MIRA INFORM REPORT
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Report No. : |
322721 |
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Report Date : |
18.05.2015 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU ALPHA PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 9 Yanshan Road, Lakeside New Town Development Zone, Suqian Jiangsu Province 223800 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
19.11.2007 |
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Com. Reg. No.: |
321300000022608 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in manufacturing and selling pharmaceutical intermediates. |
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No of Employees : |
330 |
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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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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.
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Source
: CIA |
Company
name & address
JIANGSU ALPHA
PHARMACEUTICAL CO., LTD.
NO. 9 YANSHAN ROAD,
LAKESIDE NEW TOWN DEVELOPMENT ZONE, SUQIAN
JIANGSU PROVINCE
223800 PR CHINA
TEL: 86 (0)
527-84829016
FAX: 86 (0)
527-84829018
EXECUTIVE
SUMMARY
Date of Registration : november 19, 2007
REGISTRATION NO. : 321300000022608
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY 73,814,000
staff :
330
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 330,480,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 235,532,000 (AS OF DEC. 31, 2014)
WEBSITE : www.chinalpharm.com
E-MAIL :
szx@xinyuchemical.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = 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.: 321300000022608
on November 19, 2007.
SC’s Organization Code Certificate No.:
66898779X
SC’s Tax No.: 32131166898779X
SC’s registered capital: CNY 73,814,000
SC’s paid-in capital: CNY 73,814,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2012 |
Registered Capital |
CNY 65,864,200 |
CNY 73,814,000 |
|
2014-6-23 |
Shareholder (s) (% of Shareholding) |
Chen Benshun 1.57% Jiangsu Gaotou Innovation Value Venture
Investment Partnership (Limited Partnership) 10.65% Li Wangxin 1.93% Shi Zhenxiang 75.17% Suzhou Jinmao New Industry Venture Investment
Enterprises (Limited Partnership) 1.93% Wan Xinqiang 0.65% Wuxi Jinmao 2# New Industry Venture
Investment Enterprises (Limited Partnership)
6.92% Yin Xiaolong 1.18% |
Shi Zhenxiang 34.94% Chen Benshun 6.8% Jiangsu Gaotou Innovation Value Venture
Investment Partnership (Limited Partnership) 10.65% Yin Xiaolong 1.18% Wan Xinqiang 0.65% Suzhou Jinmao New Industry Venture
Investment Enterprises (Limited Partnership) 2.82% Wuxi Jinmao 2# New Industry Venture
Investment Enterprises (Limited Partnership) 10.14% Li Wangxin 2.82% Shi Liping 10% Shi Lijun 10% Suqian Puhui Management & Consulting
Co., Ltd. 10% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shi Zhenxiang |
34.94 |
|
Chen Benshun |
6.8 |
|
Jiangsu Gaotou Innovation Value Venture
Investment Partnership (Limited Partnership) |
10.65 |
|
Yin Xiaolong |
1.18 |
|
Wan Xinqiang |
0.65 |
|
Suzhou Jinmao New Industry Venture
Investment Enterprises (Limited Partnership) |
2.82 |
|
Wuxi Jinmao 2# New Industry Venture
Investment Enterprises (Limited Partnership) |
10.14 |
|
Li Wangxin |
2.82 |
|
Shi Liping |
10 |
|
Shi Lijun |
10 |
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Suqian Puhui Management & Consulting
Co., Ltd. |
10 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Shi Zhenxiang |
|
General Manager |
Shi Liping |
|
Director |
Ling Mingsheng |
|
Yin Xiaolong |
|
|
Gu Zhenyu |
|
|
Supervisor |
Chen Benshun |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Shi Zhenxiang 34.94
Chen Benshun 6.8
Jiangsu Gaotou Innovation Value Venture
Investment Partnership (Limited Partnership) 10.65
Yin Xiaolong 1.18
Wan Xinqiang 0.65
Suzhou Jinmao New Industry Venture
Investment Enterprises (Limited Partnership) 2.82
Wuxi Jinmao 2# New Industry Venture
Investment Enterprises (Limited Partnership) 10.14
Li Wangxin 2.82
Shi Liping 10
Shi Lijun 10
Suqian Puhui Management & Consulting
Co., Ltd. 10
MANAGEMENT
Shi Zhenxiang, Legal Representative and Chairman
------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 60
Ø
ID# 320521195503086413
Ø Qualification: University
Ø Working experience
(s):
From 2007 to present, working in SC as legal
representative and chairman
Also working in Suqian Alpha Investment &
Management Enterprise as legal representative
Shi
Liping, General Manager
--------------------------------------------------
Ø
Gender: M
Ø
Age: 30
Ø
ID# 320582198502286436
Ø Qualification:
University
Ø Working experience
(s):
From 2007 to present, working in SC as
general manager
Director
-----------
Ling Mingsheng ID# 320102196608220037
Yin Xiaolong ID#
320222196412300810
Gu Zhenyu ID#
320582198204142610
Supervisor
-------------
Chen Benshun ID#
510215197409017156
BUSINESS
OPERATION
SC’s registered business scope includes pharmaceutical and
chemical technology research and development, consulting, transfer,
manufacturing and selling atorvastatin calcium and intermediates, clopidogrel
and intermediates.
