MIRA
INFORM REPORT
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Report Date : |
06.06.2007 |
IDENTIFICATION DETAILS
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Name : |
Shanghai Telstar
Huadong Pharmaceutical Industry 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 : |
April 22, 2003 |
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Com. Reg. No.: |
033340 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Manufacturing and selling pharmaceutical equipment. |
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 80,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
Shanghai Telstar
Huadong Pharmaceutical Industry Co., Ltd.
no.30
TEL :
86 (0) 21-58104141
FAX :
86 (0) 21-58104631
EXECUTIVE SUMMARY
INCORPORATION DATE : April 22, 2003
REGISTRATION NO. : 033340
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture
STAFF STRENGTH :
70
REGISTERED CAPITAL : CNY 17,370,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 21,650,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 14,160,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : AVERAGE
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.65 = US$1 AS OF 2007-6-5
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: The correct name should be the heading one instead of the given one-Telstar Huangdong Co. Ltd.
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 April 22, 2003.
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 joint venture
usually have 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 which have good
competition position in international market may extend beyond the 50 years
limit.
SC’s registered
business scope includes manufacturing and packaging vacuum freeze-dryers,
sterilizing equipment, water treatment and splitter, extraction equipment, and
so on, selling self-made products, providing after-sales services, in
accordance with the license.
SC is mainly
engaged in manufacturing and selling pharmaceutical equipment.
Mr. JORDI SERIAT
LLADO has been chairman of SC since 2003.
SC owns about 70
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 Shanghai. Our checks reveal that
SC rents the total premise about 12,000 square meters.
http://www.telstarhd.com.cn The
design is professional and the content is well organized. At present the web
site is both in Chinese and English versions.
E-mail: zcao@telstarhd.com.cn
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Spain Telstar Industry Co., Ltd. 55
Shanghai East China Pharmaceutical Machinery
Co., Ltd. 45
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Chairman:
Mr. JORDI SERIAT LLADO (Spaniard), about 50 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman.
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General Manager:
Mr. Jordi Puig (Spaniard), about 45 years old with university education.
He is currently responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling pharmaceutical equipment.
SC’s products
mainly include: pure steam generator, water distiller, freeze drying machine.
SC sources its materials 40% from domestic
market, and 60% from overseas market, mainly
The buying terms of SC include T/T, L/C and Credit of 30-45 days. The
payment terms of SC include T/T, L/C and Credit of 30-45 days.
*Major Customers:
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Zhejiang Hisun Pharmaceutical Co., Ltd.
Fosun Pharmaceutical Co., Ltd.
Shanghai Clon Biotech. Co., Ltd.
North China Pharmaceutical Group Preparation Company
Guangzhou Pharmaceutical Holdings Limited Baidi Biotechnology Company
Nanjing Cuccess Pharmaceutical Co., Ltd.
Wilson Pharma (
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.
SC declined to
release its bank details.
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
9,010 |
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Inventory |
130 |
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Accounts
receivable |
6,210 |
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Other Accounts
receivable |
540 |
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Prepayment |
3,360 |
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To be
apportioned expense |
0 |
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Other current
assets |
10,770 |
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Current assets |
30,020 |
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Fixed assets net
value |
1,340 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
15,450 |
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Total assets |
46,810 |
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Short loans |
7,540 |
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Accounts payable |
6,110 |
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Other Accounts
payable |
4,030 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
10,850 |
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Current
liabilities |
28,530 |
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Long term
liabilities |
4,120 |
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Other
liabilities |
0 |
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Total
liabilities |
32,650 |
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Equities |
14,160 |
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Total
liabilities & equities |
46,810 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
21,650 |
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Cost of goods
sold |
17,430 |
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Sales expense |
3,010 |
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Management expense |
4,280 |
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Finance expense |
-210 |
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Profit before
tax |
-2,930 |
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Less: profit tax |
0 |
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Profits |
-2,930 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.05
*Quick ratio 1.05
*Liabilities to
assets 0.70
*Net profit
margin (%) -13.53
*Return on total
assets (%) -6.26
*Inventory
/Turnover ×365 2 days
*Accounts
receivable/Turnover ×365 105 days
*Turnover/Total
assets 0.46
* Cost of goods
sold/Turnover 0.81
PROFITABILITY:
FAIR
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The turnover of SC appears average in its line.
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SC’s net profit margin is fairly poor.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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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 is maintained in an average
level.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is in a fairly large level.
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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: Stable.
SC is considered small-sized in its line with stable financial
conditions. A credit line up to USD 80,000 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%)