MIRA
INFORM REPORT
|
Report No. : |
336953 |
|
Report Date : |
19.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG XIANJU
PHARMACEUTICAL CO., LTD. |
|
|
|
|
Registered Office : |
No. 1 Xianyao Road, Xianju County,
Taizhou Zhejiang Province 317300 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.03.2015 |
|
|
|
|
Date of Incorporation : |
26.06.2000 |
|
|
|
|
Com. Reg. No.: |
330000000001311 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and Selling of APIs and Pharmaceutical Preparation. |
|
|
|
|
No. of Employees : |
3,426 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limits : |
USD 10,000,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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 |
|
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; (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.
|
Source
: CIA |
Company Name and address
ZHEJIANG XIANJU PHARMACEUTICAL CO., LTD.
NO. 1 XIANYAO ROAD, XIANJU
COUNTY, TAIZHOU
ZHEJIANG PROVINCE 317300 PR CHINA
TEL: 86 (0) 576-87750168/87731178
FAX: 86 (0) 576-87731187
EXECUTIVE SUMMARY
Date of Registration : JUNE 26, 2000
REGISTRATION NO. : 330000000001311
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 512,100,000
staff : 3,426
BUSINESS CATEGORY : manufacturing & trading
REVENUE : CNY 561,637,000 (Consolidated, Jan. 1
to Mar. 31, 2015)
EQUITIES : CNY 1,240,032,000 (Consolidated, as of
Mar. 31, 2015)
WEBSITE : www.xjpharma.com
E-MAIL : online@xjpharma.com
PAYMENT : AVERAGE
Recommended Credit Limit : UP TO USD 10,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.40 = 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 shares limited company of PRC
with State Administration of Industry & Commerce (SAIC) under registration
No.: 330000000001311.
SC’s Organization Code Certificate No.: 70478922-2
SC’s Tax No.: 331024704789222
SC’s registered capital: CNY 512,100,000
SC’s paid-in capital: CNY 512,100,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2001 |
Company Name |
Xianju Pharmaceutical Co., Ltd. |
Zhejiang Xianju Pharmaceutical
Co., Ltd. |
|
Legal Form |
Limited Liability Company |
Shares Limited
Company |
|
|
2007-07-12 |
Registration No. |
3300001008383 |
330000000001311 |
|
2010-03-02 |
Registered Capital |
CNY 256,000,000 |
CNY 341,400,000 |
|
2014-05-14 |
Registered Capital |
CNY 341,400,000 |
CNY 512,100,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of March 31, 2015) |
% of Shareholding |
|
Xianju County State-Owned Asset Investment Group Co., Ltd. |
21.55 |
|
Jin Jingde |
8.65 |
|
Zhejiang Medicine Co., Ltd. |
5.97 |
|
New China Life Insurance Company Limited – Dividend - Individual Dividend |
2.47 |
|
Bank of China Co., Ltd.-E-Fund Health Care Industry Securities
Investment Fund |
1.51 |
|
China Life Insurance Company Limited-Wanneng-Guoshou Ruian |
1.28 |
|
Zhang Nan |
1.21 |
|
Lu Huanxing |
1.12 |
|
China Construction Bank Co., Ltd.- Bank of Communications Schroder
Sound Configuration Hybrid Securities Investment Fund |
1.11 |
|
Yang Ying |
1.08 |
|
Other Shareholders |
54.05 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Jin Jingde |
|
General Manager |
Zhang Yusong |
|
Deputy General Manager |
Ying Minghua |
|
Chen Jie |
|
|
Xu Zhun |
|
|
Liu Xuanting |
|
|
Yin Yuanyuan |
|
|
Independent Director |
Zhu Baoquan |
|
Shao Yiping |
|
|
Fu Dingsheng |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002332.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of March 31, 2015)
----------------------------------
Xianju County State-Owned Asset Investment Group
Co., Ltd. 21.55
Jin Jingde 8.65
Zhejiang Medicine Co., Ltd. 5.97
New China Life Insurance Company Limited –
Dividend - Individual Dividend
Bank of China Co., Ltd.-E-Fund Health Care
Industry Securities Investment
Fund 1.51
China Life Insurance Company
Limited-Wanneng-Guoshou Ruian 1.28
Zhang Nan 1.21
Lu Huanxing 1.12
China Construction Bank Co., Ltd.- Bank of
Communications Schroder
Sound Configuration Hybrid Securities
Investment Fund 1.11
Yang Ying 1.08
Other Shareholders 54.05
n Xianju County
State-Owned Asset Investment Group Co., Ltd.
