MIRA
INFORM REPORT
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Report Date : |
28.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHIJIAZHUANG PHARMA.
GROUP ZHONGNUO PHARMACEUTICAL (SHIJIAZHUANG) CO., LTD. |
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Registered Office : |
No. 188, Gongnong Road, Shijiazhuang City, Hebei Province
050051 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
jul. 31, 2002 |
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Com. Reg. No.: |
130100100387 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and selling various of pharmaceutical
products. |
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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Maximum Credit Limit : |
Up To usd 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
shIjiazhuang pharma.
group zhongnuo pharmaceutical (shijiazhuang) co., ltd.
NO. 188, GONGNONG ROAD, SHIJIAZHUANG CITY
HEBEI PROVINCE 050051 PR CHINA
TEL :
86 (0) 311-83803616
FAX :
86 (0) 311-83805385
EXECUTIVE SUMMARY
INCORPORATION DATE : jul. 31, 2002
REGISTRATION NO. : 130100100387
REGISTERED LEGAL FORM : wholly foreign-owned
enterprise
STAFF STRENGTH :
3,741
REGISTERED CAPITAL : cny 216,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
cny 1,304,480,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 565,530,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up
to usd 1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.73 = US$1 AS OF 2007-04-25
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
SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Jul. 31, 2002.
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 investors 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 manufacturing power for injection, tablet,
hard capsule, granule, eye drop, Repaglinide, Nitrendipine, Metformin
Hydrochride, Ranitidine Hydrochloride, Propafenone Hydrochloride,
Benzylpenicillin Sodium, and Penicillin G Procaine; and selling its homegrown
products.
SC is
mainly engaged in manufacturing and selling various of pharmaceutical products.
Mr.
Cai Dongchen has been chairman of SC since 2002.
SC
owns about 3,741 staff at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industry zone of
Shijiazhuang. Our checks reveal that SC owns the total premise about 150,000
square meters.
http://www.znpc.cn The design is
professional and the content is well organized. At present, the web is both in
Chinese and English versions.
E-mail: znbgs@mail.ecspc.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
China
Pharmaceutical Group Ltd. 100
========================
China Pharmaceutical Group
Limited ("China Pharm") (Ticker: 1093) is one of the largest
pharmaceutical groups in China. It has been listed on the Main Board of the Hong
Kong Stock Exchange since June 1994.
Address: Room 3805, 38/F,
Central Plaza, 18 Harbour Road, Wanchai, Hong Kong
Tel: 852-28023011
Fax: 852-28024552
Website: http://www.cpg.hk
Email: info@cpg.hk
l
Chairman:
Mr. Cai Dongchen, born in 1953, 54
years old with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
Educated in Hebei Finance & Economics College;
From 1972 to 1984 Worked in Hebei Pharmaceutical Plant as technician;
Since 1984 Worked in Hebei Pharmaceutical Plant as factory manager;
From 2002 to present Working in SC as chairman;
At present Working in China Pharmaceutical Group Ltd. as chairman, and in CSPC as chairman.
l
General Manager:
Mr. Guo Yumin, in his 40’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2002 to present
Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling various of
pharmaceutical products.
SC’s products mainly include: power for injection,
tablet, hard capsule, granule, and eye drop.
SC sources its materials 100% from
domestic market, mainly Hebei province. SC sells 95% of its products in
domestic markets, mainly Guangdong and Hebei province, and 5% to overseas
market, mainly Hong Kong.
The buying terms of SC include T/T and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
==============
Shijiazhuang Pharm Group Heibei Zhongrun Pharmaceutical Co.,
Ltd.
Address: No. 47, Fengshou Road, Shijiazhuang, Hebei Province
Tel: 0311-88622602
Fax: 0311-86827629
*Major Customer:
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Guangzhou Pharmaceuticals Corp.Address: No. 103, Datong Road, GuangzhouTel: 020-81942100
SC is
not known to have any subsidiary at present.
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 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.
Industrial and Commercial Bank of China
Jianhua Sub-branch
AC#：04020224093000309202
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
63,330 |
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Inventory |
280,340 |
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Accounts
receivable |
178,880 |
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Other Accounts
receivable |
500,450 |
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Accounts payable
in advance |
38,930 |
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To be apportioned
expense |
0 |
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Other current
assets |
39,410 |
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Current assets |
1,101,340 |
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Fixed assets |
190,410 |
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Fixed assets net
value |
189,870 |
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Projects under
construction |
540 |
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Long term
investment |
0 |
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Other assets |
70,460 |
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Total assets |
1,362,210 |
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Short loans |
130,000 |
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Accounts payable |
227,740 |
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Accounts
receivable in advance |
17,150 |
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Taxes payable |
-60 |
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Other Accounts
payable |
160,540 |
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Withdraw the expenses
in advance |
0 |
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Other current
liabilities |
108,310 |
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Current
liabilities |
643,680 |
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Long term
liabilities |
153,000 |
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Other
liabilities |
0 |
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Total
liabilities |
796,680 |
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Equities |
565,530 |
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------------------ |
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Total
liabilities & equities |
1,362,210 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
1,304,480 |
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Cost of goods
sold |
1,038,250 |
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Sales expense |
166,130 |
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Management expense |
82,860 |
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Finance expense |
6,760 |
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Non-operating
income |
3,620 |
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Profit before
tax |
14,100 |
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Less: profit tax |
1,120 |
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Profits |
12,980 |
Important Ratios
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As
of Dec. 31, 2006 |
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*Current ratio |
1.71 |
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*Quick ratio |
1.28 |
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*Liabilities
to assets |
0.58 |
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*Net profit
margin (%) |
1.00 |
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*Return on
total assets (%) |
0.95 |
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*Inventory
/Turnover ×365 |
78 days |
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*Accounts
receivable/Turnover ×365 |
50 days |
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*Turnover/Total
assets |
0.96 |
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* Cost of
goods sold/Turnover |
0.80 |
PROFITABILITY: AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is acceptable.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a fairly good
level.
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SC’s quick ratio is maintained in a fairly good level.
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The inventory of SC is maintained in a slightly large level.
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The accounts receivable of SC is maintained in a normal
level.
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The short-term loan of SC appears fairly large.
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SC’s turnover is in an average level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Stable.
SC is considered
medium-sized in its line with stable financial conditions. A credit line up to USD
1,000,000 would appear to be within SC’s capacities.
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)