MIRA
INFORM REPORT
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Report No. : |
329589 |
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Report Date : |
02.07.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI
SHYNDEC PHARMACEUTICAL CO., LTD. |
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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 : |
27.11.1996 |
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Com. Reg. No.: |
310000000048680 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing medicines and health products; wholesaling and retailing
medical raw materials, accessories, and pharmaceutical machinery; technical
development, transfer, consultation, services, and training of medicines and
health products; import and export of goods and technologies; manufacturing
garlic oil soft capsule, Lecithin soft capsule, fish oil soft capsule. (with
permit if needed) |
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No. of Employees : |
5,734 (Including Sc’s Subsidiaries) |
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 |
|
Maximum Credit Limit : |
usd 10,000,000 |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 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 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
SHANGHAI
SHYNDEC PHARMACEUTICAL CO., LTD.
(ALSO KNOWN AS:
SHANGHAI MODERN PHARMACEUTICAL CO., LTD.)
NO. 1320 WEST
BEIJING ROAD, JINGAN DISTRICT, SHANGHAI 200437 PR CHINA
TEL: 86 (0)
21-62510990
FAX: 86 (0)
21-62510787
EXECUTIVE SUMMARY
Date of Registration : november 27, 1996
REGISTRATION NO. : 310000000048680
LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE :
ZHOU BIN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 287,733,402
staff :
5,734 (including sc’s SUBSIDIARIES)
BUSINESS CATEGORY : MANUFACTURING & trading
REVENUE :
CNY 2,748,836,000 (AS OF DEC.
31, 2014)
EQUITIES :
CNY 1,392,152,000 (AS OF DEC. 31, 2014)
WEBSITE : www.shyndec.cn
E-MAIL :
shyndec@shyndec.cn
PAYMENT :
AVERAGE
Recommended Credit Limit : up to usd 10,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : FAIRLY GOOD
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 shares
limited company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 310000000048680
on November 27, 1996.
SC’s Organization Code Certificate No.:
63045992-4
SC’s Tax No.: 310115630459924
SC’s registered capital: cny 287,733,402
SC’s paid-in capital: cny 287,733,402
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2004-08 |
Registered Capital |
CNY 54,191,940 |
CNY 87,191,940 |
|
2005-11 |
Registered Capital |
CNY 87,191,940 |
CNY 130,787,910 |
|
2006-08 |
Registered Capital |
CNY 130,787,910 |
CNY 261,575,820 |
|
2008-11 |
Registration No. |
3100001006572 |
310000000048680 |
|
Registered Capital |
CNY 261,575,820 |
cny 287,733,402 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of March 31, 2015) |
% of Shareholding |
|
Shanghai Institute of Pharmaceutical Industry |
41.62 |
|
Shanghai Gaodong Economic Development Co., Ltd. |
2.90 |
|
National Social Security Fund 112 |
2.71 |
|
Shanghai Guangci Medicine Hi-tech Co., Ltd. |
2.4 |
|
HKSCC Nominees Limited |
1.29 |
|
Bank of China Co., Ltd.-Boshi Healthcare Sector Equity Securities
Investment Fund |
1.22 |
|
The Government of Kuwait Investment Authority - Own Funds |
1.13 |
|
China Construction Bank-Guotai Jinding Value Selected Securities
Investment Fund |
1.08 |
|
Industrial and Commercial Bank of China-Boshi Third Industry Growth
Stock Fund |
1.04 |
|
Wei Baoquan |
0.99 |
|
Other Shareholders |
43.62 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Zhou Bin |
|
General Manager |
Zhong Qian |
|
Deputy General Manager |
Yang Zhiqun |
|
Wei Dongsong |
|
|
Gong Zhong |
|
|
Wang Guoping |
|
|
Wu Quan |
RECENT
DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600420.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
(As of March 31, 2015)
----------------------------------
Shanghai Institute of Pharmaceutical Industry 41.62
Shanghai Gaodong Economic Development Co., Ltd. 2.90
National Social Security Fund 112 2.71
Shanghai Guangci Medicine Hi-tech Co., Ltd. 2.4
HKSCC Nominees Limited 1.29
Bank of China Co., Ltd.-Boshi Healthcare Sector Equity Securities
