MIRA
INFORM REPORT
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Report Date : |
01.12.2011 |
IDENTIFICATION DETAILS
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Name : |
QILU TIANHE PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 849 Dongjia Town, Licheng District,
Ji’nan, Shandong Province, 250105 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
07.12.2006 |
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Com. Reg. No.: |
370000400003356 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and selling active pharmaceutical ingredients for antibiotics, antineoplastic agents, blood vessel of heart and brain, psychotropic drugs and other related active pharmaceutical ingredients, preparation and intermediate. |
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No. of Employees : |
1,500 |
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 4,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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China
|
A2 |
A2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
QILU TIANHE PHARMACEUTICAL CO., LTD.
NO. 849 DONGJIA
TOWN, LICHENG DISTRICT,
JI’NAN, SHANDONG
PROVINCE, 250105 PR CHINA
TEL: 86 (0) 531- 83127714/83128396 FAX: 86 (0) 531-83128097
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 7, 2006
REGISTRATION NO. : 370000400003356
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT
VENTURE ENTERPRISE
STAFF STRENGTH :
1,500
REGISTERED CAPITAL : CNY 90,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 779,150,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 730,490,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 4,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.37 = 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 Renminbi
SC was registered as a Chinese-foreign equity joint venture enterprise at provincial Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Dec. 7, 2006.
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 selling active pharmaceutical
ingredients (amikacin, buflomedil hydrochloride, amikacin sulfate, tazobactam, hydroxyurea,
carmofur, tegafur, uracil), and psychotropic drugs (alprazolam active
pharmaceutical ingredients).
SC is mainly
engaged in manufacturing and selling active pharmaceutical ingredients for
antibiotics, antineoplastic agents, blood vessel of heart and brain,
psychotropic drugs and other related active pharmaceutical ingredients,
preparation and intermediate.
Mr. Li
Baoyong has been legal representative
and chairman of SC since 2006.
SC is known to have approx. 1,500 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 Ji’nan. Our checks
reveal that SC owns the total premise, but SC’s accountant refused to release
the gross area.
http://www.qilu-tianhe.com/
The design is professional and the content is well organized. At present it is
only in Chinese version.
Email: export@qilu-pharma.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Antibiotics Hong Kong International Limited 25
Qilu Pharmaceutical Co., Ltd. 75
* Antibiotics Hong Kong International
Limited
====================================================
Incorporation Date :
February 1, 1994
Registration No. : 0463233
Registered Legal Form : Private
*Qilu Pharmaceutical Co., Ltd.
=====================================
Qilu Pharmaceutical, one of the leading
pharmaceutical companies in China, develops, manufactures and markets quality
and affordable generic drugs in some important therapeutic areas of Oncology,
Infections, Cerebrovascular & Cardiovascular, Psychological and
Neurological system, Respiratory system, Ophthalmological Diseases.
Tel: 0531-83126666/83127777
Fax: 0531-83129688
Web: http://www.qilu-pharma.com/
l
Legal representative, chairman and
general manager:
Mr. Li Baoyong , born in 1966 with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman, legal representative and general manager.
SC is mainly
engaged in manufacturing and selling active pharmaceutical ingredients for antibiotics,
antineoplastic agents, blood vessel of heart and brain, psychotropic drugs and
other related active pharmaceutical ingredients, preparation and intermediate.
Main Products: amikacin,
buflomedil hydrochloride, amikacin sulfate, tazobactam, hydroxyurea, carmofur,
tegafur, uracil, alprazolam, etc.
SC sources its materials 100% from domestic
market. SC sells 40% of its products in domestic market, and 60% to overseas
market, mainly European market.
The buying terms of SC include Check, 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.
Note: SC’s management declined to release its main clients and
suppliers.
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.
Agricultural Bank of China Ji’nan Industrial North Road Sub-branch
AC# N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
Cash & bank |
42,790 |
52,900 |
|
Notes receivable |
9,080 |
7,140 |
|
Inventory |
162,150 |
318,860 |
|
Accounts
receivable |
152,620 |
161,620 |
|
Advances to
suppliers |
3,100 |
91,410 |
|
Other
receivables |
140,870 |
3,420 |
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Other current
assets |
270 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
510,880 |
635,350 |
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Fixed assets |
357,600 |
481,790 |
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Long term
investment |
0 |
0 |
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Long-term
deferred expenses |
8,230 |
7,740 |
|
Projects under
construction |
0 |
81,640 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
876,710 |
1,206,520 |
|
|
============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
95,210 |
186,010 |
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Advances from
customers |
1,970 |
680 |
|
Employee pay
payable |
3,090 |
250 |
|
Taxes payable |
-15,590 |
-4,990 |
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Other payable |
276,020 |
294,080 |
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Accrued expenses |
6,190 |
0 |
|
Other current
liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
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Current
liabilities |
366,890 |
476,030 |
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Long term
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
366,890 |
476,030 |
|
Shareholders
equities |
509,820 |
730,490 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
876,710 |
1,206,520 |
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|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
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Turnover |
689,760 |
779,150 |
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Cost of goods sold |
456,300 |
514,890 |
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Sales expense |
8,200 |
7,750 |
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Management expense |
11,450 |
23,060 |
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Finance expense |
-2,010 |
14,990 |
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Non-operating
income |
850 |
2,940 |
|
Non-operating expense |
690 |
790 |
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Profit before
tax |
215,980 |
220,590 |
|
Less: profit tax |
27,000 |
27,570 |
|
Profits |
188,980 |
193,020 |
Important Ratios
=============
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
*Current ratio |
1.39 |
1.33 |
|
*Quick ratio |
0.95 |
0.66 |
|
*Liabilities
to assets |
0.42 |
0.39 |
|
*Net profit
margin (%) |
27.40 |
24.77 |
|
*Return on
total assets (%) |
21.56 |
16.00 |
|
*Inventory
/Turnover ×365 |
86 days |
149 days |
|
*Accounts
receivable/Turnover ×365 |
81 days |
76 days |
|
*Turnover/Total
assets |
0.79 |
0.65 |
|
* Cost of
goods sold/Turnover |
0.66 |
0.66 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
and it was rising in 2010.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is good in both years.
l
SC’s cost of goods sold is low, comparing with its
turnover in both years.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
2009 but in a fair level in 2010.
l
The inventory of SC appears fairly large in 2010.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fair level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered large-sized in its line with stable financial
conditions. Taking into consideration of SC’s good background, general
performance, reputation as well as market conditions, a credit line up to USD 4,000,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.16 |
|
|
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.69.47 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.