MIRA INFORM REPORT

 

 

Report Date :

31.07.2012

 

IDENTIFICATION DETAILS

 

Name :

ANHUI BIOCHEM UNITED PHARMACEUTICAL CO., LTD.

 

 

Registered Office :

No. 108 Shahe Road, Taihe County, Fuyang City, Anhui Province 236604 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

15.08.2007

 

 

Com. Reg. No.:

341222000000276

 

 

Legal Form :

Chinese-Foreign Equity Joint Venture Enterprise

 

 

Line of Business :

manufacturing and selling pharmaceutical intermediates, APIs and finished drug

 

 

No. of Employees :

230

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Moderate

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, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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 

 

anhui biochem united pharmaceutical co., ltd.

no. 108 shahe road, taihe county, fuyang city

anhui province 236604 PR CHINA

TEL: 86 (0) 558-8629371/2939189

FAX: 86 (0) 558-8635599

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : august 15, 2007

REGISTRATION NO.                  : 341222000000276

LEGAL FORM                           : Chinese-foreign equity joint venture enterprise

CHIEF EXECUTIVE                    : wang zhibang (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : USD 8,800,000

staff                                      : 230

BUSINESS CATEGORY             : manufacturing

Revenue                                : CNY 63,870,000 (AS OF DEC. 31, 2010)

EQUITIES                                 : CNY 72,000,000 (AS OF DEC. 31, 2010)

WEBSITE                                 : www.bcpharm.com

E-MAIL                                     : zn@bcpharm.com

PAYMENT                                : AVERAGE

MARKET CONDITION                : average

FINANCIAL CONDITION             : FAIRly stable

OPERATIONAL TREND              : fairly STEADY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                     : CNY 6.35 = 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

LEGAL STATUS & HISTORY

 

***Note: SC’s Import & Export Department locates in the given address (No. 30 Hongfeng Road, Hi-Tech Development Zone, Hefei (230088), China), and the given contact ways (865515167052/5228268) also belongs to it.

 

SC was established as a Chinese-foreign equity joint venture enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 341222000000276 on August 15, 2007.

 

SC’s Organization Code Certificate No.: 66293236-8

SC’s registered capital: USD 8,800,000

 

SC’s paid-in capital: USD 8,800,000

 

Registration Change Record:-

Date

Change of Contents

Before the change

After the change

--

Registered Capital

USD 7,550,000

USD 8,800,000

Shareholder (s) (% of Shareholding)

Anhui Biochem Pharmaceutical Co., Ltd.

73.49%

QVT FUND LP 26.00%

Li Fulin

0.50%

Li Ling

0.01%

Anhui Biochem Pharmaceutical Co., Ltd.

68.864%

QVT FUND LP 15.204%

Shanghai Jiaji Investment Partnership Enterprise (Limited Partnership)

 14.204%

Ji Zongming

1.296%

Zhou Zhuowei

0.432%

 

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Anhui Biochem Pharmaceutical Co., Ltd.

 

68.864

QVT FUND LP

15.204

Shanghai Jiaji Investment Partnership Enterprise (Limited Partnership)

 

14.204

Ji Zongming

 

1.296

Zhou Zhuowei

 

0.432

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative, Chairman, and General Manager

Wang Zhibang

Director

Li Fulin

Supervisor

Li Ling

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                                  % of Shareholding

Anhui Biochem Pharmaceutical Co., Ltd.                                                             68.864

QVT FUND LP                                                                                                   15.204

Shanghai Jiaji Investment Partnership Enterprise (Limited Partnership)                   14.204

Ji Zongming                                                                                                       1.296

Zhou Zhuowei                                                                                                    0.432

 

*         Anhui Biochem Pharmaceutical Co., Ltd.

-------------------------------------------------------

Date of Registration: March 26, 2003

Registration No.: 341222000001734

Legal Form: Limited Liabilities Company

Chief Executive: Wang Zhibang

Registered Capital: CNY 26,000,000

 

 

 

 

MANAGEMENT

 

Wang Zhibang , Legal Representative, Chairman and General Manager

-------------------------------------------------------------------------------------------------------

Ø         Gender: M

Ø         Age: 50’s

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as legal representative, chairman and general manager

Also working in Anhui Biochem Pharmaceutical Co., Ltd. as legal representative

 

Director

-----------

Li Fulin

 

Supervisor

---------------

Li Ling

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing pharmaceutical intermediates, APIs and finished drug; researching and developing related pharmaceutical raw materials and finished products; selling its owned products and providing related support services.

