MIRA INFORM REPORT
|
Report No. : |
318759 |
|
Report Date : |
23.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG JINCHENG PHARMACEUTICAL &
CHEMICAL CO., LTD. |
|
|
|
|
Registered Office : |
3/F, Office Building Of Jincheng Group, Economic Development Zone, Zichuan District, Zibo, Shandong Province, 255100 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2014 (Consolidated) |
|
|
|
|
Date of Incorporation : |
12.01.2004 |
|
|
|
|
Com. Reg. No.: |
370300018517205 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
|
|
|
|
|
No of Employees : |
1,705 (Approximately) |
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 |
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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 – 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 & address
SHANDONG JINCHENG PHARMACEUTICAL & CHEMICAL CO., LTD.
3/f, office
building of jincheng group, economic development zone, ZICHUAN DISTRICT, ZIBO, SHANDONG PROVINCE,
255100 PR CHINA
TEL: 86 (0)
533-5773517/5439098 FAX: 86 (0)
533-5776517/5439426
EXECUTIVE
SUMMARY
INCORPORATION DATE : JAN. 12, 2004
REGISTRATION NO. : 370300018517205
REGISTERED LEGAL FORM :
SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
MR. ZHAO YEQING (CHAIRMAN)
STAFF STRENGTH : 1,705 (Approximately)
REGISTERED CAPITAL :
CNY 126,308,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 757,802,000 (Consolidated, JAN. 1
TO SEP. 30, 2014)
EQUITIES :
CNY 1,079,272,000 (Consolidated, AS OF
SEP. 30, 2014)
PAYMENT :
No Complaints
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2615 = 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 Limited Liabilities Company at Shandong
Provincial Administration for industry & commerce (AIC - the official body
of issuing and renewing business license) on Jan. 12, 2004 and has been under
present legal form since 2008.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in China.. Natural person are allowed to serve
as promoters. The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. The board of directors must consist
of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
one year of the offer. A
state-owned enterprise that is restructured into shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope includes
manufacturing (production by Kunlun Branch) and selling controlled chemicals
(cefotaxime acid, carbodiimide, ceftazidime active ester, AE- active ester,
triazine ring, furan ammonium salt) as well as import and export business.
SC is mainly engaged
in manufacturing and selling pharmaceutical and chemical products.
Mr. Zhao Yeqing has been legal representative and chairman of SC since
2008.
SC is known to have approx. 1,705 employees at present,
including 358 technicians, 942 production staff, 247 management staff, 20 sales
staff, 110 support staff and 28 financial staff.
SC
is currently operating at the above stated address, and
this address houses its operating office in the economic development zone of
Zibo. The detailed information of the premise is unspecified.
Factory
address: No. 26, Kunxin Road, Kunlun Town, Zichuan District, Zibo, Shandong
Province
http://www.jinchengpharm.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: jcpc@jinchengpharm.com
Honors:
=======
★ The Key High-New
Tech Enterprise of National Torch plans
★ The National
Post-doctoral Scientific research station
★ Second Prize of
National Award for Science and Technology Process
★ First Prize of
China Petroleum and Chemical Industry Association Award
★ Enterprise
technical centre of Shandong Province
★The Engineering
and Technology Research Center of Cephalosporin intermediates of Shandong
Province
★ Provincial
Industry technology innovation strategic alliance of cephalosporin
intermediates
★ Academician
workstation of Shandong Province
★ Abide Contract
and Regard for Credit Enterprise of Shandong Province
★ The patent star
enterprise of Shandong Province
★ Excellent
Enterprise of Shandong Province for Management Innovation
★ The products of
Ceftazidime and Cefixime has been listed in the “National Key New Products”
★ MAEM、SMIA has been listed in the “National Torch
Plan”
★ First Prize of
Provincial award of science and technology process
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2006-4-29 |
Registered capital |
CNY 10,000,000 |
CNY 36,000,000 |
|
2007-11-22 |
Registered capital |
CNY 36,000,000 |
CNY 45,000,000 |
|
Unknown |
Registration no. |
3703001851497 |
3703001851720 |
|
Registration no. |
3703001851720 |
Present one |
|
|
2008-2-28 |
SC’s Chinese name |
山东金城医药化工有限公司 |
山东金城医药化工股份有限公司 |
|
Registered legal form |
Limited liability company |
Shares limited company |
|
|
Registered capital |
CNY 45,000,00 |
CNY 90,000,000 |
|
|
Legal representative |
Zhao Hongfu |
Zhao Yeqing |
|
|
2011-6 |
Registered capital |
CNY 90,000,000 |
CNY 121,000,000 |
|
2014-8-26 |
Registered capital |
CNY 121,000,000 |
Present amount |
Note: SC changed its Chinese name in 2008, while its English name
remains the same.
