MIRA
INFORM REPORT
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Report Date : |
03.09.2007 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI SIPI PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Room 101, Building 3, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jun. 10, 1994 |
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Com. Reg. No.: |
3100001007300 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Engaged
in producing and selling suppository, Chinese Traditional Patent Medicine,
antibiotic and biochemical products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Up To USD 400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SHANGHAI SIPI PHARMACEUTICAL CO., LTD.
ROOM 101, BUILDING 3, NO.
TEL : 0086-21-52373839
FAX : N/A
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUN. 10, 1994
REGISTRATION NO. :
3100001007300
REGISTERED LEGAL FORM :
SHARES LIMITED CO.
CHIEF EXECUTIVE :
MR. ZHOU BIN (CHAIRMAN)
STAFF STRENGTH :
400
REGISTERED CAPITAL :
CNY 62,426,248
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY139, 309,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 67,842,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.54=US$1
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 Jun. 10, 1994.
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 producing and selling
suppository, Chinese Traditional Patent Medicine (including ginseng antler and
white fungus), chemical medicine raw materials and medicament, antibiotic,
biochemicals, biological products, non-hazardous chemical materials,
disinfector, medical instruments (permit as of Aug.21, 2012), selling chemical
raw materials and products (dangerous chemicals need special permit), importing
and exporting commodities and technologies, in accordance with license.
SC is mainly
engaged in producing and selling suppository, Chinese Traditional Patent
Medicine, antibiotic and biochemical products.
Mr.
Zhou Bin has been chairman and general manager of SC since 1994.
SC is known to have approx. 400 staff members at
present.
SC is currently operating at the above stated address, and this
address houses its operating office in the commercial zone of Shanghai. Our
checks reveal that SC owns the total premise square meters.
SC is not known to host website of its own at present.
E-mail: Vicky@sipihaima.com
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Date of change |
Item |
Before the change |
After the change |
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Registered capital |
CNY 45,000,000 |
CNY 62, 426,248 |
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Registered legal form |
Limited liabilities co.
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Shares limited co. |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shanghai
Shanghai Nanxiang Tianen
Economic Development
Shanghai Ship and Shipping
Research Institute
8.01
Shanghai Guangci Pharmaceutical
Technology
Mr. Bian Ming
3.21
Ms. Shi Peijuan 2.24
l
Legal
representative and
chairman:
Mr. Zhou Bin, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1994 to present Working in SC as chairman and legal representative.
SC is
mainly engaged in producing and selling suppository, Chinese Traditional
Patent Medicine, antibiotic and biochemical products.
SC’s products mainly include: Pyrantel Pamoate
Suppositories, Paracetamol Suppositories, Mico Nazole
Nitrate Suppositories, Indometacin Suppositories, and Indometacin
Suppositories.
SC sources its materials 80% from domestic market and 20%
from the overseas market. SC sells 30% of its products to overseas market and 70% in domestic
market.
The buying terms of SC include Check, L/C, T/T and Credit of
15-30 days. The payment terms of SC include Check, T/T, and Credit of 15-30
days.
*Major Supplier*
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Shanghai
*Major Customer*
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Shanghai
SC is known to have 3
subsidiaries, as following:
Shanghai Shutu Health Pharmaceutical Technology Co.,
Ltd
Shanghai Xiulong Herbal Medicine Co., Ltd
Shanghai Polymer Pharma-ceutical
& Excipient 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.
SC’s management declined
to release its banking details.
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 |
17,508 |
19,196 |
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Bills
receivable |
2,064 |
1,350 |
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Accounts
receivable |
27,270 |
26,209 |
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Other
receivables |
6,945 |
15,058 |
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Advances to
suppliers |
262 |
209 |
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A receivable tax
rebate of export |
469 |
574 |
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Inventory |
5,276 |
3,841 |
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Prepaid expenses |
0 |
7 |
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Other
current assets |
0 |
0 |
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------------------ |
------------------ |
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Current
assets |
59,794 |
66,444 |
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Fixed assets |
12,492 |
11,610 |
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Fixed
assets net value |
12,492 |
11,610 |
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Projects
under construction |
0 |
0 |
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Long
term investment |
24,464 |
24,458 |
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Other
assets |
0 |
1,739 |
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------------------ |
------------------ |
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Total
assets |
96,750 |
104,251 |
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============= |
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Short
loans |
0 |
20,000 |
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Bills
payable |
0 |
0 |
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Accounts
payable |
23,303 |
12,247 |
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Welfare
payable |
162 |
373 |
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Advances from clients |
107 |
1,456 |
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Accrued expenses |
0 |
241 |
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Tax
payable |
1,170 |
874 |
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Other
payable |
4,389 |
1,184 |
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Surcharge
payable |
65 |
34 |
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Other
current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
29,196 |
36,409 |
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Long
term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
29,196 |
36,409 |
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Equities |
67,554 |
67,842 |
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------------------ |
------------------ |
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Total
liabilities & equities |
96,750 |
104,251 |
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============= |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2005 |
as of Dec. 31,
2006 |
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Turnover |
216,069 |
139,309 |
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Cost of goods
sold |
188,569 |
114,318 |
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Sales expense |
17,845 |
12,690 |
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Management expense |
3,639 |
4,516 |
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Finance expense |
282 |
834 |
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Non-operating
income |
51 |
48 |
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Non-operating
expense |
5 |
23 |
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Profit before
tax |
5,910 |
7,772 |
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Less: profit tax |
924 |
1,241 |
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Profits |
4,986 |
6,531 |
Important Ratios
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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*Current ratio |
2.05 |
1.82 |
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*Quick ratio |
1.87 |
1.72 |
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*Liabilities
to assets |
0.30 |
0.35 |
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*Net profit
margin (%) |
2.31 |
4.69 |
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*Return on
total assets (%) |
5.15 |
6.26 |
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*Fixed
assets/Total assets |
0.13 |
0.11 |
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*Inventory
/Turnover ×365 |
9 days |
10 days |
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*Accounts
receivable/Turnover ×365 |
46 days |
69 days |
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*Turnover/Total
assets |
2.23 |
1.34 |
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*Cost of goods
sold/Turnover |
0.87 |
0.82 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line,
but it decreased in 2006.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold to turnover ratio is
maintained in a normal level.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in a normal
level.
l
The accounts receivable of SC appears fairly large.
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The short loans of SC are slightly large in 2006.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
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: Stable.
SC is considered a medium-sized company in its line with stable financial conditions. Taking into consideration of SC’s general performance, reputation as well as market conditions we would rate SC as an average credit risk company.
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%)