MIRA
INFORM REPORT
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Report Date : |
30.07.2007 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG XIANJU
PHARMACEUTICAL Co., Ltd. |
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Registered Office : |
No. 1, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
June 26, 2000 |
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Com. Reg. No.: |
3300001008383 |
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Legal Form : |
Shares Limited
Company |
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Line of Business : |
Engaged in manufacturing
and selling chemical raw materials. |
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 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ZHEJIANG XIANJU
PHARMACEUTICAL Co., Ltd.
NO. 1,
TEL :
86 (0) 576-87731178
FAX :
86 (0) 576-87731187
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 26, 2000
REGISTRATION NO. : 3300001008383
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 1,300
REGISTERED CAPITAL : CNY 256,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 554,820,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 346,260,000 (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
7.57 = US1$ AS OF 2007-7-26
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 co. at Zhejiang Provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on June 26, 2000.
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 cannot 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 medicine, pharmaceutical intermediates, selling
hardware, chemicals and packing materials; technology services, installing
equipment and importing and exporting business.
SC is mainly
engaged in manufacturing and selling chemical raw materials.
Mr. Jin Jingde has been legal representative and chairman of SC since
2000.
SC owns approximately 1,300 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 100,000 square
meters.
http://www.xianjupharmacy.com/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: online@xjpharma.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Xianju Assets
Management Corporation. 32
Zhejiang Medicine Co., Ltd. 9
Zhejiang Xianju Medicine Corporation 1.2
SDIC Hi-tech Investment Co., Ltd. 0.8
Jin Jingde 18
Gu Shiyun 8
Zhang Zhiqing 5.2
Wang Huanyong 4.24
Pan Dongxian 3.72
Zhang Qi 3.1
Zhang Guoan 2.8
Zhang Nan 2
Zheng Weihua 2
Fan Minhua 2
Guo Weibing 2
Jin Chijiang 1.98
Lu Huanxing 1.96
l
Legal representative and chairman:
Mr. Jin Jingde,
born in 1948, 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 and legal representative.
l
General manager:
Mr. Zhang Yusong, in his 40’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling chemical raw materials.
SC’s products mainly include: corticoid, Androgen, Estradiol
Benzate, Medroxy Progesterone Acetate, Progesterone, Freeze-drying injection,
Dexamethasone Acetate, and Small capacity injection, etc. SC maintains an
annual production scale of 100 tons of raw material, 100 million capsules and
30 million Aqua injections.
SC sources its materials 90%
from domestic market, and 10% from overseas market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
SC is known to have the following subsidiaries:
Zhejiang
Xianju Pharmaceutical Sales Co., Ltd.
Hanghzou
Branch Office
Xinjiang
Branch Office
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 & Commercial Bank of
AC#：1207051109021018877
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
107,920 |
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Inventory |
158,180 |
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Accounts
receivable |
166,900 |
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Advances to
suppliers |
44,070 |
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Notes receivable |
23,480 |
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Other
receivables |
0 |
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Other current
assets |
10 |
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Current assets |
500,560 |
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Fixed assets |
379,650 |
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Fixed assets net
value |
242,000 |
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Projects under
construction |
7,320 |
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Long term
investment |
73,300 |
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Other assets |
28,470 |
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Total assets |
851,650 |
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Short loans |
378,920 |
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Accounts payable |
50,480 |
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Other payable |
25,560 |
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Welfare expenses
payable |
12,160 |
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Advances from
customers |
3,310 |
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Dividends
payable |
5,180 |
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Taxes payable |
28,680 |
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Accrued expenses |
310 |
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Other current
liabilities |
140 |
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Current
liabilities |
504,740 |
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Long term
liabilities |
650 |
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Total
liabilities |
505,390 |
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Equities |
346,260 |
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Total
liabilities & equities |
851,650 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
554,820 |
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Cost of goods
sold |
381,010 |
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Add:
Income from other operations |
10,030 |
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Sales expense |
27,140 |
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Management expense |
65,910 |
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Finance expense |
24,650 |
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Subsidy income |
6,150 |
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Profit before
tax |
75,110 |
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Less: profit tax |
21,510 |
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Profits |
53,600 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.99 |
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*Quick ratio |
0.68 |
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*Liabilities
to assets |
0.59 |
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*Net profit
margin (%) |
9.66 |
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*Return on
total assets (%) |
6.29 |
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*Fixed
assets/Total assets |
0.28 |
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*Inventory
/Turnover ×365 |
104days |
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*Accounts
receivable/Turnover ×365 |
110days |
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*Turnover/Total
assets |
0.65 |
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* Cost of
goods sold/Turnover |
0.69 |
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 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 normal
level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan 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 fairly low.
Overall financial
condition of the SC: Fairly stable.
SC is considered large-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 1,500,000 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%)