MIRA
INFORM REPORT
|
Report No. : |
336797 |
|
Report Date : |
17.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG GUOBANG PHARMACEUTICAL CO., LTD. |
|
|
|
|
Registered Office : |
No. 77 Xinghai Street, Advanced Manufacturing Industrial Park
Binhai Economic Development Zone Weifang, Shandong Province 261000 Pr |
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Country : |
China |
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|
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
13.12.2006 |
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Com. Reg. No.: |
370700228073580 |
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Legal Form : |
Shares Limited Company |
|
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Line of Business : |
Subject is engaged in manufacturing and selling potassium borohydride,
sodium borohydride, 60% oil sodium hydride, N,N'-Dimethylpiperazine, Sodium hydroxide,
29% sodium methoxide, and hydrochloric acid; manufacturing and selling
florfenicol, cyclopropylamine, n-methyl piperazine, n-ethyl piperazine,
thiamphenicol, cyromazine, d-p methyl sulfino phenyl ethyl serinate , calcium
tartrate, ammonium sulfite, sodium sulfite and sodium chloride; importing and
exporting goods and technology |
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|
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No. of Employee : |
670 |
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 |
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|
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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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
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; 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
SHANDONG GUOBANG PHARMACEUTICAL
CO., LTD.
NO. 77 XINGHAI STREET, ADVANCED MANUFACTURING
INDUSTRIAL PARK BINHAI ECONOMIC DEVELOPMENT ZONE
WEIFANG, SHANDONG PROVINCE 261000 PR CHINA
TEL: 86 (0) 536-7573288/7573999/7575826/7575816
FAX: 86 (0) 536-7573288
EXECUTIVE SUMMARY
Date of Registration : december 13, 2006
REGISTRATION NO. : 370700228073580
LEGAL FORM : Shares limited company
REGISTERED CAPITAL : cny 104,730,000
staff :
670
BUSINESS CATEGORY : manufacturing &
TRADING
Revenue :
CNY 682,646,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 365,721,000 (AS OF DEC. 31, 2014)
WEBSITE : www.sdgbpharm.com
E-MAIL :
gb@sdgbpharm.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE :
CNY 6.20 = 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 shares limited company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 370700228073580 on december 13, 2006.
SC’s Organization Code Certificate No.:
79619661-8
SC’s Tax No.: 370783796196618
SC’s registered capital: CNY 104,730,000
SC’s paid-in capital: CNY 104,730,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2013 |
Registered Capital |
cny 78,000,000 |
CNY 104,730,000 |
|
Shareholder (s) (% of Shareholding) |
Guobang Pharmaceutical Chemical Group Co.,
Ltd. 51.28% Gong Yuda 15.58% Zhu Yaqing 13.34% Qiu Jiajun 14.74% Jin Biao 5.06 |
Guobang Pharmaceutical Chemical Group Co.,
Ltd. 44.30% Gong Yuda 13.45% Zhu Yaqing 11.53% Qiu Jiajun 12.74% Jin Biao 4.37% Liao Shixue 13.61% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Guobang Pharmaceutical Chemical Group Co.,
Ltd. |
44.30 |
|
Gong Yuda |
13.45 |
|
Zhu Yaqing |
11.53 |
|
Qiu Jiajun |
12.74 |
|
Jin Biao |
4.37 |
|
Liao Shixue |
13.61 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Zhu Yaqing |
|
General Manager and Director |
Liao Shixue |
|
Directors |
Gong Yuda |
|
Qiu Jiajun |
|
|
Wang Jinhui |
|
|
Supervisor |
Zhou Hongliang |
|
Lv Yimin |
|
|
Song Xuefeng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Guobang Pharmaceutical Chemical Group Co.,
Ltd. 44.30
Gong Yuda 13.45
Zhu Yaqing 11.53
Qiu Jiajun 12.74
Jin Biao 4.37
Liao Shixue 13.61
l Guobang
Pharmaceutical Chemical Group Co., Ltd.
--------------------------------------------------------------------
Date of Registration: March 29, 1996
Registration No.: 330600400009418
Legal Form: Chinese-foreign
Equity Joint Venture Enterprise
Registered Capital: USD 9,295,900
Address: No.2-12 Dongchang West Road,
Chengguan Town, Xinchang County, Shaoxing City, Zhejiang Province
Tel: 86 (0) 575-86124548
MANAGEMENT
Zhu Yaqing , Legal
Representative and Chairman
---------------------------------------------------------------------------
Ø Gender: M
Ø Age: 48
Ø ID#
330624196701060012
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Also as director in Zhejiang Guobang
Pharmaceutical Co., Ltd., working in Xinchang Guobang Enterprise Management
Co., Ltd., and Xinchang Guobang Import and Export Co., Ltd. as legal
representative
Liao
Shixue , General Manager and Director
--------------------------------------------------------------------
Ø Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general
manager and director
Also working in Shandong Zhijiang
Bio-tech Co., Ltd. as legal representative
Director
-----------
Gong Yuda
ID#
330623196807165414
(Working in Xinchang Guobang Financial
Management Consulting Co., Ltd. as legal representative)
Qiu Jiajun
ID# 320106196505012054
(Working in Zhejiang Guobang Pharmaceutical
Co., Ltd. and Xinchang Hebao Biotechnology Co., Ltd. as legal representative)
Wang Jinhui
Supervisor
-------------
Zhou Hongliang
Lv Yimin
Song Xuefeng
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling potassium borohydride, sodium borohydride, 60% oil sodium hydride,
N,N'-Dimethylpiperazine, Sodium hydroxide, 29% sodium methoxide, and
hydrochloric acid; manufacturing and selling florfenicol, cyclopropylamine,
n-methyl piperazine, n-ethyl piperazine, thiamphenicol, cyromazine, d-p methyl
sulfino phenyl ethyl serinate , calcium tartrate, ammonium sulfite, sodium
sulfite and sodium chloride; importing and exporting goods and technology.
