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MIRA INFORM REPORT
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Report No. : |
490816 |
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Report Date : |
10.02.2018 |
IDENTIFICATION DETAILS
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Name : |
LIVZON GROUP FUZHOU FUXING PHARMACEUTICAL
CO., LTD. |
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Registered Office : |
No. D3e, 7/F, Sun Plaza, No. 278, Hudong Road, Fuzhou, Fujian
Province, 350000 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
13.11.1989 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject registered business scope includes manufacturing antibiotics type
active pharmaceutical ingredients, chemical materials for sterile bulk drugs,
health food ingredients, food additives, intermediates & formulations,
and pharmaceutical raw materials for production (excluding flammable,
explosive and dangerous chemicals, with permit if needed). (with permit if
needed). |
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No. of Employees : |
560 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. China has
implemented reforms in a gradualist fashion, resulting in efficiency gains that
have contributed to a more than tenfold increase in GDP since 1978. Reforms
began with the phaseout 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 continues to pursue an industrial policy, state support of
key sectors, and a restrictive investment regime. Measured on a purchasing power
parity (PPP) basis that adjusts for price differences, China in 2016 stood as
the largest economy in the world, surpassing the US in 2014 for the first time
in modern history. China became the world's largest exporter in 2010, and the
largest trading nation in 2013. Still, China's per capita income is below the
world average.
After keeping its currency tightly linked to the US dollar for years,
China in July 2005 moved to an exchange rate system that references a basket of
currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20%
against the US dollar, but the exchange rate remained virtually pegged to the
dollar from the onset of the global financial crisis until June 2010, when
Beijing announced it would allow a resumption of gradual liberalization. From
2013 until early2015, the renminbi (RMB) appreciated roughly 2% against the
dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong
capital outflows in part stemming from the August 2015 official devaluation; in
2017 the RMB resumed appreciating against the dollar – roughly 7% from
end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest
growing economies in the world, averaging slightly more than 7% real growth per
year. In 2015, the People’s Bank of China announced it would continue to
carefully push for full convertibility of the renminbi, after the currency was
accepted as part of the IMF’s special drawing rights basket. However, since
late 2015 the Chinese Government has strengthened capital controls and
oversight of overseas investments to better manage the exchange rate and
maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a)
reducing its high domestic savings rate and correspondingly low domestic
household consumption; (b) managing its high corporate debt burden to maintain
financial stability; (c) controlling off-balance sheet local government debt
used to finance infrastructure stimulus; (d) facilitating higher-wage job
opportunities for the aspiring middle class, including rural migrants and
college graduates, while maintaining competitiveness; (e) dampening speculative
investment in the real estate sector without sharply slowing the economy; (f)
reducing industrial overcapacity; and (g) raising productivity growth rates
through the more efficient allocation of capital and state-support for
innovation. Economic development has progressed further in coastal provinces
than in the interior, and by 2016 more than 169.3 million migrant workers and
their dependents had relocated to urban areas to find work. One consequence of
China’s population control policy known as the “one-child policy” - which was
relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese
Government is seeking to add energy production capacity from sources other than
coal and oil, focusing on natural gas, nuclear, and clean energy development.
In 2016, China ratified the Paris Agreement, a multilateral agreement to combat
climate change, and committed to peak its carbon dioxide emissions between 2025
and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes
the need to increase innovation and boost domestic consumption to make the
economy less dependent on government investment, exports, and heavy industry.
However, China has made more progress on subsidizing innovation than
rebalancing the economy. Beijing has committed to giving the market a more
decisive role in allocating resources, but the Chinese Government’s policies
continue to favor state-owned enterprises and emphasize stability. Chinese
leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year
Plan includes annual economic growth targets of at least 6.5% through 2020 to
achieve that goal. 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.
Chinese leaders also have undermined some market-oriented reforms by
reaffirming the “dominant” role of the state in the economy, a stance that
threatens to discourage private initiative and make the economy less efficient
over time. The slight acceleration in economic growth in 2017—the first such
uptick since 2010—gives Beijing more latitude to pursue its economic reforms,
focusing on financial sector deleveraging and its Supply-Side Structural Reform
agenda, first announced in late 2015.