SC is mainly
engaged in manufacturing and selling pharmaceutical intermediates.
Brand: ALPHA
SC’s products
mainly include:
Intermediates of
Clopidogrel
Atorvastatin
Calcium and Intermediates
Rosuvastatin
Calcium (Superstatin) and Intermediates
Pitavastatin
Intermediates
Intermediates of
Aprepitant
Vitamin B15
Intermediates
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 75% of its products in domestic market, and 25% to overseas market, mainly U.S.A., Europe, 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. 330 staff at
present.
SC owns an area as
its operating office & factory of approx. 70,000 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 Dec. 31, 2014 |
|
50,743 |
18,903 |
|
|
Notes receivable |
7,467 |
3,737 |
|
Accounts
receivable |
74,286 |
117,005 |
|
Advances to
suppliers |
12,553 |
34,064 |
|
Other receivable |
8,139 |
16,698 |
|
Inventory |
110,738 |
96,705 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
263,926 |
287,112 |
|
Long-term
investment |
12,200 |
22,200 |
|
Fixed assets |
102,756 |
91,299 |
|
Construction in
progress |
1,777 |
4,111 |
|
Intangible
assets |
9,417 |
9,035 |
|
Long-term
prepaid expenses |
311 |
626 |
|
Deferred income
tax assets |
0 |
719 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
390,387 |
415,102 |
|
|
============= |
============= |
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Short-term loans |
88,076 |
79,515 |
|
Notes payable |
10,000 |
12,000 |
|
Accounts payable |
57,871 |
71,642 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
802 |
2,817 |
|
Advances from
clients |
0 |
1,621 |
|
Other payable |
-5,019 |
11,975 |
|
Other current
liabilities |
223 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
151,953 |
179,570 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
151,953 |
179,570 |
|
Equities |
238,434 |
235,532 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
390,387 |
415,102 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
239,110 |
330,480 |
|
Cost of sales |
179,528 |
250,274 |
|
Taxes and surcharges |
1,136 |
1,182 |
|
Sales expense |
4,532 |
8,148 |
|
Management expense |
26,987 |
34,607 |
|
Finance expense |
7,543 |
7,195 |
|
Income from
investments |
0 |
24 |
|
Subsidy income |
846 |
1,234 |
|
Non-business
income |
1,756 |
2,553 |
|
Non-business expenditure |
128 |
159 |
|
Profit before
tax |
21,807 |
33,490 |
|
Less: profit tax |
3,271 |
5,024 |
|
18,536 |
28,466 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.74 |
1.60 |
|
*Quick ratio |
1.01 |
1.06 |
|
*Liabilities
to assets |
0.39 |
0.43 |
|
*Net profit
margin (%) |
7.75 |
8.61 |
|
*Return on
total assets (%) |
4.75 |
6.86 |
|
*Inventory /
Revenue ×365 |
170 days |
107 days |
|
*Accounts
receivable/ Revenue ×365 |
114 days |
130 days |
|
*Revenue /
Total assets |
0.61 |
0.80 |
|
*Cost of sales
/ Revenue |
0.75 |
0.76 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC appears
fairly good in its line, and it increased in 2014.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
SC’s short-term loans appear 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: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory & accounts receivable &
short-term loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.57 |
|
|
1 |
Rs. 100.29 |
|
Euro |
1 |
Rs. 72.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
KRN |
|
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|
Report Prepared
by : |
DPT |
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.