MIRA INFORM REPORT

 

 

Report No. :

306789

Report Date :

10.02.2015

           

IDENTIFICATION DETAILS

 

Name :

ZHEJIANG GENEBEST PHARMACEUTICAL CO., LTD.

 

 

Registered Office :

No. 1 Jinboshi Road, Lishan Town, Fuyang,  Zhejiang Province, 311418 Pr

 

 

Country :

China

 

 

Financial As on :

31.12.2014

 

 

Date of Incorporation :

20.09.2000

 

 

Com. Reg. No.:

330183000029664

 

 

Legal Form :

Limited Liabilities Co.

 

 

Line of Business :

Subject is engaged in manufacturing and sales of pharmaceutical products.

 

 

No. of Employee :               

84

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

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)

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 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

 

Zhejiang Genebest Pharmaceutical Co., Ltd.

 

NO. 1 JINBOSHI ROAD, LISHAN TOWN, FUYANG,

ZHEJIANG PROVINCE, 311418 PR CHINA

TEL: 86 (0) 571-58982509    

FAX: 86 (0) 571-63532801

 

 

EXECUTIVE SUMMARY

 

INCORPORATION DATE                        : SEP. 20, 2000

REGISTRATION NO.                              : 330183000029664

REGISTERED LEGAL FORM                 : Limited liabilities co.

CHIEF EXECUTIVE                                : Mr. SONG MIAOGEN (legal representative)

STAFF STRENGTH                                : 84

REGISTERED CAPITAL             : CNY 15,000,000

BUSINESS LINE                                    : TRADING AND MANUFACTURING

TURNOVER                                          : CNY 32,200,000 (UNAUDITED, AS OF DEC. 31, 2014)

EQUITIES                                             : CNY 19,330,000 (UNAUDITED, AS OF DEC. 31, 2014)

PAYMENT                                            : AVERAGE

MARKET CONDITION                            : AVERAGE

FINANCIAL CONDITION                         : fairly STABLE

OPERATIONAL TREND             : FAIRLY steady

GENERAL REPUTATION                       : AVERAGE

EXCHANGE RATE                                : CNY 6.2423 = 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

 

 

HISTORY

 

SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Sep. 20, 2000.


 

Company Status: Limited liabilities co.

This form of business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered capital jointly. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to extent of its total assets. The characteristics of this form of co. are as follows:

Upon the establishment of the co., an investment certificate is issued to the each of shareholders.

The board of directors is comprised of three to thirteen members.

The minimum registered capital for a co. is CNY 30,000.

Shareholders may take their capital contributions in cash or by means of tangible assets or intangible assets such as industrial property and non-patented technology.

Cash contributed by all shareholders must account for at least 30% of the registered capital.

Existing shareholders have pre-exemption right to purchase shares of the co. offered for sale by the other shareholders and to subscribe for the newly increased registered capital of the co.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SC’s registered business scope includes manufacture of tartaric acid, food additive (tartaric acid), sodium azide, fluconazole intermediates, praziquantel intermediates, three methyl sulfonyl iodine (excluding dangerous and precursor chemicals). Wholesale and retail of chemicals (excluding dangerous and precursor chemicals); import and export of goods (excluding those prohibited by the law; if needed with permit).

 

SC is mainly engaged in manufacturing and sales of pharmaceutical products.

 

Mr. Song Miaogen is legal representative, executive director and general manager of SC at present.

 

SC is known to have approx. 84 employees at present.

 

SC is currently operating at the above stated address, and this address houses its operating office and factory in Fuyang. Detailed premise information is not available at present.

 

WEB SITE

 

http://www.genebest.com/ The design is professional and the content is well organized. At present it is in English and Chinese versions.

 

Email: sales@genebest.com; genebest@163.com

 

 

LITIGATION

 

For the past two years there is no record of litigation.

