MIRA INFORM REPORT
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Report No. : |
341809 |
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Report Date : |
22.09.2015 |
IDENTIFICATION DETAILS
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Name : |
INNER MONGOLIA CHANGSHENG PHARMACEUTICALS CO., LTD. |
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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 Employees : |
1,060 |
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 : |
Exist |
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
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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 & 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
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 :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2051 = 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.
Mr. Lu Hua has
been legal representative and chairman of SC since Feb., 2014.
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. |
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Court |
Huhhot City Intermediate People's Court |
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Date
of Case |
July 11, 2012 |
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Case Number |
(2012) 00044 |
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Claim
Amount |
RMB 731,660.7 |
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Case
Status |
In process |
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Executed Party |
CSPC Zhongrun Pharmaceutical (Inner Mongolia)
Co., Ltd. |
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Court |
Huhhot City Intermediate People's Court |
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Date
of Case |
Aug. 12, 2010 |
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Case Number |
(2010) 00045 |
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Claim
Amount |
RMB 125,764 |
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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 |
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Registered capital |
HKD 258,000,000 |
Present amount |
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2013 |
Legal rep. |
Liu Zhentao |
Ms. Tian Yumiao |
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Company name |
CSPC Zhongrun Pharmaceutical (Inner Mongolia)
Co., Ltd. |
Present one |
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Shareholders |
China Pharmaceutical Group Limited (Hong
Kong) 100% |
Present one |
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|
2014-2 |
Legal rep. |
Ms. Tian Yumiao |
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
l Legal
Representative & Chairman:
Mr. Lu Hua, about 41 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From Feb., 2014 to present Working in SC as
legal representative and chairman
Also working in Inner Mongolia Changrong
Sugar Co., Ltd. (Literal Translation) and Inner Mongolia Xinhui Pharmaceutical
Co., Ltd. as legal representative
l
Directors:
Chen Xuejun
Mu Shusheng
SC is mainly engaged in manufacturing and sales of pharmaceutical
products.
SC’s products
mainly include: penicillin, etc.
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: Lu Hua
Incorporation
date: Apr. 19, 2004
Inner Mongolia Xinhui Pharmaceutical Co., Ltd.
------------------------------------------------------------------
Legal representative: Lu Hua
Registration No.: 150107000005161
Incorporation date: Oct. 20, 2009
Etc.
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
|
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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 |
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Note receivable |
26,060 |
45,950 |
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Advances to
suppliers |
93,730 |
109,170 |
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Other
receivables |
39,860 |
18,050 |
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------------------ |
------------------ |
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Current assets |
537,290 |
552,790 |
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Disposal of
fixed assets |
156,430 |
156,790 |
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Fixed assets net
value |
517,600 |
562,470 |
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Long term
investment |
219,640 |
197,630 |
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Projects under
construction |
85,340 |
26,370 |
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Intangible and
other assets |
6,190 |
6,510 |
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------------------ |
------------------ |
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Total assets |
1,522,490 |
1,502,560 |
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=========== |
=========== |
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Short loan |
0 |
0 |
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Accounts payable |
170,870 |
275,320 |
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Advances from
customers |
29,500 |
700 |
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Payroll Payable |
5,180 |
5,760 |
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Taxes payable |
-4,810 |
1,170 |
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Other accounts
payable |
671,510 |
793,240 |
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------------------ |
------------------ |
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Current
liabilities |
872,250 |
1,076,190 |
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Long term
liabilities |
259,050 |
80,000 |
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------------------ |
------------------ |
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Total
liabilities |
1,131,300 |
1,156,190 |
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Equities |
391,190 |
346,370 |
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------------------ |
------------------ |
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Total
liabilities & equities |
1,522,490 |
1,502,560 |
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=========== |
=========== |
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 |
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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
l The turnover of SC appears fairly good in its line, and it increased in
2014.
l SC’s net profit
margin is poor in 2013, and fairly good in 2014.
l SC’s return on total
assets is fair in 2013, and average in 2014.
l
SC’s cost of goods sold is high in 2013, but
average in 2014.
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 average.
l
The accounts receivable of SC is large in 2013, but
fairly large in 2014.
l
SC has no short loans in both years.
l
SC’s turnover is in a poor level in 2013, and fair
in 2014, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high in 2013, but
average in 2014.
l
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. 65.75 |
|
|
1 |
Rs. 102.17 |
|
Euro |
1 |
Rs. 74.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
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 |
|
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.