MIRA INFORM REPORT
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Report No. : |
336121 |
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Report Date : |
12.08.2015 |
IDENTIFICATION DETAILS
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Name : |
shandong lukang
shelile pharmaceutical co., ltd. |
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Registered Office : |
No. 173 West Taibailou Road, Jining Shandong Province 272021 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
29.05.1993 |
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Com. Reg. No.: |
370800018011980 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is mainly engaged in Manufacturing and Selling of Veterinary
APIs. |
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No. of Employees : |
650 |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. 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; (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 2014 more than 274 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 passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
Name and Address
shandong lukang shelile pharmaceutical co.,
ltd.
no. 173 west taibailou road, jining
shandong province 272021 PR CHINA
TEL: 86 (0) 537-2887823/2985832/2985825
FAX: 86 (0) 537-2985916
EXECUTIVE
SUMMARY
Date of Registration : may 29, 1993
REGISTRATION NO. : 370800018011980
LEGAL FORM : One-person Limited
Liability Company
REGISTERED CAPITAL : cny 55,880,000
staff : 650
BUSINESS CATEGORY : manufacturing & trading
Revenue : CNY 655,123,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 150,950,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.43 = 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 one-person limited liability company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 370800018011980 on May 29, 1993.
SC’s Organization Code Certificate No.:
61359078-7
SC’s Tax No.: 370802613590787
SC’s registered capital: cny 55,880,000
SC’s paid-in capital: cny 55,880,000
Registration Change Record:-
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Date |
Change of Contents |
Before the change |
After the change |
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2009 |
Registered Capital |
CNY 50,000,000 |
cny 55,880,000 |
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2014-03-27 |
Legal Representative |
Gao Xiangyou |
Liu Songqiang |
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2015-05-22 |
Legal Representative |
Liu Songqiang |
Peng Xin |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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Shandong Lukang Pharmaceutical Co., Ltd. |
100 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative and Chairman |
Peng Xin |
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General Manager and Director |
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Director |
Zhu Yuandong |
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Zhang Jie |
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He Defeng |
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Supervisor |
Li Tao |
|
Shang Yanqiu |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Shandong Lukang Pharmaceutical Co., Ltd. 100
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Shandong Lukang Pharmaceutical Co., Ltd. is China's largest integrated
chemical and pharmaceutical companies, national important production base of
antibiotics. Lukang Pharmaceutical A shares (600789) shares in February
Date of Registration: February 15, 1993
Registration No.: 370000018009756
Legal Form: Shares Limited
Company
Registered Capital: CNY 581,575,475
Web: www.lkpc.com
MANAGEMENT
Peng Xin, Legal
Representative and Chairman
---------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
---------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general manager
Director
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Zhu Yuandong
Zhang Jie
He Defeng
Supervisor
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Li Tao
Shang Yanqiu
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing
active pharmaceutical ingredients, Non sterile APIs, and sterile APIs;
manufacturing animal with pre mixture, powder, and disinfectant (liquid) (the
above is limited to operate by SC’s branch); selling pharmaceutical
intermediates, chemical products, and feed additives; importing and exporting
commodities and technology.
SC is mainly
engaged in manufacturing and selling veterinary APIs.
SC’s products mainly include: veterinary
APIs.
SC sources its materials 100% from domestic market,
mainly Shandong SC sells 70% of its products in domestic market, and 30% to
overseas market, mainly Germany, Canada, India, etc.
The buying terms
of SC include 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. 650 staff at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
Related Companies,
Shandong
Lukang Pharmaceutical Group Co., Ltd.
Shandong
Lukang Biological Manufacturing Co., Ltd.
Heze
Lukang Shelile Pharmaceutical Co., Ltd.
Etc.
SC is known to have a
branch, as follows,
Shandong
Lukang Shelile Pharmaceutical Co., Ltd. Hi-tech Zone Branch
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
Bank
of Communications Jining Branch
AC#: N/a
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
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Total assets |
360,050 |
441,254 |
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------------- |
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Total
liabilities |
218,530 |
290,304 |
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Equities |
141,520 |
150,950 |
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------------- |
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Revenue |
570,501 |
655,123 |
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Profits |
696 |
9,430 |
Important Ratios
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As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
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*Liabilities
to assets |
0.61 |
0.66 |
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*Net profit
margin (%) |
0.12 |
1.44 |
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*Return on
total assets (%) |
0.19 |
2.14 |
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*Revenue /
Total assets |
1.58 |
1.48 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
LIQUIDITY: AVERAGE
l
SC’s revenue is in an average 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: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.64.76 |
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1 |
Rs.99.85 |
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Euro |
1 |
Rs.70.36 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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.