MIRA INFORM REPORT
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Report No. : |
322288 |
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Report Date : |
19.05.2015 |
IDENTIFICATION DETAILS
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Name : |
ARSHINE PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 1105-1109, 11/F, Bldg. C3, Lugu Enterprise Plaza, No. 27, Wenxuan Road,
Hi-Tech Development Zone, Changsha, Hu’nan Province, 410205 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
29.08.2012 |
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Com. Reg. No.: |
430193000046550 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling pharmaceutical raw materials. |
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No. of Employee : |
40 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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. 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 and address
ARSHINE PHARMACEUTICAL CO., LTD.
No. 1105-1109, 11/f, bldg. c3, lugu enterprise plaza,
no. 27, wenxuan road, hi-tech development zone, changsha, hu’nan PROVINCE,
410205 PR CHINA
TEL: 86 (0) 731-88960819
FAX: 86 (0) 731-88960820
EXECUTIVE
SUMMARY
INCORPORATION DATE : aug. 29, 2012
REGISTRATION NO. : 430193000046550
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
Ms. chen aiping (legal representative)
STAFF STRENGTH :
40
REGISTERED CAPITAL : CNY
10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 108,330,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 1,470,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.2132 = 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
SC was registered as a limited liabilities co. at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on Aug. 29, 2012.
Company Status: Limited liabilities co. This
form of business in PR China is defined as a legal person. No more than
fifty shareholders contribute its registered capital jointly. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to extent of its total assets. The characteristics of
this form of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The
board of directors is comprised of three to thirteen members. The
minimum registered capital for a co. is CNY 30,000. Shareholders
may take their capital contributions in cash or by means of tangible assets
or intangible assets such as industrial property and non-patented
technology. Cash
contributed by all shareholders must account for at least 30% of the
registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered business scope includes researching and developing biotechnology
and biological products and consulting services; manufacturing (limited by its
branch) and selling mechanical equipment and electronics; import and export of
various goods and technologies, excluding the goods forbidden by the government
(with permit if needed).
SC is mainly engaged in selling pharmaceutical raw materials.
Ms. Chen Aiping is legal representative, general manager and executive
director of SC at present.
SC is known to have approx. 40 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the hi-tech zone of Changsha. The detailed
information of the premise is unspecified.
http://www.arshine.com.cn
the design is professional and the content is well organized. At present it is
in English version.
Email: marketing@arshine.com.cn
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2015-4-30 |
Registered capital |
CNY 2,000,000 |
Present amount |
Organization Code: 053850842
SC started its normal operation in Dec. of 2013.
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Aiping 90
Chen Jinping 10
Legal
representative, General manager and Executive director:
Ms. Chen Aiping , in her 30’s with university education. She is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, general manager and executive director.
Also working in Shenzhen Arshine Trading Co., Ltd. (Literal Translation)
as legal representative
Supervisor:
Chen Jinping
SC started its normal operation since Dec. of 2013.
SC is mainly engaged in selling pharmaceutical raw materials.
SC’s products mainly include: Aceclofenac, Paracetamol, Cephradine,
Oxytetracycline Hcl,
Doxycycline Hcl
SC sources its materials 100% from domestic market. SC sells 100% of its
products to overseas market.
The buying terms of SC include Check, T/T 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 customer and supplier
details.
Shenzhen Arshine Trading Co., Ltd. (Literal Translation)
==================================
The said company also uses the name Arshine Pharmaceutical Co., Ltd. as
its trading name.
Incorporation Date: Jul. 12, 2010
Registration No.: 440301104804061
Registered Legal Form: Limited Liabilities Co.
Chief Executive: Ms. Chen Aiping
Registered Capital: CNY 5,000,000
Arshine Pharmaceutical Co., Ltd. (Hong Kong)
==================================
Registration No.: 1489693
Establishment Date: Aug. 5, 2010
Legal Form: Private company limited by shares
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.
SC’s management declined to release its bank details.
Balance
Sheet
Unit: CNY’000
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as of Dec. 31,
2014 |
as of Dec. 31,
2013 |
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Cash & bank |
16,710 |
200 |
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Inventory |
7,480 |
0 |
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Accounts receivable |
1,420 |
0 |
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Advances to suppliers |
0 |
0 |
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Other receivables |
6,580 |
1,190 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
32,190 |
1,390 |
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Fixed assets net value |
3,300 |
3,090 |
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Projects under construction |
350 |
0 |
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Long term prepaid expenses |
550 |
0 |
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Other assets |
0 |
80 |
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------------------ |
------------------ |
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Total assets |
36,390 |
4,560 |
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============= |
============= |
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Short loans |
5,030 |
750 |
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Notes payable |
18,230 |
130 |
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Accounts payable |
300 |
-330 |
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Other payable |
10,730 |
940 |
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Taxes payable |
-750 |
10 |
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Accrued payroll |
90 |
70 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
33,630 |
1,570 |
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Long term liabilities |
1,290 |
1,430 |
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------------------ |
------------------ |
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Total liabilities |
34,920 |
3,000 |
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Equities |
1,470 |
1,560 |
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------------------ |
------------------ |
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Total liabilities & equities |
36,390 |
4,560 |
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============= |
============= |
Income
Statement
Unit: CNY’000
|
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as of Dec. 31,
2014 |
as of Dec. 31,
2013 |
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Turnover |
108,330 |
570 |
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Cost of goods sold |
103,630 |
540 |
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Sales expense |
2,830 |
40 |
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Management expense |
1,850 |
310 |
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Finance expense |
220 |
80 |
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Non-operating income |
70 |
0 |
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Other expenses |
0 |
20 |
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Profit before tax |
-130 |
-420 |
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Less: profit tax |
0 |
0 |
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Profits |
-130 |
-420 |
Important
Ratios
=============
|
|
as of Dec. 31,
2014 |
as of Dec. 31,
2013 |
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*Current ratio |
0.96 |
0.89 |
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*Quick ratio |
0.73 |
0.89 |
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*Liabilities to assets |
0.96 |
0.66 |
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*Net profit margin (%) |
-0.12 |
-73.68 |
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*Return on total assets (%) |
-0.36 |
-9.21 |
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*Inventory /Turnover ×365 |
26 days |
/ |
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*Accounts receivable/Turnover ×365 |
5 days |
/ |
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*Turnover/Total assets |
2.98 |
0.125 |
|
* Cost of goods sold/Turnover |
0.96 |
0.95 |
PROFITABILITY:
FAIR
The turnover of SC appears average in 2013, and fairly good in 2014.
SC’s net profit margin is poor in 2013, but fair in 2014.
SC’s return on total assets is fair in both years.
SC’s cost of goods sold is fairly high in both years, comparing with its
turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in both years.
SC’s quick ratio is maintained in a normal level in 2013, but fair in
2014.
SC has no inventory in 2013, but the inventory is average in 2014.
SC has no accounts receivable in 2013, but the accounts receivable is
small in 2014.
SC’s short-term loan appears average in 2013, but large in 2014.
SC’s turnover is in a poor level in 2013, but average in 2014, comparing
with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is average in 2013, but high in 2014.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial conditions.
The large amount of short-term loan could be a threat to financial situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.55 |
|
|
1 |
Rs.99.86 |
|
Euro |
1 |
Rs.72.67 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ANK |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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.