MIRA
INFORM REPORT
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Report Date : |
22.05.2007 |
IDENTIFICATION DETAILS
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Name : |
zhejiang neo-dankong
pharmaceutical co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31/12/2005 |
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Date of Incorporation : |
18.01. 2001 |
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Com. Reg. No.: |
3300001007547 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing
and selling tablet, capsule pharmaceutical, and raw materials medicine. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD200,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name & address
zhejiang
neo-dankong pharmaceutical co., ltd.
no.
TEL: 86 (0) 576-8582501
FAX: 86 (0) 576-8582567
EXECUTIVE SUMMARY
INCORPORATION
DATE : january 18, 2001
REGISTRATION
NO. : 3300001007547
REGISTERED
LEGAL FORM : Shares limited company
STAFF
STRENGTH : 938
REGISTERED
CAPITAL : CNY 60,000,000
BUSINESS
LINE :
manufacturing
TURNOVER : CNY 367,680,000 (AS OF DEC. 31,
2005)
EQUITIES : CNY
104,270,000 (AS OF DEC. 31, 2005)
PAYMENT
: AVERAGE
RECOMM.
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : FAIRLY STABLE
OPERATIONAL
TREND : FAIRLY STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY7.90 = US$1
AS OF 2006-09-29
SC was registered as a shares limited company at
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 tablet, capsule pharmaceutical, raw material
medicine, selling medical intermedia and chemical products, importing and exporting
commodities and technology, excluding the goods forbidden by the government.
SC is mainly engaged in manufacturing and
selling tablet, capsule pharmaceutical, and raw material medicine.
Mr. Xu Ziqing has been chairman of SC since
2001.
SC owns about 938 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 Taizhou. Our checks reveal that SC owns the total premise about 132,000 square meters.
SC is not known to host web site of its own at present.
SC has got the
certificate of GMP, ISO14001, and ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Dankong Industry & Trade Group Co., Ltd. 61.04
Taizhou Dankong Dyestuff Co., Ltd. 17.13
Wang Yunyou 7.50
Wang Yunfu 5.00
Cao Enfa 2.00
Xu Zhengde 1.67
Xu Ziqing 1.33
Ningbo Import & Export Corp. 1.00
Shanghai
Sichuan Institute Of Antibiotic Industry 1.00
l
Chairman:
Mr. Xu Ziqing,
about 50 years old with university education. He is currently responsible for
the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman.
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General Manager:
Mr. Hong Huaibin,
about 40 years old with university education. He is currently responsible for the
daily management of SC.
Working Experience(s):
From 2001 to present
Working in SC as general
manager.
SC is mainly engaged in manufacturing and selling
tablet, capsule pharmaceutical, and raw materials medicine.
SC’s products mainly include: NORFLOXACIN,
ATORVASTATIN, FLUVASTATIN， ROSUVASTATIN，
BROMHEXINE HCL.
SC sources its materials 100% from domestic market, mainly
The buying terms of
SC include Check, 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 Customers:
==============
Taizhou Dankong Dyestuff Co., Ltd.
SC is known to have a subsidiary at present.
Zhejiang Dankong Pharmaceutical 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#1207021209200002785
Relationship:
Balance Sheet
Unit:
CNY’000
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As of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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Cash & bank |
44,230 |
29,990 |
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Inventory |
64,380 |
103,830 |
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Accounts receivable |
530 |
45,100 |
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Other Accounts receivable |
1,000 |
630 |
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To be apportioned expense |
320 |
410 |
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Other current assets |
7,800 |
3,450 |
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------------------ |
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Current assets |
118,260 |
183,410 |
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Fixed assets |
95,920 |
139,150 |
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Projects under construction |
32,180 |
0 |
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Long term investment |
15,490 |
18,210 |
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Other assets |
8,290 |
21,260 |
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Total assets |
270,140 |
362,030 |
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Short loans |
70,000 |
64,920 |
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Accounts payable |
11,580 |
51,920 |
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Accounts receivable in advance |
6,220 |
67,700 |
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Other Accounts payable |
81,770 |
22,210 |
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Withdraw the expenses in advance |
560 |
660 |
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Other current liabilities |
270 |
4,510 |
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Current liabilities |
170,400 |
211,920 |
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Long term liabilities |
0 |
45,000 |
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Other liabilities |
840 |
840 |
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Total liabilities |
171,240 |
257,760 |
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Equities |
98,900 |
104,270 |
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Total liabilities & equities |
270,140 |
362,030 |
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Income Statement
Unit:
CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
140,650 |
367,680 |
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Cost of goods sold |
84,080 |
321,230 |
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Sales expense |
1,720 |
2,160 |
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Management expense |
25,360 |
38,730 |
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Finance expense |
3,260 |
5,650 |
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Profit before tax |
26,300 |
10,660 |
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Less: profit tax |
9,290 |
4,570 |
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Profits |
17,010 |
6,090 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
0.69 |
0.87 |
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*Quick ratio |
0.32 |
0.38 |
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*Liabilities
to assets |
0.63 |
0.71 |
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*Net profit
margin (%) |
12.09 |
1.66 |
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*Return on
total assets (%) |
6.30 |
1.68 |
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*Inventory
/Turnover ×365 |
167 |
103 |
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*Accounts
receivable/Turnover ×365 |
1 |
45 |
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*Turnover/Total
assets |
0.52 |
1.02 |
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* Cost of
goods sold/Turnover |
0.60 |
0.87 |
PROFITABILITY: AVERAGE
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The
turnover of SC appears fairly good 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.
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SC’s cost
of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The
current ratio of SC is maintained in a fair level.
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SC’s
quick ratio is maintained in a POOR 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 TOO HIGH level.
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SC’s
turnover is in an acceptable level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
l
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:
Fairly stable.
SC is considered
medium-sized in its line with fairly stable financial conditions. And the large
amount of short-term loan could be a threat to its financial condition. A
credit line up to USD 200,000
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%)