MIRA INFORM REPORT
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Report No. : |
341062 |
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Report Date : |
16.09.2015 |
IDENTIFICATION DETAILS
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Name : |
NINGBO SMART PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 1 Yicheng Road, Beilun District, Ningbo Zhejiang Province 315803 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
29.05.1991 |
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Com. Reg. No.: |
330200400064541 |
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Legal Form : |
Wholly Foreign Owned Enterprise |
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Line of Business : |
Subject is engaged in manufacturing medicine skin
protective solute and chemical equipment; permitted items: raw materials
(medicine Mefenamic Acid, Diclofenac Sodium, Guaifenesin, Methocarbamol). |
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No. of Employees : |
110 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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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 |
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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 AND ADDRESS
NINGBO SMART PHARMACEUTICAL CO., LTD.
NO. 1 YICHENG ROAD, BEILUN DISTRICT, NINGBO
ZHEJIANG PROVINCE 315803 PR CHINA
TEL: 86 (0) 574-86222778/86234299
FAX: 86 (0) 574-68222227
EXECUTIVE
SUMMARY
Date of Registration : MAY 29, 1991
REGISTRATION NO. : 330200400064541
LEGAL FORM : WHOLLY FOREIGN OWNED ENTERPRISE
REGISTERED CAPITAL : USD 3,580,000
staff : 110
BUSINESS CATEGORY : manufacturing & TRADING
Revenue : N/A (AS OF
DEC. 31, 2014)
EQUITIES : CNY 18,740,000 (AS OF DEC. 31, 2014)
WEBSITE : www.smart-pharm.com
E-MAIL : smart@smart-pharm.com
PAYMENT : SLOW
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.37 = 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 wholly foreign owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
330200400064541 on May 29, 1991.
SC’s Organization Code Certificate
No.: 61025513-1
SC’s Tax No.: 330206610255131
SC’s Customs Registration No.:
3302240088
SC’s registered capital: USD 3,580,000
SC’s paid-in capital: USD
3,580,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2006-11-1 |
Shareholder (s) |
Hong
Kong Xunxu Limited |
Taiwan Smart Biotech Co., Ltd. |
|
-- |
Registration No. |
000231 |
330200400064541 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Taiwan Smart Biotech Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Wu
Guozhong |
|
General Manager |
Lin
Yong |
|
Vice Chairman |
Chen
Hexi |
|
Director |
Dai
Shenggong |
|
Zhong
Hongwen |
|
|
Xu
Zhengguan |
RECENT
DEVELOPMENT
SC has got the certificates of GMP, C.O.S FOR MEFENAMCI
ACID, and C.O.S FOR DICLOFENAC SODIUM.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Taiwan Smart Biotech Co., Ltd. 100
MANAGEMENT
Wu
Guozhong, Legal Representative
and Chairman
------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age:
Ø
ID# 0010885102 (A)
Ø Nationality:
Taiwan
Ø Qualification:
University
Ø Working
experience (s):
From 2001 to
present, working in SC as legal representative and chairman
Lin Yong, General Manager
---------------------------------------------
Ø Gender:
M
Ø Qualification:
University
Ø Working
experience (s):
At present,
working in SC as general manager
Chen Hexi, Vice Chairman
----------------------------------------------
Ø Gender:
M
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC as vice chairman
Director
-----------
Dai Shenggong
Zhong Hongwen
Xu Zhengguan
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing
medicine skin protective solute and chemical equipment; permitted items: raw
materials (medicine Mefenamic Acid, Diclofenac Sodium, Guaifenesin,
Methocarbamol).
SC is mainly
engaged in manufacturing and selling bulk active pharmaceutical ingredients and
intermediates.
SC’s
products mainly include:
*Pharmaceutical
bulks
Mefenamic
Acid
Diclofenac
Sodium
Diclofenac
Potassium
Methocarbamol
Mequitazine
Mephenoxalone
Flufenamic
Acid
Butinolin
Phosphate
Mefenamate
Sodium
*Pharmaceutical
intermediates
Indolinone
SC sources its materials 100% from domestic market. SC sells 15% of its products in domestic market and 85% to the overseas markets, mainly to Pakistan, Korea, Taiwan, India, Germany, Singapore, Japan, Thailand, Egypt, Israel.
