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MIRA
INFORM REPORT
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Report No. : |
508809 |
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Report Date : |
14.05.2018 |
IDENTIFICATION DETAILS
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Name : |
LUOHE NANJIECUN PHARMACEUTICAL
GROUP PHARMACY CO.,LTD. |
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Registered Office : |
No. 7 Renmin East Road, Zhaoling Dist.
Luohe City, Henan Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
09.07.2002 |
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Credibility Code : |
91411104740712767H |
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Legal Form : |
One-person Limited Liability Company |
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Line of Business : |
The subject’s registered
business scope includes manufacturing API; importing and exporting goods and
technologies (excluding goods and technologies prohibited by the state) |
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No. of Employees : |
139 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 early 2015, 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 and address
Company
Name : LUOHE NANJIECUN PHARMACEUTICAL GROUP PHARMACY
CO.,LTD.
Address : NO. 7 RENMIN EAST ROAD, zhaoling
dist. LUOHE CITY, HENAN PROVINCE,
PR CHINA
Telephone : 0086-
395-2660156
Facsimile : 0086-
395-2660127
Website : http://www.njcpharma.com/
Email :
njycbgs@163.com
REGISTRATION
INFORMATION
Established
Date : 2002-07-09
Credibility Code : 91411104740712767H
Legal
Form : One-person Limited Liability Company
Registration Authority : Administration for Industry &
Commerce (AIC) – Zhaoling Branch, Luohe
Status : Active
Registered
Capital : RMB
5,000,000
Paid
Up
Capital : RMB 5,000,000
Turnover : RMB
40,190,000 (as of Dec. 31, 2016)
Equities : RMB 9,150,000
(as of Dec. 31, 2016)
Chief
Executive : Liu Xiangang
Business
Line : Manufacturer
Manpower : 139
Tax
Registration
Certificate
No. : 91411104740712767H
Organization
Code : 74071276-7
HS code : 4111950092
Import & Export code : 4100740712767
Financial
Condition : Fair
Business
Size : Medium
Enterprise
Payment
:
Slow but Correct
Registered
Address
NO. 7 RENMIN EAST ROAD, zhaoling dist. LUOHE CITY, HENAN PROVINCE, PR CHINA
Company
Status: One-person Limited Liability Company
Single person LLC refers to a limited liability company set up by
only one natural person or legal person as the single shareholder of it.
The minimum registered capital of Single person LLC is RMB100,000.
The shareholder’s capital contributes, as set out by the articles of
associations should be a lump-sum payment in full.
One natural person can only invest in and set up one limited
liability company, which is not permitted to invest in and set up a new Single
person LLC.
As to any one-person limited liability company, the sole-investor
nature of the natural person or legal person shall be indicated in the
registration documents of the company and shall be indicated in the business
license thereof as well.
The regulation of Single person LLC should be set up by the
shareholder
The regulation of Single person LLC has no shareholder meeting.
Premise
The subject operates from premises
located at the heading address, and this address houses its operating office
and factory in Luohe. Our checks reveal that the subject rents the total
premise, but the square meters are unknown.
MANAGEMENT
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Position |
Name |
Nationality |
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Legal
representative, General Manager |
Liu Xiangang |
Chinese |
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Executive
Director |
Kong Aiqing |
Chinese |
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Supervisors |
Huang Guoxiang |
Chinese |
MAJOR
SHAREHOLDERS
Name %
Shareholding
Jin Guangjun 100
KEY EVENTS
Changes of its registered
information are as follows:
|
Date
of change |
Item |
Before
the change |
After
the change |
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2017-10-26 |
Legal
representative |
Kong Aiqing |
Present one |
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2017-07-07 |
Shareholder |
Luohe Nanjiecun
Pharmaceutical Group Co.,
Ltd. |
Present one |
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2017-07-07 |
Legal
representative |
Wang Hongbin |
Kong Aiqing |
BUSINESS
OPERATIONS
The subject’s registered business scope includes manufacturing
API; importing and exporting goods and technologies (excluding goods and
technologies prohibited by the state)
The subject is mainly engaged in
manufacturing and selling API & finished products.
