MIRA
INFORM REPORT
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Report Date : |
20.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG MEDICINES
& HEALTH PRODUCTS IMPORT & EXPORT Co., Ltd. |
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Registered Office : |
Zmc Building, No. 101-2,
North Zhongshan Road, Hangzhou, Zhejiang Province, 310003 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
29.06.1999 |
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Com. Reg. No.: |
3300001005837 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing
and Exporting Various Kinds of Medical Machinery.
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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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ZHEJIANG MEDICINES
& HEALTH PRODUCTS IMPORT & EXPORT Co., Ltd.
ZMC BUILDING, NO. 101-2, north zhongshan road,
hangzhou,
zhejiang province, 310003 PR CHINA
TEL :
86 (0) 571-87017661 / 87017663
FAX :
86 (0) 571-87016777 / 87915388
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 29, 1999
REGISTRATION NO. : 3300001005837
REGISTERED LEGAL FORM :
LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 200
REGISTERED CAPITAL : RMB 56,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 2,359,533,000 (AS OF DEC.
31, 2005)
EQUITIES :
CNY 103,476,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 500,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.65=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 limited liabilities co. at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on June 29, 1999.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. At least two shareholders and no more
than fifty 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 listed as follows: -manufacturing co. : CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service
co. : CNY 100,000.00 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 50% of the registered capital while
contribution by intangible assets must not exceed 20% 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 scopes include operating medical machinery,
importing and exporting business (excluding the goods forbidden by the government);
selling Chinese traditional medicinal crops, Chinese patent medicine,
traditional Chinese medicines prepared in ready-to-use forms, chemical raw
materials, chemical agent, antibiotic, biochemicals, and acetic anhydride,
phenylacetic acid; selling dangerous chemical
products.
SC is mainly
engaged in importing and exporting various kinds of medical machinery.
Mr. Li
Fusheng has been legal representative and chairman of SC since May 2000.
SC
owns approximately 200 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 5,000 square
meters.
http://www.zmcchina.com The design is professional and the content
is well organized. At present it is in English version.
Email: zmc@zmcchina.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shareholders Union of the staff 45.44
Zhejiang Grand Glory(Holdings)
Co. ,Ltd. 30
Li Fusheng 1.44
Chen Zhangsheng 1.29
Li Lin 1.29
Wang Ping 1.29
Ma Zhengming 1.13
Dai Yunhua 1.13
Zhao Xiaogang 1.13
Ge Hongliang 1.13
Qiu Guohai 0.91
Yang Baohua 0.91
Other 30 individuals 12.91
l
Legal representative and General manager:
Mr. Li Fusheng, ID# 330103500116073, 56 years
old with high school education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2000 to present Working in SC as chairman and general manager.
SC is mainly engaged in importing and exporting
various kinds of medical machinery.
SC mainly engaged in
the import and export of pharmaceuticals and their preparations, pharmaceutical
intermediates, bio-chemical medicines Chinese herbs and patent drugs, bee
products including fresh royal jelly, health products, medical instruments.
SC’s products
mainly include: pharmaceuticals & intermediates, natural plant extracts
& food additives, medicines & preparations, etc.
SC sources
its materials 70% from domestic market, and 30% from USA and Europe. SC sells
50% of its products in domestic market, and 50% to Asian, Europe, America, etc.
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.
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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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Cash & bank |
13,698 |
81,354 |
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Inventory |
145,248 |
89,097 |
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Accounts
receivable |
173,684 |
166,765 |
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Advances to
supplies |
14,026 |
34,590 |
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Other
receivables |
73,716 |
29,452 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
420,372 |
401,258 |
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Fixed assets |
47,693 |
48,703 |
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Fixed assets net
value |
32,798 |
30,326 |
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Projects under
construction |
242 |
802 |
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Long-term
investments |
4,049 |
6,528 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
457,461 |
438,914 |
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============= |
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Short loans |
86,435 |
40,850 |
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Accounts payable |
65,600 |
49,735 |
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Notes payable |
99,250 |
190,950 |
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Other Accounts
payable |
23,523 |
6,808 |
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Taxes payable |
-7,951 |
-2,440 |
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Accrued payroll |
6,379 |
10,309 |
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Dividends
payable |
29,632 |
0 |
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Welfares payable |
6,181 |
5,975 |
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Advances from customers |
50,299 |
26,574 |
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Accrued expenses |
3,537 |
6,639 |
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Other
current liabilities |
4 |
9 |
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----------------- |
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Current
liabilities |
362,889 |
335,409 |
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Long term
liabilities |
64 |
29 |
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------------------ |
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Total
liabilities |
362,953 |
335,438 |
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Shareholders
equities |
94,508 |
103,476 |
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------------------ |
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Total
liabilities & equities |
457,461 |
438,914 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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Turnover |
1,835,588 |
2,359,533 |
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Cost of goods
sold |
1,743,298 |
2,239,786 |
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Add:
Income from other operations |
6,817 |
1,935 |
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Sales expense |
27,954 |
38,569 |
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Management expense |
27,008 |
30,398 |
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Finance expense |
2,683 |
1,142 |
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Subsidy income |
5,866 |
3,795 |
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Operation Profit |
48,359 |
57,257 |
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Less: profit tax |
16,054 |
19,288 |
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Net profit |
32,305 |
37,969 |
Important Ratios
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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*Current ratio |
1.16 |
1.20 |
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*Quick ratio |
0.76 |
0.93 |
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*Liabilities
to assets |
0.79 |
0.76 |
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*Net profit
margin (%) |
1.76 |
1.61 |
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*Return on total
assets (%) |
7.06 |
8.65 |
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*Fixed
assets/Total assets |
0.07 |
0.07 |
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*Inventory
/Turnover ×365 |
29days |
14days |
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*Accounts
receivable/Turnover ×365 |
35days |
26days |
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*Turnover/Total
assets |
4.01 |
5.38 |
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* Cost of
goods sold/Turnover |
0.95 |
0.95 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is fairly high, 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 normal level.
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The inventory of SC is maintained in a normal level.
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The accounts receivable of SC appears LARGE.
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SC’s short-term loan is in an acceptable level.
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SC’s notes payable appears TOO LARGE.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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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 7 years, SC has made a stable growth with acceptable profit. A
credit line up to USD 500,000 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/normal. |
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%)