MIRA INFORM REPORT
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Report Date : |
20.11.2008 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI DESANO CHEMICAL PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 1479, |
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Country : |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
16.05.2002 |
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Com. Reg. No.: |
310225000273829 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling Chemical Medical Raw Materials. |
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 : |
USD 1,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
SHANGHAI DESANO CHEMICAL PHARMACEUTICAL Co.,
Ltd.
NO. 1479,
1479
TEL: 86 (0) 21-51323300 FAX: 86 (0) 21-51323311
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 16, 2002
REGISTRATION NO. : 310225000273829
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
700
REGISTERED CAPITAL : CNY 200,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 506,570,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 166,460,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.82912 = 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 16, 2002.
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 selling chemical products (excluding hazardous chemicals); importing and exporting commodities and technologies; manufacturing
medical raw materials (Stavudine, Nevirapine, Zidovudine, Efavirenz) (with
permits if needed).
SC is mainly
engaged in manufacturing and selling chemical medical raw materials.
Mr. Li Jinliang
has been legal representative and chairman of SC since May 2002.
SC is known to have approx. 700 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and head office in the industrial zone of Shanghai. And SC is
known to have a plant in
http://www.desano.com/
It is the website of Desano. The design is professional and the content is well
organized. At present it is in both Chinese and English versions.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2008 |
Registered capital |
CNY 100,000,000 |
CNY 200,000,000 |
MAIN
SHAREHOLDERS:
Name % of Shareholding
Shanghai Desano Biopharmaceutical
Shanghai Desano Pharmaceuticals Investment
l
Legal representative and chairman:
Mr. Li Jinliang, born in 1972, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman and legal representative.
At present
Also
working in several other Shanghai Desano companies as legal representative.
l
General manager:
Mr. Xu Chaowei, born in 1967. He is currently responsible for the daily
management of SC.
Working Experience(s):
At present Working
in SC as general manager.
SC is mainly
engaged in manufacturing and selling chemical medical raw materials.
Main Products: Stavudine, Nevirapine,
Zidovudine, Efavirenz
SC sources its materials 90% from domestic
market, and 10% from overseas market. SC sells 30% of its products in domestic
market, and 70% to overseas market.
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 jointly occupying the heading premise with Shanghai Desano International Trading 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.
China Construction Bank
AC# 31001523211056003110
Relationship:
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 |
7,730 |
10,880 |
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Inventory |
64,340 |
73,970 |
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Accounts
receivable |
116,060 |
49,180 |
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Advances to
supplies |
25,270 |
5,800 |
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Other
receivables |
6,960 |
9,930 |
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Subsidies
receivable |
4,150 |
1,960 |
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Prepaid expenses |
20 |
30 |
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Other current
assets |
30 |
20 |
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------------------ |
------------------ |
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Current assets |
224,560 |
151,770 |
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Fixed assets net
value |
50,900 |
45,720 |
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Projects under
construction |
50,330 |
196,300 |
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Project
materials |
21,180 |
900 |
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Long-term
investments |
0 |
0 |
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Intangible
assets |
21,580 |
19,730 |
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Other assets |
20 |
20 |
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------------------ |
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Total assets |
368,570 |
414,440 |
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============= |
============= |
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Short loans |
40,000 |
40,000 |
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Notes payable |
0 |
19,910 |
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Accounts payable |
88,700 |
70,500 |
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Advances from
customers |
840 |
730 |
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Accrued payroll |
0 |
0 |
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Welfares payable |
86 |
300 |
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Taxes payable |
-5,560 |
-1,700 |
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Surcharge
payable |
2 |
100 |
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Other Accounts
payable |
91,860 |
39,920 |
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Accrued expenses |
2,600 |
3,200 |
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Other current
liabilities |
2 |
20 |
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----------------- |
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Current
liabilities |
218,530 |
172,980 |
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Long term
liabilities |
0 |
75,000 |
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------------------ |
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Total
liabilities |
218,530 |
247,980 |
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Shareholders
equities |
150,040 |
166,460 |
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Total
liabilities & equities |
368,570 |
414,440 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
506,570 |
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Cost of goods sold |
449,140 |
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Taxes and additional of main operation |
170 |
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Income from
other operations |
5,060 |
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Sales expense |
12,070 |
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Management expense |
23,280 |
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Finance expense |
9,190 |
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Subsidy income |
3,640 |
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Non-operating expense |
2,240 |
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Profit before
tax |
19,160 |
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Less: profit tax |
2,740 |
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Profits |
16,420 |
Important Ratios
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as of Dec. 31,
2006 |
as of Dec. 31,
2007 |
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*Current ratio |
1.03 |
0.88 |
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*Quick ratio |
0.73 |
0.45 |
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*Liabilities
to assets |
0.59 |
0.60 |
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*Net profit
margin (%) |
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3.24 |
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*Return on
total assets (%) |
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3.96 |
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*Inventory
/Turnover ×365 |
days |
54 days |
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*Accounts
receivable/Turnover ×365 |
days |
36 days |
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*Turnover/Total
assets |
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1.22 |
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* Cost of
goods sold/Turnover |
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0.89 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line
in 2007.
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SC’s net profit margin is fairly good in 2007.
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SC’s return on total assets is fairly good in 2007.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a normal
level in 2006, but it is fair in 2007.
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SC’s quick ratio is maintained in a fair level in
both two years.
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The inventory of SC appears fairly large.
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The accounts receivable of SC is maintained in an
average level in 2007.
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SC’s short-term loan is in an average level in both
two years.
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SC’s turnover is in an average level, comparing
with the size of its total assets in 2007.
LEVERAGE: AVERAGE
l
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: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition. The given credit amount would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 50.52 |
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1 |
Rs.75.54 |
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Euro |
1 |
Rs.63.12 |
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%)