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 300233.
Organization Code: 164238285
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
(As of Sep. 30, 2014)
Name
%
of Shareholding
Zibo Jincheng Industry Investment
Co., Ltd. 37.67
Zhao Hongfu 5.45
Qingdao Fuhe Investment Co., Ltd. (in Chinese pinyin) 5.23
Shanghai Fosun Pharmaceutical Development Co., Ltd. 4.02
Zhang Xuebo 2.66
Zhao Yeqing 1.87
Industrial & Commercial Bank of China
–Baoying Pan-Coastal Areas Growth Stock Securities
Investment Fund 1.61
China Construction Bank- China AMC Dividend Mixed
Open–end Securities Fund 0.87
Zheng Gengxiu 0.73
Li Jiaquan 0.5
Other shareholders 39.39
Zibo Jincheng Industry
Investment Co., Ltd.
=======================
It was formerly named as Zibo Jincheng Industry Co., Ltd.
Registered no.: 370000018043621
Legal representative: Zhao Hongfu
Registered capital: CNY 23,846,550
Date of incorporation: 1993-7-8
Tel: 0533-5415977
Fax: 0533-5439726
Address: Zichuan Economic Development
Zone, Zibo, Shandong Province
Web: http://www.jinchenggroup.com/
Email: zibojincheng@126.com
Legal
representative and Chairman:
Mr. Zhao Yeqing, ID# 37030219760506XXXX, born
in 1976, with Master’s Degree. He is currently responsible for the overall
management of SC.
Working
Experience(s):
From 2008 to present Working in SC as legal representative and chairman
Also working in Shandong Jincheng
Bio-pharmaceutical Co., Ltd. as legal representative,
and in Zibo Jincheng Industry Investment Co., Ltd., Shandong Jincheng Kerui
Chemical Co., Ltd. and Shandong Huihai Pharmaceutical & Chemical Co., Ltd.
as director.
General Manager
and vice chairman:
Mr. Zhang Xuebo, born in 1963, with MBA
Degree, engineer. He is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager and vice chairman.
Also
working in Zibo Jincheng Industry Investment Co., Ltd., Shandong Jincheng Kerui
Chemical Co., Ltd. and Shandong Huihai Pharmaceutical & Chemical Co., Ltd.
as director.
Vice general
managers:
Yang Xiuliang
Guo Fangshui
Cui Xili
Li Jiaquan
Zhu Xiaogang
Directors:
Guo Fangshui
Zhao Hongfu
Li Jiaquan
Supervisors:
Wang Kai
Yang Zhiyuan
Meng Fanqing
SC is mainly engaged
in manufacturing and selling pharmaceutical and chemical products.
SC’s products mainly include:
Characteristic bulk drugs
Pharmaceutical Intermediates
Fine chemicals
SC sources its materials 70%
from domestic market, and 30% from overseas market. SC sells 60% of its
products in domestic market, and 40% to overseas market, mainly Europe,
America, and Southeast Asia.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Supplier:
=============
Guangxi Nanning Ganze Trade Co., Ltd. (in Chinese pinyin)
Wuhan Yangfang New Materials Co., Ltd. (in Chinese pinyin)
*Major Customers:
==============
India NECTAR Ltd.
India Kawalunte Ltd. (in Chinese pinyin)
Harbin Pharmaceutical Group Co., Ltd. General Pharm. Factory
Heilongjiang Haoyun Fine Chemical Co., Ltd.
Zhuhai United Laboratories Co., Ltd.
|
TRADEMARKS & PATENTS |
|
Registration No. |
12434969 |
6309259 |
6309260 |
|
Registration Date |
Sep. 21, 2014 |
March 28, 2010 |
March 28, 2010 |
|
Trademark Design |
|
|
|
SC is
known to have the following subsidiaries:
Shandong Jincheng Kerui Chemical Co., Ltd.
-------------------------------------------------------
Registered no.: 370300018517369
Legal representative: Guo Fangshui
Incorporation date: 2005-05-12
Shandong Huihai Pharmaceutical & Chemical Co., Ltd.