SC is mainly
engaged in manufacturing and selling pharmaceutical raw materials,
pharmaceutical intermediates, and chemical products.
Brand: 
SC’s products
mainly include: cyclopropylamine, potassium borohydride, sodium borohydride,
sodium hydride.
SC sources its materials 100% from domestic
market, mainly Shandong. SC sells 65% of its products in domestic market, and
35% to overseas 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.
Staff & Office:
--------------------------
SC is known
to have approx. 670 staff at
present.
SC owns an area as
its operating office & factory of approx. 20,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have the
following subsidiaries, as follows,
-------------------------------------------------------------------------
u
Weifang Baolesheng Trade Co., Ltd.
u
Shandong Zhijiang Bio-tech Co., Ltd.
Related Companies:
-------------------------
u
Zhejiang Guobang Pharmaceutical Co., Ltd.
u
Xinchang Hebao Biotechnology Co., Ltd.
u
Xinchang Guobang Import and Export Co., Ltd.
u
Xinchang Guobang Financial Management Consulting Co., Ltd.
u
Xinchang Guobang Enterprise Management Co., Ltd.
Etc.
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
Basic Bank:
Bank
of China Weifang Branch
AC#: 216902187603
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
12,590 |
19,360 |
24,910 |
55,485 |
77,746 |
|
|
Accounts
receivable |
19,070 |
51,980 |
74,880 |
106,461 |
84,514 |
|
Other receivable |
680 |
3,540 |
38,570 |
666 |
872 |
|
Inventory |
42,530 |
68,420 |
77,110 |
94,917 |
153,982 |
|
Non-current
assets within one year |
0 |
0 |
0 |
0 |
0 |
|
Other current
assets |
12,120 |
18,480 |
15,930 |
20,235 |
28,652 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Current assets |
86,990 |
161,780 |
231,400 |
277,764 |
345,766 |
|
Fixed assets |
101,440 |
120,300 |
136,760 |
175,225 |
226,365 |
|
Construction in
progress |
29,530 |
26,510 |
30,920 |
28,588 |
14,081 |
|
Long-term
investment |
1,000 |
1,000 |
8,500 |
11,000 |
1,000 |
|
Other
non-current assets |
10,680 |
9,710 |
8,880 |
10,488 |
14,365 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Total assets |
229,640 |
319,300 |
416,460 |
503,065 |
601,577 |
|
|
========== |
=========== |
=========== |
=========== |
=========== |
|
Short-term loans |
30,000 |
65,000 |
90,000 |
45,648 |
21,935 |
|
Accounts payable |
13,970 |
41,950 |
89,920 |
167,733 |
191,695 |
|
Wages payable |
0 |
0 |
0 |
0 |
0 |
|
Taxes payable |
0 |
0 |
9,160 |
8,465 |
18,948 |
|
Advances from
clients |
0 |
0 |
0 |
0 |
0 |
|
Other payable |
25,920 |
34,180 |
4,230 |
707 |
3,257 |
|
Other current liabilities |
8,360 |
5,880 |
2,010 |
4,018 |
21 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
78,250 |
147,010 |
195,320 |
226,571 |
235,856 |
|
Non-current
liabilities |
46,500 |
26,510 |
10,000 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
124,750 |
173,520 |
205,320 |
226,571 |
235,856 |
|
Equities |
104,890 |
145,780 |
211,140 |
276,494 |
365,721 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
229,640 |
319,300 |
416,460 |
503,065 |
601,577 |
|
|
========== |
=========== |
=========== |
=========== |
=========== |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Revenue |
240,810 |
439,190 |
511,560 |
574,759 |
682,646 |
|
Cost of sales |
188,120 |
329,750 |
374,970 |
408,678 |
412,579 |
|
Sales expense |
5,540 |
8,410 |
10,940 |
13,564 |
24,333 |
|
Management expense |
13,960 |
38,850 |
27,330 |
70,832 |
80,652 |
|
Finance expense |
3,090 |
5,750 |
7,490 |
6,819 |
11,614 |
|
Profit before
tax |
29,530 |
54,580 |
82,990 |
72,076 |
136,544 |
|
Less: profit tax |
7,480 |
13,650 |
21,020 |
18,019 |
34,136 |
|
22,050 |
40,930 |
61,970 |
54,057 |
102,408 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.11 |
1.10 |
1.18 |
1.23 |
1.47 |
|
*Quick ratio |
0.57 |
0.64 |
0.79 |
0.81 |
0.81 |
|
*Liabilities
to assets |
0.54 |
0.54 |
0.49 |
0.45 |
0.39 |
|
*Net profit
margin (%) |
9.16 |
9.32 |
12.11 |
9.41 |
15.00 |
|
*Return on
total assets (%) |
9.60 |
12.82 |
14.88 |
10.75 |
17.02 |
|
*Inventory /
Revenue ×365 |
65 days |
57 days |
56 days |
61 days |
83 days |
|
*Accounts
receivable/ Revenue ×365 |
29 days |
44 days |
54 days |
68 days |
46 days |
|
*Revenue /
Total assets |
1.05 |
1.38 |
1.23 |
1.14 |
1.13 |
|
*Cost of sales
/ Revenue |
0.78 |
0.75 |
0.73 |
0.71 |
0.60 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC appears
fairly good in its line, and it increased year by year.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is average, comparing with its
revenue.
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 is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loan of SC appears 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 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.64.92 |
|
|
1 |
Rs.101.44 |
|
Euro |
1 |
Rs.72.26 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIT |
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.