MIRA INFORM REPORT

Report No. :	511168
Report Date :	28.05.2018

IDENTIFICATION DETAILS

Name :	TIANJIN PACIFIC CHEMICAL&PHARMACEUTICAL CO.,LTD.
Registered Office :	No.27 Baoyuan Road, Development Zone, Jinnan Dist, Tianjin City
Country :	China
Financials (as on) :	31.12.2017
Date of Incorporation :	19.01.2005
Unified Social Credit Code :	911201127706099710
Legal Form :	Limited Liabilities Company
Line of Business :	Subject is mainly engaged in production and sales of pharmaceutical APIs, including Ursodeoxycholic acid, Metformin hydrochloride, Indapamide, Artemether, Propiverine Hydrochloride, Triamcinolone acetonide acetate, triamcinolone acetonide, fluocinolone acetonide, Hydrocortisone Butyrate, halcinonide, calcium glycerophosphate, disodium ethydronate, feprazone, zaleplon, polysaccharide sulfate, Acyclovir, Ozagrel, ribavirin, roxithromycin
No. of Employees :	360

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory
Payment Behaviour :	Slow but Correct
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
China	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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.

Source : CIA

INVESTIGATION RECORD

Name of Interviewee	Ms. Guo
Tel	(86 22) 88515355/88518581
Investigation Way	Telephone

ORDER DETAILS & INVESTIGATION RESULTS

-	Order Information	Verification
Name(English)	TIANJIN PACIFIC CHEMICAL&PHARMACEUTICAL CO.,LTD.	Correct
Address (English)	NO 27 BAYUAN ROAD ROAD JINAN DEVELOPMENT ZONE TIANJIN 300350	Inaccurate

ABSTRACT

BASIC INFORMATION

Name (English)	TIANJIN PACIFIC CHEMICAL&PHARMACEUTICAL CO.,LTD. (Given by Official Sources)
Unified Social Credit Code	911201127706099710
AIC registration No.	120112000019733
National Organization Code	770609971
Company Status	Operational
Executive	Song Decheng
Registered Capital	CNY 36,995,927.03
Date of Establishment	2005-01-19
Employee	360
Website	www.tj-pacific.com
Company Size	Medium
SIC (China)	2710,Production of Original Medicine of Chemical Drugs
Import and Export Enterprise Code	1200770609971
Import/Export Permit	Yes
Judicial Records	1

CONTACTS

Tel	(86 22)88515355/88518581
Fax	(86 22)88518582
E-mail	sale@tj-pacific.com
Address	No.27 Baoyuan Road, Jinnan Development Zone, Jinnan Dist, Tianjin City(Factory; Office; Warehouse)
Address Post code	300350
Ownership	Rented

GENERAL COMMENTS

RISK ANALYSIS

Established in Jan. 2005 with registered capital of CNY 36,995,927.03, SC is mainly engaged in production and sales of pharmaceutical APIs. With years of operation, it has accumulated rich industry experience. Currently, subject has established large business scale and enjoys high popularity and influence in the industry.

According to Subject’s current financial information, its operating income of 2017 increases by 16.32% over that of 2016, indicating its business is developed well in 2017. High net profit margin of 2017 reflects subject’s profitability is good. With low liabilities to assets ratio of 2017, subject has good long-term solvency.

REGISTRATION INFORMATION

REGISTRATION INFORMATION

Unified Social Credit Code	911201127706099710
AIC registration No.	120112000019733
Date of Establishment	2005-01-19
Registered Address	No.27 Baoyuan Road, Development Zone, Jinnan Dist, Tianjin City
Registry	Market and Quality Supervision Administration – Jinnan Dist, Tianjin City
Legal Representative	Song Decheng
Legal Form	Limited Liabilities Company
Registered Capital	CNY 36,995,927.03
Paid-in Capital	CNY 36,995,927.03
Latest Year of Annual Report	2017
Operation duration	2005-01-19 to 2025-01-18
Business Scope	Production of APIs; Import and export of commodities and technologies; (Of the above business projects where a permit is required, permit shall be obtained.)

