MIRA
INFORM REPORT
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Report No. : |
346356 |
|
Report Date : |
24.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG JINCHENG PHARMACEUTICAL & CHEMICAL CO., LTD. |
|
|
|
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Registered Office : |
3/F, Office Building Of Jincheng Group, Economic Development
Zone, Zichuan District, Zibo, Shandong
Province, 255100 Pr |
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|
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Country : |
China |
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|
|
|
Financials (as on) : |
30.06.2015 |
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|
|
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Date of Incorporation : |
12.01.2004 |
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Com. Reg. No.: |
370300018517205 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is in manufacturing and selling pharmaceutical and chemical
products. |
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|
No. of Employee : |
1,850 (Including Subsidiaries) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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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) |
|
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
SHANDONG JINCHENG PHARMACEUTICAL & CHEMICAL
CO., LTD.
3/f, office building of jincheng group,
economic development zone, ZICHUAN
DISTRICT, ZIBO, SHANDONG PROVINCE, 255100 PR CHINA
TEL: 86 (0) 533-5773517/5439098 FAX: 86 (0) 533-5776517/5439426
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 12, 2004
REGISTRATION NO. : 370300018517205
REGISTERED LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE : MR. ZHAO YEQING (CHAIRMAN)
STAFF STRENGTH : 1,850 (including
subsidiaries)
REGISTERED CAPITAL : CNY 253,200,000
BUSINESS LINE :
MANUFACTURING
TURNOVER : CNY 590,538,000
(Consolidated, JAN. 1 TO JUN. 30, 2015)
EQUITIES : CNY 1,195,905,000
(Consolidated, AS OF JUN. 30, 2015)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 6,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.3483 = 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 Company at Shandong
Provincial Administration for industry & commerce (AIC - the official body
of issuing and renewing business license) on Jan. 12, 2004 and has been under
present legal form since 2008.
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 The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. 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 shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes manufacturing (production by
Kunlun Branch) and selling controlled chemicals (cefotaxime acid, carbodiimide,
ceftazidime active ester, AE- active ester, triazine ring, furan ammonium
salt); import and export business.
SC is mainly engaged in manufacturing and selling pharmaceutical and
chemical products.
Mr. Zhao Yeqing has been legal representative and chairman of SC since
2008.
SC is known to have approx. 1,850 (including subsidiaries)
employees at present, including 559 R&D and technical staff, 953 production
staff, 201 management staff, 21 sales staff, 87 support staff and 29 financial
staff.
SC is currently operating at the above stated address, and this address
houses its operating office in the economic development zone of Zibo. The
detailed information of the premise is unspecified.
Factory address: No. 26, Kunxin Road, Kunlun Town, Zichuan District,
Zibo, Shandong Province
http://www.jinchengpharm.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: jcpc@jinchengpharm.com
Honors:
=======
★ The Key High-New Tech Enterprise of
National Torch plans
★ The National Post-doctoral Scientific
research station
★ Second Prize of National Award for Science
and Technology Process
★ First Prize of China Petroleum and Chemical
Industry Association Award
★ Enterprise technical centre of Shandong
Province
★The Engineering and Technology Research
Center of Cephalosporin intermediates of Shandong Province
★ Provincial Industry technology innovation
strategic alliance of cephalosporin intermediates
★ Academician workstation of Shandong
Province
★ Abide Contract and Regard for Credit
Enterprise of Shandong Province
★ The patent star enterprise of Shandong
Province
★ Excellent Enterprise of Shandong Province
for Management Innovation
★ The products of Ceftazidime and Cefixime
has been listed in the “National Key New Products”
★ MAEM、SMIA has been
listed in the “National Torch Plan”
★ First Prize of Provincial award of science
and technology process
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
|
Registered capital |
CNY 10,000,000 |
CNY 36,000,000 |
|
|
Registered capital |
CNY 36,000,000 |
CNY 45,000,000 |
|
Unknown |
Registration no. |
3703001851497 |
3703001851720 |
|
Registration no. |
3703001851720 |
Present one |
|
|
2008-2-28 |
SC’s Chinese name |
|
|
|
Registered legal form |
Limited liability company |
Shares limited company |
|
|
Registered capital |
CNY 45,000,00 |
CNY 90,000,000 |
|
|
Legal representative |
Zhao Hongfu |
Zhao Yeqing |
|
|
2011-6 |
Registered capital |
CNY 90,000,000 |
CNY 121,000,000 |
|
2014-8-26 |
Registered capital |
CNY 121,000,000 |
CNY 126,308,000 |
|
2015-06-19 |
Registered capital |
CNY 126,308,000 |
CNY 126,600,000 |
|
2015-10-13 |
Registered capital |
CNY 126,600,000 |
Present amount |
Note: SC changed its Chinese name in 2008, while its English name
remains the same.
