MIRA
INFORM REPORT
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Report No. : |
306087 |
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Report Date : |
04.02.2015 |
IDENTIFICATION DETAILS
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Name : |
NENTER & CO.,
INC. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
31.05.2010 |
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Com. Reg. No.: |
421000000074403 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is
mainly engaged in researching, developing, manufacturing and selling
pharmaceutical intermediates and chemical pharmaceuticals. |
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No. of Employees : |
200 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 and expanded 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 2013 stood as the second-largest
economy in the world after the US, having surpassed Japan in 2001. The dollar
values of China's agricultural and industrial output each exceed those of the
US; China is second to the US in the value of services it produces. 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 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.
|
Source
: CIA |
Company Name and Address
NENTER & CO., INC.
no. 197 ORIENTAL
ROAD, HIGH-TECH DEVELOPMENT ZONE, JINGZHOU
HUBEI PROVINCE 434000
PR CHINA
TEL: 86 (0)
716-8303013/8303176/8303168/8303480
FAX: 86 (0)
716-8303480
EXECUTIVE SUMMARY
DATE OF REGISTRATION :
MAY 31, 2010
REGISTRATION NO. : 421000000074403
LEGAL FORM : One-person Limited Liability Company
REGISTERED CAPITAL : CNY
120,000,000
staff : 200
BUSINESS CATEGORY : r
& d & manufacturing & trading
Revenue : CNY 406,579,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 384,537,000 (AS OF DEC. 31, 2014)
WEBSITE : www.nenter.com.cn
E-MAIL : sales@nenter.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25 = 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.: 421000000074403.
SC’s Organization Code Certificate No.:
55394739-2
SC’s registered capital: CNY 120,000,000
SC’s paid-in capital: CNY 120,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2014-12-11 |
Legal Form |
Shares Limited Company |
Limited Liability Company |
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Company Name |
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|
2014-12-19 |
Legal Form |
Limited Liability Company |
One-Person Limited Liability Company |
|
-- |
Registered Capital |
CNY 75,000,000 |
CNY 120,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Fujian
Guanfu Modern Household Wares Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman, and General Manager |
Chen
Liequan |
|
Director |
Lin Wenchang |
|
Huang Hualun |
|
|
Zhang Ronghua |
|
|
Supervisor |
Xie Guolun |
RECENT DEVELOPMENT
SC has already passed ISO 9001:2008 quality system authentications.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Fujian Guanfu Modern Household Wares Co.,
Ltd. 100
=========================
Date of Registration: September 28, 2002
Registration No.: 350000100021905
Registered Capital: CNY 409,260,000
Web: www.guanfu.com
MANAGEMENT
Chen Liequan,
Legal Representative, Chairman, and General Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman,
and general manager
Director
-----------
Lin Wenchang
Huang Hualun
Zhang Ronghua
Supervisor
--------------
Xie Guolun
BUSINESS OPERATION
SC’s registered
business scope includes researching, developing, manufacturing and selling new
type of pharmaceutical intermediate not limited by the state; related technology
services and technology transfer; researching, developing, manufacturing and
selling other non-polluting chemical products; and international trade.
SC is mainly
engaged in researching, developing, manufacturing and selling pharmaceutical
intermediates and chemical pharmaceuticals.
SC’s products
mainly include: Montelukast Intermediates, Cresol Series, APIs, Chiral
compounds and others.
SC sources its materials 100% from the domestic market. SC sells 60% of
its merchandises in domestic market, and 40% to overseas market, mainly Southeast Asia, etc.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 200 staff at
present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
31,839 |
13,454 |
|
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Notes receivable |
4,522 |
31,924 |
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Accounts receivable |
61,380 |
115,733 |
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Advances to suppliers |
63,569 |
40,128 |
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Other receivable |
13,899 |
0 |
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Inventory |
46,527 |
68,521 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
247 |
356 |
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|
------------------ |
------------------ |
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Current assets |
221,983 |
270,116 |
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Fixed assets |
227,209 |
332,271 |
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Construction in progress |
45,264 |
6,188 |
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Intangible assets |
64,986 |
64,479 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
8,376 |
7,799 |
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Other non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
567,818 |
680,853 |
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|
============= |
============= |
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Short-term loans |
118,304 |
105,369 |
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Notes payable |
47,848 |
8,164 |
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Accounts payable |
79,486 |
42,038 |
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Wages payable |
5,156 |
3,199 |
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Taxes payable |
-24,318 |
2,102 |
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Advances from clients |
4,164 |
5,498 |
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Other payable |
3,141 |
20,443 |
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Other current liabilities |
4,273 |
16,273 |
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------------------ |
------------------ |
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Current liabilities |
238,054 |
203,086 |
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Non-current liabilities |
95,028 |
93,230 |
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------------------ |
------------------ |
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Total liabilities |
333,082 |
296,316 |
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Equities |
234,736 |
384,537 |
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------------------ |
------------------ |
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Total liabilities & equities |
567,818 |
680,853 |
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============= |
============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
217,120 |
406,579 |
|
Cost of sales |
133,559 |
232,177 |
|
Taxes and surcharges |
715 |
2,706 |
|
Sales expense |
4,881 |
5,052 |
|
Management expense |
16,915 |
30,249 |
|
Finance expense |
2,416 |
7,789 |
|
Non-business income |
11,887 |
19,235 |
|
Non-business expenditure |
600 |
200 |
|
Profit before tax |
61,791 |
145,316 |
|
Less: profit tax |
9,322 |
21,798 |
|
Profits |
52,469 |
123,518 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
0.93 |
1.33 |
|
*Quick ratio |
0.74 |
0.99 |
|
*Liabilities to assets |
0.59 |
0.44 |
|
*Net profit margin (%) |
24.17 |
30.38 |
|
*Return on total assets (%) |
9.24 |
18.14 |
|
*Inventory / Revenue ×365 |
79 days |
62 days |
|
*Accounts receivable/ Revenue ×365 |
104 days |
104 days |
|
*Revenue/Total assets |
0.38 |
0.60 |
|
*Cost of sales / Revenue |
0.62 |
0.57 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of sales is low, comparing with its
revenue.
LIQUIDITY: FAIR
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 large
l
The short-term loans of SC appear large.
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 average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable and short-term loans may be
a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.74 |
|
|
1 |
Rs.92.71 |
|
Euro |
1 |
Rs.69.94 |
INFORMATION DETAILS
|
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 |
|
|
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 |
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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.