MIRA
INFORM REPORT
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Report Date : |
01.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHOUGUANG FUKANG
PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Shouguang Economy & Technology
Development Zone, Shandong Province, 262700 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
08.07.1997 |
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Com. Reg. No.: |
370783400000776 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing
and Selling Pharmaceutical Material, Pharmaceutical Intermediates, Bromide
and Temperature Sensing Dyes. |
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 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SHOUGUANG FUKANG
PHARMACEUTICAL CO., LTD.
SHOUGUANG ECONOMY & TECHNOLOGY
DEVELOPMENT ZONE,
SHANDONG PROVINCE, 262700 PR CHINA
TEL: 86 (0) 536-5102364 FAX:
86 (0) 536-5101568
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL.
8, 1997
REGISTRATION NO. : 370783400000776
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
650
REGISTERED CAPITAL : USD 1,400,000
BUSINESS LINE : manufacturing
TURNOVER :
CNY 816,910,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 271,970,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 1,500,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly
good
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.84 = 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 Jul. 8, 1997.
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 TMP, disinfector, ODB, sulfamethoxazole,
dimethyldiguanide; selling its self-made products.
SC is mainly
engaged in manufacturing and selling bulk drug, medicine intermediates, bromide
and temperature sensing dyes.
Mr. Yang Weiguo
has been chairman of SC since 1997.
SC is known
to have approx. 650 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 Shouguang. Our checks
reveal that SC owns the total premise about 16,000 square meters.
http://www.fukangpharm.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-Mail:
SC has got the certificates of ISO9002 and GMP in 1998 and 2003.
SC has been honored as the Hi-tech enterprise in Shandong province, the
world-largest manufacturer and exporter of TMP and also the famous manufacturer
of bromine compounds in the world.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hong Kong Yidong International Co., Ltd. 45
Shouguang Fukang Chemical Industry Co., Ltd.
55
l
Chairman and General Manager:
Mr. Yang Weiguo, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman and general manager.
l
Vice Chairman:
Mr. Miao Yuan, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working
in SC as vice chairman.
SC is mainly engaged
in manufacturing and selling pharmaceutical material, pharmaceutical
intermediates, bromide and temperature sensing dyes.
SC’s products
mainly include:
*Pharmaceutical
Material
Trimethopim(TMP)
Sulfamethoxazole
Itraconazole
Omeprazole
Trimethoprim
lactic Acid
Hydroxyurea
Tramadol
Hydrochloride
*Intermediates
2,3,4,5-tetramethoxytoluene
3,4,5-Trimethoxybenzaldehyde
3,4,5-Trimethoxytoluene
1,3,5-Trimethoxybenzene
2,4-Dihydro-4-[[4-hydroxyphenyl)-1-piperazinyl]-phenyl]-2-(1-methylpropyl)-3H-
89848-21-5
3,5-Dibromo-4-Hydroxybenzaldehyde
P-Bromoanisole
Sodium methoxide
Cis-bromo-ester(Cis-BBD)
1,3,5-Tribromobenzene
2,4,5-Trimethoxybenzaldehyde
4460-86-0
2,4,5-Trimethoxybenzoic
acid
1,2,4-Trimethoxybenzene
M-Bromonitrobenzene
Guanidine nitrate
4-Bromo-3-methyl-anisole
3,4,5-Trimethoxy-2-(methoxymethyl)cinnamonitrile
*Bromine Compounds
Sodium Bromide
N-butyl bromide
Hydrobromic Acid
N-Propyl Bromide
Iso-propyl
bromide(2-bromopropane)
Bromoethane (Ethyl
bromide)
1-Bromo-3-Chloropropane
Potassium Bromid
1,2-Dibromoethane(Ethylene
bromide)
*Temperature
sensing dyes
2-phenylamino-3-methyl-6-di-n-butylaminofluoran
(odb-2; senor-2) Color formers for thermal paper 89331-94-2
4-hydroxy-4'-isopropoxydiphenylsulfone(D-8)
developer
2-(2'-4'-dimethylbenzeneamido)-3-methyl-6-(diethyl
amino) fluorane
Benzyl 2-naphthyl
ether(BON) sensitizer
Ethylene glycol
bis m-tolye ether (EGTE) sensitizer
TMP is the main
product of SC; it covers 80% of Chinese market and 55% of total output around
world. SC’s TMP can meet the standards of BP98 & EP4; the annual output is
1,600 tons. At present, SC’s TMP has been well-received by over 300 clients in
26 provinces of China, and has been exported to over 42 countries such as
Germany, USA, Japan and Britain.
SC sources its
materials 80% from domestic market and 20% from overseas market, mainly Europe.
SC sells 60% of its products in domestic market and 40% to overseas market,
mainly Germany, USA, Japan and Britain.
The buying terms of SC include T/T and Credit of 30-60 days. The payment
terms of SC include 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.
Construction Bank of China Shouguang Sub-Branch
AC#3600165225000100451
Relationship:
Normal.
Financial Summary
===============
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Accounts
receivable |
48,020 |
66,610 |
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Current assets |
164,300 |
354,270 |
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Fixed assets |
74,080 |
90,850 |
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Total assets |
358,420 |
623,680 |
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Current
liabilities |
218,240 |
351,710 |
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Total
liabilities |
218,240 |
351,710 |
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Equities |
140,180 |
271,970 |
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Total
liabilities & equities |
358,420 |
623,680 |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
519,790 |
816,910 |
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Cost of goods
sold |
438,690 |
648,730 |
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Sales expense |
850 |
970 |
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Management
expense |
15,640 |
28,610 |
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Finance expense |
5,390 |
7,770 |
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Profit before
tax |
61,370 |
123,220 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
0.75 |
1.01 |
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*Quick ratio |
/ |
/ |
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*Liabilities
to assets |
0.61 |
0.56 |
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*Net profit
margin (%) |
/ |
/ |
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*Return on
total assets (%) |
/ |
/ |
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*Fixed
assets/Total assets |
0.21 |
0.15 |
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*Inventory
/Turnover ×365 |
/ |
/ |
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*Accounts
receivable/Turnover ×365 |
34 days |
30 days |
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*Turnover/Total
assets |
1.45 |
1.31 |
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* Cost of
goods sold/Turnover |
0.84 |
0.79 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover and profits of SC appears fairly good, and it was rising in
2005.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC appears fair in 2004 and normal in 2005.
l
The accounts receivable of SC appears average.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good financial
conditions. A credit line up to USD 1,500,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.43.79 |
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UK Pound |
1 |
Rs.80.05 |
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Euro |
1 |
Rs.64.56 |
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%)