MIRA
INFORM REPORT
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Report Date : |
07.08.2007 |
IDENTIFICATION DETAILS
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Name : |
NORTHEAST GENERAL PHARMACEUTICAL FACTORY |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
16.05.1989 |
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Com. Reg. No.: |
210131110472 |
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Legal Form : |
State-Owned |
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Line of Business : |
Manufacturing and selling pharmaceutical preparation |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
NORTHEAST GENERAL PHARMACEUTICAL FACTORY
NO.
TEL: 86 (0) 24-25807777
FAX: 86 (0) 24-25806969
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 16, 1989
REGISTRATION NO. : 210131110472
REGISTERED LEGAL FORM : STATE-OWNED
CHIEF EXECUTIVE :
MR. LIU ZHEN (CHAIRMAN)
STAFF STRENGTH :
5,300
REGISTERED CAPITAL : CNY 141,290,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 1,016,350,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 924,560,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STRONG
OPERATIONAL TREND : steady
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY 7.56= US$1 AS OF 2007-7-26
Adopted
abbreviations:
ANS - amount not stated
NS - not stated SC - subject
company (the company inquired by you)
NA - not available
CNY -
Note: The English name client given in the order of North Pharm I/E Corp
should be
The importing and exporting department of SC is now operating at the
given address in the order of No. 35 the Youth Street, Shenhe District,
SC was registered as a state owned enterprise at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on May 16, 1989.
Company Status: State-owned enterprise This form of business in PR China is defined as a commodity
production or operational units of a socialist character which in
accordance with the law, has autonomy in management, takes full
responsibility for its profits and losses and practices independent
business accounting. It is a legal person established directly by central /
local government or enterprise owned by central or local government. In
theory, the liabilities of this form of enterprise are ultimately borne by
the government, since the adoption of company law in mid-1994, the Chinese
government has planned to separate the ownership from management and
liabilities bearing.
SC’s registered business scope includes processing and selling
pharmaceutical preparations; importing and exporting various goods and
technology and acting as an agent for it.
SC is mainly engaged in manufacturing and selling pharmaceutical
preparation.
Mr. Liu Zhen has been chairman of SC since 2001.
SC owns about 5,300 staff.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Shenyang. Our
checks reveal that SC owns the total premise about 1,000,000 square meters.
http://www.negpf.com.cn . It is
the website of its parent company. The design is professional and the content
is well organized. At present it is in Chinese version.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Northeast Pharmaceutical Group Co., Ltd. 100
It is a listed company in Shenzhen Stock Exchange with the stock number
of 000597.
Add:
Tel: 86 024-25806963
Fax: 86 024-25806888
Chairman:
Mr. Liu Zhen , in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman.
Also working in Northeast Pharmaceutical Group Co., Ltd., as chairman.
General Manager:
Mr. Ji Yong , in his 30’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2006 to present Working in SC as general manager.
SC is mainly engaged in manufacturing and selling pharmaceutical
preparation.
SC has more than 20 types of pharmaceutical preparation products
(including vitamins, antibiotics, blood vessel of brain, antivirus, digestive
system, etc.)
SC’s products mainly include: vitamin (e) C, phosphonomycin,
sulfapyridine, berberine, vitamin (e) B1, ulcerlmin, admantadine, rimantadine,
cephalosporin and Compound Pseudoephedrine Hydrocholoride Tablets.
SC’s annual out put of raw materials medicines can reach 30,000 tons.
SC sources its materials 70% from domestic market, and 30% from the
overseas market, mainly from European countries. SC sells 40% of its products
in domestic market, and 60% to the overseas market, mainly to American and
European countries.
The buying terms of SC include Check, 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.
*Major Clients:
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Northeast Pharmaceutical Group Selling Co., Ltd.
SC is not known to have 7 branches as following,
Northeast General Pharmaceutical Factory
Research Institute
Northeast General Pharmaceutical Factory
Industrial Branch
Northeast General Pharmaceutical Factory
Northeast General Pharmaceutical Factory
Veterinary Branch
Northeast General Pharmaceutical Factory
Pharmaceutical Machinery Branch
Northeast General Pharmaceutical Factory VC
Corp
Northeast General Pharmaceutical Factory
Zhangwu Branch
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 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
AC#：33010001092490266-75
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
165,920 |
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Accounts paid in advance |
43,730 |
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Accounts receivable |
422,320 |
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Inventory |
280,990 |
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Other receivables |
444,970 |
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Other current assets |
136,610 |
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Current assets |
1,494,540 |
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Fixed assets net value |
350,590 |
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Projects under construction |
27,310 |
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Long term investment |
26,490 |
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Other assets |
55,570 |
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Total assets |
1,954,500 |
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Short loans |
218,000 |
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Accounts payable |
175,890 |
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Accounts received in advance |
83,650 |
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Taxes payable |
28,150 |
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Salaries payable |
11,110 |
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Other payable |
358,580 |
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Other current liabilities |
56,890 |
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Current liabilities |
932,270 |
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Long term liabilities |
97,670 |
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Total liabilities |
1,029,940 |
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Equities |
924,560 |
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Total liabilities & equities |
1,954,500 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Turnover |
1,016,350 |
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Cost of goods sold |
821,220 |
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Sales expense |
81,700 |
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Management expense |
71,050 |
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Finance expense |
1,670 |
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Profit before tax |
52,670 |
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Less: profit tax |
17,390 |
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Profits |
35,280 |
Important Ratios
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2006 |
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*Current ratio |
1.60 |
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*Quick ratio |
1.30 |
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*Liabilities to assets |
0.53 |
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*Net profit margin (%) |
3.44 |
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*Return on total assets (%) |
1.79 |
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*Fixed assets/Total assets |
0.18 |
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*Inventory /Turnover ×365 |
101days |
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*Accounts receivable/Turnover ×365 |
152days |
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*Turnover/Total assets |
0.52 |
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* Cost of goods sold/Turnover |
0.81 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears good in 2006.
SC’s net profit margin is fairly good in 2006.
SC’s return on total assets is fairly good in 2006.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level in 2006.
SC’s quick ratio is maintained in a fairly good level in 2006.
The accounts receivable of SC is fairly large.
The inventory of SC is fairly large.
The short loans of SC are fairly large.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Strong.
SC is well-known in its industry with strong financial conditions. Over
the past 18 years, SC has made a stable growth with fairly good profit. A credit
line up to USD 2,000,000 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%)