MIRA
INFORM REPORT
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Report Date : |
21.05.2007 |
IDENTIFICATION DETAILS
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Name : |
fuzhou sanhe
pharmachem co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
March 2, 2006 |
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Com. Reg. No.: |
3625272100228 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing
and selling medicine intermediates. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 100,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
fuzhou sanhe
pharmachem co., ltd.
TEL: 86 (0) 794-7658929
FAX: 86 (0) 794-7658890
EXECUTIVE SUMMARY
INCORPORATION DATE : march 2, 2006
REGISTRATION NO. : 3625272100228
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
90
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 14,120,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 19,240,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : AVERAGE
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY7.66 = US$1 AS OF 2007-5-21
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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on March 2, 2006.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to extent
of its total assets. The characteristics of this form of co. are as
follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is listed as follows: -manufacturing co. :
CNY 500,000.00 -trading &wholesaling
co. :
CNY 500,000.00 -retailing co. :
CNY 300,000.00 -consultancy & service
co. : CNY 100,000.00 Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 50% of the registered capital while
contribution by intangible assets must not exceed 20% of the registered
capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes manufacturing medicine intermediates and other
chemicals.
SC is mainly engaged
in manufacturing and selling medicine intermediates.
Mr. Chen Yingqi
has been chairman of SC since 2006.
SC owns about 90
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 Fuzhou. Our checks reveal that SC
owns the total premise about 133,320 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Sanhe Pharmachem Co., Ltd. 100
Zhejiang Sanhe Pharmachem Co., Ltd.:
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Zhejiang Sanhe Pharmachem Co., Ltd. was
established in October 1997, and is a province-level high & new technical
enterprise, specially engaged in research, development, manufacturing and commercial
operation of pharmaceuticals as well as pharmaceutical intermediates. It covers
an area of 49,000 square meters and has over 300 employees, 6.25 million
dollars of fixed assets and 12.5 million dollars of total assets.
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Chairman:
Mr. Chen Yingqi, 45 years old 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, and also working in Zhejiang Sanhe Pharmachem
Co.,
Ltd. as chairman.
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General Manager:
Mr. Li Yongjin, 33 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2006 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling medicine intermediates.
SC’s products
mainly include: 2,3,5-Trimethylpyridine, 2-Mercapto-5-Methoxybenzimidazole,
1-Tetralone.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 15-30 days. The
payment terms of SC include T/T, L/C and Credit of 15-30 days.
*Major Customers:
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Zhejiang Sanhe Pharmachem 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.
Industrial and Commercial Bank of
AC#：1511205009200017496
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
620 |
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Inventory |
5,030 |
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Accounts
receivable |
250 |
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Other Accounts
receivable |
10 |
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Advance payment |
7,480 |
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To be
apportioned expense |
30 |
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Other current
assets |
0 |
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Current assets |
13,420 |
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Fixed assets net
value |
21,830 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
2,230 |
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Total assets |
37,480 |
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Short loans |
500 |
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Accounts payable |
12,600 |
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Other Accounts
payable |
5,030 |
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Withdraw the
expenses in advance |
170 |
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Other current
liabilities |
-110 |
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Current
liabilities |
18,190 |
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Long term
liabilities |
0 |
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Other
liabilities |
50 |
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Total
liabilities |
18,240 |
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Equities |
19,240 |
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Total
liabilities & equities |
37,480 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
14,120 |
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Cost of goods
sold |
13,380 |
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Sales expense |
100 |
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Management expense |
1,310 |
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Finance expense |
10 |
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Profit before
tax |
-750 |
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Less: profit tax |
0 |
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Profits |
-750 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.74
*Quick ratio 0.46
*Liabilities to
assets 0.49
*Net profit margin
(%) -5.31
*Return on total
assets (%) -2.00
*Inventory
/Turnover ×365 130 days
*Accounts
receivable/Turnover ×365 6 days
*Turnover/Total
assets 0.38
* Cost of goods
sold/Turnover 0.95
PROFITABILITY:
FAIR
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The turnover of SC appears average in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in an average
level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC is maintained in an
acceptable level.
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SC’s short-term loan is in an average level.
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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 average.
Overall financial
condition of the SC: Fair.
Established in 2006, SC has made a fair growth with poor profit. A
credit line up to USD 100,000
would appear to be within SC’s capacities upon a periodical review basis.
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%)