 

SC is mainly engaged in manufacturing and selling pharmaceutical intermediates, APIs and finished drug.

 

Brand: BC

 

SC’s products mainly include:

Lamivudine (3TC)

Zidovudine (AZT)

Nevirapine (NVP)

Ritonavir (RTV)

Lopinavir (LPV)

Lafutidine

Entecavir

Tenofovir Disoproxil Fumarate

S-Adenosyl-L-Methionine Disulfate Tosylate (SAMe)

 

SC sources its materials 100% from domestic market, mainly Anhui. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly USA, Europe and Southeast Asia.

 

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.

Staff & Office:

--------------------------

SC is known to have approx. 230 staff at present.

 

SC owns an area as its operating office & factory of approx. 51,000 sq. meters at the heading address.

 

 

RELATED COMPANY

 

SC is known to have 2 subsidiaries at present:

n         Anhui Biochem Bio-Pharmaceutical Co., Ltd.

------------------------------------------------------------

Date of Registration: 340106000007770

Address: No. 30 Hongfeng Road, Hi-Tech Development Zone, Hefei (230088), China

Tel: +86 551 5228299

Fax: +86 551 5228200

Email: xsl@bcpharm.com

 

n         Anhui Biochem Medical Sales Co., Ltd.

------------------------------------------------------

Date of Registration: 340106000034843

Address: No. 30 Hongfeng Road, Hi-Tech Development Zone, Hefei (230088), China

Tel: +86 400 6907999

Fax: +86 551 5369760

Email: lzz@bcpharm.com

 

 

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

 

The bank information of SC is not filed in SAIC.

 

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2009

As of Dec. 31, 2010

Cash

500

2,330

Accounts receivable

1,480

45,020

Advances to suppliers

0

0

Other receivable

19,430

-7,700

Inventory

34,570

36,550

Non-current assets within one year

0

0

Other current assets

-13,260

20,670

 

------------------

------------------

Current assets

42,720

96,870

Fixed assets

5,950

6,060

Construction in progress

11,190

11,660

Intangible assets

0

0

Long-term investment

40,000

62,000

Deferred income tax assets

0

0

Other non-current assets

23,140

21,350

 

------------------

------------------

Total assets

123,000

197,940

 

=============

=============

Short-term loans

34,010

32,000

Accounts payable

0

0

Wages payable

0

0

Advances from clients

0

0

Other payable

6,920

23,520

Other current liabilities

2,610

10,410

 

------------------

------------------

Current liabilities

43,540

65,930

Non-current liabilities

30,020

60,010

 

------------------

------------------

Total liabilities

73,560

125,940

Equities

49,440

72,000

 

------------------

------------------

Total liabilities & equities

123,000

197,940

 

=============

=============

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2010

Revenue

63,870

Cost of sales

24,790

    Sales expense

2,190

    Management expense

9,080

    Finance expense

2,630

Profit before tax

25,210

Less: profit tax

2,660

Profits

22,550

 

***Note: The financials for Y2011 of SC are not available in local SAIC.

 

Important Ratios

=============

 

As of Dec. 31, 2009

As of Dec. 31, 2010

*Current ratio

0.98

1.47

*Quick ratio

0.19

0.91

*Liabilities to assets

0.60

0.64

*Net profit margin (%)

--

35.31

*Return on total assets (%)

--

11.39

*Inventory / Revenue ×365

--

209 days

*Accounts receivable/ Revenue ×365

--

258 days

* Revenue/Total assets

--

0.32

* Cost of sales / Revenue

--

0.39

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIRLY GOOD

l         The revenue of SC appears average in its line.

l         SC’s net profit margin is good.

l         SC’s return on total assets is fairly good.

l         SC’s cost of goods sold is low, comparing with its revenue.

 

LIQUIDITY: FAIR

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 large.

l         The accounts receivable of SC appears large.

l         The short-term loan of SC appears fairly large.

l         SC’s revenue is in a fair level, comparing with the size of its total assets.

 

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.

 

 

CONCLUSIONS

 

SC is considered medium-sized in its line with fairly stable financial conditions. The large amount of inventory and accounts receivable may be a threat to SC’s financial condition.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.44

UK Pound

1

Rs.87.12

Euro

1

Rs.68.15

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.