MIRA
INFORM REPORT
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Report Date : |
26th February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
LOTUS PHARMACUTICAL CO. LTD. |
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Registered Office : |
11fl, 200 Fu Hsing South Rd Section 1 Ta-An Dist Taipei City 106,
Taiwan. |
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Country : |
Taiwan |
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Financials (as on) : |
2005 |
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Date of Incorporation : |
30.06.1966 |
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Com. Reg. No.: |
11456110 |
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Legal Form : |
Public Company |
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Line of Business : |
Enange in the following areas of work : 1. Research and development of new western pharmaceuticals. 2. Importing raw materials for in-house production. 3. Manufacture of a wide range of pharmaceuticals. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
LOTUS
PHARMACEUTICAL CO LTD
11FL, 200 FU HSING SOUTH RD SECTION 1 TA-AN
DIST TAIPEI CITY 106, TAIWAN
TEL :
886- 2-27785188
FAX :
886-2-27782798
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUNE 30, 1966
REGISTRATION NO. :
11456110
LEGAL FORM :
PUBLIC
CHIEF EXECUTIVE :
MR. TUNG-HO LIN (CHAIRMAN)
STAFF STRENGTH :
246
CAPITAL :
US$ 9,188,361
BUSINESS LINE :
MANUFACTURER
TURNOVER :
NTD 31,886,000 (AS OF DEC. 31, 2005)
EQUITIES :
NTD 360,937,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : USD
500,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
TWD 33.04235 = US$1 AS OF 2007-2-14
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
M - million
TWD –Taiwan New Dollars
*Company Registration*
===================
(1)
License number : 11456110
Date issued : 30 June, 1966
Issuing authority : Ministry of Economic Affairs (MOEA)
*Company Name*
==============
Incorporated as : MEI SHIH PHARMACEUTICAL CO LTD
Date of incorporation :
January 1955
Changed name to : LOTUS PHARMACEUTICAL CO LTD
Date of change : 24 May, 2004
*Company History*
===============
January 1986 - Became
GMP factory
1996
- Acquired MEI-SHIH
PHARMACEUTICAL Plant in central Taiwan
2004
- MEI-SHIH PHARMACEUTICAL Plant
was accredited by the Department of Health in Taiwan as a cGMP certified
pharmaceutical plant
February 2005
- Started the New global cGMP
plant construction
*Capital Details*
=============
Initial paid up capital : NTD 2,000,000
Authorized capital increases follows :
Date Amount
(NTD)
------- ---------------------------
1978
8,400,000.00
1985
18,000,000.00
1995
27,000,000.00
2001
100,000,000.00
2002
150,000,000.00
2003
220,000,000.00
2004 256,000,000.00
2006
269,984,000.00
*Licenses & Permits*
================
License number : 99652184
Date issued : 1 January, 1969
Issuing authority :
Industrial Development Bureau (MOEA)
Type of license : Manufacturing License
*Factories, Size & Locations*
=======================
Size :
4,833.61 sq meters (Including four (4)
floors)
Location :
Nantou Hsien
Property status : Owned by LOTUS PHARMACEUTICAL CO LTD
Type of building :
Industrial Building
Comments :
Serves as warehouse and factory.
*Office & Facilities*
================
Size :
214.07 sq meters (Apporx)
Location :
Central Business District (CBD)
Property status :
Owned by LOTUS PHARMACEUTICAL CO LTD
Type of building :
Commerical building
Other fax no :
2-27738816
*Corporate & Organization Structure*
=============================
Organizational Chart
------------------------------
_General affairs section
|_Customer relation mng't
Vice
General
| section
Manager --- Administrative ____|_Purchase section
| Div. |_Mng't information
| | service section
| |_Human resources
|
section
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| _Financial section
| _Financial Division
_____|_Accounting section
| | |_Shareholders'
equity section
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_Warehouse dept.
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|_Engineering section
| |_Nantou Plant----------------|_Administrative section
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|_Production dept.
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| |_Formulation Development
div.
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_Clinical research subdivision III
| |_Clinical Research Div. __|_Clinical research subdivision II
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|_Clinical research subdivision I
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| |_New Molecule Entity
Div._Regulatory affairs dept.
| |_Intellectual Property Div.
