MIRA
INFORM REPORT
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Report Date : |
13.07.2007 |
IDENTIFICATION DETAILS
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Name : |
NINGXIA QIYUAN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No.85 |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
21.01.2001 |
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Com. Reg. No.: |
6400001200229 |
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Legal Form : |
Limited liabilities company |
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Line of Business : |
Manufacturing and Selling Troche, Capsule, Granule, and
Bulk Drug |
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 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
NINGXIA QIYUAN PHARMACEUTICAL CO., LTD.
No.85
TEL: 86 (0) 951-4066592
FAX: 86 (0) 951-4066968
EXECUTIVE SUMMARY
INCORPORATION DATE : january 21, 2001
REGISTRATION NO. : 6400001200229
REGISTERED LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : MR. hu jidong (CHAIRMAN)
STAFF STRENGTH : 2,500
REGISTERED CAPITAL : CNY 129,700,000
BUSINESS LINE : manufacturing
TURNOVER : CNY 777,690,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 592,140,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : AVERAGE
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.57 = US$1 AS OF
Note: The correct name should be the heading one instead of Yongning Ningxia
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on January 21, 2001.
Company Status: Limited liabilities co. This form of business in PR China is defined as a legal
person. At least two shareholders and no more than fifty contribute its
registered capital jointly. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to extent
of its total assets. The characteristics of this form of co. are as
follows: Upon the establishment of the co., an investment
certificate is issued to the each of shareholders. The board of directors is comprised of three to thirteen members. The minimum registered capital for a co. is listed as
follows: -manufacturing co.
: CNY
500,000.00 -trading &wholesaling co. :
CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service co. : CNY 100,000.00 Shareholders may take their capital contributions in cash
or by means of tangible assets or intangible assets such as industrial
property and non-patented technology. Cash contributed by all shareholders must account for at
least 30% of the registered capital. Existing shareholders have pre-exemption right to purchase
shares of the co. offered for sale by the other shareholders and to
subscribe for the newly increased registered capital of the co.
SC’s registered business scope includes manufacturing and selling troche, capsule, granule, and bulk drug.
SC is mainly engaged in manufacturing and selling troche, capsule, granule, and bulk drug.
Mr. Hu Jidong has been chairman of SC since 2001.
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 Yinchuan. Our checks reveal that SC owns the total premise about 170,000 square meters.
http://www.china-qiyuan.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: ie@china-qiyuan.com
No significant events or changes were found during our checks with the local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Shareholder’s Union of Staff 96.86
State-owned Assets Supervision and
Administration Commission of Ningxia
Hui Autonomouse Region Government 3.14
Chairman and General Manager:
Mr. Hu Jidong (胡吉东), about 55 years old with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
Before 2001 Worked in Ningxia Pharmaceutical Factory as factory director.
From 2001 to present Working
in SC as chairman and general manager.
Vice General Manager:
Ms. Ju Lihong, about 40 years old with university education. She is currently responsible for the daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as vice general manager.
SC is mainly engaged in manufacturing and selling troche, capsule, granule, and bulk drug.
SC’s products mainly include: TETRACYCLINE HYDROCHLORIDE, TETRACYCLINE, CARBENOXOLONE SODIUM, 18-β-GLYCYRRHETINIC ACID, ERYTHROMYCIN THIOCYANATE.
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Tetracycline Hydrochloride |
Tetracycline |
Carbenoxolone Sodium |
18-β-glycyrrhetinic Acid |
Erythromycin Thiocyanate |
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ANNUAL OUTPUT: 4000TON STANDARD OF QUALITY: CONFORMS TO BP2001、USP25、EP4. PACKING: |
ANNUAL OUTPUT: 3000TON STANDARD OF QUALITY:CONFORMS TO EDITION 1989 OF MINISTRY OF
PUBLIC HEALTH PR.CHINA、BP2000、USP24.PACKING: |
ANNUAL OUTPUT: STANDARD OF QUALITY:CONFORMS TO BP98、CP95 PACKING: |
ANNUAL OUTPUT: IT CAN BE PRODUCED ACCORDING TO CUSTOMER'S NEED PACKING: |
ANNUAL OUTPUT: 2000TON STANDARD OF QUALITY: PACKING: |
SC sources its materials 100% from domestic market, mainly Ningxia. 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 and Credit of 30-45 days. The payment terms of SC include T/T, L/C and Credit of 30-45 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.
SC declined to release its bank details.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
63,130 |
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Inventory |
72,000 |
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Accounts receivable |
-5,250 |
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Other Accounts receivable |
10,790 |
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To be apportioned expense |
290 |
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Other current assets |
1,000 |
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Current assets |
141,960 |
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Fixed assets net value |
591,090 |
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Projects under construction |
32,050 |
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Long term investment |
90,750 |
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Other assets |
570,510 |
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Total assets |
1,426,360 |
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Short loans |
344,900 |
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Accounts payable |
-24,420 |
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Other Accounts payable |
58,680 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
43,730 |
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Current liabilities |
422,890 |
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Long term liabilities |
410,400 |
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Other liabilities |
930 |
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Total liabilities |
834,220 |
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Equities |
592,140 |
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Total liabilities & equities |
1,426,360 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
777,690 |
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Cost of goods sold |
569,830 |
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Sales expense |
14,210 |
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Management expense |
60,510 |
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Finance expense |
25,250 |
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Profit before tax |
109,500 |
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Less: profit tax |
0 |
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Profits |
109,500 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.34
*Quick ratio 0.17
*Liabilities to assets 0.58
*Net profit margin (%) 14.08
*Return on total assets (%) 7.68
*Inventory /Turnover ×365 34 days
*Accounts receivable/Turnover ×365 / days
*Turnover/Total assets 0.55
* Cost of goods sold/Turnover 0.73
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is maintained in an average level.
The short-term loan of SC appears fairly large.
SC’s turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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. The large amount of short loans could be a threat to SC’s financial condition. A credit line up to USD 1,000,000 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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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%)