MIRA
INFORM REPORT
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Report Date : |
11.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI GMS PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 528, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Oct. 7, 1993 |
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Com. Reg. No.: |
007696 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Developing
and manufacturing radioactive medicine. |
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 250,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SHANGHAI GMS PHARMACEUTICAL CO., LTD.
no. 528,
shanghai 201108 PR
TEL :
86 (0) 21-54424243
FAX :
86 (0) 21-54420690
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 7, 1993
REGISTRATION NO. : 007696
REGISTERED LEGAL FORM : chinese-foreign equity joint
venture
STAFF STRENGTH :
71
REGISTERED CAPITAL : USD1,530,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 23,430,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 20,460,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.67= US$1 AS OF 2007-06-11
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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Oct. 7, 1993.
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 scopes include developing and manufacturing medical developer,
biochemical reagent, protective appliances of radioactive isotope, mini radial detectors,
and providing technological consultation and service, also selling its
homegrown products.
SC is
mainly engaged in developing and manufacturing radioactive medicine.
Mr. haig aram shahen bager djian has been
chairman of SC since 1993.
SC owns about 71
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 owns the total premise about 5,300 square meters.
http://www.gms-shanghai.com The design
is professional and the content is well organized. At present it is only in
Chinese version.
E-mail: webmaster@gms-shanghai.com
SC’s registered total investment is USD2,090,000, and until December 31,
2006, SC’s paid-up capital reached CNY12,940,000.
In 2003, SC’s former shareholder - America Syncor
International Corporation was changed into the present.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Global Medical Solutions Ltd. (
China Isotope Corporation
49
The general conditions of SC’s main
shareholder:
China Isotope Corporation (CIC) was
established in May 1983. It is a nationwide professional corporation in isotope
business and a wholly owned subsidiary of the China National Nuclear
Corporation (CNNC). It is engaged in the research, production, trade and
application of isotope products and is in charge of isotope products import and
export business of the whole nation.
Address: No. 1, 2nd District A,
San Li He, Xicheng District,
Tel: 010-68522774
Fax: 010-68512374
Website: http://www.china-isotope.com/me.html
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Chairman:
Mr. haig aram shahen bager djian,
American, in his 50’s with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 1993 to present Working in SC as chairman.
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General Manager:
Mr. Wu Songnian, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1993 to present Working in SC as general manager.
SC is mainly engaged
in developing and manufacturing radioactive
medicine.
SC’s products mainly include: radioactive
technetium [99mTc] developer, carbamide [14C] capsule of
expiration test, etc.
SC sources its materials 20% from domestic market, and 80% from overseas
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 Suppliers:
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South Africa NTP Inc.
China Isotope Corporation
Australia Isotope Corporation
*Major Customers:
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Global Medical Solutions Ltd. (
SC is
not known to have 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#：044285-8250-04785608091001
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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Cash & bank |
4,855 |
5,476 |
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Inventory |
1,840 |
1,690 |
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Accounts
receivable |
6,320 |
8,800 |
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Other Accounts
receivable |
408 |
250 |
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Accounts payable
in advance |
20 |
33 |
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To be
apportioned expense |
24 |
0 |
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Other current
assets |
3 |
31 |
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------------------ |
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Current assets |
13,470 |
16,280 |
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Fixed assets |
9,010 |
7,940 |
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Fixed assets net
value |
8,580 |
7,940 |
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Projects under
construction |
430 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
1,940 |
2,280 |
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Total assets |
24,420 |
26,500 |
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Short loans |
0 |
0 |
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Accounts payable |
5,790 |
2,095 |
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Accounts
receivable in advance |
0 |
0 |
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Other Accounts
payable |
550 |
1,795 |
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Salaries payable |
0 |
0 |
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Welfares payable |
0 |
0 |
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Taxes payable |
380 |
808 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
1,350 |
1,342 |
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Current
liabilities |
8,070 |
6,040 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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Total
liabilities |
8,070 |
6,040 |
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Equities |
16,350 |
20,460 |
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Total
liabilities & equities |
24,420 |
26,500 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2005 |
As of Dec. 31,
2006 |
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Turnover |
19,250 |
23,430 |
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Cost of goods
sold |
9,690 |
10,740 |
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Sales expense |
3,120 |
4,650 |
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Management expense |
3,690 |
5,090 |
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Finance expense |
-135 |
-119 |
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Profit before
tax |
3,140 |
2,870 |
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Less: profit tax |
410 |
456 |
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Profits |
2,730 |
2,414 |
Important
Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
1.67 |
2.70 |
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*Quick ratio |
1.44 |
2.42 |
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*Liabilities
to assets |
0.33 |
0.23 |
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*Net profit
margin (%) |
14.18 |
10.30 |
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*Return on
total assets (%) |
11.18 |
9.11 |
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*Inventory
/Turnover ×365 |
35 days |
26 days |
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*Accounts
receivable/Turnover ×365 |
200 days |
137 days |
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*Turnover/Total
assets |
0.79 |
0.88 |
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*Cost of goods
sold/Turnover |
0.50 |
0.46 |
PROFITABILITY: FAIRLY GOOD
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The turnover of SC appears average in its line, and
it was greatly increased in 2006.
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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 average, comparing with
its turnover.
LIQUIDITY: FAIRLY
GOOD
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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 is maintained in a normal
level.
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The accounts receivable of SC is maintained in a
large level.
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SC has no short-term loan in both years.
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SC’s turnover is in an average 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 average.
Overall
financial condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good financial
conditions. A credit line up to USD 250,000 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%)