MIRA INFORM REPORT
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Report No. : |
342125 |
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Report Date : |
25.09.2015 |
IDENTIFICATION DETAILS
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Name : |
GUANGZHOU WINSUN PHARMACEUTICAL co., ltd. |
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Registered Office : |
Room A-B, 25/F, Solana
Court, Metro Paradise, No. 368, Tianhe
North Road, Guangzhou, Guangdong Province 510620 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
30.01.1994 |
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Com. Reg. No.: |
440101000046529 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is
mainly engaged in wholesaling and retailing
medicine, products mainly include: APIs, Pellets, Final Dosage Forms. |
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No. of Employees : |
70 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 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
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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.
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Source
: CIA |
Company
Name and address
GUANGZHOU WINSUN PHARMACEUTICAL co., ltd.
ROOM A-B, 25/F, SOLANA
COURT, METRO PARADISE, NO. 368, TIANHE NORTH ROAD, GUAngZHOU, GUANGDONG
province 510620 pr china
TEL: 86 (0)
20-38866693 FAX: 86 (0) 20-38861665
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JAN. 30, 1994
REGISTRATION NO. :
440101000046529
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
70
REGISTERED CAPITAL : CNY 6,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 130,032,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 7,359,000 (AS OF
DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3835 =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
Note: Dragon HWA
Chempharm. Co., Limited (the given name) belongs to SC’s related company which
was registered in Hong Kong.
SC was registered as State-owned enterprise at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Jan. 30, 1994 and
has been under present legal form since Aug. 4, 2003.
Company
Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes commodity
wholesale trade (except licensing examination and approval of goods); import
and export of technology; commodity information consulting services;
pharmaceutical research; retail trade (except for license approval goods);
import and export of goods (except specializes in exclusive control of goods);
biotechnology consultation, communication service; wholesale of western
medicine; wholesale of proprietary Chinese medicine and traditional Chinese
prepared herbal medicine)
SC is mainly
engaged in wholesaling and retailing medicine.
Mr. Chen Huazhao
has been the legal representative, executive director and manager of SC since
2003.
SC is known
to have approx. 70 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Guangzhou. Our checks reveal that SC
rents the total premise about 300 square meters.
http://www.winsunpharm.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: info@winsunpharm.com;
qilinliang@winsunpharm.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
1999-6-11 |
Legal representative |
Tu Kejin |
Ouyang Zhaoxiang |
|
2003-8-4 |
Ouyang Zhaoxiang |
Huang Sheng |
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|
Legal form |
State-owned enterprise |
Present one |
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|
Registration capital |
CNY 600,000 |
CNY 1,196,900 |
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|
Company name |
Guangzhou Winsun Pharmaceutical Trade Co. (Literal Translation) |
Present one |
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|
2003-11-26 |
Legal representative |
Huang Sheng |
Present one |
|
2007-4-12 |
Registration capital |
CNY 1,196,900 |
Present amount |
|
2009-12-23 |
Registration No. |
4401012042894 |
Present one |
|
2013-4-3 |
Shareholdings |
Chen
Huazhao 40% Liu Jingren
15% 15 12 Cai Yimin 15% Chen Yuhai
15% 5 Chen
Hongying 15% 5 |
Present ones |
Organization Code: 19053087X
MAIN
SHAREHOLDERS:
Name
% of Shareholding
Chen Huazhao 73
Liu Jingren 12
Cai Yimin 5
Chen Yuhai 5
Chen Hongying 5
l Legal
representative, executive director and manager:
Mr. Chen Huazhao, with university education, he is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present working in SC as
legal representative, executive director and manager.
Also working in Guilin
Hwasun Pharmaceutical Co., Ltd. as legal representative and general manager;
Foshan LongSun Medical Technological Co., Ltd. as legal representative,
executive director and manager, etc.
l Director:
Zhang Minxi
l Supervisor:
Peng Zhigang
SC is mainly
engaged in wholesaling and retailing medicine.
SC’s products mainly include: APIs, Pellets, Final Dosage Forms, etc.
SC sources its materials
80% from domestic market, and 20% form overseas market. SC sells 70% in
domestic market, and 30% to overseas market.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T, Check, L/C, and Credit of 30-60 days.
TRADEMARKS & PATENTS
Registration No.: 5920612
Registration Date:
Trademark Design: 
Registration No.: 5073606
Registration Date:
Trademark Design: 
Dragon HWA
Chempharm Co., Limited (H.K.)
------------------------------------------------
Incorporation
Date:
Registration
No. : 0659687
Registered
Legal Form: Private Company Limited by Shares
Active
Status: Live
Guilin
Hwasun Pharmaceutical Co., Ltd.
-------------------------------
Incorporation
Date:
Registration
No.: 450323200000949
Legal
representative: Mr. Chen Huazhao
Etc.
SC is known to invest the following company:
Foshan
LongSun Medical Technological Co., Ltd.
-------------------------------
Incorporation
Date:
Registration
No. : 440682000237543
Legal
representative: Mr. Chen Huazhao
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.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
|
Cash & bank |
11,355 |
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Notes receivable |
987 |
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Accounts receivable |
20,897 |
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Other receivables |
17,700 |
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Inventory |
5,214 |
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Prepaid expenses |
23 |
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------------------ |
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Current assets |
56,176 |
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Fixed assets net value |
184 |
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Long-term investments |
2,900 |
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------------------ |
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Total assets |
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============= |
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Short loans |
0 |
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Accounts payable |
29,929 |
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Taxes payable |
1,349 |
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Other Accounts payable |
20,623 |
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----------------- |
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Current liabilities |
51,901 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
51,901 |
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Shareholders equities |
7,359 |
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------------------ |
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Total liabilities & equities |
59,260 |
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============= |
Income Statement
Unit: CNY’000
|
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as of Dec. 31, 2013 |
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Turnover |
130,032 |
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Cost of
goods sold |
117,462 |
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Taxes and additional of main operation |
332 |
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Sales expense |
7,559 |
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Management expense |
3,889 |
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Finance expense |
-296 |
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Other income |
106 |
|
Non-operating income |
1 |
|
Non-operating
expense |
6 |
|
Operation Profit |
1,187 |
|
Less: profit tax |
297 |
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Net profit |
890 |
Note: SC’s management declined to release its
latest financial statements.
Important Ratios
=============
|
|
as of Dec. 31, 2013 |
|
*Current ratio |
1.08 |
|
*Quick ratio |
0.98 |
|
*Liabilities to assets |
0.88 |
|
*Net profit margin (%) |
0.68 |
|
*Return on total assets (%) |
1.50 |
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*Inventory /Turnover ×365 |
15 days |
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*Accounts receivable/Turnover ×365 |
59 days |
|
*Turnover/Total assets |
2.19 |
|
* Cost of goods sold/Turnover |
0.90 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line
in 2013.
l
SC’s net
profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average in 2013,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
There is no short-term loan of SC in 2013.
l
SC’s turnover is in an average level in 2013,
comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in 2013.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.10 |
|
|
1 |
Rs.100.89 |
|
Euro |
1 |
Rs.73.96 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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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 |
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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 |
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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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.