---------------------------------------------------------------------------------
Registration No.: 331024000015429
Registered Capital: CNY 200,000,000
Legal Representative: Jin Wei
n Zhejiang Medicine
Co., Ltd.
---------------------------------------
Combined by former Zhejiang Xinchang
Pharmaceutical Co., Ltd., Zhejiang Xianju Pharmaceutical Co., Ltd., and
Zhejiang Medical and Pharmaceutical Co., Ltd., Zhejiang Medicine Co., Ltd. was
founded on May 16, 1997, approved by China's Securities Supervision Commission,
The corporation issued 58 million RMB ordinary shares in August, 1999. In
October, the corporation's shares went public in Shanghai Stock Market.
Registration No.: 330000000048605
Registered Capital: CNY 936,108,000
Legal Representative: Li Chunbo
Web: www.china-zmc.com
Add: 268 Dengyun Road, Gongshu District, Hangzhou,
Zhejiang
Tel: (+86)-571-87220660
Fax: (+86)-571-87213793
MANAGEMENT
Jin Jingde, Legal
Representative and Chairman
-------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 332624481002001
Ø
Age: 67
Ø Qualification: University
Ø Working experience
(s):
Ø
Mr. Jin Jingde was the representative of the
8th National People’s Congress and the senior engineer. Having injected
significant vigor and vitality into the company’s development and prosperity, he
has been conferred numerous glorious titles including “May
At present, working in SC as legal
representative and chairman
Also working in Zhejiang Tiantai Pharmaceutical
Co., Ltd., Shanghai Sanhe Biotechnology Co., Ltd., Hangzhou Nengke Love Medical
Technology Co., Ltd., Beijing Xianju Kechuang Gene Technology Co., Ltd. as
legal representative
Zhang Yusong,
General Manager
-------------------------------------------------------
Ø
Gender: M
Ø
ID# 330624700427001
Ø
Age: 45
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general manager
Deputy
General Manager
---------------------------------
Ying Minghua
Chen Jie
Xu Zhun
Liu Xuanting
Yin Yuanyuan
Independent
Director
----------------------------
Zhu Baoquan
Shao Yiping
Fu Dingsheng
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing medicine and pharmaceutical intermediates,
selling hardware, chemicals and packing materials; technology services,
installing equipment; importing and exporting business.
SC is mainly
engaged in manufacturing and selling APIs and pharmaceutical preparation.
SC’s products mainly include: corticoid, Androgen, Estradiol Benzate,
Medroxy Progesterone Acetate, Progesterone, Freeze-drying injection,
Dexamethasone Acetate, and Small capacity injection, etc. SC maintains an
annual production scale of 100 tons of raw material, 100 million capsules and
30 million Aqua injections.
SC sources its materials 90% from domestic
market, and 10% from overseas market, mainly U.S.A. and Europe. SC sells 70% of
its products in domestic market, and 30% to overseas market, mainly Southeast
Asia, etc.
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 Suppliers*
--------------------
Zhejiang Tiantai Pharmaceutical Co., Ltd.
Taizhou Xianju Pharmaceutical Co., Ltd.
*Major Customers*
----------------------
Hainan Huiyinbi Pharmaceutical Co., Ltd.
Tianjin Tianmao Technology Development Corp., Ltd.
Nanjing Su-kang Pharmaceutical Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 3,426 staff
at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
Branch,
----------
Zhejiang Xianju
Pharmaceutical Co., Ltd. Shengnuo Branch
Principal: Wang Junzheng
Incorporation date: July
26, 2007
Registration No.:
331024000000664
SC is known to
invest in the following companies.
----------------------------------------------
Zhejiang Xianju International
Co., Ltd.
Zhejiang Xianju Pharmaceutical
Sales Co., Ltd.
Zhejiang Xianju Pharmaceutical
Technology Development Co., Ltd.
Hangzhou Nengke Love Medical
Technology Co., Ltd.
Taizhou Haisheng Chemicals
Co., Ltd.
Zhejiang Tiantai
Pharmaceutical Co., Ltd.
Zhejiang Xianju Sunshine
Biological Products Co., Ltd.
Shanghai Sanhe Biotechnology
Co., Ltd.
Taizhou Xianju Pharmaceutical
Co., Ltd.
Beijing Xianju Kechuang Gene
Technology 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’s supplier
declined to make any commends.
