MIRA INFORM REPORT
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Report Date : |
07.06.2011 |
IDENTIFICATION DETAILS
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Name : |
XI’AN LIJUN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 151 Hancheng
South Road, Xi’an, Shaanxi Province, 710077 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2008 |
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Date of Incorporation : |
01.12.2004 |
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Com. Reg. No.: |
610100400004422 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
manufacturing and Selling Pharmaceutical
Products. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
usd 4,000,000 |
|
Status : |
Satisfactory |
|
Payment
Behaviour : |
No Complaints |
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
xi’an LIJUN pharmaceutical
co., ltd.
no.
151 hancheng south road, xi’an
shAanxi
province, 710077 PR CHINA
TEL:
86 (0) 29-84682200/84264676/84682899 FAX:
86 (0) 29-84261550
EXECUTIVE SUMMARY
INCORPORATION
DATE : december 1, 2004
REGISTRATION
NO. : 610100400004422
REGISTERED
LEGAL FORM : Wholly foreign-owned enterprise
STAFF
STRENGTH : 2,300
REGISTERED
CAPITAL : CNY 280,000,000
BUSINESS
LINE :
manufacturing
TURNOVER : CNY 912,070,000 (AS OF DEC. 31, 2008)
EQUITIES : CNY
597,840,000 (AS OF DEC. 31, 2008)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : UP TO usd 4,000,000
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : fairly good
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : WELL-KNOWN
EXCHANGE
RATE : CNY 6.50= USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Ren Min
Bi Yuan
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 December 1, 2004 and has been under present ownership since Nov. of 2006.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign investors.
More than one foreign investors may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business scopes include
manufacturing Active Pharmaceutical Ingredients (erythromycin ethylsuccinate,
tetracycline hydrochloride, calcium dobesilate, clarithromycin, erythromycin,
urapidil hydrochloride, armillarisin A, azithromycin, erythromycin estolate,
dirithromycin, nalmefene HCL, edaravone), small-volume injection, lyophilized
powder for injection, tablet, category 2 psychotropic substances (Diazepam
Tablets and Diazepam Injection), capsule, soft capsule, granules,
powder-injection (cephalosporin), dry suspension, food additives (D-sodium
isoascorbate), health foods (limited to Love Oral Solution, Gyrophora Red Oral
Solution, Shengtai Shuangkang Oral Solution, Yanglijia Effervescent Tablets and
Zijin Propolis
Aloes Soft Capsule), relative raw materials
and packing materials; selling self-made products) (limited to manufacturing in
the address of No.151, Hancheng South Road, Xi’an, validity period as of Dec.
2, 2010); selling medicinal raw materials, dressing and relative chemical
products (excluding the hazardous chemicals).
SC is mainly engaged in manufacturing and
selling pharmaceutical products.
Mr. Wu Qin has been legal representative
and chairman of SC since 2004.
SC is known to have approx. 2,300
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 Xi’an. Our checks reveal that SC owns the total premise about 50,000 square meters.
http://www.lijun.com The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
E-Mail: webmaster@lijun.com
SC obtained the
Certificate of GMP for API; Certificate of GMP for Erythromycin Ethylsuccinate
(API); Certificate of GMP for Tablets, Capsules, Granules; Certificate of GMP
for Small Volume Parenteral Solutions, Powder for Injection, Lyophilized Powder
for Injection; and Certificate of GMP for Erythromycin (API).
SC obtained the
Certificate of ISO14001.
Changes of its registered
information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2006-11 |
Registered Legal
form |
Chinese-foreign equity joint venture enterprise |
Wholly
foreign-owned enterprise |
|
Registered capital |
CNY 210,900,000 |
CNY 280,000,000 |
|
|
Shareholders |
Rejoy Group Co., Ltd. 20% (Cayman Islands) Lijun International
Pharmaceutical (Holding) Co., Ltd. 80% 80 |
(Cayman Islands) Lijun International Pharmaceutical (Holding) Co.,
Ltd. 100% |
MAIN SHAREHOLDERS:
Name % of Shareholding
(British Cayman Islands) Lijun Int’l
Pharmaceutical (Holding) Co., Ltd. 100
Lijun International Pharmaceutical (Holding) Co., Ltd.,
registered in British Cayman Islands, which is headquartered in HK
International Convention and Exhibition Center, being listed in HK Main Board
in 2005 (stock code: 2005), has been engaged in investment and financing
business relying upon pharmaceutical and management in Greater China.
Lijun International Pharmaceutical (Holding) Co., Ltd.
("The Group") is one of the leading pharmaceutical manufacturers in
the PRC with 7 decades of operation history and a well-established brand name.
