MIRA
INFORM REPORT
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Report No. : |
347718 |
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Report Date : |
04.11.2015 |
IDENTIFICATION DETAILS
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Name : |
QINGHAI GELATIN CO., LTD. |
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Registered Office : |
No. 18 Weiyi Road, Chengbei District, Xining, Qinghai Province, 810003
Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2015 |
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Date of Incorporation : |
24.09.1996 |
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Com. Reg. No.: |
630000100006984 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling gelatin series
products, hollow hard capsules, soft capsule system products, Chinese herbal
medicine series, health products |
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No. of Employee : |
1,278 (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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Status : |
Satisfactory |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 also 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
QINGHAI GELATIN CO.,
LTD.
NO. 18 WEIYI ROAD, CHENGBEI DISTRICT,
XINING, QINGHAI PROVINCE, 810003 PR CHINA
TEL: 86 (0)
971-8013495/8013496 FAX: 86 (0) 971-5226338
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 24, 1996
REGISTRATION NO. : 630000100006984
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
1,278 (including SUBSIDIARIES)
REGISTERED CAPITAL : CNY 472,113,600
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 211,260,000 (Consolidated, jan. 1 to sep. 30, 2015)
EQUITIES :
CNY 839,170,000 (Consolidated, as of sep. 30, 2015)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.3395 = USD
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 shares limited
company at provincial Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license).
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 investment, consultant and services for gelatin,
mechanism hard capsules, soft capsules mechanisms (health care products,
cosmetics), pharmaceuticals, miscellaneous bone acquisition and other related
industries; import and export commodities excluding the items prohibited by the
State and the designated company operating.
SC is mainly
engaged in manufacturing and selling gelatin series products, hollow hard
capsules, soft capsule system products, Chinese herbal medicine series, health
products, etc.
Mr. Lian
Lianggui has been legal representative
and chairman of SC since May of 2014.
SC is known to have approx. 1,278 (including subsidiaries)
employees, including 829 production staff, 46 sales staff, 206 technologies
staff, 32 financial staff and 165 administration staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Xining. Our checks
reveal that SC owns the total premise about 110,000 square meters.
http://www.my0606.com.cn
The design is professional and the content is well organized. At present it is
in Chinese version.
E-mail: master@my0606.com.cn ; zongcb@my0606.com.cn
Note: the given website (www.ghmj0606.com) is not correct.
SC was listed in Shenzhen Stock Exchange with the stock code of 000606.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-6 |
Registered capital |
CNY 51,500,000 |
CNY 224,042,400 |
|
2008 |
CNY 224,042,400 |
CNY 270,642,400 |
|
|
Unknown |
Registered capital |
CNY 270,642,400 |
CNY 405,963,600 |
|
Registration no. |
6300001200698 |
Present one |
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|
2012 |
Registered capital |
CNY 405,963,600 |
Present amount |
|
2014-5-15 |
Legal rep. |
Zhao Hua
赵华 |
Present one |
Tax Registration Certificate No.: 630102226592459
Organization Code: 22659245-9
Honors:
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (As of Sep. 30, 2015)
Name %
of Shareholding
TEDA Venture Capital Corporation Limited 12.59
Qinghai Siwei Credit Guarantee Co., Ltd. 7.66
Xining Urban Investment Management Co., Ltd. 4.24
Xining Economic and Technological
Development Zone
Investment Holding Group Co., Ltd. 2.12
China Construction Bank Corporation-
Huashang New Quantitative Flexible
Configuration Hybrid Securities Investment
Fund 0.98
Lian Lianggui 0.79
Chen Jiahao 0.72
Shen Jianping 0.67
Wu Jun 0.62
Gao Fei 0.52
Other shareholders 69.09
*TEDA Venture Capital Corporation Limited
================================
With approximately CNY 600 million (nearly
USD 80 million) under management, TEDA Venture Capital Corporation Limited has
been one of the largest local venture capital firms in China since its founding
in 2000. TEDAVC is located in Tianjin Economical and Technological Development
Area (TEDA), which is one of the most active areas in China Economy.