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Source
: CIA |
Company
name & address
LIVZON GROUP FUZHOU FUXING PHARMACEUTICAL CO., LTD.
NO. D3E, 7/F, SUN PLAZA, NO. 278, HUDONG ROAD,
FUZHOU, FUJIAN PROVINCE, 350000 PR CHINA
TEL: 86 (0) 591-83677745/ 83549501 FAX: 86 (0) 591-83549525
EXECUTIVE
SUMMARY
INCORPORATION DATE : NOV. 13, 1989
credibility code : 913501006113030273
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. tang yanggang (CHAIRMAN)
STAFF STRENGTH :
560
REGISTERED CAPITAL : USD 41,700,000
BUSINESS LINE :
MANUFACTURING & selling
TURNOVER :
CNY 230,092,000 (JAN. 1 TO JUNE 30, 2017)
EQUITIES :
CNY 518,099,000 (AS OF JUNE 30, 2017)
PAYMENT :
regular
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY
– China Yuan Ren Min Bi
Note: SC’s complete name should be the heading one.
SC was registered as a Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Nov. 13, 1989.
Company Status: Chinese-foreign
equity joint venture enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing antibiotics type active
pharmaceutical ingredients, chemical materials for sterile bulk drugs, health
food ingredients, food additives, intermediates & formulations, and
pharmaceutical raw materials for production (excluding flammable, explosive and
dangerous chemicals, with permit if needed). (with permit if needed).
SC is mainly engaged in manufacturing and selling active pharmaceutical
ingredients.
Mr. Tang Yanggang has been the legal representative and chairman of SC
since Jan. of 2017.
SC is known to have approx. 560 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Fuzhou, while its factory
is located in Jiangyin Industrial Concentration Area, Fuqing, Fuzhou City. The
detailed information of the area is unspecified.
http://www.fxpharm.com The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: fuxing@fxpharm.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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Unknown |
Registered Capital |
USD 33,700,000 |
Present amount |
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2014-6-11 |
Legal Rep. |
An Ning |
Zhang Maohua |
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2017-01-09 |
Zhang Maohua |
Present one |
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Unknown |
Registration no./credibility code |
350100400001335 |
913501006113030273 |
HS Code: 3501937140
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Livzon Pharmaceutical Group Inc. 75
Ando Development Limited (Hong Kong)
25
Livzon Pharmaceutical Group Inc.
========================
Livzon Pharmaceutical Group Inc. (Livzon) was founded in 1985. In 1993,
Livzon became the first local pharmaceutical company to list both A and B
shares in Shenzhen Stock Exchange with the code 000513, with multifold turnover
in development, manufacture, and marketing of diversified pharmaceutical
products. It is a comprehensive pharmaceutical enterprise integrating
development & research, production and sales of pharmaceutical products.
Livzon has 9 GMP production plants located in Guangdong, Shanghai, Sichuan,
Fujian, 3 plantation bases for Chinese drug preparation production located in
Shanxi, Gansu, Yunan of China, with more than 5,700 employees.
Incorporation Date :
Jan. 26, 1985
Credibility code :
914404006174883094
Registered Legal Form :
Shares Limited Company
Legal Rep. :
Mr. Zhu Baoguo
Tel: 0086-756- 8135888
Fax: 0086-756- 8886002
Website: http://www.livzon.com.cn
E-mail: LIVZON_GROUP@livzon.com.cn
Ando Development Limited (Hong Kong)
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CR No.: 0222981
Date of Incorporation: 1988-8-2
Company Status: Private Company Limited by Shares
Active Status: Live
Legal representative and chairman:
Mr. Tang Yanggang, senior engineer, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From Jan. of 2017 to present
Working in SC as legal representative and chairman.
Also working in Livzon New North River Pharmaceutical Co., Ltd., Livzon
Group Ningxia Fuxing Pharmaceutical Co., Ltd., Gutian Fuxing Pharmaceutical
Co., Ltd., etc. as legal representative.
General Manager:
Wang Weimin, with master’s degree, is currently responsible for the
daily management of SC.
Working Experience(s):
From Jan. of 2017 to present
Working in SC as general manager.
Also working in Gutian Fuxing Pharmaceutical Co., Ltd. as general manager.