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 300233.
Organization Code: 164238285
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
(As of June 30, 2015)
Name % of Shareholding
Zibo Jincheng Industry Investment Co., Ltd. 37.58
Qingdao Fuhe Investment Co., Ltd. (in Chinese pinyin) 5.21
Zhao Hongfu 5.05
Shenzhen Qianhai Khan Fund Management Inc. - Qianhai Khan
Quantitative Classification Fund 4.03
Shanghai Fosun Pharmaceutical Development Co., Ltd. 3.34
Zhang Xuebo 2.54
Zhao Yeqing 1.86
Shenzhen Qianhai Khan Fund Management Inc. – Khan
Xuefeng Medical Hedge Fund (in Chinese pinyin) 1.36
Zou Yanmin 0.79
Hwabao Trust Co., Ltd. – “Good Season, Good Rain”
No. 23 Collective Fund Trust 0.72
Other shareholders 37.52
Zibo Jincheng Industry Investment Co., Ltd.
=======================
It was formerly named as Zibo Jincheng Industry Co., Ltd.
Registered no.: 370000018043621
Legal representative: Zhao Hongfu
Registered capital: CNY 23,846,550
Date of incorporation:
Tel: 0533-5415977
Fax: 0533-5439726
Address: Zichuan Economic Development Zone, Zibo, Shandong
Province
Web: http://www.jinchenggroup.com/
(the website could not open at present)
Email: zibojincheng@126.com
Legal representative and Chairman:
Mr. Zhao Yeqing, ID# 37030219760506XXXX, born in 1976, with Master’s
Degree. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2008 to present Working
in SC as legal representative and chairman
Also working in Shandong Jincheng Bio-pharmaceutical Co., Ltd. as legal
representative, and in Zibo Jincheng Industry Investment Co., Ltd., Shandong
Jincheng Kerui Chemical Co., Ltd. and Shandong Huihai Pharmaceutical &
Chemical Co., Ltd. as director.
General Manager and vice chairman:
Mr. Zhang Xuebo, born in 1963, with MBA Degree, engineer. He is
currently responsible for the daily management of SC.
Working
Experience(s):
At present Working
in SC as general manager and vice chairman.
Also working in Zibo Jincheng Industry Investment Co., Ltd., Shandong
Jincheng Kerui Chemical Co., Ltd. and Shandong Huihai Pharmaceutical &
Chemical Co., Ltd. as director.
Vice
general managers:
Yang Xiuliang
Guo Fangshui
Cui Xili
Li Jiaquan
Zhu Xiaogang
Directors:
Guo Fangshui
Zhao Hongfu
Li Jiaquan
Etc.
Supervisors:
Wang Kai
Yang Zhiyuan
Meng Fanqing
SC is mainly engaged in manufacturing and selling pharmaceutical and
chemical products.
SC’s products mainly include:
Characteristic bulk drugs
Pharmaceutical Intermediates
Fine chemicals
SC sources its materials 70% from domestic market, and 30% from overseas
market. SC sells 53% of its products in domestic market, and 47% to overseas
market, mainly Europe, America, and Southeast Asia.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
=============
Yonyou Network Technology Co., Ltd.
Beijing Mediking Pharmaceutical Co., Ltd.
*Major Customers:
==============
India Covalent Co., Ltd.
India Aurobindo Ltd.
Nectar Life Sciences Ltd.
Zhuhai Free Trade Zone Livzon Synthetic Pharmaceutical Co., Ltd.
(literal translation)
Shandong Lukang Record Pharmaceutical Co., Ltd.
|
TRADEMARKS & PATENTS |
|
Registration No. |
12434969 |
6309259 |
6309260 |
|
Registration Date |
Sep. 21, 2014 |
March 28, 2010 |
March 28, 2010 |
|
Trademark Design |
|
|
|
SC is known to
have the following subsidiaries:
Shandong Jincheng Kerui Chemical Co., Ltd.
-------------------------------------------------------
Registered no.: 370300018517369
Legal representative: Guo Fangshui
Incorporation date: 2005-05-12
Shandong Huihai Pharmaceutical & Chemical Co., Ltd.
