MIRA INFORM REPORT
|
Report No. : |
303576 |
|
Report Date : |
19.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
Hubei Ling Sheng
Pharmaceuticals Co., Ltd. |
|
|
|
|
Registered Office : |
Xiangcheng Economic Development Zone,
Xiangyang Hubei Province 441141 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2014 |
|
|
|
|
Date of Incorporation : |
29.12.2010 |
|
|
|
|
Com. Reg. No.: |
420600000190048 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturing and Selling of chemical raw materials and intermediates;
providing technology development and consulting services; importing and
exporting goods and technology, import and export agent, excluding the goods
and technology forbidden by the government; manufacturing and selling APIs,
providing technology development and consulting services. |
|
|
|
|
No. of Employees : |
150 |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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
Hubei Ling Sheng Pharmaceuticals Co., Ltd.
xiangcheng economic
development zone, xiangyang
hubei PROVINCE 441141
PR CHINA
TEL: 86 (0)
710-3534906
FAX: 86 (0)
710-3534906
EXECUTIVE
SUMMARY
Date of Registration : december 29, 2010
REGISTRATION NO. : 420600000190048
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY
78,000,000
staff : 150
BUSINESS CATEGORY : MANUFACTURING & TRADING
REVENUE : CNY 17,520,000 (FROM JAN. 1, 2014 TO SEP.
30, 2014)
EQUITIES : CNY 71,419,000
(AS OF SEP. 30, 2014)
WEBSITE : www.lingshengpharm.com
E-MAIL : hblsyy2010@126.com
PAYMENT : SLOW BUT CORRECT
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21 = 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 a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 420600000190048
on December 29, 2010.
SC’s Organization Code Certificate No.:
56548840-2
SC’s registered capital: CNY 78,000,000
SC’s paid-in capital: CNY 78,000,000
Registration Change Record:-
No significant changes of SC have been noted in
SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Xiangyang Henghui Investment & Management Center |
7.43 |
|
Guangzhou Lianchuang Pharmaceutical Technology Co., Ltd. |
2.31 |
|
Jin Lianming |
31.54 |
|
Xia Yuebing |
3.85 |
|
Jia Jin |
3.46 |
|
Guangdong Zhongsheng Pharmaceutical Co., Ltd. |
51.41 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Jin Lianming |
|
Director |
Jia Jin |
|
Chen Yonghong |
|
|
Long Chaofeng |
|
|
Supervisor |
Chen Xiaotong |
|
Shan Peihe |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Xiangyang Henghui Investment &
Management Center 7.43
Guangzhou Lianchuang Pharmaceutical
Technology Co., Ltd. 2.31
Jin Lianming 31.54
Xia Yuebing 3.85
Jia Jin 3.46
Guangdong Zhongsheng Pharmaceutical Co.,
Ltd. 51.41
Xiangyang Henghui
Investment & Management Center
===========================================
Date of Registration: November 29, 2011
Registration No.: 420602000010920
Guangzhou
Lianchuang Pharmaceutical Technology Co., Ltd.
===============================================
Date of Registration: September 21, 2009
Registration No.: 440104000026569
Legal Form: Limited Liability
Company
Registered Capital: CNY 3,000,000
Guangdong
Zhongsheng Pharmaceutical Co., Ltd.
=======================================
Date of Registration: December 31, 2001
Registration No.: 440000000014746
Registered Capital: CNY 369,498,000
MANAGEMENT
Jin Lianming, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Director
-----------
Jia Jin
Chen Yonghong
Long Chaofeng
Supervisor
--------------
Chen Xiaotong
Shan Peihe
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and
selling chemical raw materials and intermediates; providing technology development
and consulting services; importing and exporting goods and technology, import
and export agent, excluding the goods and technology forbidden by the
government; manufacturing and selling APIs, providing technology development
and consulting services.
SC is mainly
engaged in manufacturing and selling APIs.
SC’s products
mainly include:
GCLE
7-AVCA
7-APRA
Penicillin-G
4-methoxybenzyl ester sulfoxide
Cefixime
Cefprozil
SC sources its materials 100% from domestic market, mainly Hubei. SC sells 65% of its products in domestic market, and 35% to overseas market, mainly Mid East, Southeast Asia, etc.
The buying terms
of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known
to have approx. 150 staff at
present.
SC owns an area as
its operating office & factory of approx. 20,000 sq. meters at the heading
address.
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 SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Sep. 30, 2014 |
|
10,793 |
5,934 |
|
|
Notes receivable |
0 |
470 |
|
Accounts
receivable |
10,895 |
14,901 |
|
Advances to
suppliers |
23,813 |
5,042 |
|
Other receivable |
12,069 |
4,627 |
|
Inventory |
10,725 |
39,560 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
68,295 |
70,534 |
|
Fixed assets |
22,461 |
47,923 |
|
Construction in
progress |
8,596 |
16,747 |
|
Intangible
assets |
25,311 |
24,788 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
3,379 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
124,663 |
163,371 |
|
|
============= |
============= |
|
Short-term loans |
41,500 |
71,500 |
|
Notes payable |
15,718 |
5,488 |
|
Accounts payable |
4,985 |
23,876 |
|
Wages payable |
195 |
702 |
|
Taxes payable |
-6,431 |
-12,557 |
|
Advances from
clients |
0 |
382 |
|
Other payable |
37,301 |
2,561 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
93,268 |
91,952 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
93,268 |
91,952 |
|
Equities |
31,395 |
71,419 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
124,663 |
163,371 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
From Jan. 1, 2014 to Sep. 30, 2014 |
|
Revenue |
17,520 |
|
Cost of sales |
22,417 |
|
Sales expense |
224 |
|
Management expense |
5,480 |
|
Finance expense |
3,111 |
|
Profit before
tax |
-13,800 |
|
Less: profit tax |
0 |
|
-13,800 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Sep. 30, 2014 |
|
*Current ratio |
0.73 |
0.77 |
|
*Quick ratio |
0.62 |
0.34 |
|
*Liabilities
to assets |
0.75 |
0.56 |
|
*Net profit
margin (%) |
-- |
-78.77 |
|
*Return on
total assets (%) |
-- |
-8.45 |
|
*Inventory /
Revenue ×270 |
-- |
610 days |
|
*Accounts
receivable/ Revenue ×270 |
-- |
230 days |
|
*Revenue/Total
assets |
-- |
0.11 |
|
*Cost of sales
/ Revenue |
-- |
1.28 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC
appears average in its line.
l SC’s net profit
margin is poor.
l SC’s return on
total assets is fair.
l
SC’s cost of sales is high, comparing with its
revenue.
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 large.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear too 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: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial conditions.
Too large amount of short-term loans may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.89 |
|
|
1 |
Rs.93.92 |
|
Euro |
1 |
Rs.72.01 |
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.