MIRA INFORM REPORT
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Report Date : |
26.11.2008 |
IDENTIFICATION DETAILS
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Name : |
CHINA MEHECO CORPORATION |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
18.07.1983 |
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Com. Reg. No.: |
110000008319434 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Medical Appliances. |
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 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & Address
CHINA MEHECO
CORPORATION
NO.
100061 PR
TEL:
0086-10-67116688-2325 FAX: 0086-10-67121579
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUL. 18, 1983
REGISTRATION NO. : 110000008319434
REGISTERED LEGAL
FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : MR. HAN BENYI (CHAIRMAN)
STAFF STRENGTH : 400
REGISTERED CAPITAL :
CNY 300,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 1,289,100,000 (AS OF DEC. 31, 2007)
EQUITIES : CNY 392,430,000
(AS OF DEC. 31, 2007)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.83090 = USD
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 co. at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Jul. 18, 1983.
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 Type Ⅲmedical
appliances, including ophthalmic instruments, orthopedic surgical (orthopedics)
instruments, family planning instruments, injection and puncture instruments,
medical electronic instruments, medical optical instruments and camera for
endoscopy, medical ultrasonic instruments and related instruments, medical
Opto-laser equipment and instruments, medical high performance medical devices
and instruments, physiatry and convalescence devices, equipment used in
traditional Chinese medicine, magnetic resonance devices, medical X-ray
equipment and auxiliary equipment and parts, high-energy radiation devices,
medical nuclide devices, clinical check analysis instruments, clinical
diagnostic reagents, extracorporeal circulation and blood treatment devices,
implanting materials and artificial internal organ, operating room, emergency
room, doctor's office devices, hospital nursing equipment and appliances,
medical cooling treatment, low temperature, refrigeration plant and devices,
dental materials, general healthcare materials and bandages, suture materials
and adhesive, medical polymeric materials and products, medical X-ray equipment
special detecting instrument;
microsurgical operating instrument, earnose-throat instruments, dental
instruments, urination intestine surgical operating instrument, obstetrics and
gynecology department instrument, general diagnostic instrument, dental
equipment, sterilization and disinfection devices; wholesaling Chinese patent
drug, traditional Chinese medicinal materials, traditional Chinese medicinal
decoction pieces, chemical medicine preparations, chemical raw material drugs,
antibiotics, biochemical drugs, biological products (diagnostic medicine),
health food, packaging food (including quick-frozen aquatic products), automobiles
(excluding small cars which less than 9 sets), importing and exporting commodities and
technologies, storage services.
SC is mainly engaged in selling medical
appliances.
Mr. Han Benyi is legal representative and
chairman of SC at present.
SC is known to
have approx. 400 employees at present.
SC is currently
operating at the above stated address, and this address houses its operating
office in the commercial zone of Beijing. Our checks reveal that SC rents the
total premise, but SC’s accountant refused to release the gross area of the
premise.
http://www.meheco.cn/
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-Mail: meheco@genertec.com.cn
SC’s former Chinese name was中国医药保健品有限公司, and it was changed to通用美康医药有限公司
in 2007. The English name remains the same.
MAIN SHAREHOLDERS:
Name % of Shareholding
CNTIC Trading Co., Ltd. 90
CNTIC Trading Co., Ltd.
==================
CNTIC Trading Co., Ltd. is a listed company in Shanghai Stock Exchange
Market with the code of 600056.
l
Legal
representative and
chairman:
Mr. Han Benyi, about
43 years old with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working in SC and CNTIC Trading Co., Ltd. as chairman and legal representative.
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General manager:
Mr. Zhang Benzhi,
about 48 years old with university education. He is currently responsible for
the daily management of SC.
Working Experience(s):
At present Working
in SC and CNTIC Trading Co., Ltd. as general manager.
SC is mainly engaged in selling medical
appliances.
