MIRA
INFORM REPORT
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Report Date : |
31.08.2007 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI MODERN PHARMACEUTICALS CO., LTD. |
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Registered Office : |
No. 378, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Dec. 20, 2000 |
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Com. Reg. No.: |
3100001006572 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Engaged in manufacturing
pharmaceutical products and reagents. |
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 2,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SHANGHAI MODERN PHARMACEUTICALS CO., LTD.
no. 378,
shanghai 200137 PR
TEL :
86 (0) 21-62895028
FAX :
86 (0) 21-62794002
EXECUTIVE SUMMARY
INCORPORATION DATE : dec.
20, 2000
REGISTRATION NO. : 3100001006572
REGISTERED LEGAL FORM : shares limited co.
STAFF STRENGTH :
389
REGISTERED CAPITAL : cny261,575,820
BUSINESS LINE :
MANUFACTURING
TURNOVER : CNY 545,870,580.66 (AS OF DEC. 31,
2006)
EQUITIES : CNY 453,472,856.40 (AS OF DEC. 31,
2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.55 = US$1 AS OF
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 co. at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on Dec. 20, 2000.
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 The minimum registered capital
of a co. is CNY 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 medicines and health products;
wholesaling and retailing medical raw materials, accessories, and pharmaceutical
machinery; technical development, transfer, consultation, services, and
training of medicines and health products; importing and exporting commodities
& technologies.
SC is
mainly engaged in manufacturing pharmaceutical products and reagents.
Mr. Zhu Baoquan
has been chairman of SC since 2003.
SC is known to have approx. 389 staff members at
present, excluding the staff members of its subsidiaries.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the development zone of
Shanghai. Our checks reveal that SC owns the total premise about 200,000 square
meters.
http://www.sh-modern.com SC's website is unable to be visited at present
for the technical reason.
E-mail: zqyinfo@sh-modern.com
SC is a listed company in
Shanghai Stock Exchange Market with the code 600420.
In 2006, SC increased its registered capital from cny130,787,910 to the
present.
MAIN SHAREHOLDERS: (As of Dec. 31, 2006)
Name % of Shareholding
Shanghai
Shanghai Guangci Medicine Hi-tech Co., Ltd. 3.40
Shanghai Gaodong Economic Development Co., Ltd. 2.90
Shanghai Huashi Medicine Research & Development Co., Ltd. 2.43
Shanghai Pudong Development Bank-Guangfa Xiaopan 2.26
Gan Hua 0.23
Feng Guoxin 0.21
Du Yanwen 0.20
Shanghai Shenfa Trading & Industry Corp. 0.17
Other shareholders 44.24
==============================
Shanghai Institute of Pharmaceutical
Industry was established in 1957, and held by the
State-owned Assets, Supervision and Administration Commission of the State
Council (SASAC), the Shanghai Institute of Pharmaceutical Industry (SIPI)
is one of the largest and most comprehensive research institutes in the Chinese
pharmaceutical industry. SIPI was granted more than 300 awards from local,
provincial and national agencies, including 13 National Science Invention
Awards and 13 National Science and Technology Progress Awards. SIPI was granted 209 New Drug Certificates,
holds 27 approved patents and has additional 157 patents pending. The products
transferred from SIPI are the primary products manufactured in over 20 public
pharmaceutical companies listed on the
Address: No. 1320,
Tel: 021-62479808
Fax: 021-62791715
Website: http://www.sipi.com.cn/
Shanghai Guangci Medicine Hi-tech Co.,
Ltd.
Address: 2/F, Bldg. 30,
Tel: 021-64370000
Shanghai Gaodong Economic Development Co.,
Ltd.
Address: No. 939,
Tel: 021-38860066
Fax: 021-38860193
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Chairman:
Mr. Zhu Baoquan, 61 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as chairman;
At present Also working in Shanghai Institute of Pharmaceutical Industry as dean and
secretary of the Party committee, in Pharmaceutical College of Shanghai Traffic
University as dean, in Shanghai Modern Pudong Pharmaceutical Plant Co., Ltd.
as chairman, in shanghai Shutu Pharmaceutical Technology Co., Ltd. as
chairman, and in Shanghai Daning Pharmaceutical Technology Co., Ltd. as
chairman.
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General
Manager:
Mr. Huang Liang’an, 61 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager;
At present Also working in Shanghai Modern Pudong Pharmaceutical Plant Co., Ltd. as
vice-chairman.