President --------- General Manager ---------|----|_Int'l Business Div.
|_Lotus Board |_Internal Auditor | |_____________________Quality Assurance Dept.
|_GM Office
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|_____________________Quality Control Dept.
|_Spokesman |
|_Specical Assistant |
|_Secretary | _New Business
dev. dept.
| |_Marketing
Dev. Subdivision I
| _Marketing Dev.
---|_Marketing Dev. Subdivision II
| | Div
|_Marketing Dev. Subdivision III
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Vice
General ___|_Sales Div. IV--------Distributors & agents
Manager |
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_Medical Cosmetics Dept.
|_Sales
Div. III -----|_Pharmacy Dept.
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| _HP Sales
Dept. IV
|_Sales Div. III -----|_HP Sales Dept. III
| |_HP Sales
Dept. II
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|_HP Sales Dept. I
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_GP Sales Dept. IV
| |_GP Sales
Dept. III
|_Sales Div. I -------|_GP Sales Dept. II
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|_GP Sales Dept. I
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|_LOTUS BIOTECH (SHANGHAI) LTD
www.lotuspharm.com.tw The design
is professional and the content is well organized. At present it is in both
Chinese and English version.
E-mail: lotus@lotuspharm.com
Country : Taiwan
Newspaper : SINA Magazine
Date : July, 2006
Title : Ilegal
rebates to doctors on sales of medicine
Summary
Department of Justice recently discovered that LOTUS sales executives
have been providing to a number of local doctors, rebates on sales made as a
result of recommendations to patients. Although legal action has not yet been
implemented by the Dept. of Justice, it is expected that charges will be made
during 2007/2008.
*Major Shareholders*
=================
Total number of shareholders : 6
Total number of shares
: 5,144,432
Shareholders' Name No. of Shares
--------------------------
------------------
Mr. Tung-ho Lin
2,756,678
Mr Ching-tai Lin
657,199
Ms. Jui-chen Tsai
560,826
Mr Chin-chiang Chang 514,136
Ms Hsiu-hui Lee
375,830
Mr Shih-yang Lin
279,763
Mr. Kuang-chao Wang 0
Mr. Ching-en Yeh
0
Mr. Nan-mou Pei
0
Mr. Kuo-shih Huang
0
Management: Ms. Mei-yueh Cheng,
Manager
Ms. Feng-jung Hsu, Manager
Ms. Tsui-ling Chen, Director
Name Nationality Job Description
Ms. Mei-yueh Cheng Taiwanese Manager Assets
Ms. Feng-jung Hsu Taiwanese
Manager Audit
Ms. Tsui-ling Chen Taiwanese
Director Finance
Ms. Lisa Li-ling Cheng Taiwanese
Manager Human Resources
Mr. Tung-ho Lin Taiwanese General Manager -
Ms. Shih-hsiung Chan Taiwanese Inspector General -
Mr. Chin-tai Lin Taiwanese
Vice General Manager -
Ms. Jui-chen Tsai Taiwanese
Vice General Manager -
*Key Personnel*
=============
(1)
Mr. Tung-ho Lin
Founder : Co-Founder
Education : Graduate In Taiwan University
Responsibilities : Daily management of the firm and legal
responsibility of all financial liabilities.
Other Positions : Director, LOTUS INT'L PTE LTD -
Singapore
Previous Positions :
General Manager, SERVIER (S) PTE LTD - Taiwan
(2)
Ms. Jui-chen Tsai
Email : ruey@lotuspharm.com
(3)
Ms. Tsui-ling Chen
Email : metis@lotuspharm.com
(4)
Ms. Lisa Li-ling Cheng
Email : lesa@lotuspharm.com
*Main Products & Services*
====================
Specializes in the following areas of work :
1. Research and development of new western pharmaceuticals.
2. Importing raw materials for in-house production.
3. Manufacture of a wide range of pharmaceuticals.
Products also include:
- Arheuma
- Densoin
- Witgen
- Basazyde
- Butaro
Products: Medicine tablets
Capsules
Medical
capsules
Ointments
Pharmaceutical
*Brand*
======
LOTUS
*Payment Terms*
==============
Sales
------
Local : 30-60 days Credit
Export : Letter of Credit (L/C)
Telegraphic
Transfer (T/T)
Purchases
--------------
Local : 30-60 days Credit
Import : Letter of Credit (L/C)
Telegraphic
Transfer (T/T)
*Production Capacity*
=================
Item Maximum
Capacity Current Capacity
----------
--------------------------
--------------------------
Capsule 36,430,000
pcs 32,310,000 pcs
Troche 133,580,000
pcs 130,250,000 pcs
Salve
20,240 kg
10,140 kg
Liquid 81,972
L 8
L
*Associations*
===========
Member of :
- Taiwan Pharmaceutical Manufacturer's Association.
