MIRA
INFORM REPORT
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Report Date : |
22nd
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
zhejiang
neo-dankong pharmaceutical co., ltd. |
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Registered Office : |
No. 83 Jiefang North Road, Jiaojiang District, Taizhou, Zhejiang Province, 317000 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 : |
18.01.
2001 |
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Com. Reg. No.: |
3300001007547 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged
in manufacturing and selling tablet, capsule pharmaceutical, and raw
materials medicine. |
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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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Name & address
zhejiang
neo-dankong pharmaceutical co., ltd.
no. 83
jiefang north road, jiaojiang district, taizhou,
zhejiang
PROVINCE, 317000 PR CHINA.
TEL: 86
(0) 576-8582501
FAX: 86
(0) 576-8582567
EXECUTIVE SUMMARY
INCORPORATION DATE :
january 18, 2001
REGISTRATION NO. :
3300001007547
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
938
REGISTERED CAPITAL :
CNY 60,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 367,680,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 104,270,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD200,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY7.90 = US$1 AS OF 2006-09-29
SC was registered as a shares limited company at Zhejiang provincial
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on January 18, 2001.
Company Status: Shares limited co. This form of
business in PR China is defined as a legal person. Its registered capital
is divided into shares of equal par value and the co. raises capital by
issuing share certificates by promotion or by public offer. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to the extent of its total assets. The characteristics
of the shares limited co. are as follows: The establishment of
the co. requires at least five promoters and at least three of them must be
PR- China controlled legal persons. Natural person can not be allowed to
serve as promoters. The minimum
registered capital of a co. is CNY 10M. while that of the co. with foreign
investment is CNY 30M. The total capital of a co. which propose to apply
for publicly listed must not less than CNY 50M. The board of
directors must consist of an odd number of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
three years of the offer. Directors can not transfer the shares they hold
in the co. during their terms of office. A state-owned
enterprise that is restructured into a shares limited co. must comply with
the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope
includes manufacturing and selling tablet, capsule pharmaceutical, raw material
medicine, selling medical intermedia and chemical products, importing and
exporting commodities and technology, excluding the goods forbidden by the
government.
SC is mainly engaged in
manufacturing and selling tablet, capsule pharmaceutical, and raw material
medicine.
Mr. Xu Ziqing has been chairman
of SC since 2001.
SC owns about 938 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 Taizhou. Our checks
reveal that SC owns the total premise about 132,000 square meters.
SC is not known to host web site of its own
at present.
SC has
got the certificate of GMP, ISO14001, and ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Dankong Industry & Trade Group Co., Ltd. 61.04
Taizhou Dankong Dyestuff Co., Ltd. 17.13
Wang
Yunyou 7.50
Wang Yunfu 5.00
Cao Enfa 2.00
Xu Zhengde 1.67
Xu Ziqing 1.33
Ningbo Import & Export Corp. 1.00
Shanghai Institute Of Pharmaceutical
Industry 1.33
Sichuan Institute Of Antibiotic Industry 1.00
Zhejiang Xinchang Synthetic Chemicals
Factory 1.00
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Chairman:
Mr. Xu
Ziqing, about 50 years old 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.
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General Manager:
Mr. Hong
Huaibin, about 40 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2001 to present
Working in SC as general
manager.
SC is mainly engaged in
manufacturing and selling tablet, capsule pharmaceutical, and raw materials
medicine.
SC’s products mainly include: NORFLOXACIN,
ATORVASTATIN, FLUVASTATIN， ROSUVASTATIN， BROMHEXINE HCL.
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 70% of its products in domestic market, and
30% to overseas market, mainly India.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major
Customers:
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Taizhou Dankong Dyestuff Co., Ltd.
SC is
known to have a subsidiary at present.
Zhejiang
Dankong Pharmaceutical Co., Ltd.
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 China Taizhou Branch
AC#1207021209200002785
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2004 |
As of Dec. 31, 2005 |
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Cash & bank |
44,230 |
29,990 |
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Inventory |
64,380 |
103,830 |
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Accounts receivable |
530 |
45,100 |
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Other Accounts receivable |
1,000 |
630 |
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To be apportioned expense |
320 |
410 |
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Other current assets |
7,800 |
3,450 |
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Current assets |
118,260 |
183,410 |
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Fixed assets |
95,920 |
139,150 |
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Projects under construction |
32,180 |
0 |
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Long term investment |
15,490 |
18,210 |
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Other assets |
8,290 |
21,260 |
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Total assets |
270,140 |
362,030 |
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Short loans |
70,000 |
64,920 |
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Accounts payable |
11,580 |
51,920 |
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Accounts receivable in advance |
6,220 |
67,700 |
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Other Accounts payable |
81,770 |
22,210 |
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Withdraw the expenses in
advance |
560 |
660 |
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Other current liabilities |
270 |
4,510 |
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Current liabilities |
170,400 |
211,920 |
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Long term liabilities |
0 |
45,000 |
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Other liabilities |
840 |
840 |
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Total liabilities |
171,240 |
257,760 |
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Equities |
98,900 |
104,270 |
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Total liabilities &
equities |
270,140 |
362,030 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
140,650 |
367,680 |
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Cost of goods sold |
84,080 |
321,230 |
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Sales expense |
1,720 |
2,160 |
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Management expense |
25,360 |
38,730 |
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Finance expense |
3,260 |
5,650 |
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Profit before tax |
26,300 |
10,660 |
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Less: profit tax |
9,290 |
4,570 |
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Profits |
17,010 |
6,090 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
0.69 |
0.87 |
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*Quick ratio |
0.32 |
0.38 |
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*Liabilities
to assets |
0.63 |
0.71 |
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*Net profit
margin (%) |
12.09 |
1.66 |
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*Return on
total assets (%) |
6.30 |
1.68 |
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*Inventory
/Turnover ×365 |
167 |
103 |
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*Accounts
receivable/Turnover ×365 |
1 |
45 |
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*Turnover/Total
assets |
0.52 |
1.02 |
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* Cost of
goods sold/Turnover |
0.60 |
0.87 |
PROFITABILITY: AVERAGE
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The
turnover of SC appears fairly good in its line.
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SC’s
net profit margin is average.
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SC’s
return on total assets is average.
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SC’s
cost of goods sold is average, 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 POOR level.
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The
inventory of SC appears fairly large.
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The
accounts receivable of SC is maintained in an acceptable level.
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SC’s
short-term loan is in TOO HIGH level.
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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.
SC is
considered medium-sized in its line with fairly stable financial conditions. And
the large amount of short-term loan could be a threat to its financial condition.
A credit line up to USD 200,000
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/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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