MIRA
INFORM REPORT
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Report No. : |
332515 |
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Report Date : |
18.07.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI MODERN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 1320 Beijing West Road, Jing’an District, Shanghai 200040 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
20.12.2000 |
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Com. Reg. No.: |
310000000048680 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Subject engaged in manufacturing and selling various new
pharmaceutical preparations, biological pharmaceuticals, chemical APIs and
traditional Chinese medicine preparation. |
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No. of Employee : |
5,572 (Including Subsidiaries) |
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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Maximum Credit Limits : |
usd 8,000,000 |
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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) |
|
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
SHANGHAI MODERN PHARMACEUTICAL CO., LTD.
No. 1320 beijing west ROAD, jing’an district, shanghai
200040 PR CHINA
TEL: 86 (0) 21-52373839/52372865
FAX: 86 (0) 21-62510787
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 20, 2000
REGISTRATION NO. : 310000000048680
REGISTERED LEGAL FORM : shares
limited co.
STAFF STRENGTH :
5,572 (including subsidiaries)
REGISTERED CAPITAL : cny 287,733,402
BUSINESS LINE :
MANUFACTURING & trading
TURNOVER :
CNY 1,371,569,000 (CONSOLIDATED,
JAN. 1 TO JUNE 30, 2014)
EQUITIES :
CNY 1,307,165,000 (CONSOLIDATED, AS OF JUNE 30, 2014)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 8,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.2594= 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
Note: The “Room No.402, Building No. 6, No. 1320 West Beijing Road - China” belongs to SC.
SC is also known as Shanghai Shyndec Pharmaceutical Co., Ltd.
SC was registered as a shares limited co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Dec. 20, 2000.
Company
Status: Shares limited co. This form of business in PR China is defined as a legal person. Its
registered capital is divided into shares of equal par value and the co.
raises capital by issuing share certificates by promotion or by public
offer. Shareholders bear limited liability to the extent of shareholding,
and the co. is liable for its debts only to the extent of its total assets.
The co has independent property of legal person and enjoys property rights
of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co. requires at least two promoters and no
more than 200, half of whom shall be domiciled in China. Natural person are
allowed to serve as promoters. The minimum registered capital of a co. is CNY The board of directors must consist of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within one year
of the offer. A state-owned enterprise that is restructured into a shares limited
co. must comply with the conditions & requirements specified under the
law & administrative rule.
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.
Mr. Zhou Bin has been the legal representative and chairman of SC since 2009
SC is known to have approx. 5,572 employees at present (including subsidiaries), including 3,022 producing staff, 496 administration staff, 1,133 technical staff, 85 financial staff and 836 sales persons.
SC is currently operating at the above stated address, and this address houses its operating office and factory in Shanghai. SC’s management refused to release detailed information about the premise.
www.shyndec.cn The design is professional and the content is well organized. At present it is in Chinese and English versions.
E-mail: xdzy_weidongsong@sinopharm.com
SC’s predecessor was Shanghai Modern Pharmaceutical Co., Ltd. which was incorporated in Nov. 27, 1996.
SC listed in Shanghai Stock Exchange Market in 2004 with the code 600420.
Changes of SC’s
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2004-8 |
Registered capital |
CNY 54,191,940 |
CNY 87,191,940 |
|
2005-11 |
Registered capital |
CNY 87,191,940 |
CNY 130,787,910 |
|
2006-8 |
Registered capital |
CNY 130,787,910 |
CNY 261,575,820 |
|
2008-11 |
Registration No. |
3100001006572 |
Present one |
|
Registered capital |
CNY 261,575,820 |
Present amount |
SC’s former legal representative was Mr. Zhu Baoquan.
Tax Registration Certificate No.: 310115630459924
Organization code: 630459924
See below for SC as executive party (defendant).
|
Executed Party |
SC |
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Court |
Shanghai City Pudong New Area People's Court |
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Date of Case |
|
|
Case Number |
(2013) 03501 |
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Claim Amount |
RMB 0 |
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Case Status |
Complete |
Remark: Due to the lack of information, we are unable to provide the cause of action, judgment or other information.