TEDAVC invests in high-quality companies in
following principal areas: biotechnology and pharmaceutical industry,
information technology, environmental sciences and material sciences.
Its former Chinese
name was
Registration no.: 120000000003106
Legal rep.: Zhao
Hua
Registered
capital: CNY 1,089,264,822
Legal form: Shares
limited co.
Tel: 86-22-6629 9990
Fax: 86-22-6629 7288
E-mail: public@tedavc.com.cn
Qinghai Siwei Credit Guarantee Co., Ltd.
===============================
Registration no.: 633100110000071
Legal rep.: Du Chenbang
Xining Urban Investment Management Co., Ltd.
=====================================
Registration no.: 632900102902261
Legal rep.: Lin Bo
Xining Economic and Technological Development
Zone
Investment Holding Group Co., Ltd.
=========================================
Registration no.: 633100010000986
Legal rep.: Yan Zijun
l Legal
Representative and Chairman:
Mr. Lian Lianggui, born in 1969, with
Master’s degree. He is currently responsible for the overall management of SC.
Working Experience(s):
From May of 2014
to present Working
in SC as legal representative and chairman
l Vice Chairman:
Mr. Zhao Hua, born
in 1970, with Master’s degree. He is currently responsible for the daily
management of SC.
Working Experience(s):
From 2004 to May of 2014 Worked in SC as chairman
and legal representative;
From May of 2014 to present Working in SC as vice chairman
Also working in TEDA Venture Capital
Corporation Limited as legal representative.
l President:
Mr. Zhao Xia, born in 1971, with Master’s
degree. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2013 to present Working in SC as president
l Vice President:
Mr. Huang Haiyong, born in 1971, with junior
college education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2011 to present Working in SC as vice president
l Directors:
Han Chuanmo
Yuan Jun
Yu Lihui
l Supervisors:
Li Youzhu
Dong Wei
Li Meizhen
SC is mainly
engaged in manufacturing and selling gelatin series products, hollow hard
capsules, soft capsule system products, Chinese herbal medicine series, health
products
.
SC’s products
mainly include: gelatin series products, hard series system products, soft
capsule series products, traditional Chinese medicine and bone grain.
SC sources its
materials 70% from domestic market, and 30% from the overseas market, mainly
European countries. SC sells 99% of its products in domestic market, and 1% to
overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
Trademarks & Patents
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Registration No. |
627606 |
872134 |
646320 |
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Registration Date |
1993-2-7 |
1996-9-21 |
1993-6-21 |
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Trademark Design |
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Note:
SC’s management refused to release its major customers and suppliers.
SC
is known to have the following subsidiaries:
Qinghai
Gelatin Co., Ltd.
==================
Incorporation date: June 28, 2007
Registration no.: 633100110000119
Legal rep.: Wang Yuancheng
Registered capital: CNY 172,738,800
Legal form: One-person Limited Liability
Company
Tel:
86 0971-5317195
Fax:
86 0971-5318619
Qinghai
Mingnuo Capsule Co., Ltd.
==========================
Incorporation date: Apr. 14, 2000
Registration no.: 630000400001974
Legal rep.: Wang Yuancheng
Registered capital: CNY 81,399,072.78
Legal form: One-person Limited Liability
Company
Tel:
86 0971-8016677
Fax:
86 0971-8016847
Qinghai
Mingxing Biology Engineering Co., Ltd.
====================================
Incorporation date: Oct. 17, 2000
Registration no.: 630000400002098
Legal rep.: Wang Yuancheng
Registered capital: CNY 16,600,000
Legal form: One-person Limited Liability
Company
Tel:
86 0971-8018861
Fax:
86 0971-8018735
Qinghai
Ningda Venture Capital Co., Ltd. (in Chinese Pinyin)
===========================================
Incorporation date: Aug. 4, 2010
Registration no.: 633100100003327
Legal rep.: Hua Yumin
Registered capital: CNY 58,890,000
Legal form: Limited liabilities co.
