MIRA
INFORM REPORT
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Report Date : |
11.06.2007 |
IDENTIFICATION DETAILS
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Name : |
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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 : |
Apr. 30, 1986 |
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Com. Reg. No.: |
4107211000329 |
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Legal Form : |
Collective-Owned |
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Line of Business : |
Manufacturing and selling medicine and 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 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
TEL : 86 (0)
373-5680007
FAX : 86 (0)
373-5689898
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 30, 1986
REGISTRATION NO. :
4107211000329
REGISTERED LEGAL FORM : COLLECTIVE-OWNED
STAFF STRENGTH : 5,000
REGISTERED CAPITAL : CNY
298,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 576,220,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 333,610,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.64 = US$1 AS OF 2007-06-08
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
RMB -
SC was registered as a collective-owned enterprise at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on Apr. 30, 1986.
Company Status: Collective-owned enterprise This form of business in PR China
is defined as a legal person. It is a private held entity owned by a set
number of private individuals (usually employees of the co., residents of a
village or town ), domestic business organizations or domestic
institutions. The co. is managed by the general manager who was appointed
by the employees representative meeting.
SC’s registered business scope includes manufacturing
raw material medicine and selling its products.
SC is mainly
engaged in manufacturing and selling medicine and materials.
Mr. Shi
Shihui has been general manager of SC since 2004.
SC owns
about 5,000 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Xinxiang. Our checks
reveal that SC owns the total premise about 130,000 square meters.
http://www.xxhx.com.cn The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
SC’s former general manager was Mr. Shi Shiling and in Jan. 2004, he was
taken place by Mr. Shi Shihui.
MAIN SHAREHOLDERS:
Name %
of shareholdings
Liuzhuang Farm, Industry &
Commerce General Corp 100
l
General Manager:
Mr. Shi Shihui, in his 40’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 general manager.
l
Vice General Manager:
Mr. Wang Lianzhong, in his 40’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as vice general manager.
SC is mainly engaged in manufacturing and selling medicine and materials.
SC’s products
mainly include: Penicillin G potassium, Penicillin G sodium, Inosine,
Erythromycinum, Ampicillin, Ampicillin Sodium, Persantin, jiemycin, Ofloxacin,
Butyl acetate, Ethyl acetate, Alcohol, Butanol and Acetone.
SC
sources its materials 80% from domestic markets and 20% from
The buying terms of SC include Check, 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 Customer:
==============
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.
Agriculture Bank of
AC#：7357166007308091001
Relationship:
Balance Sheet
Unit: RMB’000
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As of Dec. 31, 2005 |
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Cash & bank |
5,520 |
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Accounts payable
advance |
50,230 |
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Accounts
receivable |
40,550 |
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Inventory |
65,830 |
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Other accounts
receivable |
9,160 |
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Expenses to be
apportioned |
0 |
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Other current
assets |
61,000 |
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Current assets |
232,290 |
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Fixed assets |
210,190 |
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Projects under construction |
0 |
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Other assets |
33,580 |
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Total assets |
476,060 |
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Short loans |
67,140 |
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Accounts payable |
65,110 |
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Salary payable |
0 |
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Tax payable |
0 |
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Account
receivable advance |
360 |
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Estimated
liabilities |
0 |
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Long-term
investment with in one year |
0 |
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Other accounts
payable |
1,130 |
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Drawing-expense
in advance |
0 |
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Other current
liabilities |
8,710 |
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Current
liabilities |
142,450 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
142,450 |
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Equities |
333,610 |
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Total
liabilities & equities |
476,060 |
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Income Statement
Unit: RMB’000
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As of Dec. 31,
2005 |
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Turnover |
576,220 |
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Cost of goods
sold |
516,840 |
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Sales expense |
9,470 |
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Management expense |
13,510 |
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Finance expense |
4,090 |
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Profit before
tax |
31,870 |
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Less: profit tax |
10,520 |
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Profits |
21,350 |
Important Ratios
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As
of Dec. 31, 2005 |
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*Current ratio |
1.63 |
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*Quick ratio |
1.17 |
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*Liabilities
to assets |
0.30 |
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*Net profit
margin (%) |
3.71 |
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*Return on
total assets (%) |
4.48 |
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*Fixed
assets/Total assets |
0.44 |
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*Inventory
/Turnover ×365 |
42days |
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*Accounts
receivable/Turnover ×365 |
26days |
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*Turnover/Total
assets |
1.21 |
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* Cost of
goods sold/Turnover |
0.90 |
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 fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a fairly
good level.
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SC’s quick ratio is maintained in a fairly good
level.
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The inventory of SC appears average.
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The accounts receivable of SC appears average.
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The short loans of SC appears LARGE.
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SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is considered large-sized in its line with stable financial
conditions. A credit line up to USD 2,000,000 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%)