SC is mainly
engaged in manufacturing pharmaceutical products and reagents.
SC’s products mainly include: pharmaceutical
products and reagents, biological products, and
antibiotics, etc.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 80% of its
products in domestic market, mainly
The buying terms
of SC include 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:
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Shanghai
*Major Customers:
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Shanghai pharmaceutical Industry Academy Co., Ltd.
Shanghai pharmaceutical Industry Academy Yadong Co., Ltd.
SC is known
to have 3 subsidiaries, as following:
Shanghai
Modern Pudong Pharmaceutical Plant Co., Ltd.
Address:
No. 378,
Tel:
021-58483509
Fax: 021- 58482512
Shanghai Tianwei Biology Pharmaceutical Co., Ltd.
Address:
No. 4258,
Tel:
021-54427100
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd.
Address:
No. 12,
Tel:
0370-2627211
Fax: 0370-2617031
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.
CITIC Bank
AC#：086780-82600061164
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 |
185,717 |
143,146 |
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Short investment |
0 |
0 |
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Inventory |
110,453 |
110,826 |
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Accounts
receivable |
59,210 |
79,359 |
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Bills receivable |
2,864 |
2,233 |
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Advances to
suppliers |
11,665 |
23,740 |
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Other Accounts
receivable |
3,057 |
3,452 |
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Other current
assets |
96 |
217 |
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------------------ |
------------------ |
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Current assets |
373,062 |
362,973 |
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Fixed assets |
180,027 |
204,782 |
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Fixed assets net
value |
155,495 |
161,352 |
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Projects under
construction |
24,532 |
43,430 |
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Long term
investment |
886 |
791 |
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Other assets |
31,533 |
29,091 |
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Total assets |
585,508 |
597,637 |
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============= |
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Short loans |
23,000 |
8,000 |
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Bills payable |
3,009 |
8,292 |
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Accounts payable |
43,008 |
34,642 |
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Advances to
customers |
9,275 |
4,486 |
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Other Accounts
payable |
14,920 |
12,568 |
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Salaries payable |
528 |
1,337 |
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Welfares payable |
4,151 |
5,212 |
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Taxes payable |
4,332 |
5,558 |
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Withdraw the
expenses in advance |
718 |
875 |
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Other current
liabilities |
1,189 |
1,169 |
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Current
liabilities |
104,130 |
82,139 |
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Long term
liabilities |
2,543 |
4,012 |
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Other
liabilities |
0 |
0 |
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------------------ |
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Total liabilities |
106,673 |
86,151 |
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Minority
Interests |
47,626 |
58,013 |
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Equities |
431,209 |
453,473 |
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Total
liabilities & equities |
585,508 |
597,637 |
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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 |
502,746 |
545,871 |
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Cost of goods
sold |
316,300 |
354,923 |
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Sales expense |
55,428 |
75,217 |
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Management expense |
53,881 |
59,270 |
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Finance expense |
-1,578 |
-1,997 |
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Profit before
tax |
81,168 |
77,629 |
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Less: profit tax |
22,482 |
27,131 |
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Profits |
58,686 |
50,498 |
Important
Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
3.58 |
4.42 |
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*Quick ratio |
2.52 |
3.07 |
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*Liabilities
to assets |
0.18 |
0.14 |
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*Net profit
margin (%) |
11.67 |
9.25 |
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*Return on
total assets (%) |
10.02 |
8.45 |
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*Inventory
/Turnover ×365 |
80 days |
74 days |
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*Accounts receivable/Turnover
×365 |
43 days |
53 days |
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*Turnover/Total
assets |
0.86 |
0.91 |
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*Cost of goods
sold/Turnover |
0.63 |
0.65 |
PROFITABILITY: FAIRLY GOOD
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The turnover of SC appears fairly good in
its line in 2005 and 2006.
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SC’s net profit margin is fairly good, but it
decreased in 2006.
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SC’s return on total assets is fairly good, but it
decreased in 2006.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY:
AVERAGE
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The current ratio of SC is maintained in a fair
good level in both years.
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SC’s quick ratio is maintained in a fairly good
level in both years.
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The inventory of SC is maintained in a fairly large
level.
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The accounts receivable of SC is maintained in a normal level.
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The short-term loan of SC is maintained
in a normal level.
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SC’s turnover is in an average
level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Fairly
good.
SC is
considered medium-sized in its line with fairly good financial conditions. A
credit line up to USD2,500,000 would appear 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%)