MIRA
INFORM REPORT
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Report Date : |
26th February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
Fujian Fukang
Pharmaceutical Co., Ltd. |
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Registered Office : |
No. 138 Xiangban Road, Fuzhou,, Fujian Province, 350002 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 : |
10.07.2002 |
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Com. Reg. No.: |
3500001002392 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing and selling tablet, capsule and bulk drugs. |
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 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
Fujian Fukang Pharmaceutical Co., Ltd.
no. 138 xiangban road, fuzhou,, fujian
PROVINCE, 350002 PR CHINA
TEL :
86 (0) 591-83810885
FAX :
86 (0) 591-83828894
EXECUTIVE SUMMARY
INCORPORATION DATE : july 10, 2002
REGISTRATION NO. : 3500001002392
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
1,245
REGISTERED CAPITAL : CNY 105,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 1,200,000,000 (AS OF DEC.
31, 2005)
EQUITIES :
CNY 600,000,000
(AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 3,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : UPWARD
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE :
CNY7.75 = US$1 AS OF 2007-2-12
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a shares limited company at Fujian
provincial Administration for Industry & Commerce (AIC- The official body
of issuing and renewing business license) on July 10, 2002.
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 RMB 10M. while that of the co. with foreign investment is RMB
30M. The total capital of a co. which propose to apply for publicly listed
must not less than RMB 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, and bulk
drugs; selling medical intermediates
and chemical products; importing and exporting all kinds of commodities and
technologies, excluding the goods forbidden by the government.
SC is mainly
engaged in manufacturing and selling tablet, capsule and bulk drugs.
Mr. Wang Hangzhao
has been chairman of SC since 2002.
SC owns about
1,245 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 Fuzhou. Our checks
reveal that SC owns the total premise about 50,000 square meters.
http://www.fz-antibiotic.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: fukang@fz-antibiotic.com
SC’s former registered capital was CNY
77,954,654, and it was increased to CNY 105,000,000 in January 2006.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Quanzhou Shanglin Real Estate Development
Corp. 1.43
Shareholder’s Union of Staff 98.57
l
Chairman:
Mr. Wang Hangzhao, about 50 years old 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.
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General Manager:
Mr. Shi Linbo, about 45 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2002 to present
Working in SC as general
manager.
SC is mainly engaged
in manufacturing and selling tablet, capsule and bulk drugs.
SC’s products
mainly include:
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7-ACA Intermediate |
Sterile Cephalosporin API |
Sterile Cephalosporin API |
Preparation |
Animal Feed |
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7ACA |
CEFTRIAXONE SODIUM (STERILE) |
Chlortetracycline Hcl (EP5.0USP29) |
Ceftriaxone Sodium for Injection |
Chlortetracycline Feed Grade(Powder
Granular Type) |
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7MAC |
CEFOTAXIME SODIUM (STERILE) |
Gentamicin Sulphate (EP5.0USP28) |
Cefotaxime Sodium for Injection |
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7ACT |
CEFMETAZOLE SODIUM (STERILE) |
Tobramycin Base (EP5.0USP29 CP2005) |
Cefmetzaole Sodium |
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CEFTRIAXONE SODIUM (NONSTERILE) |
CEFOPERAZONE SODIUM (STERILE) |
Tobramycin Sulfate (USP29) |
Cefonicid Sodium for Injection |
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CEFOTAXIME ACID |
CEFUROXIME SODIUM (STERILE) |
Sisomicin Sulfate(JPUSP) |
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CEFOPERAZONE ACID |
CEFAZOLIN SODIUM (STERILE) |
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Cefoperazone Sodium for Injection |
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DCC (DESCARBAMOYL CEFUROXIME) |
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Cefoperazone Sodium and Sulbactam Sodium
for Injection |
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CEFUROXIME ACID |
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Cefazolin Sodium for Injection |
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CEFAZOLIN ACID |
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Cefradine for Injection |
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CEFEPIME HYDROCHLORIDE (NONSTERILE) |
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Ceftazidime for Injection |
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CEFTAZIDIME DIHYDROCHLORIDE |
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CEFMETAZOLE ACID |
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SC sources its materials 100% from domestic
market, mainly Fujian. 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.
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 China Fuzhou Branch
AC#：9558801402104154916
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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Accounts
receivable |
70,000 |
75,000 |
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Current assets |
300,000 |
460,000 |
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Fixed assets |
200,000 |
230,000 |
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Total assets |
815,000 |
1,300,000 |
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Total
liabilities |
500,000 |
700,000 |
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Equities |
315,000 |
600,000 |
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Total
liabilities & equities |
815,000 |
1,300,000 |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
780,000 |
1,200,000 |
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Cost of goods
sold |
480,000 |
700,000 |
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Sales expense |
5,500 |
6,500 |
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Management expense |
70,000 |
75,000 |
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Finance expense |
25,000 |
35,000 |
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Profit before
tax |
150,000 |
280,000 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
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*Quick ratio |
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*Liabilities
to assets |
0.61 |
0.54 |
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*Net profit
margin (%) |
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*Return on
total assets (%) |
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*Inventory
/Turnover ×365 |
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*Accounts
receivable/Turnover ×365 |
33 |
23 |
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*Turnover/Total
assets |
0.96 |
0.92 |
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* Cost of
goods sold/Turnover |
0.62 |
0.58 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s profit before tax appears fairly good.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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The accounts receivable of SC is maintained in a fairly good 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 low.
Overall financial
condition of the SC: Stable.
Over the past 5 years, SC has made a stable growth with satisfactory
profit. A credit line up to USD 3,000,000
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%)
PRIVATE & CONFIDENTIAL : This information
is provided to you at your request, you having employed MIPL for such purpose.
You will use the information as aid only in determining the propriety of giving
credit and generally as an aid to your business and for no other purpose. You
will hold the information in strict confidence, and shall not reveal it or make
it known to the subject persons, firms or corporations or to any other. MIPL
does not warrant the correctness of the information as you hold it free of any
liability whatsoever. You will be liable to and indemnify MIPL for any loss,
damage or expense, occasioned by your breach or non observance of any one, or
more of these conditions