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.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as
of Sep. 30, 2015 |
as
of Dec. 31, 2014 |
|
Cash & bank |
250,670 |
219,816 |
|
Notes receivable |
18,640 |
34,237 |
|
Inventory |
105,580 |
141,522 |
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Accounts
receivable |
66,040 |
66,948 |
|
Advances to
supplies |
26,270 |
14,171 |
|
Other
receivables |
11,700 |
9,090 |
|
Other current
assets |
4,540 |
5,451 |
|
|
------------------ |
------------------ |
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Current assets |
483,440 |
491,235 |
|
Financial assets
available for sale |
100,920 |
168,218 |
|
Long-term
investments |
83,610 |
85,141 |
|
Fixed assets |
486,720 |
506,165 |
|
Projects under
construction |
21,600 |
11,111 |
|
Intangible
assets |
36,930 |
37,533 |
|
Goodwill |
20,940 |
20,947 |
|
Long-term
deferred expenses |
230 |
358 |
|
Deferred income
tax assets |
3,800 |
4,499 |
|
Other assets |
500 |
548 |
|
|
------------------ |
------------------ |
|
Total assets |
1,238,690 |
1,325,755 |
|
|
============= |
============= |
|
Short loans |
33,000 |
97,500 |
|
Accounts payable |
82,830 |
92,547 |
|
Advances from
customers |
2,140 |
1,515 |
|
Employee pay
payable |
6,930 |
5,361 |
|
Taxes payable |
7,150 |
4,192 |
|
Interest payable |
1,110 |
1,796 |
|
Dividends
payable |
290 |
295 |
|
Other Accounts
payable |
58,560 |
42,632 |
|
Non-current liabilities
due with in one year |
28,670 |
84,674 |
|
Other current
liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
220,680 |
330,512 |
|
Non-current
liabilities |
178,840 |
130,230 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
399,520 |
460,742 |
|
Shareholders
equities |
839,170 |
865,013 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,238,690 |
1,325,755 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
Jan.
1 to Sep. 30, 2015 |
as
of Dec. 31, 2014 |
|
Turnover |
211,260 |
358,771 |
|
Cost of goods sold |
239,820 |
364,204 |
|
Taxes and additional of main operation |
1,860 |
-1,248 |
|
Sales expense |
12,290 |
18,011 |
|
Management expense |
36,490 |
44,300 |
|
Finance expense |
15,800 |
22,704 |
|
Asset impairment loss |
0 |
30,524 |
|
Investment
income |
86,750 |
907 |
|
Non-operating
income |
1,080 |
946 |
|
Non-operating expense |
1,860 |
11,935 |
|
Operation Profit |
-9,030 |
-129,806 |
|
Less: profit tax |
3,710 |
-2,989 |
|
Net profit |
-12,740 |
-126,817 |
Important Ratios
=============
|
|
as
of Sep. 30, 2015 |
as
of Dec. 31, 2014 |
|
*Current ratio |
2.19 |
1.49 |
|
*Quick ratio |
1.71 |
1.06 |
|
*Liabilities
to assets |
0.32 |
0.35 |
|
*Net profit
margin (%) |
-6.03 |
-35.35 |
|
*Return on
total assets (%) |
-1.03 |
-9.57 |
|
*Inventory
/Turnover ×365 |
/ |
144 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
69 days |
|
*Turnover/Total
assets |
0.17 |
0.27 |
|
* Cost of
goods sold/Turnover |
1.14 |
1.02 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is poor in 2014, and fair in
the first 3 quarters of 2015.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is too high, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2014, and fairly good in the first 3 quarters of 2015.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in a poor level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial condition
of the SC: Fairly Stable.
SC is well-known in its industry with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.45 |
|
|
1 |
Rs.100.96 |
|
Euro |
1 |
Rs.72.10 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
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|
Report Prepared
by : |
ASH |
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.