MIRA INFORM REPORT
|
Report No. : |
317033 |
|
Report Date : |
15.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG CHANGMING PHARMACEUTICAL CO., LTD. |
|
|
|
|
Registered Office : |
No. 1 Badu Road,
Tiantai Industrial Park Taizhou,
Zhejiang Province 317200 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
13.09.2006 |
|
|
|
|
Com. Reg. No.: |
331023000003597 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Subject is mainly engaged in manufacturing and selling APIs and
intermediates. |
|
|
|
|
No. of Employee : |
257 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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. In 2014 the People’s Bank
of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that
year�
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; � 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. In 2014 China agreed to begin limiting carbon dioxide
emissions by 2030. China implemented several economic reforms in 2014,
including legislation allowing local governments to issue bonds, further
opening several state-owned enterprises to private investment, loosening the
one-child policy, passing harsher pollution fines, and cutting administrative
red tape.
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. In 2014 China agreed to begin limiting carbon
dioxide emissions by 2030. China implemented several economic reforms in 2014,
including legislation allowing local governments to issue bonds, further
opening several state-owned enterprises to private investment, loosening the
one-child policy, passing harsher pollution fines, and cutting administrative
red tape.
|
Source
: CIA |
company
name and address
ZHEJIANG CHANGMING
PHARMACEUTICAL CO., LTD.
NO. 1 BADU ROAD,
TIANTAI INDUSTRIAL PARK
TAIZHOU, ZHEJIANG
PROVINCE 317200 PR CHINA
TEL: 86 (0) 576-83980381/83916219
FAX: 86 (0) 576-83980300
EXECUTIVE
SUMMARY
Date of Registration : september 13, 2006
REGISTRATION NO. : 331023000003597
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 30,000,000
staff : 257
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 106,580,000 (AS OF
DEC. 31, 2014)
EQUITIES : CNY 44,630,000 (AS OF DEC. 31, 2014)
WEBSITE : www.cmpharm.com
E-MAIL :
lucy@cmpharm.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY
STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.19 = 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.: 331023000003597 on September 13, 2006.
SC’s Organization Code Certificate
No.: 79337631-4
SC’s Tax No.: 331023793376314
SC’s registered capital: cny 30,000,000
SC’s registered capital: cny 30,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Representative |
Zhu Minghui |
Cai Xianli |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Tiantai Changming Investment
& Management Partnership Enterprise (Limited Partnership) |
32 |
|
Zhejiang Shengda Group Co.,
Ltd. |
67 |
|
Zhu Minghui |
1 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Cai Xianli |
|
General Manager |
Lv Hongchu |
|
Director |
Zhu Yonggang |
|
Xia Jiansheng |
|
|
Hong Ai |
|
|
Zhu Minghui |
|
|
Supervisor |
Gao Xiaogen |
RECENT
DEVELOPMENT
SC successfully certificated to ISO 9001 quality system and GMP system in
2008 and September, 2009, acquired the prize of national technical innovation,
and was awarded as Hi-tech Enterprise, etc.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Tiantai Changming Investment &
Management Partnership
Enterprise (Limited Partnership) 32
Zhejiang Shengda Group Co., Ltd. 67
Zhu Minghui 1
Tiantai Changming Investment &
Management Partnership Enterprise (Limited Partnership)
-------------------------------------------
Registration No.: 331023000064390
Zhejiang
Shengda Group Co., Ltd.
-------------------------------------------
Registration No.: 331023000004241
Date of Registration: July 19, 1995
Legal Form: Limited Liabilities Company
Registered Capital: CNY 50,000,000
Legal Representative: Hong Ai
Web: www.shengda.com.cn
E-mail: shd@ppp.tzptt.zj.cn
MANAGEMENT
Cai Xianli, Legal Representative and Chairman
-------------------------------------------------------------------------
Ø
Gender: M
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Lv Hongchu, General Manager
---------------------------------------------------
Ø
Gender: M
Ø Working experience
(s):
At present, working in SC as general manager
Director
------------
Zhu Yonggang
Xia Jiansheng
Hong Ai
Zhu Minghui
Supervisor
--------------
Gao
Xiaogen
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing
APIs; manufacturing and selling organic chemical materials; exporting its
products and technology, and importing machinery, components, raw materials & accessories, and technology.
SC is
mainly engaged in SC is mainly engaged in manufacturing and selling APIs and intermediates.
SC’s products
mainly include:
|
CAS
NO. |
Indications |
|
76095-16-4 |
|
|
87333-19-5 |
|
|
83915-83-7 |
|
|
82586-55-8 |
|
|
86541-74-4 |
|
|
107133-36-8 |
|
|
62571-86-2 |
|
|
110221-44-8 |
|
|
102767-28-2 |
|
|
|
SC sources its
materials 100% from domestic market. SC sells 15% of its products in domestic
market and 85% to the overseas market, mainly Southeast Asia 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
Client*
------------------
Hengdian Group
Kangyu Pharmaceutical Co., Ltd.
*Major
Supplier*
--------------------
Yixing Golden Horse
Pharmaceutical Material Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 257 staff
at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
SC is known to have a
subsidiary at present,
Anhui
Changming Pharmaceutical Co., Ltd.
Registration
No.: 341721000010936
Date
of Registration: July 23, 2007
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 12,000,000
Legal Representative: Zhu Minghui
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’s supplier
refused to make any comments.
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
Bank of China Zhejiang Branch Tiantai Sub-branch
AC#:
840033500908091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2014 |
|
Cash |
18,100 |
|
Notes receivable |
0 |
|
Accounts
receivable |
17,730 |
|
Advances to
suppliers |
0 |
|
Other receivable |
39,970 |
|
Inventory |
43,910 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
6,400 |
|
|
------------------ |
|
Current assets |
126,110 |
|
Fixed assets |
63,650 |
|
Construction in
progress |
0 |
|
Intangible
assets |
0 |
|
Long-term
investment |
40 |
|
Deferred income
tax assets |
0 |
|
Other non-current
assets |
9,900 |
|
|
------------------ |
|
Total assets |
199,700 |
|
|
============= |
|
Short-term loans |
64,000 |
|
Notes payable |
0 |
|
Accounts payable |
9,650 |
|
Welfares payable |
0 |
|
Taxes payable |
0 |
|
Advances from
clients |
0 |
|
Other payable |
27,430 |
|
Other current
liabilities |
53,990 |
|
|
------------------ |
|
Current
liabilities |
155,070 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
155,070 |
|
Equities |
44,630 |
|
|
------------------ |
|
Total
liabilities & equities |
199,700 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Revenue |
106,580 |
|
Cost of sales |
83,640 |
|
Sales expense |
2,370 |
|
Management expense |
19,930 |
|
Finance expense |
5,350 |
|
Profit before
tax |
-4,470 |
|
Less: profit tax |
0 |
|
Profits |
-4,470 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
|
*Current ratio |
0.81 |
|
*Quick ratio |
0.53 |
|
*Liabilities
to assets |
0.78 |
|
*Net profit margin
(%) |
-4.19 |
|
*Return on
total assets (%) |
-2.24 |
|
*Inventory /
Revenue ×365 |
151 days |
|
*Accounts
receivable / Revenue ×365 |
61 days |
|
*Revenue /
Total assets |
0.53 |
|
*Cost of sales
/ Revenue |
0.78 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC appears average in its line.
l SC’s net profit
margin is fair.
l SC’s return on
total assets is fair.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears average.
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 average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair
financial conditions. The large amount of inventory and short-term loans may be
a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.39 |
|
|
1 |
Rs.91.06 |
|
Euro |
1 |
Rs.66.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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.