*Officials:
=======
Name Title
Wang Weimin Director
Yang Daihong Director
Huang Yuxuan Director
Tao Desheng Director
Si Yanxia Supervisor
SC is mainly engaged in manufacturing and selling active pharmaceutical
ingredients.
SC’s products mainly include:
Trademarks &
Patents
Registration No.: 12152409 12152408 1362655
Registration Date: Jul. 28, 2014 Jul.
28, 2014 Feb. 14, 2000
Trademark Design: 
SC sources its materials 100% from domestic market. SC sells 80% of its
products in domestic market, and 20% to the overseas market, mainly American,
Europe, Japan, Korea, and India.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note: SC’s
management declined to release its major clients and suppliers.
Industry code:
2710
Industry name:
chemicals API manufacturing
The gross domestic product of China in 2016 which is 74412.72 billion
that is increased 6.7% than previous year.
According to National Bureau of statistics data released, in 2014, main
business income of China pharmaceutical manufacturing industry was 2,332.6
billion Yuan, accumulated an increase of 12.94%; the main business income of
chemicals API was 424 billion Yuan, accumulated an increase of 11.35%; total
profit of China pharmaceutical manufacturing industry was 232.2 billion Yuan,
accumulated an increase of 12.09%. In 2015, main business income of China
pharmaceutical manufacturing industry was 2,553.7 billion Yuan, accumulated an
increase of 9.10%; total profit was 262.7 billion Yuan, accumulated an increase
of 12.90%. China's pharmaceutical manufacturing industry overall still maintain
a growth trend, but the growth rate has slowed down. In the long run, the
characteristics of the rigid demand in pharmaceutical market are remarkable,
under the influence of accelerated aging in China, strengthen of health
conscious and ability to pay, steady growth in the industry will be a high
probability event.
Livzon New North River Pharmaceutical Co., Ltd.
Zhuhai Free Trade Zone Livzon Syntpharm Co., Ltd.
Zhuhai Livzon Pharmaceutical Trading Co., Ltd.
Zhuhai Livzon Diagnostics Inc.
Etc.
SC is known to invest in the following companies:
Livzon Group Ningxia Fuxing Pharmaceutical Co., Ltd.
=======================================
Credibility code: 91640221574877733M
Legal rep.: Tang Yanggang
Incorporation date: 2011-08-17
Gutian Fuxing Pharmaceutical Co., Ltd.
===========================
Credibility code: 91350922779625011K
Legal rep.: Tang Yanggang
Incorporation date: 1991-08-21
SC is known to have the following branch:
Livzon Group Fuzhou Fuxing Pharmaceutical Co., Ltd. Gulou Branch
==================================================
Credibility code: 91350100MA3494946X
Principal: Huang Yuxuan
Incorporation date: 2016-06-17
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 records and our debt collection record concerning SC.
Trade payment experience: SC refused to release any information of
its suppliers and the trade reference was not available.
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.
Industrial and Commercial Bank of China Fuzhou Wusi Sub-branch
A/C #: 1402020319600039945
Relationship: Normal
Financial
Summary
Unit: CNY’000
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As of June 30,
2017 |
As of Dec. 31,
2016 |
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Total liabilities |
129,337 |
85,157 |
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Equity |
518,099 |
471,189 |
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------------ |
------------ |
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Total assets |
647,436 |
556,346 |
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========= |
========= |
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Jan. 1 to June 30, 2017 |
As of Dec. 31,
2016 |
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Turnover |
230,092 |
361,583 |
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Profits |
46,909 |
33,200 |
Note:
We can’t find SC’s financial reports. The above SC’s financial data came from
the public financial report of SC’s parent company- Livzon
Pharmaceutical Group Inc.
Important
Ratios
=============
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|
As of June 30,
2017 |
As of Dec. 31,
2016 |
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*Liabilities to assets |
0.20 |
0.15 |
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*Net profit margin (%) |
20.39 |
9.18 |
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*Return on total assets (%) |
7.25 |
5.97 |
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*Turnover/Total assets |
0.36 |
0.65 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good.
SC’s net profit margin appears fairly good in 2016 and good in the first
half of 2017.
SC’s return on total assets appears fairly good.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
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 favorable background and
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.37 |
|
|
1 |
INR 89.71 |
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Euro |
1 |
INR 78.89 |
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CNY |
1 |
INR 10.21 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.