MIRA
INFORM REPORT
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Report Date : |
30.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
Dirui Industrial
CO., LTD |
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Registered Office : |
No. 95, Yunhe
Street, New & High Tech. Development Zone, Changchun, Jilin Province,
130012 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
December 26, 1994 |
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Com. Reg. No.: |
2201072000349 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in researching, developing, manufacturing and selling
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 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
Dirui Industrial
CO., LTD
NO. 95, Yunhe Street, New & High Tech.
Development Zone,
CHANGCHUN, JILIN PROVINCE, 130012 PR CHINA.
TEL :
86 (0) 431-85100406
FAX :
86 (0) 431-85173354
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 26, 1994
REGISTRATION NO. : 2201072000349
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 450
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 52,640,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 49,320,000 (AS OF DEC. 31,
2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 300,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.39827 = US1$
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: SC’s correct company name should be Dirui Industrial Co., Ltd, instead of the given name.
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 December 26, 1994.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders 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 CNY 30,000. 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 scope includes manufacturing 340 clinical laboratory
analytical instruments and reagent strips (medical devices manufacture license as
of December 31, 2010, environment license as of March 16, 2008), raw materials,
machines, instruments and meters required in research; developing and selling
software; selling garments (excluding items prohibited by law, administrative
rules and regulations, and operating after obtaining permit).
SC is mainly
engaged in researching, developing, manufacturing and selling pharmaceutical
products, including three main categories: pharmaceuticals, diagnostic reagents
and diagnostic analytical instruments.
Mr.
Song Yong has been legal representative and chairman of SC since December 1994.
SC is known to have approx. 450 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
Changchun. Our checks reveal that SC owns the total premise about 2,000 square
meters.
http://www.dirui.com.cn/ The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
Email: dirui@dirui.com.cn
SC’s quality system meets the international standard of
ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Song Yong 55
Song Jie 25
Gu Xiaofeng 20
l
Legal representative and chairman:
Mr. Song Yong, ID # 220103196305011978. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1994 to present Working in SC as chairman and legal representative.
SC is mainly engaged
in researching, developing, manufacturing and selling pharmaceutical products,
including three main categories: pharmaceuticals, diagnostic reagents and
diagnostic analytical instruments.
SC sources its materials 80%
from domestic market, and 20% from overseas market. SC sells 70% of its
products in domestic market, and 30% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Suppliers:
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Jinlin Changchun Xinfa Printing Co., Ltd
*Major Customers:
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Jiangsu
Nanjing Medical University
SC is known to invest in the following company:
Changchun Dirui Pharmaceuticals Co., Ltd
Address: No. 639, Maoxiang Street, High-Technology Industry
Development Zone, Changchun
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’s suppliers
declined to make any comments.
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 & Commercial Bank of China Changchun Branch
Jingkai Sub-branch.
AC#：4200223209200047612
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
5,790 |
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Inventory |
9,580 |
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Accounts
receivable |
10,980 |
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Advances to
suppliers |
1,270 |
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Other
receivables |
2,420 |
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Prepaid expenses |
250 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
30,290 |
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Fixed assets |
31,520 |
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Fixed assets net
value |
19,720 |
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Projects under
construction |
0 |
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Long term
investment |
31,090 |
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Intangible
assets |
2,420 |
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Other assets |
0 |
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------------------ |
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Total assets |
83,520 |
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============= |
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Short loans |
5,000 |
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Accounts payable |
9,010 |
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Other payable |
14,420 |
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Welfare expenses
payable |
3,800 |
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Taxes payable |
970 |
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Advances from
customers |
990 |
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Surcharge
payable |
10 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
34,200 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
34,200 |
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Equities |
49,320 |
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Total
liabilities & equities |
83,520 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
52,640 |
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Cost of goods sold |
16,470 |
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Taxes and additional of main
operation |
560 |
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Income
from other operations |
3,670 |
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Sales expense |
11,740 |
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Management expense |
12,070 |
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Finance expense |
410 |
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Investment
income |
-3,510 |
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Subsidy income |
480 |
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Non-operating
income |
190 |
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Non-operating expense |
40 |
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Profit before
tax |
12,180 |
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Less: profit tax |
1,670 |
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Profits |
10,510 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.89 |
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*Quick ratio |
0.61 |
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*Liabilities
to assets |
0.41 |
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*Net profit
margin (%) |
19.97 |
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*Return on
total assets (%) |
12.58 |
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*Inventory
/Turnover ×365 |
67 days |
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*Accounts
receivable/Turnover ×365 |
77 days |
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*Turnover/Total
assets |
0.63 |
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* Cost of
goods sold/Turnover |
0.31 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears average in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is low, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is in an average level.
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SC’s turnover is in a fair 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 average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial conditions.
A credit line up to USD 300,000 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%)