MAIN SHAREHOLDERS: (As of June 30, 2014)
Name % of Shareholding
Shanghai Institute of Pharmaceutical Industry 41.62
Shanghai Gaodong Economic Development Co., Ltd. (literal translation) 2.90
Shanghai Guangci Medicine Hi-tech Co., Ltd. 2.75
National Social Security Fund Combination 418 2.12
CITIC Securities- CITIC- CITIC Finance No. 2 Collective Assets Management Plan 1.54
Postal Savings Bank of China-
Nongyin Huili Consumption Theme Stock Securities Investment Fund 1.32
China Construction Bank-Jiaoyin Shiluode Blue-Chip Stock Securities Investment Fund 1.13
Industrial and Commercial Bank of China
-Zhaoshang Core Value Mixed Securities Investment Fund 1.11
Bank of Communications-Huaan Strategy Optimization Stock Securities Investment Fund 0.94
China Construction Bank Corporation
-Nongyin Huili Small-Medium Cap Stock Securities Investment Fund 0.81
Other shareholders 43.76
Shanghai Institute of
Pharmaceutical Industry
---------------------------------------------------
Registered No.: 310106000120699
Legal representative: Lu Weigen
Legal form: State-owned enterprise
Website: http://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. (literal translation)
-------------------------------------------------------------------------------------------
Registered No.: 310115000438076
Legal representative: Chen Youxiang
Registered capital: CNY 50,000,000
Legal form: Limited liabilities co.
Incorporation date: Sep. 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
Incorporation date: Dec. 24, 1996
Address: 2/F, Bldg. 30, Ruijin Er Road, Luwan District, Shanghai
Tel: +86(0)21-64370000
Legal Representative and Chairman:
Mr. Zhou Bin , born in 1968, with Doctor’s degree, is currently responsible for the overall management of SC.
Working Experience(s):
From 2009 until now Working in SC as legal representative and chairman
Also working in Shanghai Number Chart Healthy Pharmaceutical Technology Co., Ltd. as legal representative
General Manager & Director:
Ms. Zhong Qian, born in 1968, MBA, she is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager & director
Also working in Shanghai SIPI Pharmaceutical Co., Ltd. as legal representative
Directors:
Wang Hao
Liu Cunzhou
Huang Yongbing
Etc.
Supervisors:
Jia Jinwen
Ji Xiaoming
Yang Zhifan
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, etc.
SC sources its materials 90% from domestic market, and 10% from overseas market. SC sells 90% of its products in domestic market, mainly Shanghai, and 10% to overseas market, mainly European and American countries.
Trademark
& Patents
|
Registration No. |
10652346 |
10652334 |
10652327 |
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Registration Date |
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Trademark Design |
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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’s management
declined to release its major clients and suppliers.
Subsidiaries
Shanghai Number Chart Healthy Pharmaceutical Technology Co., Ltd. (literal translation)
Shanghai Techwell Biopharmaceutical Co., Ltd.
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd.
Shanghai SIPI Pharmaceutical Co., Ltd.
Shanghai Modern Pharmaceutical Haimen Co., Ltd.
China National Medicines Rongsheng Pharmaceutical Co., Ltd. (literal translation)
Branch
Shanghai Modern Pharmaceutical Co., Ltd. Jiading Manufacturing Plant
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.
CITIC Bank Shanghai Branch
AC#：086780-82600061164
Relationship: Normal.
