MIRA INFORM REPORT
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Report No. : |
355503 |
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Report Date : |
22.12.2015 |
IDENTIFICATION DETAILS
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Name : |
Zhejiang Guobang
Pharmaceutical Co., Ltd. |
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Registered Office : |
No. 6, Weiwu Road, Shangyu Industrial Park, Hangzhou Bay, Shangyu,
Zhejiang Province, 312369 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
06.08.2004 |
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Com. Reg. No.: |
330600400010566 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing animal powder drug/premix, peroral solution, non-sterile
bulk drugs (ciprofloxacin hydrochloride, enrofloxacin); bulk drugs
(doxifluridine, ciprofloxacin hydrochloride, azithromycin, roxithromycin,
clarithromycin, norfloxacin, ciprofloxacin lactate, simvastatin,
levamlodipine besylate) (pharmaceutical production license will expire on
December 24, 2019); manufacturing: Ethanol, methanol, hydrochloric acid,
methylene chloride, toluene (the safety production license will expire on
September 29, 2017); manufacturing: mercaptobenzothiazole, ammonium chloride,
imidazole, sodium chloride, sodium sulfite, potassium bromide, sodium
sulfate, paraffin oil, ammonium sulfate; selling its products. |
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No. of Employees : |
700 |
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
|
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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 also 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 & address
Zhejiang Guobang Pharmaceutical Co., Ltd.
NO. 6, WEIWU ROAD, SHANGYU INDUSTRIAL Park,
HANGZHOU bay, SHANGYU, zhejiang PROVINCE,
312369 PR CHINA
TEL: 86 (0) 575-82738579/82738278
FAX: 86 (0) 575-82738579
EXECUTIVE
SUMMARY
INCORPORATION DATE : august 6, 2004
REGISTRATION NO. : 330600400010566
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. qiu jiajun (CHAIRMAN)
STAFF STRENGTH :
700
REGISTERED CAPITAL : CNY 138,800,000
BUSINESS LINE :
manufacturing & Trading
TURNOVER :
CNY 1,217,780,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 593,210,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.4806 = 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 wholly foreign-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on august 6, 2004 and has been under present
legal form since 2009.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The investing parties are free
to agree on method of profit distribution and liabilities bearing according
to the proportion of capital investment. Each investing parties contributes
funds, tangible assets, technology & etc. The board of directors
excises the high authority. The joint venture usually has a limited
duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing animal powder
drug/premix, peroral solution, non-sterile bulk drugs (ciprofloxacin hydrochloride,
enrofloxacin); bulk drugs (doxifluridine, ciprofloxacin hydrochloride,
azithromycin, roxithromycin, clarithromycin, norfloxacin, ciprofloxacin
lactate, simvastatin, levamlodipine besylate) (pharmaceutical production
license will expire on December 24, 2019); manufacturing: Ethanol, methanol,
hydrochloric acid, methylene chloride, toluene (the safety production license
will expire on September 29, 2017); manufacturing: mercaptobenzothiazole,
ammonium chloride, imidazole, sodium chloride, sodium sulfite, potassium
bromide, sodium sulfate, paraffin oil, ammonium sulfate; selling its products.
SC is mainly engaged in manufacturing and selling API, chemical
intermediates and animal medicines.
Mr. Qiu Jiajun has been the legal representative, chairman and general
manager of SC since 2004.
SC is known to have approx. 700 employees at present.
Sc is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Shangyu. Our
checks reveal that SC owns the total premise but SC’s accountant refused to
release its gross area.
Note:
SC’s another office in Hangzhou is located in 12/F, Chaorenhui
Building, No. 3688 Jiangnan Road, Binjiang District, Hangzhou City,
Zhejiang
Tel.: 86 (0) 571-81396109/6108/6107/6106
Fax: 86 (0) 571-81396111
http://www.gbpharm.com The design is professional and the content
is well organized. At present it is both in Chinese and English versions.