*Competitors*
===========
The following locally based companies supply similar range of products :
- CHINA CHEMICAL & PHARMACEUTICAL CO LTD
- YUNG SHIN PHARMACEUTICAL INDUSTRY CO LTD
- U CHU PHARMACEUTICAL CO LTD
- SINPHAR PHARMACEUTICAL CO LTD
*Domestic Raw Materials Suppliers*
=============================
Major local suppliers include:
1. Company Name : FORMOSA LABORATORIES INC
Material/components : Apano, Bensau
Quantity supplied % :
18.81%
2. Company Name : DERSAN PHARMACEUTICAL CO LTD
Quantity supplied % :
15.62%
3. Company Name :
BIOPHARM INT'L CO LTD
Material/components : Forflow, Muaction
*Awards*
========
Award :
3 Medals
Awarded by : MOEA, DOH; Taipei City Goverment
Date : December 2004
*Local Distribution Network*
=====================
98% of the annual turnover is attributed to local sales.
Sales are achieved through the following distribution channels:
1. Drugstores (Retail)
2. Smaller regional clinics
3. Major hospitals including:
- NATIONAL TAIWAN UNIVERSITY
HOSPITAL
- TAIPEI MEDICAL UNIVERSITY
HOSPITAL
- TRI-SERVICE GENERAL
HOSPITAL
*Export Markets*
=============
2% of the annual turnover is attributed to export.
*Overeseas Supplier*
===============
(1)
Country : China
Supplier's Name : ZHEJIANG XIANJU CHEN PHARM FACTORY
(2)
Country : Germany
Supplier's Name : HEUMANN PCS GMBH
(3)
Country : Germany
Supplier's Name : HEUMANN PHARMA GMBH & CO
(4)
Country : Switzerland
Supplier's Name : REFARMED CHEMICALS LTD
(5)
Country : Spain
Supplier's Name : MEDICHEM SA
(6)
Country : Italy
Supplier's Name : SIFAVITOR SPA
*Overseas Customers*
==================
Customer's/Client's name : ASIA PHARMACEUTICAL INDUSTRIAL CO LTD
Country
: South Korea
Product buying : Niacin ERTablets
*LOCAL BRANCHES & MANAGEMENT*
=================================
Branch :
LOTUS PHARMACEUTICAL CO LTD - KAOHSIUNG CITY
Branch Address : 11Fl
3, 58 Chiu Ju 1st Rd Sanming Dist, Kaohsiung City, 807
Branch Tel :
[+886] 7-3964036
Branch Fax :
[+886] 7-3984839
Branch Employees : 10
Branch :
LOTUS PHARMACEUTICAL CO LTD - TAICHUNG CITY
Branch Address : 10Fl
1, 73 Wen Hsin Rd Section 1 Nantun Dist, Taichung City, 408
Branch Tel :
[+886] 4-24730332
Branch Fax :
[+886] 4-24730332
Branch Employees : 10
*(Subsidiaries, Joint-ventures & Affiliates)
===============================
Company Name : LOTUS
BIOTECH (SHANGHAI) LTD
Country :
China
Relationship :
Subsidiary
Legal Form :
Private Limited Company
Company Type : Service
Industry :
Professional Services
Company Name : LOTUS
INT'L PTE LTD
Country :
Singapore
Relationship :
Subsidiary
Legal Form :
Private Limited Company
Company Type :
Manufacturer
Industry :
Medical Equipment & Pharmaceutical
PAYMENT
RATING : 2 OBTAINED SCORES :
77
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Implication |
Implications |
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1 |
Scores 85–100 |
Excellent |
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2 |
Scores 75 – 84 |
Above Average |
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3 |
Scores 50 – 74 |
Average |
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4 |
Scores 35 – 49 |
Fair |
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5 |
Scores 15 – 34 |
Below Average |
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6 |
Scores 01 – 14 |
Poor |
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NR |
No Data |
No Data |
The rating indicates the
payment pattern of SC based upon our Payment Database, comments from suppliers
of SC, information from banks (if available), as well as industrial sources.