 

 

KEY EVENTS/RECENT DEVELOPMENT

 

Changes of its registered information are as follows:

Date of change

Item

Before the change

After the change

2003-12-18

Registered capital

CNY 500,000

CNY 2,000,000

2004-5-17

Registered capital

CNY 2,000,000

CNY 3,000,000

2004-7-14

Registered capital

CNY 3,000,000

CNY 4,500,000

2004-9-3

Registered capital

CNY 4,500,000

CNY 5,500,000

2008-8-29

Registered capital

CNY 5,500,000

CNY 7,000,000

2008-11-27

Registered capital

CNY 7,000,000

CNY 10,000,000

2009-3-6

Company’s name

Fuyang Genebest Chemicals Co., Ltd. 富阳金伯士化工有限公司

Present one

2010-3-29

Registered capital

CNY 10,000,000

 

Organization Code: 724544775

 

 

OWNERSHIP/MANAGEMENT

 

MAIN SHAREHOLDERS:

 

Name                                                  % of Shareholding

 

Song Miaogen                                               80

 

Wang Jinjuan                                                 20

 

 

MANAGEMENT

 

l  Legal Representative, executive director and general manager:

 

Mr. Song Miaogen is currently responsible for the overall and daily management of SC.

 

Working Experience(s):

 

At present                     Working in SC as legal representative, executive director and general manager.

 

l  Supervisor:

 

Zhang Jianguo

 

 

 

BUSINESS OPERATIONS

 

SC is mainly engaged in manufacturing and sales of pharmaceutical products.

 

SC’s products mainly include: Tartaric acid series, APIs & intermediates and Pilot test products.

 

SC sources its materials 90% from domestic market, and 10% from overseas market. SC sells 90% of its products in domestic market, and 10% to overseas market.

 

 

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.

 

Note: SC declined to release its major suppliers and clients.

 

 

RELATED COMPANIES

 

SC is not known to have the subsidiary at present.

 

 

PAYMENT

 

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 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

 

SC’s accountant refused to release the bank details.

 

 

 

FINANCIAL HIGHLIGHTS

 

Balance Sheet (Unaudited)

Unit: CNY’000

As of Dec. 31, 2014

Cash & bank

1,400

Inventory

6,870

Accounts receivable

5,780

Note receivable

560

Advances to suppliers

110

Other receivables

11,140

 

------------------

Current assets

25,860

Fixed assets net value

16,060

Projects under construction

440

Intangible and other assets

3,260

 

------------------

Total assets

45,620

 

===========

Short loan

24,400

Accounts payable

1,790

Taxes payable

130

Other accounts payable

-30

 

------------------

Current liabilities

26,290

Long term liabilities

0

 

------------------

Total liabilities

26,290

Equities

19,330

 

------------------

Total liabilities & equities

45,620

 

===========

 

Income Statement (Unaudited)

Unit: CNY’000

As of Dec. 31, 2014

Turnover

32,200

Cost of goods sold

24,880

     Taxes and additional of main operation

340

     Sales expense

1,500

     Management expense

7,040

     Finance expense

700

Non-operating income

560

Non-operating expense

130

Profit before tax

-1,830

Less: profit tax

80

Profits

-1,910

 

Important Ratios

=============

 

As of Dec. 31, 2014

*Current ratio

 0.98

*Quick ratio

 0.72

*Liabilities to assets

 0.58

*Net profit margin (%)

-5.93

*Return on total assets (%)

-4.19

*Inventory /Turnover ×365

 78 days

*Accounts receivable/Turnover ×365

 66 days

*Turnover/Total assets

 0.71

* Cost of goods sold/Turnover

 0.77

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIR

l  The turnover of SC appears average in its line.

l  SC’s net profit margin is fair.

l  SC’s return on total assets is fair.

l  SC’s cost of goods sold is average.

 

LIQUIDITY: FAIR

l  The current ratio of SC is maintained in a fair 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 is maintained in an average level.

l  SC’s short loans are large in 2014.

l  SC’s turnover 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.

 

 

REMARKS

 

SC is considered small-sized in its line with fairly stable financial conditions. The large amount of short loans could be a threat to SC’s financial situation.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.94.79

Euro

1

Rs.70.38

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.