaceutical Co., Ltd.
*Major Customer:
=============
Shandong Kanghui Pharmaceutical Co., Ltd.
Hangzhou Guobang Enterprise Management Co., Ltd.
(literal translation)
Xinchang Hebao Bio-tech Co., Ltd.
Zhejiang Dongying Pharmaceutical Co., Ltd.
Xinchang Ande Trade Co., Ltd. (literal translation)
SC is known to invest
in the following companies:
Shangyu Huada Pharmaceutical Chemicals R&D Co., Ltd.
Shangyu Lianxin Recycling
Materials Recovery Co., Ltd.
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.
Bank of China Shangyu Fine Chemical Industrial Park Sub-branch
AC#：371458338556
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
|
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as
of Dec. 31, 2013 |
|
Cash & bank |
150,630 |
|
Short-term investment |
800 |
|
Notes receivable |
22,900 |
|
Inventory |
156,940 |
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Advances to suppliers |
39,440 |
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Accounts receivable |
170,960 |
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Other Accounts receivable |
156,130 |
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Other current assets |
0 |
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------------------ |
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Current assets |
697,800 |
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Fixed assets net value |
383,630 |
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Projects under construction |
11,570 |
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Long term investment |
13,230 |
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Intangible assets |
34,430 |
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Deferred assets |
720 |
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------------------ |
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Total assets |
1,141,380 |
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============= |
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Short loans |
302,090 |
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Notes payable |
71,000 |
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Accounts payable |
170,430 |
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Advances from customers |
6,430 |
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Other Accounts payable |
21,330 |
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Accrued payroll |
4,740 |
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Dividends payable |
9,190 |
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Taxes payable |
2,820 |
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Other current liabilities |
640 |
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Current liabilities |
588,670 |
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Long term liabilities |
27,000 |
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------------------ |
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Total liabilities |
615,670 |
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Equities |
525,710 |
|
|
------------------ |
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Total liabilities & equities |
1,141,380 |
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|
============= |
Income
Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
|
Turnover |
1,260,560 |
|
Cost of goods sold |
1,051,620 |
|
Tax and associate charge |
4,180 |
|
Sales expense |
22,410 |
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Management expense |
107,230 |
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Finance expense |
22,250 |
|
Investment income |
50 |
|
Other income |
1,890 |
|
Non-operating income |
5,610 |
|
Non-operating expense |
6,090 |
|
Profit before tax |
54,330 |
|
Less: profit tax |
8,140 |
|
Profits |
46,190 |
Important
Ratios
|
|
As
of Dec. 31, 2013 |
|
*Current ratio |
1.19 |
|
*Quick ratio |
0.92 |
|
*Liabilities to assets |
0.54 |
|
*Net profit margin (%) |
3.66 |
|
*Return on total assets (%) |
4.05 |
|
*Inventory /Turnover ×365 |
45 days |
|
*Accounts receivable/Turnover ×365 |
50 days |
|
*Turnover/Total assets |
1.10 |
|
* Cost of goods sold/Turnover |
0.83 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears good.
·
SC’s net profit margin is average.
·
SC’s return on total assets is average
·
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level.
·
SC’s quick ratio is maintained in a normal level.
·
The inventory of SC appears average in 2013.
·
The accounts receivable of SC appears average in
2013.
·
The short-term loan of SC appears fairly large in
2013.
·
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is average.
·
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
SC is considered large-sized in its line with fairly stable financial conditions.
The fairly large amount of short-term loan would be a threat to SC’s financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.79 |
|
|
1 |
Rs.99.30 |
|
Euro |
1 |
Rs.78.16 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.