E-mail: gb@gbpharm.com ; gbpharm_lff@gbpharm.com
SC has passed ISO9001:2000 quality system and ISO14001environment quality
system certification as a whole. All products are strictly manufactured
according to ICH Q7A standard and have passed domestic GMP certification.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2004-10-26 |
Registered Capital |
CNY 20,000,000 |
CNY 32,000,000 |
|
2004-12-17 |
Legal representative |
Zhang Qiong 张琼 |
Qiu Jiajun |
|
2005-9-14 |
Company Name |
Zhejiang Guobang Veterinary Drug
Co., Ltd. |
Zhejiang Guobang Pharmaceutical Co., Ltd. |
|
2005-12-23 |
Registered Capital |
CNY 32,000,000 |
CNY 80,800,000 |
|
2008-6-27 |
Registration No. |
003124 |
330600400010566 |
|
2009-5-8 |
Legal form |
Wholly foreign-owned enterprise |
Chinese-foreign equity joint venture enterprise |
|
Shareholders and % of shareholdings |
Yubang Investment Limited (B.V.I.) 100% |
Yubang Investment Limited (B.V.I.) 60% Guobang Pharmaceutical & Chemical Group Co., Ltd. 40% |
|
|
2010-12-13 |
Registered capital |
CNY 80,800,000 |
CNY 138,800,000 |
|
2011-6-29 |
Shareholders (shareholding) |
Yubang Investment Limited (B.V.I.) 60% Guobang Pharmaceutical & Chemical Group Co., Ltd. 40% |
Yubang Investment Limited (B.V.I.) 36%; Guobang Pharmaceutical & Chemical Group Co., Ltd. 40%； Antou Holding Co., Ltd. (in Chinese Pinyin) 24% |
|
2012-4-18 |
Shareholders (shareholding) |
Yubang Investment Limited (B.V.I.) 36%; Guobang Pharmaceutical & Chemical Group Co., Ltd. 40%； Antou Holding Co., Ltd. (in Chinese Pinyin) 24% |
Present ones |
Organization Code: 725889863
Credibility Code: 913306007258898636
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yubang Investment Limited (B.V.I.) 19.922
Guobang Pharmaceutical & Chemical Group Co., Ltd. 40
Antou Holding Co., Ltd. (in Chinese Pinyin)
40.078
Guobang Pharmaceutical & Chemical Group Co., Ltd.
=====================================
Legal representative: Qiu Jiajun
Registration No.: 330600400009418
Incorporation date: Mar. 29, 1996
Legal Representative, Chairman and General
Manager:
Mr. Qiu Jiajun,
born in 1965 with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2004 to present Working in
SC as legal representative, chairman and general manager;
Also working in Guobang Pharmaceutical & Chemical Group Co., Ltd.,
Hangzhou Guobang Enterprise Management Co., Ltd., Xinchang Hebao Bio-tech Co.,
Ltd., Zhejiang Dongying Pharmaceutical Co., Ltd., etc. as legal representative
Directors:
Gong Yuda
Zhu Mingxing
Mao Shifu
Zhu Yaqing ID# 33062419670106XXXX
Supervisor:
Gao Yuntai ID# 33062419510327XXXX
SC is mainly engaged in manufacturing and selling API, chemical
intermediates and animal medicines.
SC’s products mainly include: Azithromycin USP/Ph. Eur., Clarithromycin
USP/Ph. Eur., Roxithromycin Ph. Eur./CP,
Ciprofloxacin Hcl USP/Ph. Eur., Ciprofloxacin Base & Lactate, Enrofloxacin
Base & Hcl, Levofloxacin Hemihydrate & Hcl, Marbofloxacin, Danofloxacin
Mesylate, Diclazuril, Toltrazuril,
Cyromazine, Orbifloxacin, etc.
SC sources its materials 100% from domestic market. SC sells 43% of its
products in domestic market, and 57% to overseas market.
The buying terms of SC include Check, T/T 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:
============
Henan Topfond Pharmaceutical Co., Ltd.
*Major Customer:
=============
Shandong Kanghui Pharmaceutical Co., Ltd.
Hangzhou Guobang Enterprise Management Co., Ltd.
(Literal Translation)
========================================
Incorporation Date: 2012-05-31
Registered No.: 330108000099397
Legal Representative: Qiu Jiajun 邱家军
Xinchang Hebao Bio-tech Co., Ltd.
Incorporation Date: 1999-03-26
Registered No.: 330624000007648
Legal Representative: Qiu Jiajun
Credibility Code: 913306247045057603
Zhejiang Dongying Pharmaceutical Co., Ltd.
