MIRA INFORM REPORT
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Report No. : |
350612 |
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Report Date : |
24.11.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Jinlong Road, Tuodian Industrial
Park Zone, Tuoketuo County, Hohhot, Inner Mongolia Autonomous Region, 010200
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
17.10.2003 |
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Com. Reg. No.: |
150100400000023 |
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Legal Form : |
Wholly foreign-owned enterprise |
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Line of Business : |
Subject is engaged in manufacturing and sales of
pharmaceutical products. |
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No. of Employee : |
1060 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
-- |
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
and address
Inner Mongolia Changsheng Pharmaceuticals
Co., Ltd.
Jinlong road, tuodian industrial park zone,
tuoketuo County, Hohhot, Inner Mongolia Autonomous Region, 010200 PR CHINA
TEL: 86 (0) 471-8660624/8660629 FAX: 86 (0) 471-8660964
EXECUTIVE
SUMMARY
INCORPORATION DATE :
oct. 17, 2003
REGISTRATION NO. :
150100400000023
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
CHIEF EXECUTIVE :
Chen Yingxin (legal representative)
STAFF STRENGTH :
1,060
REGISTERED CAPITAL : HKD 271,647,200
BUSINESS LINE :
MANUFACTURING AND SALES
TURNOVER :
CNY 876,690,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 391,190,000 (AS OF DEC. 31, 2014)
PAYMENT :
SLOW BUT CORRECT
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.38 = 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 wholly foreign-owned enterprise at Hohhot Municipal
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Oct. 17, 2003.
Company Status: Wholly
foreign-owned enterprise
This
form of business in PR China is defined as a legal person. It is a limited co.
established within the territories of PR China with capital provided totally by
the foreign investors. More than one foreign investor may jointly invest in a
wholly foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This form
of companies usually have a limited duration is extendible upon approval of
Examination and Approval Authorities
SC’s
registered business scope includes manufacture and sales of 6-APA, amoxicillin,
ampicillin, 7ADCA, deacteyl 7-aminocephalosporanic acid and 7-ACA; wastewater
treatment, manufacture and sales of organic fertilizer, mixed fertilizer and
related products; manufacture and sales of fine chemical products.
SC
is mainly engaged in manufacturing and sales of pharmaceutical products.
Chen
Yingxin has been legal representative and general manager of SC since
September, 2015.
SC
is known to have approx. 1,060 employees
at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Hohhot. Detailed premise
information is not available at present.
SC
is not known to host web site of its own at present.
See
below for SC as executive party (defendant).
|
Executed Party |
CSPC Zhongrun Pharmaceutical (Inner Mongolia)
Co., Ltd. |
|
Court |
Huhhot City Intermediate People's Court |
|
Date of Case |
July 11, 2012 |
|
Case Number |
(2012) 00044 |
|
Claim Amount |
RMB 731,660.7 |
|
Case Status |
In process |
|
Executed Party |
CSPC Zhongrun Pharmaceutical (Inner Mongolia)
Co., Ltd. |
|
Court |
Huhhot City Intermediate People's Court |
|
Date of Case |
Aug. 12, 2010 |
|
Case Number |
(2010) 00045 |
|
Claim Amount |
RMB 125,764 |
|
Case Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the
cause of action, judgment or other information.
Changes of SC’s registered
information:
|
Date |
Item |
Before changed |
After changed |
|
Unknown |
Registered no. |
000404 |
Present one |
|
Legal rep. |
Ji Jianming |
Liu Zhentao |
|
|
Registered capital |
HKD 258,000,000 |
Present amount |
|
|
2013 |
Legal rep. |
Liu Zhentao |
Ms. Tian Yumiao |
|
Company name |
CSPC Zhongrun Pharmaceutical (Inner Mongolia)
Co., Ltd. |
Present one |
|
|
Shareholders |
China Pharmaceutical Group Limited (Hong Kong100% |
Present one |
|
|
2014-2 |
Legal rep. |
Ms. Tian Yumiao (田玉妙) |
Present one |
Organization
Code: 752587166
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Best
Century Group Limited (Hong Kong) 100
CR
No.: 1549788
Company
Type: Private company limited by shares
Date
of Incorporation: 07-Jan.-2011
Active
Status: Live
Legal Representative & Chairman:
Chen
Yingxin is currently responsible for the overall management of SC.
Working Experience(s):
From September,
2015 to present
working in SC as legal representative and general
manager.
Also working in Inner Mongolia Changrong Sugar Co., Ltd. (Literal Translation) and Inner Mongolia Xinhui Pharmaceutical Co., Ltd. as legal representative
Chairman:
Mu
Shusheng is currently responsible for the daily
management of SC.
Working Experience(s):
At present
Working in SC as chairman.
