MIRA
INFORM REPORT
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Report Date : |
05.07.2007 |
IDENTIFICATION DETAILS
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Name : |
xi’an rejoy
pharmaceutical co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
December 1, 2004 |
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Com. Reg. No.: |
002176 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Manufacturing and
selling pharmaceutical products. |
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 : |
Up To usd 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
xi’an rejoy
pharmaceutical co., ltd.
no.
TEL :
86 (0) 29-84682200
FAX :
86 (0) 29-84261550
EXECUTIVE SUMMARY
INCORPORATION DATE : december 1, 2004
REGISTRATION NO. : 002176
REGISTERED LEGAL FORM : Wholly foreign-owned
STAFF STRENGTH :
2,500
REGISTERED CAPITAL : CNY 280,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 856,070,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 590,030,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STRONG
OPERATIONAL TREND : AVERAGE
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY 7.60= US$1 AS OF 2007-7-5
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on December 1, 2004.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investors may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scopes include manufacturing and selling pharmaceutical products,
various new drugs, foodstuff health protection medicament, and additives.
SC is mainly
engaged in manufacturing and selling pharmaceutical products.
Mr.
Wu Qin has been chairman of SC since 2004.
SC owns about
2,500 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 Xi’an. Our checks reveal
that SC owns the total premise about 50,000 square meters.
SC is not known to host web site of its own at present.
Changes of its registered information are as follows:
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Date of change |
Item |
Before the
change |
After the change |
|
2006-11 |
Registered Legal form |
Chinese-foreign equity joint venture
enterprise |
Wholly foreign-owned enterprise |
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Registered capital |
CNY 210,900,000 |
CNY 280,000,000 |
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Shareholders |
Rejoy Group Co., Ltd. 20% Lijun International Pharmaceutical (Holdings) Co., Ltd. 80% 80 |
Lijun International Pharmaceutical (Holdings) Co., Ltd. 100% |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lijun International Pharmaceutical
(Holdings) Co., Ltd. 100
l
Chairman:
Mr. Wu Qin, 54 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working
in SC as chairman.
l
General Manager:
Mr. Huang Chao, 51 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling pharmaceutical products.
SC’s products
mainly include: “lijunsha” anti-inflammatory.
SC sources its
materials 100% from domestic market, mainly from
The buying terms of SC include 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 Customer:
==============
Xi’an Rejoy Baichuan Pharmaceutical Chemical Co., Ltd.
*Major Supplier:
==============
SC is
known to have a subsidiary at present.
Shanxi Rejoy
Hengxingtang 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
AC#：3700022109006000568
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
149,110 |
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Inventory |
84,650 |
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Accounts
receivable |
164,120 |
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Other Accounts
receivable |
23,890 |
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To be
apportioned expense |
15,020 |
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Other current
assets |
50,350 |
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------------------ |
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Current assets |
487,140 |
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Fixed assets net
value |
258,760 |
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Projects under
construction |
177,350 |
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Long term
investment |
610 |
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Other assets |
15,020 |
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------------------ |
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Total assets |
938,880 |
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============= |
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Short loans |
120,000 |
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Accounts payable |
40,440 |
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Other Accounts
payable |
28,990 |
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Withdraw the
expenses in advance |
24,870 |
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Other current
liabilities |
48,520 |
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Current
liabilities |
262,820 |
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Long term
liabilities |
86,030 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
348,850 |
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Equities |
590,030 |
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Total
liabilities & equities |
938,880 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
856,070 |
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Cost of goods
sold |
410,140 |
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Sales expense |
222,160 |
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Management expense |
100,060 |
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Finance expense |
8,610 |
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Profit before
tax |
112,360 |
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Less: profit tax |
0 |
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Profits |
112,360 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.85
*Quick ratio 1.53
*Liabilities to
assets 0.37
*Net profit
margin (%) 13.13
*Return on total
assets (%) 11.97
*Inventory
/Turnover ×365 36 days
*Accounts
receivable/Turnover ×365 70 days
*Turnover/Total
assets 0.91
*Cost of goods
sold/Turnover 0.48
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good 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 average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a fairly
good level.
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SC’s quick ratio is maintained in a fairly good
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 an
acceptable level.
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The short-term loan of SC appears fairly large.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Strong.
Over the past 3 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%)