MIRA
INFORM REPORT
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Report Date : |
20.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI TELSTAR
HUADONG PHARMACEUTICAL INDUSTRY CO., LTD. |
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Registered Office : |
No. 30 Jinwen Road, Zhuqiao, Konggang Industrial Zone, Nanhui,
Shanghai, 201323 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
22.04.2003 |
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Com. Reg. No.: |
033340 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and Selling Pharmaceutical Equipment. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
usd 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SHANGHAI TELSTAR
HUADONG PHARMACEUTICAL INDUSTRY CO., LTD.
NO. 30 JINWEN ROAD, ZHUQIAO, KONGGANG
INDUSTRIAL ZONE, NANHUI,
SHANGHAI, 201323 PR CHINA
TEL: 86 (0) 21-58104573 FAX: 86 (0) 21-58104227
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 22, 2003
REGISTRATION NO. : 033340
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
40
REGISTERED CAPITAL : CNY 17,370,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 26,380,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 2,240,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 10,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.94= USD 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
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 Apr. 22, 2003.
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 assembling
vacuum freeze drying equipment, sterilizer equipment, water treatment and separation
equipment, pharmaceutical equipment; selling its products and providing the
after sale services.
SC is mainly
engaged in manufacturing and selling pharmaceutical equipment.
Mr. JORDI SERRAT LLADO has been chairman of
SC since 2003.
SC is known
to have approx. 40 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 Shanghai. Our checks
reveal that SC owns the total premise about 5,600 square meters.
http://www.telstarhd.com.cn
. The design is professional and the content is well organized. At present it
is in both Chinese and English versions.
E-Mail: zcao@telstarhd.com.cn
SC has got the certificates as below:
MAIN SHAREHOLDERS:
Name %
of Shareholding
Spain IMA Telstar S.L. 55
Shanghai Waton Pharmaceutical Machinery Co.,
Ltd. 45
======================================
Spain IMA Telstar S.L.
Tel: +34 937 36 16 00
Fax: +34 937 86 13 80
Shanghai Waton Pharmaceutical Machinery Co.,
Ltd.
It is one of the members of China
Pharmaceutical Equipment associate, specialized in designing and fabricating
pharmaceutical machineries. It has a profound influence on the domestic
pharmaceutical industry with strong technical power and advanced equipment.
Add: 8Jinliang Rd, Zhuqiao Town, Nanhui,
Pudong Shanghai, China
Tel: 021-58109119
Fax: 02158109090
Http: www.eastchinagroup.com
E-mail: shanghaihuad@163.com
l
Chairman:
Mr. JORDI SERRAT LLADO,
Spanish, in his 40’s with university education. He is currently responsible for
the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman.
l
General Manager:
Mr. Cao Zhechen in his 30’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2003 to present
Working in SC as general
manager.
SC is mainly engaged
in manufacturing and selling pharmaceutical equipment.
SC’s products
mainly include:
Lyohua STD
Lyohua PLUS
Chamber and Door
Condenser and
Condenser Coil
Shelves stack
Vacuum system
Thermal fluid
system
Stoppering device
SC sources its
materials 90% from domestic market, and 10% from the overseas market, mainly
European countries. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T and Credit of 30-60 days.
*Major Client:
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Spain IMA Telstar S.L.
*Major Supplier:
============
Shanghai Zilian Industrial and Trade 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’s suppliers
declined to make any comments.
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 Nanqiao Sub-branch
AC#1001725709300007856
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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Cash & bank |
9,000 |
110 |
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Inventory |
10,670 |
9,930 |
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Accounts
receivable |
6,210 |
760 |
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Advances to
suppliers |
3,380 |
580 |
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Other
receivables |
690 |
2,720 |
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Other current
assets |
70 |
540 |
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------------------ |
------------------ |
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Current assets |
30,020 |
14,640 |
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Fixed assets net
value |
1,350 |
12,890 |
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Projects under construction |
15,450 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
5,910 |
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Total assets |
46,820 |
33,440 |
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============= |
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Short loans |
7,550 |
0 |
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Accounts payable |
6,110 |
8,070 |
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Advances from
clients |
11,290 |
10,150 |
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Taxes payable |
-1,170 |
-860 |
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Salaries payable |
0 |
0 |
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Other payable |
4,450 |
7,670 |
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Other current
liabilities |
310 |
300 |
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------------------ |
------------------ |
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Current
liabilities |
28,540 |
25,330 |
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Long term
liabilities |
4,110 |
5,870 |
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------------------ |
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Total
liabilities |
32,650 |
31,200 |
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Equities |
14,170 |
2,240 |
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------------------ |
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Total
liabilities & equities |
46,820 |
33,440 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2007 |
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Turnover |
26,380 |
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Cost of goods
sold |
22,260 |
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Sales expense |
3,630 |
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Management expense |
11,140 |
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Finance expense |
1,360 |
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Profit before
tax |
-11,920 |
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Less: profit tax |
0 |
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Profits |
-11,920 |
Important Ratios
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2006 |
2007 |
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*Current ratio |
1.05 |
0.58 |
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*Quick ratio |
0.68 |
0.19 |
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*Liabilities to
assets |
0.70 |
0.93 |
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*Net profit
margin (%) |
/ |
-45.19 |
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*Return on
total assets (%) |
/ |
-35.65 |
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*Inventory
/Turnover ×365 |
/ |
137days |
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*Accounts
receivable/Turnover ×365 |
/ |
11days |
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*Turnover/Total
assets |
/ |
0.79 |
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* Cost of goods
sold/Turnover |
/ |
0.84 |
PROFITABILITY:
POOR
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The turnover of SC appears average in 2007.
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SC’s net profit margin is poor in 2007.
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SC’s return on total assets is poor in 2007.
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SC’s cost of goods sold is average in 2007, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a normal level in 2006 but in a
fair level in 2007.
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SC’s quick ratio is maintained in a fair level in 2006 and in a poor level
in 2007.
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The accounts receivable of SC is average in 2007.
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The inventory of SC appears large in 2007.
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SC has no short loan in 2007
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SC’s turnover is in a fair level in 2007, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory could be a threat to SC’s financial condition. A
credit line up to USD 10,000 appears 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%)