MIRA
INFORM REPORT
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Report Date : |
06.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
CENWAY PHARMACEUTICALS CO., LTD. |
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Registered Office : |
No. 18, Taishan
Road, Taida Chemical Development Zone, Tianjin 300480 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
24.04.2002 |
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Com. Reg. No.: |
120000400018466 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing active Pharmaceutical Ingredients |
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 : |
USD 500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name and Address
CENWAY
PHARMACEUTICALS CO., LTD.
NO. 18, TAISHAN
ROAD, TAIDA CHEMICAL DEVELOPMENT ZONE
TIANJIN 300480 PR
CHINA
TEL: 86 (0) 22-67161030
FAX:
86 (0) 22-67160908
EXECUTIVE SUMMARY
INCORPORATION DATE : apr.
24, 2002
REGISTRATION NO. : 120000400018466
REGISTERED LEGAL
FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE : MR. ZHU DEQUAN (CHAIRMAN)
STAFF STRENGTH : 275
REGISTERED CAPITAL : CNY 132,570,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 169,350,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY
92,490,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP
TO USD 500,000
MARKET
CONDITION : competitive
FINANCIAL
CONDITION : STABLE
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE RATE : CNY7.46=US1$
Adopted abbreviations:
ANS - amount not
stated
NS - not stated
SC - subject company
(the company inquired by you)
NA - not available
CNY – China Yuan Ren
Min Bi
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 Apr. 24, 2002.
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 co
has independent property of legal person and enjoys property rights of
legal person. The characteristics of the shares limited co. are as follows: The
establishment of the co. requires at least two promoters and no more than
200, half of whom shall be domiciled in China. Natural person are allowed
to serve as promoters. The
minimum registered capital of a co. is CNY 5M. while that of the co. with
foreign investment is CNY 5M. The total capital of a co. which propose to
apply for publicly listed must be no less than CNY 30M. The
board of directors must consist 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 one year of the
offer. 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 active pharmaceutical ingredients, and international
trade.
SC is mainly engaged
in manufacturing active pharmaceutical ingredients.
Mr. Zhu Dequan has
been chairman of SC since 2002.
SC is known to
have approx. 275 staff members 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 Tianjin. Our checks reveal that SC
owns the total premise about 20,000 square meters.
SC is not known to
host website of its own at present.
In 2007, SC was reformed
from Limited Liabilities Company to Shares Limited Co.; Meanwhile, SC’s
registered capital was increased from CNY 80,000,000 to the present amount.
MAIN SHAREHOLDERS:
Name Investment (’000) % of shareholdings
Cenway Technologies Co., Ltd. 87,496.2 66
Wonderful Palace International Limited B.V.I 29,165.4 22
(Hong Kong) Qijian Cenway Co., Ltd. 7,954.2 6.0
(Hong Kong) Wu Kaiting 5,965.65 4.5
Famous Field (HK) Limited 1,988.55 1.5
Cenway Technologies Co., Ltd.:
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Address: 9/F, Huizhong Building, 1 Shangdi 7th Street, Beijing, 100085, China
Tel: (86)10-62965900
Fax: (86)10-62965931
Website: www.cenway.com
E-mail: intl@cenway.com
Chairman:
Mr. Zhu Dequan 42 years old with doctor’s degree. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2002 to present
Working in SC as chairman;
At present
Working in Cenway Technology Co., Ltd.
as chairman.
General Manager:
Mr. Li Weiye in his 40’s with master’s degree. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2002 to present Working in SC as general manager.
SC is mainly engaged
in manufacturing active pharmaceutical ingredients.
SC’s main products
include: various active pharmaceutical ingredients.
SC sources its materials
95% from domestic market, mainly Shanghai, and 5% from overseas market. SC
sells 20% of its products in domestic market, mainly Shanghai and Tianjin, and
80% to overseas market, mainly India.
The buying terms of
SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC
include Check, T/T, L/C and Credit of 30-60 days.
*Major Customer:
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Shanghai Sunve
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 China
AC#：08832908091001
Relationship: Normal.
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
39,320 |
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Inventory |
28,070 |
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Accounts
receivable |
5,750 |
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Other Accounts receivable |
11,650 |
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Advances to
suppliers |
15,460 |
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To be apportioned
expense |
0 |
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Other current
assets |
0 |
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Current assets |
100,250 |
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Fixed assets |
59,680 |
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Fixed assets net
value |
54,980 |
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Projects under construction |
4,700 |
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Long term
investment |
0 |
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Other assets |
36,320 |
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Total assets |
196,250 |
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Short loans |
40,000 |
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Accounts payable |
8,680 |
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Taxes payable |
4,450 |
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Advances to customers |
14,790 |
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Other Accounts payable |
6,720 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
7,020 |
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Current liabilities |
81,660 |
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Long term liabilities |
22,100 |
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Other liabilities |
0 |
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Total liabilities |
103,760 |
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Equities |
92,490 |
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Total liabilities & equities |
196,250 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
169,350 |
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Cost of goods sold |
124,360 |
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Sales expense |
6,180 |
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Management expense |
6,940 |
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Finance expense |
3,750 |
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Profit before tax |
29,260 |
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Less: profit tax |
2,200 |
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Profits |
27,060 |
Important Ratios
(as of Dec. 31, 2006)
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*Current ratio 1.23
*Quick ratio 0.88
*Liabilities to
assets 0.53
*Net profit margin
(%) 15.98
*Return on total
assets (%) 13.79
*Inventory /Turnover
×365 60days
*Accounts
receivable/Turnover ×365 12days
*Turnover/Total
assets 0.86
* Cost of goods
sold/Turnover 0.73
PROFITABILITY: FAIRLY GOOD
The turnover of SC
appears fairly good in its line.
SC’s net profit
margin is fairly good.
SC’s return on total
assets is fairly good.
SC’s cost of goods
sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of
SC is maintained in a normal level.
SC’s quick ratio is
maintained in a normal level.
The inventory of SC
appears fairly large.
The accounts
receivable of SC is maintained in an average level.
The short-term loan
of SC appears average.
SC’s turnover is in
an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC
is average.
The risk for SC to
go bankrupt is average.
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 500,000 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. |
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%)