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MIRA
INFORM REPORT
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Report Date : |
16th
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
XIAMEN MCHEM PHARMA
(GROUP) Ltd. |
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Registered Office : |
20/F, Everbright, Bank Building, No. 81, Southern Hubin Road, Siming
District, Xiamen, Fujian Province, 361004 Pr China. |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
24.07.1997 |
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Com. Reg. No.: |
07403 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Engaged
in importing and exporting medical 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 : |
USD
100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
XIAMEN MCHEM PHARMA (GROUP) Ltd.
20/F, EVERBRIGHT, BANK BUILDING, NO. 81, SOUTHERN
HUBIN ROAD, SIMING DISTRICT, XIAMEN, FUJIAN PROVINCE, 361004 PR CHINA.
TEL : 86
(0) 592-2218988
FAX : 86
(0) 592- 2218616
EXECUTIVE SUMMARY
INCORPORATION DATE :
july 24, 1997
REGISTRATION NO. :
07403
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 50
REGISTERED CAPITAL : CNY 68,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 287,400,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 95,900,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY 7.79 = US1$ AS OF 2007-1-15
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
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Note: SC’s correct company name should be the
above stated one, instead of the given name- Xiamen MCHEM Pharm (Group) Ltd.
SC was registered as a Chinese-foreign equity
joint venture enterprise at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on July 24,
1997.
Company Status:
Chinese-foreign equity joint venture enterprise This form of business in PR China is
defined as a legal person. It is a limited co. jointly invested by one or
more foreign companies and one or more PR China controlled companies within
the territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The joint venture usually have
a limited duration of 10 to 50 years. Enterprise with large investment,
long construction periods, low investment returns, introducing of advanced
technology & advanced technology products which have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes import and export of various goods and
technologies (excluding the goods prohibited or limited by the country);
wholesaling chemical raw materials and products.
SC is mainly engaged in importing
and exporting medical products.
Mr. C. S. MURALIDHARAN has been legal
representative and chairman of SC since 1997.
SC owns approximately
50 staff at present.
SC is currently operating at the above stated address, and this
address houses its head office in the commercial zone of Xiamen. Our checks
reveal that SC owns the total premise about 2,000 square meters.
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http://www.mchem.net/ The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: mchem@mchem.net mchem@mchem.cn
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No significant events or changes were found during our checks with
the local Administration for Industry and Commerce.
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MAIN SHAREHOLDERS:
Name %
of Shareholding
Matrix Laboratories (Singapore) Pte, Ltd. 60
Gao Jingdong 40
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Legal representative and chairman:
Mr. C. S. MURALIDHARAN, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Gao
Jingdong , born in 1967, with university education.
He is currently responsible for the daily
management of SC.
Working Experience(s):
From 1997 to present Working
in SC as general manager.
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SC is mainly engaged in importing
and exporting medical products.
SC’s products mainly include
anti-HIV, central nervous system, cardiovascular, veterinary, agro-chemicals,
veterinary drugs and bio-products.
SC sources its materials 30%
from domestic market, and 70% from overseas market, mainly USA and Europe. SC
sells 70% of its products in domestic market, and 30% to overseas market,
mainly Southeast Asian 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.
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SC is known to have the following subsidiaries:
Shanghai
MCHEM New Drug Development Co., Ltd.
Jiangsu
Dafeng Pharmaceutical Chemical Co., Ltd.
MCHEM
Laboratories Ltd.
MCHEM
Pharmacy Co., Ltd.
MCHEM
R&D Ltd.
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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.
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China
Everbright Bank Xiamen Branch
AC#：9860100303007208
Relationship:
Normal.
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Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
118,990 |
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Inventory |
17,740 |
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Accounts receivable |
66,860 |
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Other receivables |
94,180 |
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Prepaid expenses |
440 |
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Advances to suppliers |
4,200 |
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Short-term investment |
39,460 |
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Other current assets |
613 |
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Current assets |
348,000 |
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Fixed assets |
9,840 |
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Fixed assets net value |
5,810 |
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Projects under construction |
0 |
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Long term investment |
36,120 |
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Other assets |
70 |
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Total assets |
390,000 |
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Short loans |
70,530 |
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Accounts payable |
33,090 |
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Other payable |
1,690 |
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Welfare expenses payable |
500 |
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Taxes payable |
-10,730 |
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Notes payable |
199,000 |
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Other current liabilities |
20 |
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Current liabilities |
294,100 |
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Long term liabilities |
0 |
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Total liabilities |
294,100 |
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Equities |
95,900 |
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Total liabilities &
equities |
390,000 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
287,400 |
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Cost of goods sold |
267,780 |
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Sales expense |
8,800 |
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Management expense |
7,460 |
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Finance expense |
5,620 |
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Profit before tax |
-2,280 |
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Less: profit tax |
0 |
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Profits |
-2,280 |
Important Ratios
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as
of Dec. 31, 2005 |
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*Current ratio |
1.18 |
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*Quick ratio |
1.12 |
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*Liabilities
to assets |
0.75 |
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*Net profit
margin (%) |
-0.79 |
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*Return on
total assets (%) |
-0.58 |
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*Fixed
assets/Total assets |
0.01 |
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*Inventory
/Turnover ×365 |
23days |
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*Accounts
receivable/Turnover ×365 |
85days |
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*Turnover/Total
assets |
0.74 |
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* Cost of
goods sold/Turnover |
0.93 |
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PROFITABILITY: FAIR
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The
turnover of SC appears fairly good in its line.
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SC’s
net profit margin is fair.
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SC’s
return on total assets is fair.
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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 normal level.
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SC’s
quick ratio is maintained in a normal level.
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The
inventory of SC is maintained in an average level.
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The
accounts receivable of SC is maintained in a normal level.
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The
short loans of SC appear fairly large.
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SC’s
turnover is in an acceptable 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.
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SC is
considered small-sized in its line with fairly stable financial conditions. A
credit line up to USD 100,000 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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