Investment Fund 1.22
The Government of
Industrial and Commercial Bank of China-Boshi Third Industry Growth
Stock Fund 1.04
Wei Baoquan 0.99
Other Shareholders 43.62
Shanghai Institute of Pharmaceutical Industry
---------------------------
Registered No.: 310106000120699
Legal Representative: Wang Hao
Registered Capital: CNY 536,920,000
Legal Form: State-owned enterprise
Website: www.sipi.com.cn
Address: No. 1320 Beijing West Road, Jing’an District, Shanghai, 200040
PR China
Tel: +86 (0) 21-62479808
Fax: +86 (0) 21-62791715
Shanghai Institute of Pharmaceutical Industry, held by the State-owned
Assets, Supervision and Administration Commission of the State Council (SASAC),
is one of the largest and most comprehensive research institutes in Chinese
pharmaceutical industry. SIPI was granted more than 300 awards from local,
provincial and national agencies, including 13 National Science Invention
Awards and 13 National Science and Technology Progress Awards. SIPI was granted
209 New Drug Certificates, holds 27 approved patents and has additional 157
patents pending. The products transferred from SIPI are the primary products
manufactured in over 20 public pharmaceutical companies listed on the Shanghai
and Shenzhen Stock Exchange. Over 95% of all projects are commercialized.
Shanghai Gaodong Economic Development Co., Ltd.
------------------------------------
Registered No.: 310115000438076
Legal Representative: Chen Youxiang
Registered Capital: CNY 50,000,000
Legal Form: Limited liabilities co.
Date of Registration: September 15, 1997
Shanghai Guangci Medicine Hi-tech Co., Ltd.
---------------------------------
Registration No.: 310103000059178
Legal Representative: Yu Guowei
Registered Capital: CNY 10,000,000
Legal Form: State-owned enterprise
Date of Registration: December 24, 1996
Address: 2/F, Bldg. 30, Ruijin Er Road, Luwan District, Shanghai
Tel: +86 (0) 21-64370000
MANAGEMENT
Zhou Bin, Legal
Representative and Chairman
---------------------------------------------------------------------
Gender: M
Age: 47
Nationality: China
Qualification: University
Working experience (s):
From 2009 until now, working in SC as legal representative and chairman
Also working in China State Institute of Pharmaceutical Industry and
Shanghai Number Chart Healthy Pharmaceutical Technology Co., Ltd. as legal
representative
Zhong Qian,
General Manager
-------------------------------------------------
Gender: F
Age: 47
Nationality: China
Qualification: University
Working experience (s):
From 2013 to present, working in SC as general manager
Deputy General
Manager
---------------------------------
Yang Zhiqun
Wei Dongsong
Gong Zhong
Wang Guoping
Wu Quan
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing medicines and health
products; wholesaling and retailing medical raw materials, accessories, and
pharmaceutical machinery; technical development, transfer, consultation,
services, and training of medicines and health products; import and export of
goods and technologies; manufacturing garlic oil soft capsule, Lecithin soft
capsule, fish oil soft capsule. (with permit if needed)
SC is mainly engaged in manufacturing and selling various new
pharmaceutical preparations, biological pharmaceuticals, chemical APIs and
traditional Chinese medicine preparation.
SC’s products mainly include: chemical medicine, biological and chemical
raw material medicine, microbial fermentation products and tablets, capsules,
granules, injections, suspensions, suppositories and ointments.
SC sources its materials 90% from domestic market, and 10% from overseas
market. SC sells 80% of its products in domestic market, mainly Shanghai, and
20% to overseas market, mainly European and American countries.
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.
*Major Customers*
-----------------------
Apotex Inc.
Sunrise Enterprises
Staff &
Office:
--------------------------
SC is known to have approx. 5,734
staff (including SC’s subsidiaries) at present.
SC owns an area as its operating office & factory of approx. 260,000
sq. meters at the heading address.
RELATED
COMPANY
SC is known to
invest in the following companies:
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd.