-------------------------------------------------------------------
Registered no.: 370503018053238
Legal representative: Zhang Zhongzheng
Incorporation date: 2005-10-17
Shandong Jincheng Bio-pharmaceutical Co., Ltd.
-----------------------------------------------------------
Registered no.: 370300000001063
Legal representative: Zhao Yeqing
Incorporation date: 2009-06-04
Web: http://www.jinchengbiopharm.com
Branch:
Shandong Jincheng Pharmaceutical & Chemical Co., Ltd. Kunlun Branch
========================================
Registered no.: 370300100006363
Principal: Zhang Xicheng
Incorporation date: 2012-06-20
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’s suppliers declined to make any
comments.
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 Jun. 30, 2015 |
As
of Dec. 31, 2014 |
|
Cash & bank |
338,009 |
388,441 |
|
Bills receivable |
49,618 |
33,467 |
|
Inventory |
146,218 |
139,583 |
|
Accounts receivable |
289,649 |
265,081 |
|
Interest receivable |
72 |
198 |
|
Advances to suppliers |
10,180 |
14,192 |
|
Other receivables |
4,497 |
1,162 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
--------------- |
|
Current assets |
838,243 |
842,124 |
|
Financial assets available for sale |
4,800 |
4,800 |
|
Fixed assets net value |
710,930 |
713,297 |
|
Projects under construction |
75,440 |
52,727 |
|
Long-term investment |
0 |
0 |
|
Intangible assets |
126,395 |
98,275 |
|
Development expenditure |
100 |
100 |
|
Goodwill |
8,703 |
8,703 |
|
Deferred tax debit |
7,712 |
6,323 |
|
Other assets |
30,042 |
58,930 |
|
|
------------------ |
-------------- |
|
Total assets |
1,802,365 |
1,785,279 |
|
|
============= |
============ |
|
Short loans |
255,000 |
254,300 |
|
Bills payable |
12,500 |
20,070 |
|
Accounts payable |
161,538 |
190,081 |
|
Advances from clients |
238 |
2,665 |
|
Accrued payroll |
41,060 |
42,070 |
|
Taxes payable |
9,322 |
10,889 |
|
Other payable |
13,325 |
11,377 |
|
Non-current liabilities due within one year |
15,270 |
15,070 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------- |
|
Current liabilities |
508,253 |
546,522 |
|
Long term liabilities |
98,207 |
122,084 |
|
|
------------------ |
------------------- |
|
Total liabilities |
606,460 |
668,606 |
|
Equities |
1,195,905 |
1,116,673 |
|
|
------------------ |
------------------- |
|
Total liabilities & equities |
1,802,365 |
1,785,279 |
|
|
============= |
=========== |
Consolidated
Income Statement
Unit: CNY’000
|
|
Jan.
1 to Jun. 30, 2015 |
As
of Dec. 31, 2014 |
|
Turnover |
590,538 |
1,050,830 |
|
Cost of goods sold |
386,648 |
681,282 |
|
Taxes and additional of main operation |
5,312 |
7,206 |
|
Sales expense |
7,761 |
17,284 |
|
Management expense |
89,194 |
204,533 |
|
Finance expense |
2,783 |
11,727 |
|
Asset impairment loss |
1,262 |
929 |
|
Non-operating income |
3,771 |
6,106 |
|
Non-operating expense |
608 |
10,651 |
|
Profit before tax |
100,741 |
123,324 |
|
Less: profit tax |
14,400 |
14,623 |
|
Profits |
86,341 |
108,701 |
Important
Ratios
=============
|
|
As
of Jun. 30, 2015 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.65 |
1.54 |
|
*Quick ratio |
1.36 |
1.29 |
|
*Liabilities to assets |
0.34 |
0.37 |
|
*Net profit margin (%) |
14.62 |
10.34 |
|
*Return on total assets (%) |
4.79 |
6.09 |
|
*Inventory /Turnover ×365 |
/ |
49 days |
|
*Accounts receivable/Turnover ×365 |
/ |
93 days |
|
*Turnover/Total assets |
0.33 |
0.59 |
|
* Cost of goods sold/Turnover |
0.65 |
0.65 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears good in its line.
SC’s net profit margin is good.
SC’s return on total assets is fairly good in 2014 but average in the
first half of 2015.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears fairly large.
The short-term loan of SC appears average.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is low.
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 condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.88 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.