REGISTRATION CHANGES

-	Date	Item Changed	From	To
1	2014-03-25	Registered capital	CNY20,000,000.00	CNY36,995,927.03

SHAREHOLDER INFORMATION

-	Name	% Ownership	Capital Contributed	Currency	Investment Way	Paid-in %	Country
1	TIANJIN PACIFIC PHARMACEUTICAL TECHNOLOGY GROUP CO.,LTD	91.891	33,995,927.03	CNY	Physical Assets	100	China
2	Song Xiangyi	8.109	3,000,000.00	CNY	Capital	100	China
Total		100.0	36,995,927.03

ENTITY SHAREHOLDER

Name (English)	TIANJIN PACIFIC PHARMACEUTICAL TECHNOLOGY GROUP CO.,LTD
Country	China
Legal Representative	Song Decheng
Registration No.	120000000023853
Unified Social Credit Code	91120000767629920Y
Date of Establishment	2004-11-25
Legal Form	Limited Liabilities Company
Registered Capital	CNY 40,000,000.00
Status	Operational
Registered Address	Darenzhuang Village, Dasi Town, Xiqing Dist, Tianjin City

ULTIMATE HOLDING

-	Ultimate Shareholder	Investment Way
1	Song Decheng	Capital

English Name	Song Decheng
Country	China
Type	Natural person shareholder
Investment Way	Capital
Note	Song Decheng -->90.00% TIANJIN PACIFIC PHARMACEUTICAL TECHNOLOGY GROUP CO.,LTD -->91.891% TIANJIN PACIFIC CHEMICAL&PHARMACEUTICAL CO.,LTD.

BRANCHES

No branch information of subject is searched out from database.

INVESTMENT IN OTHER COMPANIES

No investment information of subject is searched out from database.

MANAGEMENT

LEGAL REPRESENTATIVE

Name	Song Decheng
Country	China
Position	Chairman; General Manager
Gender	Male

INVOLVEMENT IN OTHER COMPANIES

-	Name (English)	License Status	Legal Representative	Position	Type of Engagement
1	TIANJIN PACIFIC PHARMACEUTICAL TECHNOLOGY GROUP CO.,LTD	Operational	YES	Executive Director; General Manager	Directorship; Investment(90.00%)
2	TIANJIN PACIFIC PHARMACEUTICAL CO.,LTD.	Operational	YES	Chairman	Directorship; Investment(9.50%)

Name (English)	TIANJIN PACIFIC PHARMACEUTICAL TECHNOLOGY GROUP CO.,LTD
License Status	Operational
Name Of Legal Representative	Song Decheng
Registered Capital	CNY 40,000,000.00
Country	China
Address	Darenzhuang Village, Dasi Town, Xiqing Dist, Tianjin City
Registration No.	120000000023853
Unified Social Credit Code	91120000767629920Y
Legal Form	Limited Liabilities Company
Share Holding	36,000,000.00
Currency Of Share Holding	CNY
Way of Investment	Capital
% Ownership	90.00
Position	Executive Director; General Manager
Date of Establishment	2004-11-25

Name (English)	TIANJIN PACIFIC PHARMACEUTICAL CO.,LTD.
License Status	Operational
Name Of Legal Representative	Song Decheng
Registered Capital	CNY 120,890,000.00
Country	China
Registration No.	120000400084821
Unified Social Credit Code	91120111600584134N
Legal Form	Limited Liabilities Company
Share Holding	11,484,800.00
Currency Of Share Holding	CNY
Way of Investment	Capital
% Ownership	9.50
Position	Chairman
Date of Establishment	1994-08-08

MANAGEMENT

-	Name	Position	Gender
1	Song Decheng	Chairman; General Manager	Male

DIRECTORS AND SUPERVISORS

-	Name	Position	Gender
1	Song Decheng	Chairman; General Manager	Male
2	Qian Weiguo	Vice Chairman	-
3	Song Chunyi	Director	Male
4	Song Chuntai	Director	Male
5	Liu Caitian	Director	Male
6	Liu Chunheng	Supervisor	Male

JUDICIAL INFORMATION

DEFAULT EXECUTED PARTY

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

SUBJECT AS EXECUTED PARTY

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

CIVIL & COMMERCIAL TRIAL PROCESS

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

CIVIL & COMMERCIAL JUDGMENT DOCUMENT

Name	TIANJIN PACIFIC CHEMICAL&PHARMACEUTICAL CO.,LTD.
Government ID. / AIC Registration No.	911201127706099710
File No.	(2015) NAN Min Er Chu Zi 1117
Hearing Court	People’s Court of Jinnan District, Tianjin City
Court Type	Basic People's Court
Cause of Action	Vehicle traffic accident liability dispute
Value	33,250
Position	Plaintiff
Date of Closing	2015-10-19