Shanghai Shyndec Pharmaceutical (Haimen) Co., Ltd.
Shanghai Shutu Health And Medical Science And Technology Co., Ltd.
Shanghai Modern Hasen (Shangqiu) Pharmacutical Co., Ltd.
Shanghai Techwell Biopharmaceutical Co., Ltd.
Enterprise Group Rongsheng Pharmaceutical Co., Ltd.
Enterprise Group Zhonglian Pharmaceutical Co., Ltd.
Enterprise Group Chuankang Pharmaceutical Co., Ltd.
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
Basic Bank:
CITIC Bank Shanghai Branch
AC#: 086780-82600061164
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
433,308 |
366,229 |
|
|
Notes receivable |
188,873 |
143,546 |
|
Accounts receivable |
206,045 |
268,439 |
|
Advances to suppliers |
92,589 |
89,343 |
|
Interest receivable |
0 |
0 |
|
Other receivable |
15,871 |
17,212 |
|
Inventory |
510,673 |
771,476 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,447,359 |
1,656,245 |
|
Long-term investments |
7,263 |
6,813 |
|
Real estate investment |
0 |
0 |
|
Fixed assets |
502,578 |
1,507,644 |
|
Construction in progress |
976,546 |
323,612 |
|
Project materials |
573 |
212 |
|
Fixed assets in liquidation |
0 |
0 |
|
Intangible assets |
183,909 |
200,942 |
|
Development expenditure |
15,230 |
16,029 |
|
Goodwill |
0 |
72,173 |
|
Long-term deferred expense |
3,262 |
3,043 |
|
Deferred income tax assets |
8,811 |
16,570 |
|
Other non-current assets |
83 |
5,933 |
|
|
------------------ |
------------------ |
|
Total assets |
3,145,614 |
3,809,216 |
|
|
============= |
============= |
|
Short-term loans |
406,291 |
357,298 |
|
Notes payable |
84,205 |
1,521 |
|
Accounts payable |
194,583 |
261,117 |
|
Payroll payable |
35,877 |
44,202 |
|
Taxes payable |
-4,210 |
4,522 |
|
Interest payable |
1,835 |
2,584 |
|
Dividends payable |
0 |
850 |
|
Advances from clients |
61,287 |
76,556 |
|
Other payable |
131,658 |
189,052 |
|
Other current liabilities |
11,000 |
42,337 |
|
|
------------------ |
------------------ |
|
Current liabilities |
922,526 |
980,039 |
|
Non-current liabilities |
897,870 |
1,437,025 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,820,396 |
2,417,064 |
|
Equities |
1,325,218 |
1,392,152 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
3,145,614 |
3,809,216 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
2,349,748 |
2,748,836 |
|
Cost of sales |
1,368,797 |
1,473,796 |
|
Business Taxes and Surcharges |
13,593 |
15,919 |
|
Sales expense |
518,539 |
645,910 |
|
Management expense |
233,146 |
291,462 |
|
Finance expense |
19,327 |
46,926 |
|
Asset impairment loss |
19,651 |
21,781 |
|
Investment income |
3,474 |
-73 |
|
Non-operating income |
37,109 |
51,143 |
|
Non-operating expense |
907 |
6,972 |
|
Profit before tax |
216,370 |
297,140 |
|
Less: profit tax |
28,855 |
49,605 |
|
187,515 |
247,535 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Current ratio |
1.57 |
1.69 |
|
*Quick ratio |
1.02 |
0.90 |
|
*Liabilities to assets |
0.58 |
0.63 |
|
*Net profit margin (%) |
7.98 |
9.01 |
|
*Return on total assets (%) |
5.96 |
6.50 |
|
*Inventory / Revenue ×365 |
80 days |
103 days |
|
*Accounts receivable/ Revenue ×365 |
33 days |
36 days |
|
*Revenue/Total assets |
0.75 |
0.72 |
|
*Cost of sales / Revenue |
0.58 |
0.54 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is average, comparing with its revenue.
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 large.
The accounts receivable of SC appears average.
The short-term loans of SC appear average
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions. Taking into consideration of SC’s general performance, reputation
as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.62 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.70.77 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.