MIRA
INFORM REPORT
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Report Date : |
01.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
Zhejiang Chiral Medicine Chemicals Co., Ltd. |
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Registered Office : |
No. 288, Shixin Southern Road, Xiaoshan
District, Hangzhou, Zhejiang Province, 311200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
16.07.2001 |
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Com. Reg. No.: |
003836 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
Manufacturing and Selling Medical Intermediates. |
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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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
Zhejiang Chiral Medicine Chemicals Co., Ltd.
NO. 288, SHIXIN
SOUTHERN ROAD, XIAOSHAN DISTRICT,
HANGZHOU, ZHEJIANG
PROVINCE, 311200 PR CHINA.
288
TEL: 86 (0)
571-82638927 FAX: 86 (0)
571-52172787
EXECUTIVE SUMMARY
INCORPORATION DATE : JULY 16, 2001
REGISTRATION NO. : 003836
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 150
REGISTERED CAPITAL : USD 2,480,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 68,100,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 28,840,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.01 = US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on July 16, 2001.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing and researching medical intermediates;
selling self-made products.
SC is mainly
engaged in manufacturing and selling medical intermediates.
Mr. Zhang Bin has been legal
representative and chairman of SC since 2001.
SC owns
approximately 150 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 Hangzhou. Our checks reveal that SC owns the total premise about 10,000
square meters.
http://www.chiralchem.com/ The
website is owned by Hangzhou Chiral Medicine Chemicals Co., Ltd. The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: sales@chiralchem.com
SC’s former chairman was Mr. Fan Weirong . In November 2005,
the registered capital was changed from
USD 1,580,000 to USD 2,480,000. Meanwhile, Mr. Fan Weirong was taken place by Mr. Zhang Bin
MAIN SHAREHOLDERS:
Name of
Shareholding
Zhejiang Chemical Import &
Export Co., Ltd.
50
Hangzhou Chiral Medicine
Chemicals Co., Ltd.
25
(Hong Kong) China Medicine
Chemical Industry Development Group Co., Ltd.
25
l
Legal representative and chairman:
Mr. Zhang Bin , 35 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 and legal representative.
l
General manager:
Mr. Fan Weirong , 45 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 medical intermediates.
SC’s products mainly include DL-Methyldopa, sertraline
hydrochloride, labetalol hydrochloride, paroxetine hydrochloride hemihydrate
and gabapentin.
SC sources its materials 100%
from domestic market. SC sells 70% of its products in domestic market, and 30%
to overseas market, mainly Italy, Pakistan, India and Brazil.
The buying terms of SC include Check, T/T 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:
==============
Zhejiang Medicines
& Health Products Imp. & Exp. 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.
Shanghai Pudong Development Bank Hangzhou Branch Xiaoshan Sub-branch
AC#95041319683
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
4,340 |
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Inventory |
14,240 |
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Accounts
receivable |
6,010 |
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Advances to
suppliers |
520 |
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Notes receivable |
1,060 |
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Other
receivables |
1,940 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
28,110 |
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Fixed assets |
24,640 |
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Fixed assets net
value |
19,780 |
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Projects under
construction |
140 |
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Long term
investment |
0 |
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Other assets |
3,740 |
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Total assets |
51,770 |
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============= |
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Short loans |
16,000 |
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Accounts payable |
1,200 |
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Other payable |
1,920 |
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Taxes unpaid |
-170 |
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Notes payable |
3,300 |
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Other current
liabilities |
680 |
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Current
liabilities |
22,930 |
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Long term
liabilities |
0 |
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Total
liabilities |
22,930 |
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Equities |
28,840 |
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Total
liabilities & equities |
51,770 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
68,100 |
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Cost of goods
sold |
54,480 |
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Sales expense |
1,300 |
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Management expense |
6,540 |
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Finance expense |
810 |
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Profit before
tax |
4,700 |
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Less: profit tax |
620 |
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Profits |
4,080 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.23 |
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*Quick ratio |
0.60 |
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*Liabilities
to assets |
0.44 |
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*Net profit
margin (%) |
5.99 |
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*Return on
total assets (%) |
7.88 |
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*Fixed
assets/Total assets |
0.38 |
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*Inventory
/Turnover ×365 |
76 days |
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*Accounts
receivable/Turnover ×365 |
32 days |
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*Turnover/Total
assets |
1.32 |
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* Cost of
goods sold/Turnover |
0.8 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
l
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 normal 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 is maintained in an acceptable level.
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SC’s short-term loan 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 average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with favorable market
conditions. Over the past 6 years, SC has made a stable growth with acceptable
profit..
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%)