MIRA INFORM REPORT
|
Report Date : |
28.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
LIVZON GROUP FUZHOU FUXING PHARMACEUTICAL
CO., LTD. |
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Registered Office : |
D3e, 7f, Sun Plaza, No. 278, Hudong Road, Fuzhou,
Fujian Province 350000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
13.11.1989 |
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Com. Reg. No.: |
350100400001335 |
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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 |
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 2,000,000 |
|
Status : |
Satisfactory |
|
Payment
Behaviour : |
Usually Correct |
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name & address
LIVZON GROUP FUZHOU FUXING PHARMACEUTICAL CO.,
LTD.
D3E,
FUZHOU, FUJIAN
PROVINCE 350000 PR CHINA
TEL: 86 (0) 591-
83677745
FAX: 86 (0) 591-
83549525
EXECUTIVE SUMMARY
Date of Registration : NOVember 13, 1989
REGISTRATION NO. : 350100400001335
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : USD 33,700,000
staff : 480
BUSINESS CATEGORY : manufacturing
Revenue : CNY 324,420,000 (AS OF
DEC. 31, 2010)
EQUITIES : CNY 309,170,000 (AS OF DEC. 31, 2010)
WEBSITE : www.fxpharm.com
E-MAIL :
fuxing@fxpharm.com
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
2,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.39 = USD 1
Adopted abbreviations
(as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
***Note: SC’s
address should be the heading one, while the given address (P.R. China 53
Lianjiang Road) was its former one.
SC was established as a Chinese-foreign
equity joint venture enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 350100400001335
on November 13, 1989.
SC’s Organization Code Certificate
No.: 61130302-7
SC’s registered capital: USD 33,700,000
SC’s paid-in capital: USD 33,700,000
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Livzon Pharmaceutical Group Inc. |
75 |
|
Ando Development Limited (Hong Kong) |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
An Ning |
|
General Manager |
Huang Yuxuan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name % of
Shareholding
Livzon Pharmaceutical Group Inc. 75
Ando Development Limited (Hong Kong) 25
Livzon Pharmaceutical Group Inc.
============================
Livzon Pharmaceutical Group Inc. (Livzon)
was founded in 1985. In 1993, Livzon became the first local pharmaceutical
company to list both A and B shares in Shenzhen Stock Exchange with the code
000513, with multifold turnover in development, manufacture, and marketing of
diversified pharmaceutical products. After a consistent growth, it possesses 24
controlled subsidiaries and joint ventures.
With 9 affiliated plants equipped by
advanced facilities, the dynamic production chain efficiently operates to
manufacture APIs, finished dosage forms, diagnostic agents and bioactive material,
characterized by know-how of fermentation, synthesis, gene recombination,
biological extraction, and traditional Chinese medicines, with more than 300
items therapeutically grouped as gastrointestinal, anti-infectious,
cardiovascular, anti-cancer, immunomodulant, reproductive, neurological,
urological, dermatological and pediatric agents.
Date of Registration: Jan. 26,
1985
Legal Form: Shares Limited Company
Chief Executive: Mr. Zhu Baoguo
(Legal Representative)
Registered Capital: CNY
295,721,850
Address: No.132, Guihua North Road, Gongbei,
Zhuhai, Guangdong, P.R. China
Tel: 0086-756- 8135888
Fax: 0086-756- 8886002
Website: http://www.livzon.com.cn
E-mail: web@livzon.com.cn
Ando Development Limited (Hong Kong)
==================================
CR No.: 0222981
Date of Registration: August 2,
1988
Company Status: Private
Active Status: Live
MANAGEMENT
An Ning, Legal Representative and Chairman
--------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 39
Ø
Qualification:
Master’s degree
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Huang Yuxuan, General
Manager
--------------------------------------------------------
Ø
Gender: F
Ø
Age: 39
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing antibiotics type
Active Pharmaceutical Ingredients, intermediate, preparation, and chemical raw
materials used in pharmaceutical production.
SC is mainly
engaged in manufacturing and selling Active Pharmaceutical Ingredients.
SC’s products
mainly include: Vancomycin HCL Sterile, L-phenylalanine, Kanamycin Mono
Sulphate, Kanamycin Acid Sulphate, Amikacin Sulfate, ect.
SC sources its
materials 100% from domestic market. SC sells 80% of its products in domestic
market, and 20% to the overseas market, mainly America, Europe, Japan, Korea,
and India.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 480 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is
not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( )
Not yet be 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.
BANKING
SC’s management
declined to release whether it has account in Bank of China.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
21,400 |
14,120 |
|
|
Notes receivable |
22,780 |
30,670 |
|
Accounts
receivable |
23,050 |
37,060 |
|
Advances to
suppliers |
4,460 |
14,480 |
|
Other receivable |
37,430 |
33,330 |
|
Inventory |
14,730 |
13,320 |
|
Deferred
expenses |
330 |
0 |
|
Other current
assets |
620 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
124,800 |
142,980 |
|
Fixed assets |
229,180 |
237,200 |
|
Construction in
progress |
6,040 |
6,130 |
|
Project
materials |
70 |
0 |
|
Long-term
investment |
20,020 |
20,020 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
17,160 |
19,090 |
|
|
------------------ |
------------------ |
|
Total assets |
397,270 |
425,420 |
|
|
============= |
============= |
|
Short-term loans |
30,000 |
0 |
|
Accounts payable |
12,310 |
15,920 |
|
Advances from
clients |
3,100 |
1,810 |
|
Other payable |
91,110 |
79,670 |
|
Other current
liabilities |
7,520 |
18,140 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
144,040 |
115,540 |
|
Non-current
liabilities |
700 |
710 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
144,740 |
116,250 |
|
Equities |
252,530 |
309,170 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
397,270 |
425,420 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Revenue |
239,660 |
324,420 |
|
Cost of sales |
202,540 |
251,190 |
|
Sales expense |
6,050 |
7,420 |
|
Management expense |
22,200 |
20,870 |
|
Finance expense |
280 |
1,720 |
|
Profit before
tax |
12,470 |
42,970 |
|
Less: profit tax |
0 |
5,490 |
|
12,470 |
37,480 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
0.87 |
1.24 |
|
*Quick ratio |
0.76 |
1.12 |
|
*Liabilities
to assets |
0.36 |
0.27 |
|
*Net profit
margin (%) |
5.20 |
11.55 |
|
*Return on
total assets (%) |
3.14 |
8.81 |
|
*Inventory /
Revenue ×365 |
23 days |
15 days |
|
*Accounts
receivable/ Revenue ×365 |
36 days |
42 days |
|
*
Revenue/Total assets |
0.60 |
0.76 |
|
* Cost of
sales / Revenue |
0.85 |
0.77 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good, and it was
rising in 2010.
l
SC’s net profit margin is fairly good in 2009 and
good in 2010.
l
SC’s return on total assets is average in 2009 and
fairly good in 2010.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2010.
l
SC’s quick ratio is maintained in a fairly good
level in 2010.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans in 2010.
l
SC’s revenue is in a
fair 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.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly good financial conditions. A credit line up to USD 2,000,000 would appear to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.18 |
|
UK Pound |
1 |
Rs.76.65 |
|
Euro |
1 |
Rs.66.63 |
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.