MIRA
INFORM REPORT
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Report Date : |
03.09.2007 |
IDENTIFICATION DETAILS
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Name : |
Chifeng
Pharmaceutical (Group) 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 8, 2001 |
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Com. Reg. No.: |
1504001000412 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
and selling chemical raw material of medicine, medicine intermediate. |
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 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
Chifeng
Pharmaceutical (Group) Co., Ltd.
NO.
Inner Mongolia, 024001 PR
TEL: 86 (0) 476-8221312
FAX: 86 (0) 476-8224374
EXECUTIVE SUMMARY
INCORPORATION DATE : MARCH 8, 2001
REGISTRATION NO. : 1504001000412
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
3,422
REGISTERED CAPITAL : CNY 287,440,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 258,260,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 266,920,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY7.55 = 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on March 8, 2001.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. 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 CNY 30,000. 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 30% 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 and selling chemical raw material of
medicine, medicine intermediate, exporting its products and technologies, importing
raw materials, instruments and meters,
machine equipment, parts and technologies needed in manufacturing,
excluding the goods forbidden by the government, processing with imported
materials and compensation trade in agreement.
SC is mainly engaged
in manufacturing and selling chemical raw material of medicine, medicine
intermediate.
Mr. Zheng Dexue
has been chairman of SC since 2006.
SC is known to
have approx. 3,422 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 Chifeng. Our checks
reveal that SC owns the total premise about 405,900 square meters.
http://www.cfzy.com.cn The design
is professional and the content is well organized. At present the web site is
both in Chinese and English versions.
E-mail: cfzyjt@cfzy.com.cn
SC’s former chairman Shi Qiulin was taken
place by Zheng Dexue in May of 2006.
MAIN SHAREHOLDERS:
Name %
of Shareholding
China Huarong Asset Management Corporation 51
Chifeng Pharmaceutical Group Corporation 49
China Huarong Asset Management Corporation:
==================================
Authorized by the State Council,
l
Chairman:
Mr. Zheng Dexue, 62 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1999 to 2006 Worked in Inner Mongolia Hongfeng Industry Company Limited as vice general
manager;
From 2006 to present Working
in SC as chairman.
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General Manager:
Mr. Yu Guangcheng, 43 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
Before 2001 Worked in Chifeng Pharmaceutical Group Corporation as vice general manager.
From 2001 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling chemical raw material of medicine, medicine
intermediate.
SC’s products
mainly include:
|
Product Name |
Quality Standard |
Packing |
Dimension |
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Ephedrine Hydrochloride |
BP98/EP97/USP24 |
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350/370 |
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Pseudoephedrine
Hydrochloride |
BP98/EP97/USP24 |
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350/570 |
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Methylephedrine
Hydrochloride |
JP10 |
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350/570 |
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Ephedra P. E. |
6%, 8%,10% |
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350/570 |
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Griseofulvin |
BP98/EP97,
CP2000,IP96 |
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350/570 |
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Oxytetracycline |
BP98 BP98 Injectable |
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410/500 |
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Oxytetracycline
Hydrochloride |
BP98/EP97 BP98/EP97
Injectable |
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410/500 |
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Venoruton |
I.M. Standard |
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350/570 |
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Glucose |
BP/CP |
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Starch |
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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.
SC is
known to have 8 subsidiaries at present:
Chifeng
Mysun Pharmaceutical Co., Ltd.
Address:
Hongshan District,
Tel: 0476-8224422
Chifeng
Arker Pharmaceutical Technology Co., Ltd.
Address:
Tel:
04768249722
Chifeng
Yuansheng Pharmaceutical Co., Ltd.
Address:
Tel:
0476-6222710
Chifeng
Pharmaceutical Group Power Factory
Address:
Tel:
0476-8227684
Chifeng
Pharmaceutical Group Dextrose Factory
Tel:
0476-8224267
Chifeng
Leimeng Drugstore Catenation Co., Ltd.
Address:
Tel:
0476-8223243
Chifeng
Pharmaceutical Group Yingjin Animal Medicines Co., Ltd.
Address:
Tel:
0476-8225246
Chifeng
Pharmaceutical Group Mengqi Machinery Equipment Co., Ltd.
Address:
Jiuxianmiao, Hongshan District, Chifeng,
Tel:
0476-8224821
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#：0605020109022188888
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
2,250 |
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Inventory |
44,950 |
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Accounts
receivable |
76,110 |
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Other Accounts
receivable |
45,000 |
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Advances to
suppliers |
27,740 |
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To be
apportioned expense |
0 |
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Other current
assets |
9,420 |
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Current assets |
205,470 |
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Fixed assets net
value |
301,170 |
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Projects under
construction |
880 |
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Long term
investment |
30,370 |
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Other assets |
140,120 |
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Total assets |
678,010 |
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Short loans |
148,970 |
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Accounts payable |
87,840 |
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Other Accounts
payable |
105,830 |
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Advances from
clients |
2,040 |
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Withdraw the
expenses in advance |
0 |
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Other current liabilities |
10,740 |
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Current
liabilities |
355,420 |
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Long term
liabilities |
55,000 |
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Other
liabilities |
670 |
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Total
liabilities |
411,090 |
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Equities |
266,920 |
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Total liabilities
& equities |
678,010 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
258,260 |
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Cost of goods
sold |
216,990 |
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Sales expense |
8,270 |
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Management expense |
37,450 |
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Finance expense |
10,370 |
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Profit before
tax |
-12,330 |
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Less: profit tax |
0 |
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Profits |
-12,330 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.58
*Quick ratio 0.45
*Liabilities to
assets 0.61
*Net profit
margin (%) -4.77
*Return on total
assets (%) -1.82
*Inventory
/Turnover ×365 64 days
*Accounts
receivable/Turnover ×365 108 days
*Turnover/Total
assets 0.38
*Cost of goods sold/Turnover 0.84
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 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 fair level.
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The inventory of SC is maintained in an average
level.
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The accounts receivable of SC appears fairly large.
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The short-term loan of SC appears fairly large.
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SC’s turnover is in an acceptable 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 low.
Overall financial
condition of the SC: Fair.
SC is considered large-sized in its line with favorable background but
fair financial conditions. A credit line up to USD1,000,000 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. |
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%)