MIRA
INFORM REPORT
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Report Date : |
25.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG LUKANG PHARMACEUTICAL
CO., LTD. |
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Registered Office : |
No. 173, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Feb. 15, 1993 |
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Com. Reg. No.: |
3700001800975 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling pharmaceutical 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 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SHANDONG LUKANG PHARMACEUTICAL
CO., LTD.
NO. 173,
TEL 86 (0)
537-2983174
FAX 86 (0)
537-2983097
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB. 15, 1993
REGISTRATION NO. :
3700001800975
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 5,276
REGISTERED CAPITAL : CNY411,754,215
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,113,639,966.83 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 1,421,339,490.82 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY7.62=US1$ AS OF 2007-06-25
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 company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Feb. 15, 1993.
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 can not 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
and selling antibiotic raw materials and preparation, semisynthetic antibiotic products,
and antibiotics used for animal; colophony used for medicine and manufacturing,
dextrose, amylum, and relevant products.
SC is
mainly engaged in manufacturing and selling pharmaceutical raw materials.
Mr. Liu
Congde has been chairman of SC since 1993.
SC owns
about 5,276 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 Jining. Our checks
reveal that SC owns the total premise about 106,612 square meters.
http://www.lkpc.com The design is
professional and the content is well organized. At present it in only Chinese
version
E-mail: wdq801@sina.com
SC is the first big medical and pharmaceutical enterprise of stock
system in
In 2006, SC changed the legal representative from Zhang Jianhui (章建辉) to the present.
MAIN SHAREHOLDERS: (As of Dec.
31, 2006)
Name % of shareholdings
National Shareholder 24.59
Huang Kai 0.17
Zhang Xiulan 0.12
Gao Linling 0.12
Jiang Min 0.11
Wang Ziqiang 0.09
Sun Gang 0.09
Hangzhou Chengda Basic Engineering Co.,
Ltd. 0.09
Xu Feng 0.09
Other individuals 59.07
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Chairman:
Mr. Liu Congde, 43 years old with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
Worked in Shandong Xinhua Pharmaceutical Group Co., Ltd. as assistant manager and general manager, in Xinhua Lukang Pharmaceutical Group Corp. as chairman and general manager;
From 2006 to present Working in SC as chairman;
At present Working in Hualu Holding
Group Co., Ltd. as assistant manager, in
Lukang Pharmaceutical Group Co., Ltd. as chairman, in Shandong Lukang
Pharmaceutical Import & Export Co., Ltd. as chairman, and in Mingzhi Lukang
Pharmaceutical Co., Ltd. as vice-chairman.
l
General
Manager:
Mr. Zhang Zhenghai, 50 years old with university education.
He is currently responsible for the daily management of SC.
Working Experience(s):
Worked in Shandong Lukang Animal & Plant Pharm. Industry Department as general manager, and in Shandong Lukang Pharmaceutical Group Co., Ltd. as board member;
From 2005 to present Working in SC as general manager and board member.
SC is
mainly engaged in manufacturing and selling pharmaceutical raw materials.
SC’s
main products include: antibiotic raw material and preparation,
semisynthetic antibiotic products, and antibiotics used for animal, etc.
SC’s brand:
“Lukang”.
SC
sources its materials 70% from domestic 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 T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
==============
Shandong Lukang Biology Pesticide Co., Ltd.
Mingzhi Lukang Pharmaceutical Co., Ltd.
Shandong Lukang Animal Pharmaceutical Co., Ltd.
*Major Customers:
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Shandong Lukang Pharmaceutical Import & Export Co., Ltd.
Shandong Lukang Animal Pharmaceutical Co., Ltd.
Shandong Lukang Pharm. Operation Co., Ltd.
SC is
known to have the following subsidiaries:
Shandong Lukang Zhonghe Real Estate Development Co., Ltd.
Zhonglian Guangshen Pharm. Co., Ltd.
Communications Bank
Shandong Assets Management Co., Ltd.
Jining Lukang Real Estate Development Co., Ltd.
