MIRA INFORM REPORT

 

 

Report No. :

307046

Report Date :

12.02.2015

 

IDENTIFICATION DETAILS

 

Name :

SHIJIAZHUANG LONZEAL PHARMACEUTICALS CO., LTD.

 

 

Registered Office :

No. 16, West Ring Road, Shenze County, Shijiazhuang, Hebei Province, 052560 Pr

 

 

Country :

China

 

 

Date of Incorporation :

30.12.2006

 

 

Com. Reg. No.:

130128000000119

 

 

Legal Form :

Limited Liabilities Company

 

 

Line of Business :

Subject is engaged in researching, developing and producing pharmaceutical intermediates and APIs.

 

 

No. of Employee :

260

 

 

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

 

 

Payment Behaviour :

No complaints

 

 

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

 

SHIJIAZHUANG LONZEAL PHARMACEUTICALS CO., LTD.

 

NO. 16, WEST RING ROAD, SHENZE COUNTY, SHIJIAZHUANG,

HEBEI PROVINCE, 052560 PR CHINA

TEL: 86 (0) 311-87512089           FAX: 86 (0) 311-83571266

 

 

EXECUTIVE SUMMARY

 

INCORPORATION DATE            : DEC. 30, 2006

REGISTRATION NO.                  : 130128000000119

REGISTERED LEGAL FORM     : LIMITED LIABILITIES CO.

CHIEF EXECUTIVE                    : MR. WANG LIXIN (CHAIRMAN)

STAFF STRENGTH                    : 260

REGISTERED CAPITAL : CNY 80,000,000

BUSINESS LINE                        : R&D, MANUFACTURING

TURNOVER                              : N/A

EQUITIES                                 : N/A

PAYMENT                                : AVERAGE

MARKET CONDITION                : AVERAGE

FINANCIAL CONDITION             : N/A

OPERATIONAL TREND  : STEADY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                     : CNY 6.24 =USD 1

 

 

 

Adopted abbreviations:

ANS - amount not stated            NS - not stated  SC - subject company (the company inquired by you)

NA - not available           M - million         JPY –Japan Yen

 

 

 


HISTORY

 

SC was registered as a Limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 30, 2006.

 

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 developing & researching, manufacturing and selling Lamivudine medicines intermediates; wholesale and retail of chemical products (excluding items forbidden and limited by law, with permit if needed); importing and exporting commodities & technologies (excluding items forbidden and limited by law, with permit if needed).

 

SC is mainly engaged in researching, developing and producing pharmaceutical intermediates and APIs.

 

Mr. Wang Lixin has been legal representative and chairman of SC since 2006.

 

SC is known to have approx. 260 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 Shijiazhuang. Our checks reveal that SC owns the total premise with an area of 100,000 square meters.

 

 

WEB SITE

 

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

 

Email: jing@lonzeal.com

 

 


KEY EVENTS/RECENT DEVELOPMENT

 

Changes of its registered information are as follows:

 

Date of change

Item

Before the change

After the change

Unknown

 Registration No.

 1301282000466

 The present one

2014-4-28

Shareholders

Tianjin Hengsheng International Trade Co., Ltd. 3.75%; Tianjin TEDA Tianheng Industry & Trade Co., Ltd. 11.25%; Wang Lixin 76.00%; Gu Xiaoyong 5.85%; Zheng Xiao 3.15%

 The present one

 

SC’s former registered capital was CNY 15,000,000.

 

Organization code: 796583829

 

 

LITIGATION

 

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

 

 

MAIN SHAREHOLDERS

 

Name

 

Wang Lixin

Shijiazhuang Shengze Investment Management Center (Limited partnership)

Gu Xiaoyong

Zheng Xiao

 

Note: The capital contribution of SC’s shareholders wasn’t found in local AIC.

 


MANAGEMENT

 

l         Legal representative and Chairman:

 

Mr. Wang Lixin, born in 1968 with university education. He is currently responsible for the overall management of SC.

 

Working Experience(s):

 

From 2006 to present  Working in SC as legal representative and chairman;

At present Also working in Tianjin TEDA Tianheng Industry & Trade Co., Ltd. as legal representative.

 

l         General manager:

 

Mr. Gu Xiaoyong , born in 1970. He is currently responsible for the daily management of SC.

 

Working Experience(s):

 

At present            Working in SC as general manager.

 

l         Supervisors:

 

Cao Yaling

Zheng Xiao

Ma Lei

 

l         Directors:

 

Gu Xiaoyong

Lv Zheng

Wang Yabin

 

 

BUSINESS OPERATIONS

 

SC is mainly engaged in researching, developing and producing pharmaceutical intermediates and APIs.

SC’s products mainly include:

ANTI-VIRUS API: Lamivudine (3TC), Emtricitabine (FTC), Zidovudine (AZT), Nevirapine (NVP), Lopinavir (RTV), Ritonavir (RTV);

ANTI-VIRUS INTERMEDIATES: CME - Lamivudine Intermediate,

 

FOREIGN EXCHANGE RATES

 

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.43

UK Pound

1

Rs.95.01

Euro

1

Rs.70.63

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ASH

 

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.