MIRA
INFORM REPORT
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Report Date : |
16.02.2011 |
IDENTIFICATION DETAILS
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Name : |
LUOHE NANJIECUN PHARMACEUTICAL GROUP PHARMACY CO., LTD. |
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Registered Office : |
No. 7, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
09.07.2002 |
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Com. Reg. No.: |
4111001100374 |
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Legal Form : |
Limited Liabilities Co |
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Line of Business : |
Manufacturing and Selling Active Pharmaceutical
Ingredients (API) |
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 |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Status : |
Moderate |
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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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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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
LUOHE NANJIECUN PHARMACEUTICAL GROUP PHARMACY CO., LTD.
No. 7, Renmin East Road, Luohe City Henan Province 462000 Pr
China
TEL: 86 (0) 395-2660158
FAX: 86 (0) 395-2660127
EXECUTIVE SUMMARY
INCORPORATION DATE :
jul. 9, 2002
REGISTRATION NO. : 4111001100374
REGISTERED LEGAL FORM : Limited liabilities co.
CHIEF EXECUTIVE : Mr. WANG
HONGBIN (CHAIRMAN)
STAFF STRENGTH : 252
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER : CNY 58,890,000
(UNAUDITED, AS OF DEC. 31, 2010)
EQUITIES : CNY -6,680,000
(UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.59 = 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
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 was registered as a sole state-owned enterprise at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on Jul. 9, 2002 and later was changed into
present legal form.
SC’s registered business scope includes manufacturing troche,
hard capsule, and rifampin Active Pharmaceutical Ingredients (API), exporting
its self-made products and technology; and importing machinery, components, raw
materials, and technology, excluding the items limited or prohibited by state.
SC is mainly engaged in manufacturing and selling Active
Pharmaceutical Ingredients (API).
Mr. Wang Hongbin has been legal representative and chairman
of SC since 2002.
SC is known to have approx. 252 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
Luohe. Our checks reveal that SC rents the total premise about 48,000 square
meters.
SC is not known to host website of its own at present.
Changes of its registered information:
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Date
of change |
Item |
Before
the change |
After
the change |
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Unknown |
Legal form |
Sole state-owned enterprise |
Limited liabilities co. |
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Shareholders |
Luohe Nanjiecun Pharmaceutical Group Co., Ltd. 100% |
Present ones |
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Luohe Nanjiecun Pharmaceutical Group Co., Ltd. 90
Henan Nanjiecun Industry Co., Ltd. 10
Luohe Nanjiecun Pharmaceutical Group Co., Ltd.
Legal representative: Wang Hongbin
Registration No.: 411100100016036
Add: No. 7, Renmin East Road, Luohe City, Henan Province
Tel: 0395-2660156
Legal
representative, chairman and general manager:
Mr. Wang Hongbin, in his
Working Experience(s):
From 2002 to present Working
in SC as legal representative, chairman and general manager.
Also working in Luohe Nanjiecun Pharmaceutical Group Co.,
Ltd. as legal representative.
Assistant
Manager:
Mr. Luo Guodian, in his
Working Experience(s):
From 2002 to present Working in SC as assistant manager
SC is mainly engaged in manufacturing and selling Active
Pharmaceutical Ingredients (API)
SC’s products mainly include: troche, hard capsule, and
rifampin Active Pharmaceutical Ingredients (API).
SC sources its materials 80% from domestic market, mainly
Henan province, and 20% from overseas market; SC sells its products 75% in
domestic market, mainly Henan province, and 25% to overseas market, mainly
India, Chile, and Pakistan.
The buying terms of SC include T/T, L/C and Credit of 30-60
days. The payment terms of SC include T/T, L/C, and Credit of 30-60 days.
*Major
Supplier:
Zhengzhou Zhuoda Industry 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 supplier declined to make any
commends.
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 of China Tiedong Sub-branch
AC#：1711020809201002238
Relationship: Normal.
Balance
Sheet
Unit:
CNY’000
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as of Dec. 31, 2009 |
as of Dec. 31, 2010 |
|
4,450 |
7,290 |
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Inventory |
11,360 |
14,240 |
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Bills
receivable |
1,120 |
1,140 |
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Accounts
receivable |
6,220 |
540 |
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Other
Accounts receivable |
790 |
1,220 |
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Advances
to suppliers |
3,290 |
830 |
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Other
current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
27,230 |
25,260 |
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Fixed assets net value |
33,170 |
31,200 |
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Projects under construction |
0 |
10,880 |
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Long term investment |
0 |
0 |
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Other assets |
490 |
350 |
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------------------ |
------------------ |
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Total assets |
60,890 |
67,690 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
610 |
1,230 |
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Advance from clients |
8,170 |
2,060 |
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Other Accounts payable |
12,150 |
23,510 |
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Tax payable |
40 |
230 |
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Other current liabilities |
0 |
530 |
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------------------ |
------------------ |
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Current liabilities |
20,970 |
27,560 |
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Long term liabilities |
46,810 |
46,810 |
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------------------ |
------------------ |
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Total liabilities |
67,780 |
74,370 |
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Equities |
-6,890 |
-6,680 |
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------------------ |
------------------ |
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Total liabilities & equities |
60,890 |
67,690 |
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============= |
Income
Statement
Unit:
CNY’000
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as of Dec. 31, 2009 |
as of Dec. 31, 2010 |
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Turnover |
41,890 |
58,890 |
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Cost of goods sold |
41,910 |
52,340 |
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Sales expense |
460 |
990 |
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Management
expense |
2,380 |
2,370 |
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Finance expense |
3,550 |
1,170 |
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Profit before tax |
-6,360 |
2,460 |
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Less: profit tax |
0 |
0 |
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Profits |
-6,360 |
2,460 |
Note: The above financial records for Year 2010 have not
been audited.
Important
Ratios
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As of Dec. 31,
2009 |
as of Dec. 31,
2010 |
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*Current ratio |
1.30 |
0.92
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*Quick ratio |
0.76 |
0.40
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*Liabilities to assets |
1.11 |
1.10
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*Net profit margin (%) |
-15.18 |
4.18
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*Return on total assets (%) |
-10.45 |
3.63
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*Inventory /Turnover ×365 |
99
days |
88
days |
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*Accounts receivable/Turnover ×365 |
54 days |
3
days |
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*Turnover/Total assets |
0.69 |
0.87
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* Cost of goods sold/Turnover |
1.00 |
0.89
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PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line, and it
increased in 2010.
SC’s net profit margin is poor in 2009 and average in 2010.
SC’s return on total assets is fair in 2009 and average in
2010.
SC’s cost of goods sold is high in 2009 and average in 2010,
comparing with its turnover.
LIQUIDITY:
FAIR
The current ratio of SC is maintained in a normal level in
2009 but in a fair level in 2010.
SC’s quick ratio is maintained in a fair level in both 2
years.
The inventory of SC appears fairly large in both 2 years.
The accounts receivable of SC appears average in both 2
years.
SC has no short-term loan in both 2 years.
SC’s turnover is in a fair level in both 2 years, comparing
with the size of its total assets.
LEVERAGE:
POOR
The debt ratio of SC is too high.
The risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair
financial conditions. The large amount of inventory could be a threat to SC’s
financial condition. Credit dealings with SC should be confined into C.O.D. at
present.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.45 |
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|
1 |
Rs.72.90 |
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Euro |
1 |
Rs.61.43 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.