MIRA
INFORM REPORT
|
Report Date : |
08.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
SHIJIAZHUANG pharm group hebei zhongrun
pharmaceutical co., ltd. |
|
|
|
|
Registered Office : |
No. 47, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
dec. 12, 1997 |
|
|
|
|
Com. Reg. No.: |
1300001000275 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture |
|
|
|
|
Line of Business : |
Manufacturing
various
kinds of bulk drugs. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
Up To USD 3,000,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name & address
SHIJIAZHUANG pharm group hebei zhongrun
pharmaceutical co., ltd.
NO. 47,
TEL : 86 (0) 311-88622748
FAX : 86 (0) 311-86068600
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 12, 1997
REGISTRATION NO. : 1300001000275
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
STAFF STRENGTH :
2,633
REGISTERED CAPITAL : cny 463,490,300
BUSINESS LINE :
manufacturing
TURNOVER :
cny 1,040,470,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 781,840,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.73= US$1 AS OF 2007-04-20
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 Dec. 12, 1997.
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.
SC’s registered
business scope includes manufacturing and selling bulk drug and troche.
SC is
mainly engaged in manufacturing various kinds of bulk drugs.
Mr. Cai Dongchen
has been chairman of SC since 1997.
SC owns about
2,633 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 Shijiazhuang. Our checks reveal
that SC owns the total premise about 200,000 square meters.
http://www.zhongrunpc.com The
design is professional and the content is well organized. At present, the web
is only in Chinese version.
SC has got the certificates of GMP, ISO 9001:2000, ISO 14001-2004 and
GB/T28001-2001, etc.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Hong Kong China Pharmaceutical Group Limited 79.04
Hong Kong Tianlun Investment Co., Ltd. 20.17
Shijiazhuang Pharmaceutical Group Co., Ltd. 0.79
====================
Shijiazhuang Pharmaceutical Group Co., Ltd.
Shijiazhuang Pharmaceutical Group Co., Ltd.
is a state-owned extra large-sized pharmaceutical
enterprise. And it is one of the backbone enterprise groups in
l
Chairman:
Mr. Cai Dongchen, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1984 to 1997
Worked in Hebei Pharmaceutical Factory as general manager.
From 1997 to present
Working in SC as chairman.
Also working in Shijiazhuang
Pharmaceutical Group Co., Ltd. and
Pharmaceutical Group Zhongnuo
Pharmaceutical Co., Ltd. as chairman.
l
General
Manager:
Mr. Liu Zhentao, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC
as general manager.
SC is mainly
engaged in manufacturing various kinds of bulk
drugs.
SC’s products mainly include:
*RAW MATERIAL:
Penicillin G sodium (benzylpenicillin
sodium)
Penicillin G potassium (benzylpenicillin
potassium)
Amoxicillin trihydrate
Ampicillin trihydrate
Cefazolin sodium
Ceftriaxone sodium
*INTERMEDIATES:
Penicillin G potassium crude
(benzylpenicillin potassium crude)
Cefazolin acid
SC's annual output is approx. 5,000 tons of penicillin.
SC sources its materials 100% from domestic
market, mainly from
The buying terms of SC include T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
==============
Qingdao Haimate International Trade Co., Ltd.
Address: Room 9-3-402, Lidu International, No. 137,
Tel: 0532-88016122 Fax: 0532-88010132
Shandong Xiangchi Group Co., Ltd.
*Major Customer:
==============
Address: No. 188,
Tel: 0311-83803616 Fax: 0311-83805385
Dalian Merro
Pharmaceutical Co., Ltd.
Guangzhou
Baiyunshan Pharmaceutical Co., Ltd.
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.
Bank of
Constructions
AC#：13001611808050002450
Relationship:
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
|
Cash & bank |
145,130 |
96,120 |
|
Inventory |
233,530 |
201,310 |
|
Accounts
receivable |
330,170 |
205,170 |
|
Other Accounts
receivable |
122,390 |
57,250 |
|
Accounts payable
in advance |
242,450 |
214,780 |
|
To be
apportioned expense |
0 |
0 |
|
Other current
assets |
48,370 |
59,560 |
|
|
------------------ |
------------------ |
|
Current assets |
1,122,040 |
834,190 |
|
Fixed assets net
value |
870,200 |
812,760 |
|
Projects under
construction |
7,950 |
4,230 |
|
Long term
investment |
4,320 |
4,320 |
|
Other assets |
56,850 |
63,900 |
|
|
------------------ |
------------------ |
|
Total assets |
2,061,360 |
1,719,400 |
|
|
============= |
============= |
|
Short loans |
0 |
30,000 |
|
Accounts payable |
579,550 |
377,270 |
|
Accounts
receivable in advance |
11,080 |
26,560 |
|
Other Accounts payable |
262,310 |
98,170 |
|
Salaries payable |
2,500 |
2,730 |
|
Welfares payable |
82,500 |
76,130 |
|
Taxes payable |
-2,320 |
-3,300 |
|
Withdraw the
expenses in advance |
0 |
0 |
|
Other current
liabilities |
54,100 |
78,540 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
989,720 |
686,100 |
|
Long term
liabilities |
321,240 |
251,460 |
|
Other
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,310,960 |
937,560 |
|
Equities |
750,400 |
781,840 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,061,360 |
1,719,400 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2005 |
as of Dec. 31, 2006 |
|
Turnover |
995,210 |
1,040,470 |
|
Cost of goods
sold |
871,430 |
939,760 |
|
Sales expense |
13,210 |
11,630 |
|
Management expense |
95,340 |
84,980 |
|
Finance expense |
19,190 |
17,940 |
|
Profit before
tax |
6,170 |
43,860 |
|
Less: profit tax |
880 |
2,080 |
|
Profits |
5,290 |
41,780 |
Important Ratios
=============
|
|
2005 |
2006 |
|
*Current ratio |
1.13 |
1.22 |
|
*Quick ratio |
0.90 |
0.92 |
|
*Liabilities
to assets |
0.64 |
0.55 |
|
*Net profit
margin (%) |
0.53 |
4.04 |
|
*Return on
total assets (%) |
0.26 |
2.44 |
|
*Fixed
assets/Total assets |
0.42 |
0.47 |
|
*Inventory
/Turnover ×365 |
86days |
71days |
|
*Accounts
receivable/Turnover ×365 |
121days |
72days |
|
*Turnover/Total
assets |
0.48 |
0.61 |
|
* Cost of goods
sold/Turnover |
0.88 |
0.90 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line, and
it moved up in 2006.
l
SC’s net profit margin is fairly good in 2006.
l
SC’s return on total assets is fairly good in 2006.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in a normal level.
l
The accounts receivable of SC appears in an average level.
l
SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is
fairly low.
Overall
financial condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. A credit line up to USD 3,000,000 would appear to be within SC’s
capacities.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)