MIRA INFORM REPORT
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Report Date : |
04.05.2011 |
IDENTIFICATION DETAILS
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Name : |
STARWAY PHARM CO., LTD. |
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Registered Office : |
A1111-1112, A Tower, Union Square, Binhe Road, Futian District,
Shenzhen, Guangdong Province 518000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
08.04.2004 |
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Com. Reg. No.: |
4403012138909 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Selling
Pharmaceutical Raw Materials |
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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Maximum Credit Limit : |
USD 80,000 |
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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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
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 & address
STARWAY
PHARM CO., LTD.
A1111-1112, A
TOWER,
Union Square, BINHE ROAD, FUTIAN
DISTRICT,
SHENZHEN, GUANGDONG
PROVINCE 518000 PR CHINA
TEL: 86 (0)
755-83732895 FAX: 86 (0) 755-82966302
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 8, 2004
REGISTRATION NO. : 4403012138909
REGISTERED LEGAL
FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 20
REGISTERED CAPITAL :
CNY 4,400,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 83,780,000 (UNaudited, AS OF DEC. 31, 2010)
EQUITIES :
CNY 6,560,000 (UNaudited, AS OF
DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 80,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
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 Yuan Renminbi
Note: SC is also registered in Hong Kong and the given address “Flat RM 1202, 12/F Al Tower 180 Electric Road, North Point China” is the registered address in Hong Kong. According to SC’s staff, there is no business in Hong Kong and all of SC’s business is operating in Shenzhen, mainland China.
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 Apr. 8, 2004.
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 establishing enterprise; domestic commerce,
goods and materials supply and marketing (not including specially operated,
controlled and monopolized commodities); import and export business (in
accordance with the permit).
SC is mainly
engaged in selling pharmaceutical raw materials.
Mr. Liao Wenqing
is legal representative, chairman and general manager of SC at present.
SC is known to
have approx. 20 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Shenzhen. Our checks reveal that SC rents the total premise about 150
square meters.
SC
is not known to host web site of its own at present.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN
SHAREHOLDERS:
Name
% of Shareholding
Liao Wenqing 50
Shi Yanzhi 50
l
Legal representative, Chairman and General manager:
Mr. Liao Wenqing, with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman and general manager.
l
Supervisor:
Shi Yanzhi
SC is mainly engaged
in selling pharmaceutical raw materials.
SC’s products mainly include western medicine materials, etc.
SC sources its
materials 100% from domestic market. SC sells 100% of its products to overseas
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 declined to release its major suppliers and clients.
SC
is said to invest in other companies, but the detail is not available.
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.
Industrial and
Commercial Bank of China
AC#: N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
7,020 |
2,910 |
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Inventory |
1,350 |
850 |
|
Bills receivable |
0 |
0 |
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Accounts
receivable |
5,150 |
13,060 |
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Advances to
suppliers |
6,160 |
3,100 |
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Other
receivables |
6,600 |
3,040 |
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Other current
assets |
30 |
20 |
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------------------ |
------------------ |
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Current assets |
26,310 |
22,980 |
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Fixed assets net
value |
380 |
310 |
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Long term
investment |
500 |
500 |
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Projects under
construction |
0 |
0 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
27,190 |
23,790 |
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=========== |
=========== |
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Short loan |
0 |
2,280 |
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Accounts payable |
6,720 |
3,370 |
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Bills payable |
0 |
0 |
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Advances from
clients |
720 |
4,710 |
|
Taxes payable |
20 |
30 |
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Other Accounts
payable |
13,300 |
6,820 |
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Other current
liabilities |
20 |
20 |
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------------------ |
------------------ |
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Current
liabilities |
20,780 |
17,230 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
20,780 |
17,230 |
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Equities |
6,410 |
6,560 |
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------------------ |
------------------ |
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Total
liabilities & equities |
27,190 |
23,790 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
|
Turnover |
83,780 |
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Cost of goods sold |
76,060 |
|
Sales expense |
4,660 |
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Management expense |
2,530 |
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Finance expense |
200 |
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Profit before tax |
310 |
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Less: profit tax |
60 |
|
Profits |
250 |
Note: The Financial Report for Year 2010 hasn’t been audited.
Important
Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.27 |
1.33 |
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*Quick ratio |
1.20 |
1.28 |
|
*Liabilities to
assets |
0.76 |
0.72 |
|
*Net profit
margin (%) |
/ |
0.30 |
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*Return on
total assets (%) |
/ |
1.05 |
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*Inventory
/Turnover ×365 |
/ |
4 days |
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*Accounts
receivable/Turnover ×365 |
/ |
57 days |
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*Turnover/Total
assets |
/ |
3.52 |
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* Cost of goods
sold/Turnover |
/ |
0.91 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2010.
l
SC’s net profit margin is average in 2010.
l
SC’s return on total assets is average in 2010.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover in 2010.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears fairly large
in 2010.
l
The short-term loan of SC appears average in 2010.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets in 2010.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable could be a threat to SC’s
financial condition. A credit line up to USD 80,000 would appear to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.34 |
|
UK Pound |
1 |
Rs.73.70 |
|
Euro |
1 |
Rs.65.75 |
RATING EXPLANATIONS
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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 |
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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 |
|
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.