Guoyao Logistics Co., Ltd.
Mingzhi Lukang Pharmaceutical Co., Ltd.
Shandong Beiyao Lukang Co., Ltd.
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 and
Commercial Bank of
AC#：1608001409022102825
Relationship:
Consolidated 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 |
106,376 |
44,948 |
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Short investment |
0 |
0 |
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Bills receivable |
83,865 |
100,196 |
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Accounts payable
advance |
25,159 |
23,041 |
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Accounts
receivable |
320,645 |
353,869 |
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Inventory |
251,873 |
217,880 |
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Other accounts
receivable |
9,384 |
6,676 |
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Expenses to be
apportioned |
368 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
797,670 |
746,610 |
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Fixed assets |
1,624,550 |
1,525,403 |
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Fixed assets net
value |
1,537,203 |
1,493,672 |
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Project materials |
0 |
0 |
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Projects under
construction |
87,347 |
31,731 |
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Long term
investment |
106,600 |
106,057 |
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Other assets |
56,543 |
50,609 |
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------------------ |
------------------ |
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Total assets |
2,585,363 |
2,428,679 |
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============= |
============= |
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Short loans |
314,730 |
364,400 |
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Bills payable |
30,000 |
57,950 |
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Accounts payable |
328,520 |
308,257 |
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Salary payable |
26 |
246 |
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Tax payable |
6,531 |
2,635 |
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Account
receivable advance |
9,773 |
15,501 |
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Estimated liabilities |
0 |
0 |
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Long-term
investment with in one year |
181,063 |
140,000 |
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Other accounts
payable |
91,989 |
60,226 |
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Drawing-expense
in advance |
0 |
0 |
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Other current
liabilities |
24,285 |
12,445 |
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------------------ |
------------------ |
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Current
liabilities |
986,917 |
961,660 |
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Long term
liabilities |
100,000 |
45,000 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
1,086,917 |
1,006,660 |
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Minority
Interests |
0 |
680 |
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Equities |
1,498,446 |
1,421,339 |
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------------------ |
------------------ |
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Total
liabilities & equities |
2,585,363 |
2,428,679 |
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============= |
Consolidated Income Statement
Unit: CNY’000
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As of Dec. 31,
2005 |
As of Dec. 31,
2006 |
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Turnover |
1,155,936 |
1,113,640 |
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Cost of goods
sold |
1,013,403 |
973,682 |
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Sales expense |
37,526 |
65,433 |
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Management expense |
81,526 |
113,960 |
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Finance expense |
18,772 |
36,502 |
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Profit before
tax |
3,126 |
-96,211 |
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Less: profit tax |
-1,851 |
327 |
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Profits |
4,977 |
-96,538 |
Important Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
0.81 |
0.78 |
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*Quick ratio |
0.55 |
0.55 |
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*Liabilities
to assets |
0.42 |
0.41 |
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*Net profit
margin (%) |
0.43 |
-8.67 |
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*Return on
total assets (%) |
0.19 |
-3.97 |
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*Inventory
/Turnover ×365 |
80 days |
71 days |
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*Accounts
receivable/Turnover ×365 |
101 days |
116 days |
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*Turnover/Total
assets |
0.45 |
0.46 |
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* Cost of
goods sold/Turnover |
0.88 |
0.87 |
PROFITABILITY:
FAIR
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is acceptable in 2005, but
fair in 2006.
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SC’s return on total assets is acceptable in 2005,
but fair in 2006.
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SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair
level in both years.
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SC’s quick ratio is maintained in a fair level in
both years.
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The inventory of SC is maintained in a slightly
large level.
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The accounts receivable of SC is in a large level.
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SC’s short loans appear fairly 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 fairly low.
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The risk for SC to go bankrupt is fairly low.
Overall financial
condition of the SC: Fairly stable.
SC is well-known in its industry with fairly
stable financial conditions. The large amount
of account receivable and short loans
could be a threat to SC’s financial condition. A credit line up to USD1,000,000
appears 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%)