MIRA
INFORM REPORT
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Report Date : |
24.07.2007 |
IDENTIFICATION DETAILS
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Name : |
zhejiang
neo-dankong pharmaceutical co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
January 18, 2001 |
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Com. Reg. No.: |
3300001007547 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing
and selling tablet, capsule pharmaceutical, and raw materials medicine. |
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 200,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
zhejiang neo-dankong
pharmaceutical co., ltd.
no.
TEL :
86 (0) 576-8582501
FAX :
86 (0) 576-8582567
EXECUTIVE SUMMARY
INCORPORATION DATE : january 18, 2001
REGISTRATION NO. : 3300001007547
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
938
REGISTERED CAPITAL : CNY 60,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 367,680,000 (AS OF DEC. 31,
2005)
EQUITIES :
CNY 104,270,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.56 = US$1 AS OF 2007-07-24
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 shares limited company at
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 tablet, capsule
pharmaceutical, raw material medicine, selling medical intermedia and chemical
products, importing and exporting commodities and technology, excluding the
goods forbidden by the government.
SC is mainly
engaged in manufacturing and selling tablet, capsule pharmaceutical, and raw
material medicine.
Mr. Xu Ziqing has
been chairman of SC since 2001.
SC owns about 938
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 Taizhou. Our checks
reveal that SC owns the total premise about 132,000 square meters.
SC is not known to host web site of its own at present.
SC has got the certificate of GMP, ISO14001, and ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Dankong Industry & Trade Group Co., Ltd. 61.04
Taizhou Dankong Dyestuff Co., Ltd. 17.13
Wang Yunyou 7.50
Wang Yunfu 5.00
Xu Zhengde 1.67
Xu Ziqing 1.33
Ningbo Import & Export Corp. 1.00
Shanghai
Sichuan Institute Of Antibiotic Industry 1.00
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Chairman:
Mr. Xu Ziqing, about 50 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman.
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General Manager:
Mr. Hong Huaibin, about 40 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling tablet, capsule pharmaceutical, and raw
materials medicine.
SC’s products
mainly include: NORFLOXACIN, ATORVASTATIN, FLUVASTATIN， ROSUVASTATIN BROMHEXINE
HCL.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, 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 Customers:
==============
Taizhou Dankong Dyestuff Co., Ltd.
SC is
known to have a subsidiary at present.
Zhejiang
Dankong 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#：1207021209200002785
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Cash & bank |
44,230 |
29,990 |
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Inventory |
64,380 |
103,830 |
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Accounts
receivable |
530 |
45,100 |
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Other Accounts
receivable |
1,000 |
630 |
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To be
apportioned expense |
320 |
410 |
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Other current
assets |
7,800 |
3,450 |
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------------------ |
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Current assets |
118,260 |
183,410 |
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Fixed assets |
95,920 |
139,150 |
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Projects under
construction |
32,180 |
0 |
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Long term
investment |
15,490 |
18,210 |
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Other assets |
8,290 |
21,260 |
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Total assets |
270,140 |
362,030 |
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Short loans |
70,000 |
64,920 |
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Accounts payable |
11,580 |
51,920 |
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Accounts
receivable in advance |
6,220 |
67,700 |
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Other Accounts
payable |
81,770 |
22,210 |
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Withdraw the
expenses in advance |
560 |
660 |
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Other current
liabilities |
270 |
4,510 |
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Current
liabilities |
170,400 |
211,920 |
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Long term
liabilities |
0 |
45,000 |
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Other
liabilities |
840 |
840 |
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------------------ |
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Total
liabilities |
171,240 |
257,760 |
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Equities |
98,900 |
104,270 |
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Total
liabilities & equities |
270,140 |
362,030 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2004 |
As of Dec. 31,
2005 |
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Turnover |
140,650 |
367,680 |
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Cost of goods
sold |
84,080 |
321,230 |
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Sales expense |
1,720 |
2,160 |
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Management expense |
25,360 |
38,730 |
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Finance expense |
3,260 |
5,650 |
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Profit before
tax |
26,300 |
10,660 |
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Less: profit tax |
9,290 |
4,570 |
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Profits |
17,010 |
6,090 |
Important
Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
0.69 |
0.87 |
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*Quick ratio |
0.32 |
0.38 |
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*Liabilities
to assets |
0.63 |
0.71 |
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*Net profit
margin (%) |
12.09 |
1.66 |
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*Return on
total assets (%) |
6.30 |
1.68 |
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*Inventory
/Turnover ×365 |
167 |
103 |
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*Accounts
receivable/Turnover ×365 |
1 |
45 |
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*Turnover/Total
assets |
0.52 |
1.02 |
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* Cost of
goods sold/Turnover |
0.60 |
0.87 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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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.
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SC’s quick ratio is maintained in a POOR level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC is maintained in an
acceptable level.
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SC’s short-term loan is in TOO HIGH level.
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SC’s turnover is in an acceptable 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. And the large amount of short-term loan could be a threat to its
financial condition. A credit line up to USD 200,000 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%)