MIRA
INFORM REPORT
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Report Date : |
23.07.2007 |
IDENTIFICATION DETAILS
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Name : |
xiamen mchem
laboratories ltd. |
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Registered Office : |
No. 6, Yangtai
Road, Xinyang Industrial Park, Haicang District Xiamen City, Fujian Province 361022
Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Sep. 6, 2002 |
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Com. Reg. No.: |
06969 |
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Legal Form : |
Chinese Foreign Equity Joint Venture |
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Line of Business : |
Engaged in manufacturing troche and
bulk pharmaceuticals. |
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 usd 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
xiamen mchem
laboratories ltd.
NO. 6,
TEL :
86 (0) 592-6515618
FAX :
86 (0) 592-6511588
EXECUTIVE SUMMARY
INCORPORATION DATE : sep. 6, 2002
REGISTRATION NO. : 06969
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY JOINT VENTURE
STAFF STRENGTH :
400
REGISTERED CAPITAL : cny 60,000,000
BUSINESS LINE :
manufacturing
TURNOVER : cny 143,310,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 114,900,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.56 = US$1 AS OF 2007-07-20
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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Sep. 6, 2002.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing troche and bulk pharmaceuticals; and
providing relevant assorted services.
SC is
mainly engaged in manufacturing troche and bulk pharmaceuticals.
Mr. c. s.
MURALIDHARAN has been chairman of SC since 2002.
SC owns about 400
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 Xiamen. Our checks reveal that SC
owns the total premise about 57,000 square meters.
SC is not known to host website of its own at present.
SC’s predecessor is Xiamen NO. 2 Pharmaceutical Factory, which was
established in 1975, and it was bought by MCHEM PHARMA GROUP in 2002.
MAIN SHAREHOLDERS:
Name Investment (CNY’000) % of Shareholding
Cooperative Association
Gao Jingdong
10,002 16.67
(
============================
Xiamen Mchem Pharma (Group) Ltd.
is a
group of companies dedicated to the manufacture of fine chemicals, active
pharmaceutical ingredients, and formulations.
TEL：0592-2233301
2233303
FAX：0592-2218615
2218616
Email: Amy@mchem.net
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Chairman:
Mr. c. s. MURALIDHARAN, in his 50’s 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. Feng Zhangmeng, in his 40’s 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 troche and bulk
pharmaceuticals.
SC’s products mainly include: capsule, granule, and
oral liquid, etc.
SC sources its materials 80% from domestic
market, mainly Jiangsu province, and 20% from overseas market; SC sells its
products 10% to overseas market, mainly U.S, Italy, Spain, South Africa,
Argentina, and Japan, and 90% in domestic market, mainly Beijing and Fujian
province.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
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Changshu Medical & Chemical Equipment Factory
*Major Customer:
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Beijing Taiyang Pharmaceutical
Industry Co., Ltd.
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.
AC#：N/A
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
58,880 |
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Inventory |
79,010 |
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Accounts
receivable |
8,120 |
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Other Accounts
receivable |
18,160 |
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Accounts payable
in advance |
0 |
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To be
apportioned expense |
0 |
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Other current assets |
6,510 |
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------------------ |
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Current assets |
170,680 |
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Fixed assets |
148,200 |
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Fixed assets net
value |
38,340 |
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Projects under
construction |
109,860 |
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Long term
investment |
500 |
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Other assets |
12,410 |
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Total assets |
331,790 |
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Short loans |
123,320 |
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Accounts payable |
20,990 |
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Accounts
receivable in advance |
0 |
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Taxes payable |
1,200 |
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Other Accounts
payable |
3,610 |
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Withdraw the
expenses in advance |
0 |
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Other current liabilities |
63,930 |
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Current
liabilities |
213,050 |
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Long term
liabilities |
3,840 |
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Other
liabilities |
0 |
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Total
liabilities |
216,890 |
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Equities |
114,900 |
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Total liabilities
& equities |
331,790 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
143,310 |
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Cost of goods
sold |
127,510 |
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Sales expense |
2,760 |
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Management expense |
8,410 |
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Finance expense |
5,890 |
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Profit before
tax |
1,530 |
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Less: profit tax |
0 |
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Profits |
1,530 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.80
*Quick ratio 0.43
*Liabilities to
assets 0.65
*Net
profit margin (%) 1.07
*Return
on total assets (%) 0.46
*Inventory
/Turnover ×365 201
days
*Accounts
receivable/Turnover ×365 21
days
*Turnover/Total
assets 0.43
*
Cost of goods sold/Turnover 0.89
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is
acceptable.
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SC’s cost of goods sold is high,
comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained
in a fair level.
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SC’s quick ratio is maintained in a
fair level.
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The inventory of SC appears TOO
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 USD300,000 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%)