Consolidated Balance Sheet
Unit: CNY’000
|
|
As of June 30, 2014 |
As of Dec. 31, 2013 |
|
Cash & bank |
480,418 |
433,309 |
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Inventory |
671,203 |
510,672 |
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Accounts receivable |
332,714 |
206,045 |
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Notes receivable |
197,955 |
188,873 |
|
Other Accounts receivable |
19,899 |
15,871 |
|
Advances to supplies |
185,561 |
92,589 |
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Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
1,887,750 |
1,447,359 |
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Fixed assets |
667,544 |
502,578 |
|
Projects under construction |
905,632 |
976,546 |
|
Project materials |
651 |
573 |
|
Long term investment |
7,263 |
7,263 |
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Development expenditure |
29,926 |
15,229 |
|
Intangible assets |
168,260 |
183,909 |
|
Good will |
74,796 |
0 |
|
Long-term deferred expenses |
3,158 |
3,262 |
|
Deferred tax assets |
11,282 |
8,811 |
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Other assets |
21 |
83 |
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------------------ |
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Total assets |
3,756,283 |
3,145,613 |
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============= |
============= |
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Short loans |
388,134 |
406,291 |
|
Accounts payable |
328,868 |
194,583 |
|
Notes payable |
84,730 |
84,205 |
|
Accrued Payroll |
27,349 |
35,877 |
|
Interest payable |
2,194 |
1,835 |
|
Taxes payable |
12,623 |
-4,210 |
|
Non-current liabilities due within one year |
10,000 |
11,000 |
|
Advances from customers |
54,070 |
61,287 |
|
Other Accounts payable |
250,981 |
131,658 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,158,949 |
922,526 |
|
Long-term liabilities |
1,290,169 |
897,870 |
|
|
------------------ |
------------------ |
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Total liabilities |
2,449,118 |
1,820,396 |
|
Equities |
1,307,165 |
1,325,217 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
3,756,283 |
3,145,613 |
|
|
============= |
============= |
Consolidated Income Statement
Unit: CNY’000
|
|
Jan. 1 to June 30,
2014 |
As of Dec. 31, 2013 |
|
Turnover |
1,371,569 |
2,349,747 |
|
Cost of goods sold |
746,184 |
1,368,797 |
|
Taxes and additional of main operation |
7,383 |
13,594 |
|
Sales expense |
312,711 |
518,539 |
|
Management expense |
126,541 |
233,145 |
|
Finance expense |
13,490, |
19,327 |
|
Assets impairment loss |
7,028 |
19,651 |
|
Investment income |
-62 |
3,474 |
|
Non-operating income |
13,442 |
37,109 |
|
Non-operating expense |
2,884 |
907 |
|
Profit before tax |
168,728 |
216,370 |
|
Less: profit tax |
26,442 |
28,855 |
|
Profits |
142,286 |
187,515 |
Important Ratios
=============
|
|
As of June 30, 2014 |
As of Dec. 31, 2013 |
|
*Current ratio |
1.63 |
1.57 |
|
*Quick ratio |
1.05 |
1.02 |
|
*Liabilities to assets |
0.65 |
0.58 |
|
*Net profit margin (%) |
10.37 |
7.98 |
|
*Return on total assets (%) |
3.79 |
5.96 |
|
*Inventory /Turnover ×365 |
/ |
79 days |
|
*Accounts receivable/Turnover ×365 |
/ |
32 days |
|
*Turnover/Total assets |
0.37 |
0.75 |
|
* Cost of goods sold/Turnover |
0.54 |
0.58 |
PROFITABILITY: FAIRLY GOOD
· The turnover of SC appears good in its line.
· SC’s net profit margin is fairly good in 2013 and good in the first half year of 2014.
· SC’s return on total assets is fairly good in 2013 but average in the first half year of 2014.
· SC’s cost of goods sold is average, comparing with its turnover.
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 average.
· The accounts receivable of SC appears average.
· The short-term loan of SC appears average.
· SC’s turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
· The debt ratio of SC is average.
· The risk for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly good.
SC is considered large-sized in its line with fairly good financial conditions. Taking into consideration of SC’s general performance and operation size, we would rate SC as a low credit risk company.
.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.49 |
|
|
1 |
Rs.99.43 |
|
Euro |
1 |
Rs.69.14 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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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.