MIRA INFORM REPORT
|
Report No. : |
320451 |
|
Report Date : |
05.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
CHIZHOU LONGHUA PHARMACHEM CO., LTD. |
|
|
|
|
Registered Office : |
Xiangyu Chemical Zone, Dongzhi County, Chizhou Anhui Province 247260
Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
02.02.2007 |
|
|
|
|
Com. Reg. No.: |
341721000008937 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturing and selling pharmaceutical chemical products. |
|
|
|
|
No. of Employee : |
105 |
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 : |
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. 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 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030.
China implemented several economic reforms in 2014, including legislation
allowing local governments to issue bonds, further opening several state-owned
enterprises to private investment, loosening the one-child policy, passing
harsher pollution fines, and cutting administrative red tape.
|
Source
: CIA |
Company
name and address
CHIZHOU LONGHUA
PHARMACHEM CO., LTD.
XIANGYU CHEMICAL ZONE, DONGZHI COUNTY, CHIZHOU
ANHUI PROVINCE 247260 PR CHINA
TEL: 86 (0) 566-8167678/8171202
FAX: 86 (0) 566-8167677
EXECUTIVE
SUMMARY
Date of Registration : february 2, 2007
REGISTRATION NO. : 341721000008937
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY
22,000,000
staff :
105
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 106,080,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 37,970,000 (AS OF DEC. 31, 2014)
WEBSITE : www.longhuapharm.com
E-MAIL :
jxm@longhuapharm.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
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.: 341721000008937
on February 2, 2007.
SC’s Organization Code Certificate No.:
79812667-2
SC’s registered capital: CNY 22,000,000
SC’s paid-in capital: CNY 22,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered Capital |
CNY 8,000,000 |
CNY 22,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhou Rongying |
1.09 |
|
Jin Xiuhan |
5.18 |
|
Jin Xiumin |
78.49 |
|
Jin Xiupin |
14.51 |
|
Lou Limin |
0.73 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Jin Xiumin |
|
Supervisor |
Jin Xiuhan |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Zhou Rongying 1.09
Jin Xiuhan 5.18
Jin Xiumin 78.49
Jin Xiupin 14.51
Lou Limin 0.73
MANAGEMENT
Jin Xiumin, Legal Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
From 2007 to present, working in SC as legal representative,
chairman and general manager
Jin
Xiuhan, Supervisor
------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, as supervisor of SC
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing
C16- dangerous chemicals; manufacturing and selling polyphosphoric acid,
phosphorus pentoxide, chlorhexidine gluconate.
SC is mainly
engaged in manufacturing and selling pharmaceutical chemical products.
SC’s products mainly include:
Polyphosphoric
Acid
Phosphorus
Pentoxide
Chlorhexidine
Gluconate
Chlorhexidine
diacetate
SC sources its materials 100% from domestic market, mainly Anhui. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly U.S.A., India, 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.
*Major Customers:
==============
Innovative
Formulations Inc.
Cadence Chemical Corporation
Prasol Chemicals
Limited
Croda Chemicals
India Pvt Ltd.
Staff & Office:
--------------------------
SC is known to have approx. 105 staff at present.
SC owns an area as its operating office & factory of approx. 60,000 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
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Total assets |
82,468 |
89,480 |
|
|
------------- |
------------- |
|
Total
liabilities |
46,115 |
51,510 |
|
Equities |
36,353 |
37,970 |
|
|
------------- |
------------- |
|
Revenue |
127,350 |
106,080 |
|
Profit before
tax |
3,230 |
2,540 |
|
Less: profit tax |
810 |
640 |
|
Profits |
2,420 |
1,900 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Liabilities
to assets |
0.56 |
0.58 |
|
*Net profit
margin (%) |
1.90 |
1.79 |
|
*Return on
total assets (%) |
2.93 |
2.12 |
|
*Revenue/Total
assets |
1.54 |
1.19 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
LIQUIDITY: AVERAGE
l
SC’s revenue is in an average 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 above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.58 |
|
|
1 |
Rs.97.99 |
|
Euro |
1 |
Rs.70.53 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.