MIRA
INFORM REPORT
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Report Date : |
01.08.2007 |
IDENTIFICATION DETAILS
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Name : |
ANQIU LU’AN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Xiaoheya, North Part Of City, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
Dec. 7, 1998 |
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Com. Reg. No.: |
3707842800098 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
and selling all kinds of medicines. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ANQIU LU’AN PHARMACEUTICAL CO., LTD.
XIAOHEYA, NORTH PART OF CITY,
TEL: 86 (0) 536-4390060
FAX: 86 (0) 536-4390238
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 7, 1998
REGISTRATION NO. : 3707842800098
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
600
REGISTERED CAPITAL : CNY30,000,109
BUSINESS LINE :
manufacturing
TURNOVER : cny401,254,000 (AS OF DEC. 31, 2005)
EQUITIES : CNY146,517,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.57 = US$1 AS OF 2007-07-31
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY –
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Dec. 7, 1998.
Company Status: Limited liabilities co. This form of business in PR China
is defined as a legal person. At least two shareholders and no more than
fifty 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 listed as follows: -manufacturing co. :
CNY 500,000.00 -trading &wholesaling
co. : CNY
500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service
co. : CNY 100,000.00 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 scopes include manufacturing and selling troche, hard capsule,
granule, white latex, and sodium acetate; importing and exporting commodity
& technology.
SC is mainly
engaged in manufacturing and selling various of medicines.
Mr. Wang Jun has
been chairman of SC since 1998.
SC owns about 600
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Anqiu. Our checks reveal
that SC rents the total premise about 60,000 square meters.
http://www.luanpharm.com The design is
professional and the content is well organized. At present the web is both in
Chinese and English versions.
E-mail: luan@luanpharm.com
SC (Former: Weifang No.4 Pharmaceutical Factory) is one of the leading
bulk pharmaceutical enterprises specializing in manufacturing and exporting Paracetamol
(Acetaminophen).
MAIN SHAREHOLDERS:
Name % of
Shareholding
Wang Jun 20.88
Yu Jingqing 1.82
SC’s Labor Union 64.5
Zhao Shutao 2.16
Zhao Fenggang 1.37
Zang Baolian 1.82
Other individuals 7.45
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Chairman and
General Manager:
Mr. Wang Jun, 47 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working in SC as chairman and general manager.
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Assistant
Manager:
Mr. Zheng Qunbao, 42 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1998 to present Working in SC as assistant manager.
SC is mainly
engaged in manufacturing and selling all kinds of medicines.
SC’s products mainly
include: Paracetamol (Acetaminophen) (The annual output is 24,000 tons ),
Paracetamol DC 90 % ( The annual output is 5000 tons ) and Paracetamol DC96% (
The annual output is 2000 tons ).
SC’s brand is “Lu’an”.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 20% of its
products in domestic market, and 80% to overseas market, mainly
The buying terms
of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
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 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
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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Accounts
receivable |
8,109 |
17,222 |
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Current assets |
139,125 |
267,232 |
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Fixed assets |
98,130 |
195,708 |
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Total assets |
338,841 |
507,608 |
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Total
liabilities |
246,857 |
361,091 |
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Equities |
91,984 |
146,517 |
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Total
liabilities & equities |
338,841 |
507,608 |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2004 |
As of Dec. 31,
2005 |
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Turnover |
254,447 |
401,254 |
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Cost of goods
sold |
231,915 |
359,981 |
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Sales expense |
5,418 |
6,089 |
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Management expense |
9,206 |
14,036 |
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Finance expense |
4,200 |
10,528 |
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Profit before
tax |
6,660 |
10,380 |
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Less: profit tax |
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Profits |
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Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
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*Quick ratio |
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*Liabilities
to assets |
0.73 |
0.71 |
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*Net profit
margin (%) |
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*Return on
total assets (%) |
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*Inventory
/Turnover ×365 |
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*Accounts
receivable/Turnover ×365 |
12 days |
16 days |
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*Turnover/Total
assets |
0.75 |
0.79 |
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*Cost of goods
sold/Turnover |
0.91 |
0.90 |
PROFITABILITY: AVERAGE
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The turnover of SC appears fairly good in its line,
and it increased greatly in 2005..
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SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
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The accounts receivable is maintained in a fairly
good level.
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SC’s turnover is in a 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
fairly low.
Overall
financial condition of the SC: Stable.
SC is considered
medium-sized enterprise with fairly good background. A credit line up to
USD1,000,000 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%)