SC’s products mainly
include: Botanical Medicines, Health Products, Pharmaceuticals & Chemical
medicines, Medical Instruments and Medical Sundries.
.JPG)
SC sources its
merchandises 50% from the overseas market and 50% from domestic market. SC
sells 50% of its merchandises in domestic market, and 50% to overseas market.
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.
SC is known to
invest in the following companies:
China Meheco Herbs
Import & Export Corporation
Meheco Medicines
& Chemicals I/E Co., Ltd.
China Meheco Int'l
Trade Development Company
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.
Bank of
AC# 00028708094001
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 |
307,730 |
305,420 |
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Short-term investments |
71,880 |
34,640 |
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Bills receivable |
0 |
100 |
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Accounts receivable |
101,770 |
185,070 |
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Other receivables |
83,770 |
52,080 |
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Advances to suppliers |
17,830 |
80,640 |
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Inventory |
151,680 |
363,770 |
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Dividends receivable |
30,090 |
20,550 |
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A receivable tax rebate of export |
1,980 |
1,770 |
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Prepaid expenses |
0 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
766,730 |
1,044,040 |
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Fixed assets net value |
30,580 |
31,830 |
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Projects under construction |
4,510 |
9,410 |
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Long term investment |
11,860 |
17,060 |
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Other assets |
53,290 |
57,270 |
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Total assets |
866,970 |
1,159,610 |
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============= |
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Short loans |
0 |
0 |
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Bills payable |
0 |
0 |
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Accounts payable |
88,270 |
196,220 |
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Welfare payable |
370 |
0 |
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Advances from clients |
238,170 |
353,400 |
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Accrued payroll |
3,380 |
4,640 |
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Tax payable |
-6,730 |
-28,270 |
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Other payable |
92,850 |
142,560 |
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Accrued expenses |
3,460 |
0 |
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Dividends payable |
0 |
4,020 |
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Other current liabilities |
0 |
0 |
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Current liabilities |
419,770 |
672,570 |
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Specified payables |
92,800 |
92,800 |
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Deferred tax credit |
0 |
1,810 |
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Total liabilities |
512,570 |
767,180 |
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Equities |
354,400 |
392,430 |
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Total liabilities & equities |
866,970 |
1,159,610 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Turnover |
759,380 |
1,289,100 |
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Cost of goods sold |
678,110 |
1,173,010 |
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Sales expense |
35,770 |
54,210 |
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Management expense |
35,420 |
51,820 |
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Finance expense |
-450 |
4,710 |
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Investment income |
40,180 |
54,790 |
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Profit before tax |
53,900 |
65,020 |
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Less: profit tax |
9,240 |
21,550 |
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Profits |
44,660 |
43,470 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
1.83 |
1.55 |
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*Quick ratio |
1.47 |
1.01 |
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*Liabilities to assets |
0.59 |
0.66 |
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*Net profit margin (%) |
5.88 |
3.37 |
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*Return on total assets (%) |
5.15 |
3.75 |
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*Inventory /Turnover ×365 |
73 days |
103 days |
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*Accounts receivable/Turnover ×365 |
49 days |
53 days |
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*Turnover/Total assets |
0.88 |
1.11 |
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* Cost of goods sold/Turnover |
0.89 |
0.91 |
PROFITABILITY: FAIRLY GOOD
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The
turnover of SC appears good in its line, and it increased greatly in 2007.
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SC’s net
profit margin is fairly good, but it decreased in 2007.
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SC’s
return on total assets is fairly good, but it decreased in 2007.
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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 normal level.
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The inventory conversion period of SC appears long.
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The
accounts receivable of SC appears average.
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There’s
no short-term loan of SC in 2006 and 2007.
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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 average.
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The risk
for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly
good.
SC is considered
medium-sized in its line with fairly good financial conditions. A credit line
at the above amount appears 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.49.84 |
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1 |
Rs.76.81 |
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Euro |
1 |
Rs.64.38 |
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%)