MIRA
INFORM REPORT
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Report Date : |
13.06.2007 |
IDENTIFICATION DETAILS
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Name : |
BEIJING GMS PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 10 Jinke Xiang, Daxing Industrial Zone, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Nov. 8, 1993 |
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Com. Reg. No.: |
006750 |
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Legal Form : |
Wholly Foreign Owned |
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Line of Business : |
Manufacturing and selling pharmaceutical chemical preparation. |
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 30,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
BEIJING GMS PHARMACEUTICAL CO., LTD.
NO. 10 JINKE XIANG, DAXING INDUSTRIAL ZONE,
TEL : 86 (0) 10-60215441
FAX : 86 (0) 10-61272904
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 8, 1993
REGISTRATION NO. : 006750
REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED
STAFF STRENGTH :
18
REGISTERED CAPITAL : USD 700,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 6,600,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 5,480,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.67= US$1 AS OF 2007-6-11
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 wholly foreign owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Nov. 8, 1993.
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 investors 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 researching, developing and
manufacturing pharmaceutical equipment, medical imaging agents, biochemical
preparation and the related after-sale service; selling its products.
SC is mainly
engaged in manufacturing and selling pharmaceutical chemical preparation.
Mr. Jay Simon has been chairman of SC since
2006.
SC owns about 18
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 Beijing. Our checks
reveal that SC rents the total premise about 500 square meters.
SC is not known to host website of its own at present.
In March 2006, the registered legal form of SC was changed from
Chinese-foreign equity joint venture enterprise to wholly foreign-owned
enterprise.
SC’s legal representative was changed from Mr. Fu Mengzhen to Mr. Jay
Simon in Mar, 2006.
MAIN SHAREHOLDERS:
Name %
of Shareholding
l
Chairman:
Mr. Jay Simon in his 40’s
with university education. He is currently responsible for the overall management
of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman.
l
General Manager:
Mr. Guo Yuzhi in his 60’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 pharmaceutical chemical preparation.
SC’s products mainly
include: polyribosome injecta, succinate injecta, methionic acid injecta.
SC sources its
materials 80% from domestic market and 20% from the overseas markets mainly
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 Client:
============
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 refused to release any information of its
suppliers and the trade reference was not available.
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 China Development Zone Sub-branch
AC#：810411523008092001
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
2,710 |
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Accounts paid in
advance |
1,200 |
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Accounts
receivable |
2,550 |
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Inventory |
670 |
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Other
receivables |
900 |
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Other current
assets |
90 |
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Current assets |
8,120 |
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Fixed assets net
value |
2,830 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
410 |
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Total assets |
11,360 |
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Short loans |
0 |
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Accounts payable |
5,500 |
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Accounts
received in advance |
0 |
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Taxes payable |
40 |
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Salaries payable |
110 |
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Other payable |
20 |
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Other current
liabilities |
0 |
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Current
liabilities |
5,670 |
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Long term
liabilities |
210 |
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Total
liabilities |
5,880 |
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Equities |
5,480 |
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Total
liabilities & equities |
11,360 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
6,600 |
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Cost of goods
sold |
4,920 |
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Sales expense |
1,110 |
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Management expense |
460 |
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Finance expense |
-80 |
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Profit before
tax |
250 |
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Less: profit tax |
0 |
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Profits |
250 |
Important Ratios
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2006 |
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*Current ratio |
1.43 |
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*Quick ratio |
1.31 |
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*Liabilities
to assets |
0.52 |
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*Net profit
margin (%) |
3.79 |
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*Return on
total assets (%) |
2.20 |
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*Fixed
assets/Total assets |
0.25 |
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*Inventory
/Turnover ×365 |
37days |
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*Accounts
receivable/Turnover ×365 |
141days |
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*Turnover/Total
assets |
0.58 |
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* Cost of goods
sold/Turnover |
0.75 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fair 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.
l
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 in 2006.
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SC’s quick ratio is maintained in a normal level in
2006.
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The inventory of SC is average.
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The accounts receivable of SC appears fairly large.
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The accounts payable of SC appears 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 above 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 30,000 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%)