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
Industrial & Commercial Bank of China Xianju Sub-branch
AC#:
1207051109021018877
Bank of China
Xianju Sub-branch
AC#: 11044608093001
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
As
of Mar. 31, 2015 |
|
290,099 |
305,044 |
229,371 |
|
|
Trading
financial assets |
0 |
0 |
0 |
|
Accounts
receivable |
310,542 |
358,664 |
540,299 |
|
Notes receivable |
236,567 |
334,643 |
229,237 |
|
Advances to
suppliers |
26,466 |
31,198 |
59,852 |
|
Dividends
receivable |
4,800 |
10,852 |
10,852 |
|
Other receivable |
23,244 |
32,675 |
46,527 |
|
Inventory |
508,772 |
386,929 |
390,304 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
340 |
1,772 |
156 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
1,400,830 |
1,461,777 |
1,506,598 |
|
Long-term
investments |
125,636 |
117,344 |
120,262 |
|
Financial assets
available for sale |
0 |
8,809 |
8,809 |
|
Real estate investment |
25,329 |
24,493 |
27,271 |
|
Fixed assets |
944,167 |
1,011,394 |
987,652 |
|
Construction in
progress |
146,911 |
60,638 |
78,750 |
|
Project
materials |
2,443 |
1,721 |
271 |
|
Fixed assets in
liquidation |
0 |
0 |
0 |
|
Intangible
assets |
93,736 |
95,951 |
95,387 |
|
Long-term
deferred expense |
5,837 |
10,647 |
10,754 |
|
Deferred income
tax assets |
8,893 |
9,783 |
11,526 |
|
Other
non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
2,753,782 |
2,802,557 |
2,847,280 |
|
|
============= |
============= |
============= |
|
Short-term loans |
652,742 |
750,411 |
778,261 |
|
Transaction
financial liabilities |
0 |
0 |
0 |
|
Notes payable |
36,260 |
10,000 |
22,070 |
|
Accounts payable |
317,063 |
231,505 |
235,264 |
|
Payroll payable |
11,170 |
17,126 |
12,417 |
|
Taxes payable |
33,067 |
59,131 |
45,785 |
|
Interest payable |
2,986 |
1,943 |
1,911 |
|
Dividends
payable |
133 |
244 |
245 |
|
Advances from
clients |
32,113 |
14,453 |
17,710 |
|
Other payable |
46,701 |
96,378 |
93,764 |
|
Non-current
liabilities maturing within one year |
0 |
18,500 |
38,500 |
|
Other current
liabilities |
207,905 |
203,431 |
206,379 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
1,340,140 |
1,403,122 |
1,452,306 |
|
Non-current
liabilities |
231,621 |
171,491 |
154,942 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
1,571,761 |
1,574,613 |
1,607,248 |
|
Equities |
1,182,021 |
1,224,944 |
1,240,032 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
2,753,782 |
2,802,557 |
2,847,280 |
|
|
============= |
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As
of Dec. 31, 2014 |
Jan. 1 to Mar. 31, 2015 |
|
Revenue |
2,315,041 |
2,470,533 |
561,637 |
|
Cost of sales |
1,517,510 |
1,515,271 |
338,825 |
|
Business Taxes and Surcharges |
13,164 |
18,458 |
4,031 |
|
Sales expense |
435,525 |
550,980 |
108,908 |
|
Management expense |
223,072 |
247,636 |
72,067 |
|
Finance expense |
59,164 |
64,770 |
15,274 |
|
Asset impairment loss |
10,577 |
14,278 |
9,477 |
|
Investment
income |
14,174 |
9,968 |
3,218 |
|
Non-operating income |
7,503 |
13,095 |
1,117 |
|
Non-operating expense |
7,616 |
9,026 |
1,446 |
|
Profit before
tax |
70,089 |
73,177 |
15,943 |
|
Less: profit tax |
19,479 |
24,359 |
3,823 |
|
50,610 |
48,818 |
12,120 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As of Dec. 31, 2014 |
As
of Mar. 31, 2015 |
|
*Current ratio |
1.05 |
1.04 |
1.04 |
|
*Quick ratio |
0.67 |
0.77 |
0.77 |
|
*Liabilities
to assets |
0.57 |
0.56 |
0.56 |
|
*Net profit
margin (%) |
2.19 |
1.98 |
2.16 |
|
*Return on total
assets (%) |
1.84 |
1.74 |
0.43 |
|
*Inventory /
Revenue ×365/90 |
81 days |
58 days |
63 days |
|
*Accounts
receivable / Revenue ×365/90 |
49 days |
53 days |
87 days |
|
*Revenue /
Total assets |
0.84 |
0.88 |
0.20 |
|
*Cost of sales
/ Revenue |
0.66 |
0.61 |
0.60 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
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.
l
SC’s cost of goods sold 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 fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear average.
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 low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. Taking into consideration of SC’s general performance, reputation
as well as market conditions, a credit line up to USD 10,000,000 would appear
to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.22 |
|
|
1 |
Rs.102.23 |
|
Euro |
1 |
Rs.72.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.