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.
*Major Customers*
-----------------------
Vertical Fusion LLC.
Zeta Pharmaceuticals LLC.
Staff & Office:
--------------------------
SC is
known to have approx. 110
staff at present.
SC
owns an area as its operating office & factory of approx. 60,000 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
Basic Bank:
Agricultural Bank of China Ningbo Branch Development
Sub-branch
AC#: 39202001040004875
Bank
of China Ningbo Branch Development Sub-branch
AC#:810760457908093001
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
5,763 |
7,100 |
5,840 |
|
|
Notes receivable |
4,764 |
2,710 |
2,040 |
|
Accounts
receivable |
4,032 |
6,190 |
4,300 |
|
Advances
to suppliers |
-4,171 |
1,560 |
1,420 |
|
Other
receivable |
306 |
150 |
490 |
|
Inventory |
14,198 |
13,930 |
10,980 |
|
Prepaid
expenses |
221 |
0 |
0 |
|
Other
current assets |
200 |
0 |
40 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
assets |
25,313 |
31,640 |
25,110 |
|
Fixed
assets |
19,561 |
18,480 |
18,040 |
|
Construction
in progress |
701 |
690 |
170 |
|
Intangible
assets |
1,261 |
1,190 |
1,180 |
|
Long-term
prepaid expenses |
0 |
1,960 |
1,510 |
|
Deferred
income tax assets |
2,530 |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total
assets |
49,366 |
53,960 |
46,010 |
|
|
============ |
============ |
============ |
|
Short-term
loans |
25,200 |
22,700 |
18,700 |
|
Notes
payable |
0 |
5,330 |
3,290 |
|
Accounts
payable |
4 |
5,710 |
3,590 |
|
Wages
payable |
0 |
1,100 |
1,100 |
|
Welfare
payable |
1,095 |
0 |
0 |
|
Taxes
payable |
17 |
-1,040 |
80 |
|
Profit
payable |
1,830 |
0 |
0 |
|
Advances
from clients |
200 |
0 |
0 |
|
Other
payable |
0 |
770 |
440 |
|
Accrued
expenses |
65 |
60 |
70 |
|
Other
current liabilities |
40 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
28,451 |
34,630 |
27,270 |
|
Non-current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
28,451 |
34,630 |
27,270 |
|
Equities |
20,915 |
19,330 |
18,740 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
49,366 |
53,960 |
46,010 |
|
|
============ |
============ |
============ |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Revenue |
54,116 |
66,330 |
|
Cost of sales |
44,278 |
57,680 |
|
Taxes and surcharges |
108 |
430 |
|
Sales expense |
1,181 |
650 |
|
Management expense |
6,237 |
7,010 |
|
Finance expense |
2,183 |
1,880 |
|
Profit
before tax |
2 |
-1,400 |
|
Less:
profit tax |
0 |
0 |
|
2 |
-1,400 |
***Note: The income statement of SC in 2014 is not available
in local SAIC, and SC also refused to release the details.
Important
Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current
ratio |
0.89 |
0.91 |
0.92 |
|
*Quick
ratio |
0.39 |
0.51 |
0.52 |
|
*Liabilities
to assets |
0.58 |
0.64 |
0.59 |
|
*Net
profit margin (%) |
0.004 |
-2.11 |
-- |
|
*Return
on total assets (%) |
0.004 |
-2.59 |
-- |
|
*Inventory
/ Revenue ×365 |
96
days |
77
days |
-- |
|
*Accounts
receivable / Revenue ×365 |
28
days |
35
days |
-- |
|
*Revenue
/ Total assets |
1.10 |
1.23 |
-- |
|
*Cost
of sales / Revenue |
0.82 |
0.87 |
-- |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l The
revenue of SC appears average in its line.
l SC’s
net profit margin is fair.
l SC’s
return on total assets is fair.
l
SC’s cost of sales is average,
comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a fair level.
l
SC’s quick ratio is maintained in a
fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is
maintained in an average level.
l
The short-term loans of SC appear
large.
l
SC’s revenue is in an average 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: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair
financial conditions. A credit line up to USD 50,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.44 |
|
UK Pound |
1 |
Rs.102.41 |
|
Euro |
1 |
Rs.75.05 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
Report Prepared
by : |
VNT |
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.