Yang
Kai
SC
is mainly engaged in manufacturing and sales of pharmaceutical products.
SC’s
products mainly include: penicillin
SC
sources its materials 100% from domestic market. SC sells 70% of its products
in domestic market, and 30% to overseas market.
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.
Note:
SC declined to release its major suppliers and clients.
SC is known to invest in the following companies:
Inner
Mongolia Changrong Sugar Co., Ltd. (Literal Translation)
-----------------------------------------------------------------------------
Registration
No.: 150107000000029
Legal
representative: Chen Yingxin
Incorporation
date: Apr. 19, 2004
Inner
Mongolia Xinhui Pharmaceutical Co., Ltd.
------------------------------------------------------------------
Legal
representative: Chen Yingxin
Registration
No.: 150107000005161
Incorporation
date: Oct. 20, 2009
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.
Bank
of China Yuquan Sub-branch
AC#：155607799664
Relationship:
Normal
Balance Sheet
Unit:
CNY’000
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
Cash & bank |
20,580 |
15,030 |
|
Inventory |
148,460 |
126,160 |
|
Accounts receivable |
208,600 |
238,430 |
|
Note receivable |
26,060 |
45,950 |
|
Advances to suppliers |
93,730 |
109,170 |
|
Other receivables |
39,860 |
18,050 |
|
|
------------------ |
------------------ |
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Current assets |
537,290 |
552,790 |
|
Disposal of fixed assets |
156,430 |
156,790 |
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Fixed assets net value |
517,600 |
562,470 |
|
Long term investment |
219,640 |
197,630 |
|
Projects under construction |
85,340 |
26,370 |
|
Intangible and other assets |
6,190 |
6,510 |
|
|
------------------ |
------------------ |
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Total assets |
1,522,490 |
1,502,560 |
|
|
=========== |
=========== |
|
Short loan |
0 |
0 |
|
Accounts payable |
170,870 |
275,320 |
|
Advances from customers |
29,500 |
700 |
|
Payroll Payable |
5,180 |
5,760 |
|
Taxes payable |
-4,810 |
1,170 |
|
Other accounts payable |
671,510 |
793,240 |
|
|
------------------ |
------------------ |
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Current liabilities |
872,250 |
1,076,190 |
|
Long term liabilities |
259,050 |
80,000 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,131,300 |
1,156,190 |
|
Equities |
391,190 |
346,370 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
1,522,490 |
1,502,560 |
|
|
=========== |
=========== |
Income Statement
Unit:
CNY’000
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
Turnover |
876,690 |
574,250 |
|
Cost of goods sold |
762,140 |
567,010 |
|
Taxes and additional
of main operation |
2,480 |
1,650 |
|
Sales expense |
12,590 |
12,330 |
|
Management expense |
53,310 |
75,430 |
|
Finance expense |
2,750 |
3,410 |
|
Asset impairment loss |
0 |
1,760 |
|
Non-operating income |
3,430 |
410 |
|
Non-operating expense |
1,650 |
0 |
|
Profit before tax |
45,200 |
-86,930 |
|
Less: profit tax |
0 |
0 |
|
Profits |
45,200 |
-86,930 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
*Current ratio |
0.62 |
0.51 |
|
*Quick ratio |
0.45 |
0.40 |
|
*Liabilities to assets |
0.74 |
0.77 |
|
*Net profit margin (%) |
5.16 |
-15.14 |
|
*Return on total assets (%) |
2.97 |
-5.79 |
|
*Inventory /Turnover ×365 |
62 days |
81 days |
|
*Accounts receivable/Turnover ×365 |
87 days |
152 days |
|
*Turnover/Total assets |
0.58 |
0.38 |
|
* Cost of goods sold/Turnover |
0.87 |
0.99 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line, and
it increased in 2014.
SC’s
net profit margin is poor in 2013, and fairly good in 2014.
SC’s
return on total assets is fair in 2013, and average in 2014.
SC’s
cost of goods sold is high in 2013, but average in 2014.
LIQUIDITY: FAIR
The
current ratio of SC is maintained in a fair level.
SC’s
quick ratio is maintained in a fair level.
The
inventory of SC appears average.
The
accounts receivable of SC is large in 2013, but fairly large in 2014.
SC
has no short loans in both years.
SC’s
turnover is in a poor level in 2013, and fair in 2014, comparing with the size
of its total assets.
LEVERAGE: AVERAGE
The
debt ratio of SC is fairly high in 2013, but average in 2014.
The
risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC
is considered large-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable could be a threat to SC’s financial
situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.35 |
|
|
1 |
Rs.100.66 |
|
Euro |
1 |
Rs.70.47 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
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|
Report Prepared
by : |
TRU |
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.