ADMINISTRATIVE ILLEGAL RECORDS

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

OPERATION INFORMATION

MAIN BUSINESS

Main Business

Production and sales of pharmaceutical APIs

Products & Service

SC is mainly engaged in production and sales of pharmaceutical APIs, including Ursodeoxycholic acid, Metformin hydrochloride, Indapamide, Artemether, Propiverine Hydrochloride, Triamcinolone acetonide acetate, triamcinolone acetonide, fluocinolone acetonide, Hydrocortisone Butyrate, halcinonide, calcium glycerophosphate, disodium ethydronate, feprazone, zaleplon, polysaccharide sulfate, Acyclovir, Ozagrel, ribavirin, roxithromycin. Its products are widely used in pharmaceutical industry.

OPERATION FACILITIES

Business Address	No.27 Baoyuan Road, Jinnan Development Zone, Jinnan Dist, Tianjin City(Factory; Office; Warehouse)
Tel	(86 22)88515355/88518581
Fax	(86 22)88518582
E-mail	sale@tj-pacific.com
Post code	300350
Environment	Major industrial areas
Land Area	39,000 Square meters
Building Area	9,259.55 Square meters
Ownership	Rented
Traffic Condition	Convenient

SALES INFORMATION

Region	Products		Customer Type	Number of Customers	Payment Terms	Region	Percentage
Domestic	Pharmaceutical APIs		Pharmaceutical factories, traders, etc	Over 10	Immediate payment, advance payment, contract payment, etc.	All over China	90
International	Pharmaceutical APIs		Traders, etc	Over 5	L/C, T/T, etc	The Middle East, Asia, Europe, America, etc	10
OTHER INFORMATION		SC's sales business is mainly developed domestically and its domestic sales network covers all over China. Partial products are exported to the Middle East, Asia, Europe, America, etc. Its products are mainly sold directly to pharmaceutical factories, traders, etc. Currently the company has stable customer network.

PURCHASE INFORMATION

Region	Main Products Purchased		Number of Suppliers	Payment Terms	Region	Percentage
Domestic	Chemical raw materials, production equipment, office supplies, etc.		Over 10	Immediate payment, advance payment, contract payment, etc.	All over China	100
OTHER INFORMATION		SC's purchasing business is wholly developed domestically. Currently it has stable purchasing channels.

MAJOR SUPPLIERS

-	Name	Legal Form	Country
1	Tianjin Kaijun Electromechanical Equipment Engineering Co., Ltd	Limited Liabilities Company	China

Name (English)	Tianjin Kaijun Electromechanical Equipment Engineering Co., Ltd
Country	China
Legal Form	Limited Liabilities Company

CREDIT RECORDS

-	Supplier Name	Product Supplied	Cooperation Period	Payment History
1	Tianjin Kaijun Electromechanical Equipment Engineering Co., Ltd	Air conditioning maintenance	-	Prompt

Name (English)	Tianjin Kaijun Electromechanical Equipment Engineering Co., Ltd
Country	China
Product Supplied	Air conditioning maintenance
Payment History	Prompt
Date of Interview	2018-05-25
Name of Interviewee	A male staff who refused to disclose his name
Tel	(86 22) 59833270
Comment	The referee confirmed that Subject is one of the above company’s clients and Subject made payment in time.

ELECTRICITY CONSUMPTION RECORD

No electricity consumption record of subject can be obtained as the electricity consumer may not be filed with subject's name.

QUALIFICATIONS & TRENDS

PATENT

-	Patent Name	Patent Type	Status	Application No.	Application date	Classification	Publication No.
1	Synthesis of fluorine acetonide intermediates	Invention	Published	CN201710320686.6	2017-05-09	C07J5/00(2006.01)I	CN107417755A
2	Biological fermentation method of mould oxide	Invention	Published	CN201210594836.X	2012-12-31	C12P33/20(2006.01)I; C12R1/845(2006.01)N	CN103088099A
3	New process of mould oxide	Invention	Published	CN201110031709.4	2011-01-30	C12P33/20(2006.01)I; C12R1/845(2006.01)N	CN102174630A
4	Refining process of triamcinolone acetonide raw materials	Invention	Published	CN200810151265.6	2008-09-08	C07J71/00(2006.01)I; A61P29/00(2006.01)I; A61P37/08(2006.01)I	CN101348516A
5	Production process of fluorine acetate relaxed intermediate 6αF	Invention	Published	CN200810052508.0	2008-03-24	C07J71/00(2006.01)I	CN101250213A
6	Production process of fluorine relaxed intermediate 6aF	Invention	Published	CN200510016259.6	2005-03-02	C07J71/00	CN1683388A

