MIRA
INFORM REPORT
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Report Date : |
21.08.2007 |
IDENTIFICATION DETAILS
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Name : |
luohe nanjie
village pharmaceutical group pharmacy co., ltd. |
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Registered Office : |
No. 7, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jul. 9, 2002 |
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Com. Reg. No.: |
4111001100374 |
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Legal Form : |
Sole State-Owned |
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Line of Business : |
Engaged in manufacturing Active Pharmaceutical Ingredients
(API) |
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 40,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
luohe nanjie village
pharmaceutical group pharmacy co., ltd.
no. 7,
TEL :
86 (0) 395-2660588
FAX :
86 (0) 395-2660127
EXECUTIVE SUMMARY
INCORPORATION DATE : jul. 9, 2002
REGISTRATION NO. : 4111001100374
REGISTERED LEGAL FORM : sole state-owned
STAFF STRENGTH :
268
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY44,770,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 5,500,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.59 = US$1 AS OF 2007-08-21
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 sole state-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Jul. 9, 2002.
Company Status: Sole 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. The shareholders of this form
of limited liabilities company are State-owned Assets Supervision and
Administration Commission authorized by the State Council or local
Municipal Government. The regulation is set up by
State-owned Assets Supervision and Administration Commission, or by the
board of directors after approval of State-owned Assets Supervision and
Administration Commission. Sole state-owned enterprise
does not set up board of shareholders, which is replaced by State-owned
Assets Supervision and Administration Commission. State-owned Assets Supervision
and Administration Commission assign the board of directors.
SC’s
registered business scope includes manufacturing troche, hard capsule, and rifampin
Active Pharmaceutical Ingredients (API), exporting its products and technology;
and importing machinery, components, raw materials, and technology.
SC is mainly
engaged in manufacturing Active Pharmaceutical Ingredients (API).
Mr.
Wang Hongbin has been chairman of SC since 2002.
SC is known to have approx. 268 staff members 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
Luohe. Our checks reveal that SC rents the total premise about 48,000 square
meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the local AIC.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Luohe Nanjie Village
Pharmaceutical Group Co., Ltd. 100
l
Chairman and
General Manager:
Mr. Wang Hongbin, in his 50’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and general manager.
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Assistant Manager:
Mr. Luo Guodian, 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 assistant manager.
SC is mainly
engaged in manufacturing Active Pharmaceutical
Ingredients (API)
SC’s products mainly include: troche, hard capsule, and rifampin Active Pharmaceutical
Ingredients (API).
SC sources its materials 80%
from domestic 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.
*Major Supplier:
==============
Zhengzhou Zhuoda Industry Trade
Co., Ltd.
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.
Industrial and Commercial Bank of
AC#：1711020809201002238
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
820 |
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Inventory |
15,750 |
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Accounts
receivable |
2,740 |
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Other Accounts
receivable |
260 |
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Accounts payable
in advance |
5,490 |
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To be
apportioned expense |
0 |
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Other current
assets |
760 |
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Current assets |
25,820 |
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Fixed assets |
34,930 |
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Fixed assets net
value |
34,620 |
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Projects under
construction |
310 |
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Long term
investment |
0 |
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Other assets |
2,310 |
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Total assets |
63,060 |
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Short loans |
0 |
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Accounts payable |
5,810 |
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Accounts
receivable in advance |
0 |
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Other Accounts
payable |
2,800 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
2,130 |
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Current liabilities |
10,740 |
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Long term
liabilities |
46,820 |
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Other
liabilities |
0 |
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Total
liabilities |
57,560 |
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Equities |
5,500 |
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Total
liabilities & equities |
63,060 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
44,770 |
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Cost of goods
sold |
36,310 |
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Sales expense |
510 |
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Management expense |
3,140 |
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Finance expense |
3,550 |
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Profit before
tax |
1,390 |
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Less: profit tax |
570 |
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Profits |
820 |
Important Ratios (as
of Dec. 31, 2006)
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*Current ratio 2.40
*Quick ratio 0.94
*Liabilities to assets 0.91
*Net profit margin (%) 1.83
*Return on total assets (%) 1.30
*Inventory /Turnover ×365 128 days
*Accounts receivable/Turnover ×365 22 days
*Turnover/Total assets 0.71
* Cost of goods sold/Turnover 0.81
PROFITABILITY: AVERAGE
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The turnover of SC appears average 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 fairly high, 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 an average level.
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The inventory of SC appears TOO LARGE.
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The accounts receivable of SC is maintained in a
normal level.
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SC has no short-term loan in 2006.
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SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered
medium-sized in its line with fairly stable financial conditions. The large
amount of inventory could be a threat to SC’s
financial condition. A credit line up to USD40,000 would appear to be within
SC’s capacities upon a periodical review basis.
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. |
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%)