========================================
Incorporation Date: 2005-10-19
Registered No.: 330600400014325
Legal Representative: Qiu Jiajun
SC is known to invest in the following companies:
Zhejiang Huada Medicine R&D Co., Ltd. (Literal Translation)
========================================
Incorporation Date: 2002-06-05
Registered No.: 330682000010562
Legal Representative: Meng Zhongjian
Credibility Code: 91330604739927162M
Shangyu Lianxin Recycling
Materials Recovery Co., Ltd.
========================================
Incorporation Date: 2009-09-04
Registered No.: 330682000054740
Legal Representative: Lian Qiquan
Credibility Code: 9133060469385899XH
Overall payment appraisal:
( ) Excellent (
) Good (X) Average (
) 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 supplier
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.
Bank of China Shangyu Fine Chemical Industrial Park Sub-branch
AC#：371458338556
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2014 |
as of Dec. 31, 2013 |
|
Cash & bank |
120,820 |
150,630 |
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Short-term investment |
300 |
800 |
|
Notes receivable |
7,560 |
22,900 |
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Inventory |
265,080 |
156,940 |
|
Advances to suppliers |
30,200 |
39,440 |
|
Accounts receivable |
167,790 |
170,960 |
|
Other accounts receivable |
311,270 |
156,130 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
903,020 |
697,800 |
|
Fixed assets net value |
395,220 |
383,630 |
|
Projects under construction |
34,840 |
11,570 |
|
Long term investment |
13,230 |
13,230 |
|
Intangible assets |
33,720 |
34,430 |
|
Deferred assets |
440 |
720 |
|
|
------------------ |
------------------ |
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Total assets |
1,380,470 |
1,141,380 |
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|
============= |
============= |
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Short loans |
478,350 |
302,090 |
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Notes payable |
27,000 |
71,000 |
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Accounts payable |
239,840 |
170,430 |
|
Advances from customers |
4,930 |
6,430 |
|
Other accounts payable |
22,930 |
21,330 |
|
Accrued payroll |
0 |
4,740 |
|
Welfare payable |
4,740 |
0 |
|
Dividends payable |
9,190 |
9,190 |
|
Taxes payable |
-540 |
2,820 |
|
Other current liabilities |
820 |
640 |
|
|
------------------ |
------------------ |
|
Current liabilities |
787,260 |
588,670 |
|
Long term liabilities |
0 |
27,000 |
|
|
------------------ |
------------------ |
|
Total liabilities |
787,260 |
615,670 |
|
Equities |
593,210 |
525,710 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,380,470 |
1,141,380 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2014 |
as of Dec. 31, 2013 |
|
Turnover |
1,217,780 |
1,260,560 |
|
Cost of goods sold |
967,530 |
1,051,620 |
|
Tax and associate charge |
2,750 |
4,180 |
|
Sales expense |
22,790 |
22,410 |
|
Management expense |
118,870 |
107,230 |
|
Finance expense |
16,850 |
22,250 |
|
Investment income |
530 |
50 |
|
Other income |
550 |
1,890 |
|
Non-operating income |
3,100 |
5,610 |
|
Non-operating expense |
6,620 |
6,090 |
|
Profit before tax |
86,550 |
54,330 |
|
Less: profit tax |
21,590 |
8,140 |
|
Profits |
64,960 |
46,190 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
*Current ratio |
1.15 |
1.19 |
|
*Quick ratio |
0.81 |
0.92 |
|
*Liabilities to assets |
0.57 |
0.54 |
|
*Net profit margin (%) |
5.33 |
3.66 |
|
*Return on total assets (%) |
4.71 |
4.05 |
|
*Inventory /Turnover ×365 |
80 days |
45 days |
|
*Accounts receivable/Turnover ×365 |
51 days |
50 days |
|
*Turnover/Total assets |
0.88 |
1.10 |
|
* Cost of goods sold/Turnover |
0.79 |
0.83 |
PROFITABILITY:
AVERAGE
The turnover of SC appears good.
SC’s net profit margin is average in 2013, and fairly good in 2014.
SC’s return on total assets is average
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loan of SC appears fairly large.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The fairly large amount of short-term loan would be a threat to
SC’s financial conditions. Taking into consideration of SC’s background and
development history.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.32 |
|
|
1 |
Rs.98.98 |
|
Euro |
1 |
Rs.72.13 |
|
CNY |
1 |
Rs.10.24 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
|
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Report Prepared
by : |
TPT |
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.