MIRA
INFORM REPORT
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Report Date : |
06.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
ANQIU LU’AN
PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No.35 Weixu North Road, Anqiu City Shandong Province 262100 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
07.12. 1998 |
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Com. Reg. No.: |
370784228000989 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling all kinds of Medicines. |
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 : |
USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
ANQIU LU’AN
PHARMACEUTICAL CO., LTD.
NO.35 WEIXU NORTH ROAD, ANQIU CITY
SHANDONG PROVINCE 262100 PR CHINA
TEL: 86 (0)
536-4390070 FAX: 86 (0) 536-4390696
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC.
7, 1998
REGISTRATION NO. :
370784228000989
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
960
REGISTERED CAPITAL : CNY
50,000,109.5
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 401,254,000 (AS OF DEC. 31,
2005)
EQUITIES :
CNY 146,517,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 1,000,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.92386 = 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 Ren Min Bi
Note: According to Mr. Zheng, manager of SC’s import &export department, “Weifang Luan Import and Export Co., Ltd.” is the trade name of SC’s international trade department.
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 Dec. 7, 1998.
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 troche, hard capsule, granule, high
capacity injection, API (paracetanol, Hydrotalcite), white latex, sodium
acetate, Chitosan-Oligosaccharide, paraaminophenol; selling paper; importing
and exporting commodities and technologies (validity period of Weifang Dangerous Chemicals Production (storage)
License as of March 16, 2009; validity period of Drug Manufacture License as of
Dec. 31, 2010; not engage in any items prohibited by laws and administrative
regulation; able to engage in items that need permit according to laws and
administrative regulation, after obtaining the permit from relative
authorities).
SC is mainly
engaged in manufacturing and selling various medicines.
Mr. Wang Jun has
been chairman of SC since 1998.
SC is known to have approx. 960 employees 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 Anqiu. Our checks reveal
that SC rents the total premise about 90,000 square meters.
http://www.luanpharm.com The design is professional and the content
is well organized. At present the web is both in Chinese and English versions.
E-mail: luan@luanpharm.com
SC (Former: Weifang No.4 Pharmaceutical Factory) is one of the leading bulk
pharmaceutical enterprises specializing in manufacturing and exporting
Paracetamol (Acetaminophen). Paracetamol DC is covered by EU GMP Certificate
and its facilities passed Germany Government of Upper Bavaria Site Inspection.
Paracetamol Finish Dosage is covered by Canada GMP Certificate and its
facilities passed Health Canada's Site Inspection. US DMF for Acetaminophen API
and Acetaminophen DC90 are filed and US FDA GMP Site Inspection is under
triggling and TGA GMP Site Inspection is under processing as well. Our company
is approved by ISO9001/ISO14001/OHSAS14001. (http://www.luanpharm.com/english/about.asp)
SC’s former registered number was 3707842800098,
and its former registered capital was CNY
30,000,109.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Zhao Fenggang ID#370722671016001 1.37
Yue Junjian ID#370722590208001 0.28
Chen Jianqiang ID#370722620818005 0.13
Liang Ping ID#370722680917001 0.16
Li Rixin ID#370722520416002 0.17
Xing Zhixin ID#370722631023006 0.45
Zhao Shutao ID#370722651227001 2.61
SC’s Labor Union 64.5
Wang Jun ID#370722600614001 20.88
Yu Jingqing ID#370722490318001 1.82
Zhou Shangxin ID#370722601043510 0.14
Wang Bocheng ID#370722441211001 0.11
Liu Xiyao ID#370722660202003 0.21
Li Fukui ID#370722540410001 0.32
Liu Xishan ID#370722491110001 0.49
Zhao Yong ID#370722581002001 0.44
Liu Yongdong ID#370722580310103 0.11
Zhang Jianbo ID#370722660629001 0.36
Niu Huimin ID#370722490920001 0.28
Wang Huaiwen ID#370722590205821 0.26
Li Yujun ID#370722700113621 0.18
Du Jun ID#370722701112011 0.18
Zheng Qunbao ID#370303650114177 0.18
Sun Xijun ID#370722710930781 0.28
Li Qingwen ID#370722691105741 0.44
Gao Wencong ID#370722690402481 0.16
Bai Xicai ID#370722590808861 0.49
Ma Bingxue ID#370303680105181 0.15
Zhang Qizong ID#370722600604381 0.36
Wang Binggong ID#370722620808003 0.13
Zang Baolian ID#370722480724003 1.82
Liu Guoqiang ID#370722680713821 0.13
Wang Xueshun ID#370722590724821 0.17
Zhai Jie ID#370722541125001 0.14
Tian Deli ID#370722570830001 0.10
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Chairman and General Manager:
Mr. Wang Jun, 48 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1998 to present
Working in SC as chairman and general manager.
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Assistant Manager:
Mr. Zheng Qunbao, 43 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1998 to present
Working in SC as assistant manager.
SC is mainly
engaged in manufacturing and selling all kinds of medicines.
SC’s products
mainly include: Paracetamol (Acetaminophen) (The annual output is 24,000 tons
), Paracetamol DC 90 % ( The annual output is 5000 tons ) and Paracetamol DC96%
( The annual output is 2000 tons ).
SC’s brand is
“Lu’an”.
SC sources its materials 90% from domestic
market, and 10% from overseas market. SC sells 20% of its products in domestic
market, and 80% to overseas market, mainly America, Canada, and Germany.
The buying terms of SC include Check, L/C, 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.
Import and Export Department:
Tel: 0536-4390070
STAFF STRENGTH: 8
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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Accounts
receivable |
8,109 |
17,222 |
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Current assets |
139,125 |
267,232 |
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Fixed assets |
98,130 |
195,708 |
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Total assets |
338,841 |
507,608 |
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Total
liabilities |
246,857 |
361,091 |
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Equities |
91,984 |
146,517 |
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Total
liabilities & equities |
338,841 |
507,608 |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
254,447 |
401,254 |
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Cost of goods
sold |
231,915 |
359,981 |
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Sales expense |
5,418 |
6,089 |
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Management expense |
9,206 |
14,036 |
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Finance expense |
4,200 |
10,528 |
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Profit before
tax |
6,660 |
10,380 |
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Less: profit tax |
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Profits |
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Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
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*Quick ratio |
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*Liabilities
to assets |
0.73 |
0.71 |
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*Net profit
margin (%) |
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*Return on total
assets (%) |
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*Inventory
/Turnover ×365 |
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*Accounts
receivable/Turnover ×365 |
12 days |
16 days |
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*Turnover/Total
assets |
0.75 |
0.79 |
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*Cost of goods
sold/Turnover |
0.91 |
0.90 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line, and it increased
greatly in 2005.
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SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
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The accounts receivable is maintained in an average level.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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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: Fairly Stable.
SC is
considered large-sized enterprise with fairly stable financial condition. A
credit line up to USD 1, 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%)