The Group is principally engaged in the research, development, manufacture and
sale of a wide range of pharmaceutical products, including antibiotics,
intravenous infusion solution, non-antibiotics finished medicines, bulk
pharmaceuticals and OTC and healthcare products.
Registration No. : F0014044
Establishment Date: Jun. 13, 2005
Company Status: Listed
Active Status: Live
l
Legal
representative and chairman:
Mr. Wu Qin , 56 years
old with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2004 to present Working
in SC as legal representative and chairman.
Also working in Lijun International Pharmaceutical (Holding) Co., Ltd. as CEO.
l
General
Manager:
Mr. Huang Chao, 53 years old with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as general manager.
Also working in Lijun
International Pharmaceutical (Holding) Co., Ltd. as executive director.
SC is mainly engaged in manufacturing and
selling pharmaceutical products.
SC’s products mainly include: prescribed drug, remedium basis, high quality
health products, Chinese patent drug, “lijunsha” anti-inflammatory, ect.
SC sources its materials 100% from domestic
market, mainly from Shaanxi. SC sells 60% of its products in domestic market,
and 40% to overseas market, mainly to India.
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.
*Major Customers:
==============
Xi’an Rejoy Baichuan
Pharmaceutical Chemical Co., Ltd.
*Major Suppliers:
==============
Xi'an Global
Printing Co., Ltd.
SC is known to have a subsidiary at present.
Shanxi Rejoy Hosital Pharmaceutical 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’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 Xi’an Tumen Sub-Branch Fengxi Office
AC# 3700022109006000568
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2007 |
as of Dec. 31, 2008 |
|
Cash & bank |
62,420 |
112,980 |
|
Short-term investment |
460 |
4,220 |
|
Bills receivable |
49,250 |
97,700 |
|
Accounts receivable |
209,830 |
184,430 |
|
Advances to suppliers |
8,910 |
5,960 |
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Other Accounts receivable |
0 |
0 |
|
Inventory |
119,990 |
136,470 |
|
Prepaid expense |
2,420 |
4,780 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
453,280 |
546,540 |
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Fixed assets net value |
250,920 |
223,660 |
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Projects under construction |
169,420 |
74,950 |
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Long term investment |
13,140 |
2,030 |
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Other assets |
14,300 |
143,440 |
|
|
------------------ |
------------------ |
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Total assets |
901,060 |
990,620 |
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|
============= |
============= |
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Short loans |
90,000 |
200,000 |
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Accounts payable |
43,770 |
41,930 |
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Advances from clients |
21,130 |
14,200 |
|
Other Accounts payable |
17,500 |
89,580 |
|
Taxes payable |
10,470 |
10,450 |
|
Withdraw the expenses in advance |
18,260 |
36,620 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current liabilities |
201,130 |
392,780 |
|
Long term liabilities |
86,030 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
287,160 |
392,780 |
|
Equities |
613,900 |
597,840 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
901,060 |
990,620 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2008 |
|
Turnover |
912,070 |
|
Cost of goods sold |
471,500 |
|
Sales expense |
274,150 |
|
Management expense |
100,950 |
|
Finance expense |
13,830 |
|
Profit before tax |
48,180 |
|
Less: profit tax |
7,630 |
|
Profits |
40,550 |
Important Ratios
=============
|
|
As of Dec. 31, 2007 |
As of Dec. 31, 2008 |
|
*Current ratio |
2.25 |
1.39 |
|
*Quick ratio |
1.66 |
1.04 |
|
*Liabilities to assets |
0.32 |
0.40 |
|
*Net profit margin (%) |
/ |
4.45 |
|
*Return on total assets (%) |
/ |
4.09 |
|
*Inventory /Turnover ×365 |
/ |
55 days |
|
*Accounts receivable/Turnover ×365 |
/ |
74 days |
|
*Turnover/Total assets |
/ |
0.92 |
|
* Cost of goods sold/Turnover |
/ |
0.52 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears fairly good in its line.
l
SC’s net
profit margin is fairly good.
l
SC’s
return on total assets is fairly good.
l
SC’s
cost of goods sold is low, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a fairly good level in 2007, but average
in 2008
l
SC’s
quick ratio is maintained in a fairly good level in 2007, but average in 2008.
l
The
inventory of SC appears average in 2007 and 2008.
l
The
accounts receivable of SC appears fairly large in 2007 and 2008.
l
The
short-term loan of SC appears average in 2007, but fairly large in 2008.
l
SC’s
turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
l
The debt
ratio of SC is low.
l
The risk
for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly
good.
SC is considered
large-sized in its line with fairly good financial 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.44.72 |
|
UK Pound |
1 |
Rs.73.46 |
|
Euro |
1 |
Rs.65.47 |
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 |
|
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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.