Dealings on open terms may be possible for
FAIRLY LARGE amounts depending on individual judgement experience.
Balance Sheet
Currency : NTD
Denomination : In thousand
2004 2005
------ ------
Currect Assets 308,938 313,577
Longterm Investment 11,075 11,775
Property
110,687 160,693
Intangible Assets 7,033 8,637
Other Assets 25,608 30,080
Total Assets
463,341 524,762
Currect Liabilities Before 109,999 147,734
Total Liabilities Before 130,158 163,825
Total Shareholder's Equity Before 333,183 360,937
Income Statement
Currency : NTD
Denomination : In thousand
2004 2005
------ ------
Sales 42,146 31,886
Gross Profit
367,568 367,571
Non-operating income 186,925 24,606
Non-operating expenses 11,356 10,428
Interest Income 99 162
Interest Expenses -186 -235
Income Before Income Tax 49,415 46,064
Net Income
39,122 46,098
Financial Ratio
2004 2005
------ ------
Ratio of liabilities to Assets % 28.09 31.22
Ratio of long-term capital to fixed Assets% 301.01
224.61
Current ratio% 280.85 212.26
Quick ratio % 210.51 139.84
Interest coverage 266.67 197.02
Turnover of receivable (times) 3.38 3.44
Average collection period of receivable 107.99 106.1
Turnover of inventories (times) 2.52 1.97
Average days of sales 144.84 185.28
Turnover of fixed assets (times) 4.79
3.84
Turnover of total assets (times) 1.12 1.06
Return on total assets% 8.39 9.37
Return on shareholder's Equity %
12.08 13.28
Operating Income % 16.23 11.81
Net Income before tax % 19.04 17.06
Profit margin % 7.47 8.84
Retroactive
1.45 1.71
Cash flows ratio % 46.62 6.05
Cash flows adequacy % 71.61 49.34
Cash reinvestment ratio % 8.91 -2.76
Degree of operating leverage 4.09 5.9
Degree of financial leverage 1 1.01
*Int´l Trade Activity (Currency: U.S. $'s)
==============================
Year Imports Exports Total
2003 $1,375,578.95 $531,933.83 $1,907,512.78
2004 $1,410,000.00 $176,000.00 $1,586,000.00
2005 $1,336,998.42 $334,000.00 $1,670,998.42
*Financial Summary (Currency: U.S. $'s)
==============================
Year Sales Assets Net Income
2004 $1,267,548.87 $13,935,067.67 $1,176,601.50
2005 $1,007,456.56 $16,580,157.98 $1,456,492.89
Over the past 41 years, SC has made a stable growth with satisfactory
profit. It is considered a credit line up to USD 500,000 appears to be within
SC’s capacities.
ATTACHED: TRADE REFERENCES
SIC PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 2834 Pharmaceutical
preparations
Manufacturing 2833 Medicinals
and botanicals
Manufacturing 2834 Pharmaceutical
preparations
Manufacturing 2844 Toilet
preparations
Manufacturing 2899 Chemical
preparations,
HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 3000 Pharmaceutical products
Exporting 3004901000 Medicaments containing antigens or hyaluronic acid or its
sodium salt
Importing 2922491500 Benzocaine; and procaine hydrochloride
Importing 2932992000 Other aromatic heterocyclic compounds with oxygen
hetero-atom(s) only for use
as
pesticides
Importing 2933590500 Pesticides containing a pyrimidine ring (whether or not
hydrogenated) or
piperazine
ring in the structure
Manufacturing 1108200000 Insulin
Manufacturing 1302194020 Ginseng,
crude
Manufacturing 1519110000 Stearic
acid
Manufacturing 3000 Pharmaceutical
products
Manufacturing 3302900010 Perfume
oil mixtures and blends, consisting of products ready for use as finished
perfume
bases
DETAILED PRODUCT CLASSIFICATION & ACTIVITY
Activity Product/Service
Description
Manufacturing Medicines, powder form
Manufacturing Medicine tablets
INTERNATIONAL TRADE : ACTIVITY & MARKETS
Exporting to Asia
Exporting to Cambodia
Exporting to China
Exporting to Colombia
Exporting to Hong Kong
Exporting to Singapore
Exporting to South America
Exporting to South Korea
Exporting to Uruguay
Importing from Asia
Importing from China
Importing from Germany
Importing from Italy
Importing from Spain
Importing from Swaziland
Importing from Switzerland
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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