Products:
API
Rifaximin
Rifapentine
Rifabutin
Rifamycin Sodium
Sodium Rifa S
Rifamycin S
3F Rifamycin SV
FINISHED
PRODUCTS
Tablets
Capsules
Lyophilized Powder F
Powder for Injection
Infusion
Etc.
The subject sources its materials 70% from domestic
market, and 30% from overseas market. the subject sells 50% of its products in
domestic market, and 50% to overseas market, mainly Russia, Pakistan, England,
etc.
The buying terms of the subject include Check, T/T,
L/C and Credit of 30-60 days. The payment terms of the subject include Check,
T/T, L/C and Credit of 30-60 days.
SUPPLIER &
CUSTOMER
*Major customer:
Global
Pharmaceuticals Ltd. (England)
Adamjee Pharmaceuticals Pvt Ltd (Pakistan)
Etc.
RELATED COMPANIES
Subsidiaries
Luohe Qi Fu Pharmaceutical Technology
Co., Ltd.
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Credibility Code: 91411100080802862H
Legal representative: Kong Aiqing
Registered Capital: RMB 40,000,000
Established Date: 2013-09-26
NEGATIVE
INFORMATION
Lawsuit
Record:
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Date |
Case No. |
Petitioner |
Defendant |
Executive court |
Status |
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2017-05-25 |
2017-1122 |
Li Lihua |
The subject company. |
People's Court of Linying County |
Concluded |
Trade payment
experience: The subject 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 the subject
was placed to us for collection within the last 6 years.
Customs
administrative penalty: No record.
Equity
freeze information: No record.
Administrative
Penalty: No record.
MORTGAGE
There is no record of mortgage
information at present.
TRADEMARK
No record.
PATENT
No record.
BANKING
Industrial and Commercial Bank of China Luohe Tiedong Sub-Branch
Account No.: 1711020809201002238
ABBREVIATED
FINANCIAL STATEMENT
Financial
Summary
===============
Unit: RMB’000
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As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
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Total assets |
83,850 |
99,360 |
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========= |
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Total liabilities |
69,180 |
90,210 |
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Equities |
14,670 |
9,150 |
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-------------- |
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Total liabilities & equities |
83,850 |
99,360 |
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========= |
========= |
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Turnover |
48,270 |
40,190 |
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Profits before tax |
0 |
-5,520 |
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Less: tax |
0 |
0 |
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Profits |
0 |
-5,520 |
Important
Ratios
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As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
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*Liabilities to assets |
0.83
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0.91
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*Net profit margin (%) |
-- |
-13.73
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*Return on total assets (%) |
-- |
-5.56
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*Turnover/Total assets |
0.58
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0.40
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PROFITABILITY:
FAIR
The turnover of the subject appears average in its line.
the subject’s net profit margin is fair
in 2016.
the subject’s return on total assets is fair in 2016.
the subject’s turnover is in a fair level, comparing with the size
of its total assets.
LEVERAGE:
FAIR
The debt ratio of the subject is high.
The risk for the subject to go bankrupt is average.
TREND ANALYSIS
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2014 |
2015 |
2016 |
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Sales Trend |
-- |
-- |
È |
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Profit margin |
-- |
-- |
-- |
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Debt to assets ratio |
-- |
-- |
Ç |
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Overall
Financial Condition |
□Good □Fairly Good
□Stable □Fairly Stable
■Fair
□Poor |
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COMMENT
The subject was registered as a One-person Limited Liability
Company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license).
The subject is considered medium-sized in its line with fair
financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
INR 67.22 |
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1 |
INR 90.88 |
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Euro |
1 |
INR 80.09 |
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CNY |
1 |
INR 10.65 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TRU |
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.