MIRA
INFORM REPORT
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Report Date : |
30.07.2007 |
IDENTIFICATION DETAILS
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Name : |
zhejiang guobang
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 : |
Aug. 6, 2004 |
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Com. Reg. No.: |
003124 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Manufacturing
pharmaceutical products, chemical intermediates and animal medicines. |
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 : |
Usually correct |
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Litigation : |
Clear |
name & address
zhejiang guobang pharmaceutical
co., ltd.
TEL :
86 (0) 575-82733280
FAX :
86 (0) 575-82738579
EXECUTIVE SUMMARY
INCORPORATION DATE : Aug. 6, 2004
REGISTRATION NO. : 003124
REGISTERED LEGAL FORM : wholly foreign-owned
STAFF STRENGTH :
900
REGISTERED CAPITAL : CNY80,800,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY568,200,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY157,950,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE :
CNY 7.55 = US$1 AS OF 2007-07-27
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 (AIC-The official body of issuing and renewing business license) on Aug. 6, 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 investor 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 scope includes manufacturing and selling pharmaceutical
products and preparation.
SC is
mainly engaged in manufacturing pharmaceutical products, chemical intermediates and animal
medicines.
Mr.
Qiu Jiajun has been chairman of SC since 2004.
SC owns
about 900 staff at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industry zone of
Shangyu. Our checks reveal that SC owns the total premise about 333,000 square
meters.
http://www.xcgb.com The design is professional
and the content is well organized. At present the web is both in Chinese and
English versions.
E-mail: gb@gbpharm.com
SC has passed ISO9001:2000 quality system and ISO14001environment
quality system certification as a whole. All products are strictly manufactured
according to ICH Q7A standard and have passed domestic GMP certification.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yubang Investment Co., Ltd. (BVI ) 100
l
Chairman and
General Manager:
Mr. Qiu Jiajun, in his 50’s 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 and general manager.
Sales Manager:
Mr. Han Guixiang
Tel: 86 575 86126552
Fax: 86 575 86132101
Mobile Tel: 13567519506
SC is mainly
engaged in manufacturing pharmaceutical products,
chemical intermediates and animal medicines.
SC’s products mainly include: macrolide antibiotics,
qunolones antibiotics, feed additive, and oncology, etc.
SC sources its materials 85%
from domestic market, mainly
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:
==============
HENAN TOPFOND PHARMACEUTICAL
CO., LTD.
*Major Customer:
==============
Shandong Kanghui Pharmaceutical 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.
Bank of
AC#：870017377608091001
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
19,930 |
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Inventory |
148,160 |
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Accounts
receivable |
14,400 |
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Other Accounts
receivable |
13,720 |
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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 |
310 |
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Current assets |
196,520 |
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Fixed assets |
151,200 |
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Fixed assets net
value |
143,290 |
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Projects under
construction |
7,910 |
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Long term
investment |
200 |
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Other assets |
9,630 |
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Total assets |
357,550 |
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Short loans |
113,000 |
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Accounts payable |
56,840 |
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Accounts
receivable in advance |
0 |
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Salaries payable |
2,400 |
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Welfares payable |
2,190 |
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Taxes payable |
-830 |
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Other Accounts
payable |
5,710 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
20,290 |
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Current
liabilities |
199,600 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
199,600 |
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Equities |
157,950 |
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Total
liabilities & equities |
357,550 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
568,200 |
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Cost of goods
sold |
485,290 |
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Sales expense |
5,790 |
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Management expense |
23,780 |
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Finance expense |
7,130 |
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Profit before
tax |
49,410 |
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Less: profit tax |
6,670 |
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Profits |
42,740 |
Important Ratios (as
of Dec. 31, 2006)
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*Current ratio 0.98
*Quick ratio 0.24
*Liabilities to assets 0.56
*Net profit margin (%) 7.52
*Return on total assets (%) 11.95
*Inventory /Turnover ×365 95 days
*Accounts receivable/Turnover ×365 9 days
*Turnover/Total assets 1.59
*Cost of goods sold/Turnover 0.85
PROFITABILITY: FAIRLY GOOD
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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 high,
comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in a fairly large level.
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The accounts receivable of SC is maintained in a
fairly good level.
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The short-term loan of SC
appears TOO LARGE.
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SC’s turnover is in a fairly good
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.
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%)