-------------------------------------------------------------------
Registered no.: 370503018053238
Legal representative: Zhang Zhongzheng
Incorporation date: 2005-10-17
Shandong
Jincheng Bio-pharmaceutical Co., Ltd.
-----------------------------------------------------------
Registered
no.: 370300000001063
Legal
representative: Zhao Yeqing
Incorporation date: 2009-06-04
Web:
http://www.jinchengbiopharm.com
Branch:
Shandong
Jincheng Pharmaceutical & Chemical Co., Ltd. Kunlun Branch
========================================
Registered
no.: 370300100006363
Principal: Zhang Xicheng
Incorporation date: 2012-06-20
Overall payment appraisal :
( ) Excellent (
) Good (X) No Complaints
( ) 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’s
suppliers declined 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.
SC’s management
declined to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As of Sep. 30, 2014 |
As of Dec. 31, 2013 |
|
Cash & bank |
345,457 |
351,703 |
|
Bills receivable |
26,558 |
60,900 |
|
Inventory |
138,474 |
107,480 |
|
Accounts
receivable |
247,321 |
276,764 |
|
Interest
receivable |
0 |
430 |
|
Advances to
suppliers |
14,891 |
8,080 |
|
Other
receivables |
1,512 |
2,985 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
--------------- |
|
Current assets |
774,213 |
808,342 |
|
Financial assets
available for sale |
4,800 |
0 |
|
Fixed assets net
value |
659,812 |
630,670 |
|
Projects under
construction |
48,552 |
27,707 |
|
Long-term
investment |
0 |
4,800 |
|
Intangible
assets |
99,382 |
77,751 |
|
Development
expenditure |
100 |
100 |
|
Goodwill |
4,075 |
0 |
|
Deferred tax
debit |
7,662 |
4,594 |
|
Other assets |
74,636 |
21,839 |
|
|
------------------ |
-------------- |
|
Total assets |
1,673,232 |
1,575,803 |
|
|
============= |
============ |
|
Short loans |
240,800 |
249,000 |
|
Bills payable |
15,100 |
9,858 |
|
Accounts payable |
158,897 |
178,849 |
|
Advances from
clients |
4,053 |
2,994 |
|
Accrued payroll |
38,339 |
29,788 |
|
Taxes payable |
8,112 |
3,024 |
|
Other payable |
15,834 |
9,245 |
|
Non-current
liabilities due within one year |
10,070 |
32,000 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------- |
|
Current
liabilities |
491,205 |
514,758 |
|
Long term
liabilities |
102,755 |
39,351 |
|
|
------------------ |
------------------- |
|
Total
liabilities |
593,960 |
554,109 |
|
Equities |
1,079,272 |
1,021,694 |
|
|
------------------ |
------------------- |
|
Total
liabilities & equities |
1,673,232 |
1,575,803 |
|
|
============= |
=========== |
Consolidated
Income Statement
Unit: CNY’000
|
|
Jan. 1 to Sep. 30, 2014 |
as
of Dec. 31, 2013 |
|
Turnover |
757,802 |
908,713 |
|
Cost of goods
sold |
496,204 |
626,645 |
|
Taxes
and additional of main operation |
5,438 |
6,065 |
|
Sales expense |
13,061 |
16,119 |
|
Management expense |
142,207 |
154,727 |
|
Finance expense |
8,294 |
16,531 |
|
Asset impairment loss |
-1,645 |
5,046 |
|
Non-operating
income |
3,765 |
4,815 |
|
Non-operating expense |
8,462 |
7,883 |
|
Profit before
tax |
89,546 |
80,512 |
|
Less: profit tax |
13,347 |
15,915 |
|
Profits |
76,199 |
64,597 |
Important Ratios
=============
|
|
As of Sep. 30, 2014 |
As of Dec. 31, 2013 |
|
*Current ratio |
1.58 |
1.57 |
|
*Quick ratio |
1.29 |
1.36 |
|
*Liabilities
to assets |
0.35 |
0.35 |
|
*Net profit
margin (%) |
10.06 |
7.11 |
|
*Return on
total assets (%) |
4.55 |
4.10 |
|
*Inventory
/Turnover ×365 |
/ |
44 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
112 days |
|
*Turnover/Total
assets |
0.45 |
0.58 |
|
* Cost of
goods sold/Turnover |
0.65 |
0.69 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover 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 average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears fairly large.
l
The short-term loan of SC appears average.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
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 large amount of accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.82 |
|
UK Pound |
1 |
Rs.93.85 |
|
Euro |
1 |
Rs.67.59 |
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.