EXPORT/IMPORT PERMIT

EXPORT/IMPORT PERMIT

Yes

IMPORT / EXPORT DETAILS

2016 Import / Export Volume (USD 1,000)
Import Volume	Export Volume
-	522

2016 Exporting Regions (USD 1,000)
Exporting Regions	Export Volume
Hong Kong	430
India	132
Singapore	57
UK	38
Korea	15
Other countries	21

2016 Exported Products (USD 1,000)
Exported Products	Export Volume
Other	228
Other hormone its derivatives and structural analogues	126
Other organic compounds	36
Other halogenated derivatives of epinephrine	294
Other	8
Other	1

2015 Import / Export Volume (USD 1,000)
Import Volume	Export Volume
-	581

2015 Exporting Regions (USD 1,000)
Exporting Regions	Export Volume
Hong Kong	311
India	119
U.S.A	42
Singapore	32
Uzbekistan	24
Other countries	54

2015 Exported Products (USD 1,000)
Exported Products	Export Volume
Other halogenated derivatives of epinephrine	327
Other hormone its derivatives and structural analogues	115
Other	85
Other organic compounds	49
Other	3
Other heterocyclic compounds with oxygen heteroatom (s) only	2

EMPLOYEE

Employee Number	360
OTHER INFORMATION	The above information was confirmed by Subject's staff.

WEBSITES

-	Website	Name	File No	Registrant
1	www.tj-pacific.com	TIANJIN PACIFIC CHEMICAL&PHARMACEUTICAL CO.,LTD.	Jin ICP 06004204-1	Ma Xiaoliang

Website	www.tj-pacific.com
Status	Normal
Name	TIANJIN PACIFIC CHEMICAL&PHARMACEUTICAL CO.,LTD.
Sponsor Name	TIANJIN PACIFIC CHEMICAL&PHARMACEUTICAL CO.,LTD.
Hosted By	Company
File No.	Jin ICP 06004204-1
Registrant	Ma Xiaoliang
Source	Ministry of Industry and Information Technology

ADMINISTRATIVE INFORMATION

ADMINISTRATIVE LICENSES & IDENTIFICATIONS

-	License No.	License Name
1	JY31200120004419	Food Business License
2	JIN 20150049	Drug Manufacturing Certificate
3	TJ20140055	GMP certificate

License No.	JY31200120004419
License Name	Food Business License
Issuing date	2016-05-18
Expire date	2021-05-17
Issuing party	Market and Quality Supervision Administration - Tianjin City
License Content	Production and sales of cooked food

License No.	JIN 20150049
License Name	Drug Manufacturing Certificate
Issuing date	2016-03-31
Expire date	2021-03-30
Issuing party	Market and Quality Supervision Administration - Tianjin City
License Content	Address: No.27 Baoyuan Road, Development Zone, Jinnan Dist, Tianjin City APIs (feprazone, metformin HCL, Calcium glycerol phosphate, polysaccharide sulfate, Ozagrel, Indapamide, halcinonide, triamcinolone acetonide, Triamcinolone acetonide acetate, Hydrocortisone Butyrate, Fluocinolone Acetonide, Artemether, Ursodeoxycholic acid, Propiverine Hydrochloride, disodium ethydronate) and psychotropic substances (zaleplon), etc.

License No.	TJ20140055
License Name	GMP certificate
Issuing date	2014-12-11
Expire date	2019-12-10
Issuing party	Market and Quality Supervision Administration - Tianjin City
License Content	Address: No.27 Baoyuan Road, Development Zone, Jinnan Dist, Tianjin City APIs: Hydrocortisone Butyrate, triamcinolone acetonide, halcinonide, Artemether, Indapamide, Propiverine Hydrochloride, Ozagrel, Fluocinolone Acetonide, Triamcinolone acetonide acetate, zaleplon, metformin HCL, polysaccharide sulfate, polysaccharide sulfate, Calcium glycerol phosphate, disodium ethydronate, feprazone

ADMINISTRATIVE PUNISHMENTS

-	File No.	Punishment
1	Jin Nan Huan Fa Zi [2016] 40	The company was fined CNY 100,000.

