MIRA
INFORM REPORT
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Report Date : |
23.07.2007 |
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IDENTIFICATION DETAILS
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Name : |
southwest
synthetic pharmaceutical co., ltd. |
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Registered Office : |
7/F, Kangde Mansion,
No. 34, Hongjin Road, Longxi Town, Yubei District Chongqing 401147 Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
May 18, 1993 |
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Com. Reg. No.: |
5000001804220 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing
and selling pharmaceutical products and preparation. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Up To USD1,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
southwest synthetic
pharmaceutical co., ltd.
7/f,
TEL :
86 (0) 23-67502832
FAX :
86 (0) 23-67507123
EXECUTIVE SUMMARY
INCORPORATION DATE : may 18, 1993
REGISTRATION NO. : 5000001804220
REGISTERED LEGAL FORM : shares limited co.
STAFF STRENGTH :
2,363
REGISTERED CAPITAL : CNY192,500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER : CNY500,267,848.50 (AS OF DEC. 31,
2006)
EQUITIES : CNY268,364,363.40 (AS OF DEC. 31,
2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY7.65 = US$1 AS OF 2007-06-05
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY –
Note: SC’s current operating address should be the above stated
one, and the given address - Cuntan Jianbei District,
SC was registered as a shares limited co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on May 18, 1993.
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 pharmaceutical products and
preparation; and selling hardware, chemical products and materials, grocery,
building materials, decoration materials, steel materials, lumber, electric
appliance, and ordinary machinery; pharmaceutical technology consulting and
transferring.
SC is
mainly engaged in manufacturing and selling pharmaceutical products and preparation.
Mr.
Dai Zeyu has been chairman of SC since 2003.
SC
owns about 2,363 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
Chongqing. Our checks reveal that SC owns the total premise about 67,000 square
meters.
http://www.sspgf.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: hczy@sspgf.com.cn
SC originally named Southwest Synthetic Pharmaceutical
Factory, which is the biggest manufacturing, researching, developing and
exporting base of pharmaceutical in
Change:
In 2003, SC’s legal representative was
changed from Zhang Chunyong to the present.
MAIN SHAREHOLDERS: (As
of Dec. 31, 2006)
Name % of Shareholding
Chongqing Southwest Synthetic Pharmaceutical Co., Ltd. 41.91
Huaxia Security Co., Ltd. 1.34
Li Jie 1.04
Shenzhen Dongfang Ruiyin Investment Co.,
Ltd. 0.90
Yin Yongxing 0.85
Other shareholders 47.24
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Legal
Representative and Chairman:
Mr. Dai Zeyu, born in 1965, 42 years old with master’s degree.
He is currently responsible for the overall management of SC.
Working Experience(s):
Before 2003 Worked in Chengfei Electromechanical
products Corp. as financial chief, in
Pearl Star co., Ltd. as financial controller, and in Chongqing Xinyanzhong
Technology Development Co., Ltd. as chairman and general manager;
From 2003 to present Working as legal representative and chairman in SC and Chongqing Southwest
Synthetic Pharmaceutical Co., Ltd.
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General
Manager:
Mr. Li Guojun, 33 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
Before 2006 Worked in Chongqing Southwest Synthetic Pharmaceutical Co., Ltd. as board
member and vice-president, and in Chongqing Daxin Pharmaceutical Co., Ltd. as
board member and general manager;
From 2006 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling pharmaceutical
products and preparation.
SC’s products mainly include:
Sulfamethazine, Trimethoprim, Sulfamethoxazole, and Sulfamethazine Sodium, etc.
SC sources its
materials 80% from domestic market, mainly
The buying terms of SC include T/T, L/C and Credit of 30-90 days. The
payment terms of SC include T/T, L/C and Credit of 30-90 days.
*Major Suppliers:
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Chongqing Haifu Chemical Co., Ltd.
*Major Customers:
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Beijing Ling Ke Er Medicine Sales Co., Ltd.
Chongqing Southwest Synthetic Pharmaceutical Co., Ltd.
SC is known to have a subsidiary, as follows:
Chongqing Fuling Puxing Chemical 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.
AC#：2014000283
Relationship:
Consolidated Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Cash & bank |
62,077 |
52,515 |
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Bills receivable |
4,687 |
7,872 |
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Inventory |
112,050 |
119,971 |
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Short invest |
0 |
0 |
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Accounts
receivable |
120,234 |
86,266 |
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Other Accounts
receivable |
9,775 |
6,970 |
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Accounts payable
in advance |
12,324 |
19,504 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
1,396 |
0 |
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Current assets |
322,543 |
293,098 |
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Fixed assets |
279,641 |
337,447 |
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Fixed assets net
value |
245,511 |
249,701 |
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Projects
materials |
1,925 |
1,388 |
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Projects under
construction |
32,205 |
86,358 |
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Long term
investment |
435 |
435 |
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Other assets |
110,024 |
106,964 |
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Total assets |
712,643 |
737,944 |
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============= |
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Short loans |
237,172 |
239,104 |
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Bills payable |
35,398 |
51,971 |
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Accounts payable |
81,183 |
94,877 |
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Salaries payable |
107 |
107 |
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Shares payable |
0 |
0 |
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Welfares payable |
4,493 |
0 |
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Taxes payable |
766 |
745 |
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Other Accounts
payable |
54,429 |
37,303 |
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Withdraw the expenses
in advance |
8,653 |
10,566 |
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Other current
liabilities |
12,364 |
15,047 |
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Current
liabilities |
434,565 |
449,720 |
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Long term
liabilities |
59,320 |
19,860 |
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Other
liabilities |
0 |
0 |
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Total
liabilities |
493,885 |
469,580 |
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Equities |
218,758 |
268,364 |
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Total
liabilities & equities |
712,643 |
737,944 |
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Consolidated Income Statement
Unit: CNY’000
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As of Dec. 31,
2005 |
As of Dec. 31,
2006 |
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Turnover |
471,379 |
500,268 |
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Cost of goods
sold |
380,301 |
417,851 |
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Sales expense |
18,340 |
18,641 |
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Management expense |
48,767 |
34,816 |
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Finance expense |
13,125 |
16,348 |
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Profit before
tax |
11,440 |
13,273 |
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Less: profit tax |
0 |
0 |
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Profits |
11,440 |
13,273 |
Important Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
0.74 |
0.65 |
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*Quick ratio |
0.48 |
0.38 |
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*Liabilities
to assets |
0.69 |
0.64 |
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*Net profit
margin (%) |
2.43 |
2.65 |
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*Return on
total assets (%) |
1.61 |
1.80 |
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*Inventory
/Turnover ×365 |
87 days |
88 days |
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*Accounts
receivable/Turnover ×365 |
93 days |
63 days |
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*Turnover/Total
assets |
0.66 |
0.68 |
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* Cost of
goods sold/Turnover |
0.81 |
0.84 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its
line in 2005 and 2006.
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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 in both years.
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SC’s quick ratio is maintained in a
fair level in both years.
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The inventory of SC appears a slightly
large.
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The accounts receivable of SC is
maintained in a normal level.
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The short-term loan of SC appears TOO
LARGE.
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SC’s turnover is in an average 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. The large amount of short-term loan could be a threat to SC’s
financial condition. A credit line up to USD1,000,000 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%)