File No.	Jin Nan Huan Fa Zi [2016] 40
Illegal Activities	Excessive emission of odor
Punishment	The company was fined CNY 100,000.
Issuing Party	Jinnan Environmental Protection Bureau
Issuing Date	2016-05-31

ABNORMAL TAX PAYER

As of the reporting date, no related record about subject is found through below sources:

A. Website of Tax Bureau of China;

B. Website of local Tax Bureau of subject's location;

C. Taxpayer information of database.

TAX ARREARS LIST

As of the reporting date, no related record about subject is found through below sources:

A. Website of Tax Bureau of China;

B. Website of local Tax Bureau of subject's location;

C. Taxpayer information of database.

DEBT ARREARS LIST

As of the reporting date, no related record about subject is found through below sources:

A. Major telecommunication operators of China;

B. Telecommunication information of database.

FINANCIAL INFORMATION

DETAILED FINANCIAL INFORMATION (UNIT: CNY 1,000)

Financial Note: Due to the lack of a clear government policy regarding the transparency of enterprise financial information, some financial items might be missing in the financial statements, causing possible inequality between the sum of the provided items and the provided total numbers.

Assets
Year	2016-12-31	2017-12-31
Report Type	Annual Report	Annual Report
Statement Type	Individual	Individual
Source	AIC	AIC
Audited or Not	Unknown	Unknown
Total Assets	203,070	193,480
Liabilities
Year	2016-12-31	2017-12-31
Total Liabilities	116,120	92,640
Total Owner’s Equity	86,950	100,840
Total Liabilities and Owner's Equity	203,070	193,480

Income Statement
Year	2016-12-31	2017-12-31
Operating Income	76,700	89,220
Total Profit	6,250	16,480
Income Tax	1,560	4,120
Net Profit	4,690	12,360

GROWTH RATE OF MAJOR FINANCIAL

	2016	Growth(%)	2017
Operating Income	76,700	16.32	89,220
Total Assets	203,070	-4.72	193,480
Total Profit	6,250	163.68	16,480
Net Profit	4,690	163.54	12,360
Total Liabilities	116,120	-20.22	92,640
Total Owner’s Equity	86,950	15.97	100,840

IMPORTANT RATIO

Profitability	2016	2017
Return on net assets (%)	5.39	12.26
Return on total assets (%)	2.31	6.39
Net profit margin (%)	6.11	13.85
Operation capacity	2016	2017
Turnover of total assets	0.38	0.46
Solvency	2016	2017
Liabilities to assets ratio (%)	57.18	47.88
Development capacity	2016	2017
Yearly Growth of Operating Income (%)	-	16.32
Yearly growth of total assets (%)	-	-4.72

FINANCIALS & ANALYSIS

Financial Note

Subject’s detailed financial information of 2017 and 2016 is unavailable through all available channels. Subject’s staff was contacted but declined to provide relevant financial information. Hence only Subject’s financial summaries of 2017 and 2016 obtained from AIC source are provided for client’s reference.

INDUSTRY INFORMATION

INDUSTRY CODE

SIC (China)	2710,Production of Original Medicine of Chemical Drugs 【Major】
ISIC	2100,Manufacture of medicines, medical products and herbal medicines
NACE	21.1,Manufacture of medicines, medical products and herbal medicines

INDUSTRY FINANCIAL AVERAGE

-	2016	Subject	Best(10%)	Average	Worst(10%)
Solvency	Liabilities to Assets Ratio (%)	57.18	47.70	55.62	74.20
	Current ratio	-	2.35	1.59	0.98
	Quick ratio	-	1.47	0.99	0.61
Development Capacity	Yearly Growth of Operating Income (%)	-	34.90	15.46	-6.90
	Yearly Growth of Gross Profit (%)	-	28.37	6.81	-9.60
	Yearly Growth of Total Assets (%)	-	29.92	11.88	-4.02
Profitability	Return on net assets (%)	5.39	25.76	12.23	-2.10
	Return on total assets (%)	2.31	15.31	8.88	-1.57
	Gross profit margin (%)	-	53.54	36.45	14.23
Operation Capacity	Turnover of total assets	0.38	1.66	0.69	0.22
	Turnover of current assets	-	3.09	1.85	0.98
	Turnover days of account receivable	-	25.44	56.57	95.24

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 68.26
UK Pound	1	INR 91.22
Euro	1	INR 79.88
CNY	1	INR 10.53

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIY
Report Prepared by :	SYL

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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)

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