MIRA
INFORM REPORT
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Report Date : |
01.10.2012 |
IDENTIFICATION DETAILS
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Name : |
DIRUI INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 95, Yunhe Street, New & High-Tech Development Zone, Changchun, Jilin Province, 130012 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
26.12.1994 |
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Com. Reg. No.: |
220107020005041 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in researching, developing, manufacturing and selling urine, urinary sediment, biochemical, blood cells and other medical testing equipment as well as supporting dipstick reagent. |
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No. of Employees : |
1,303 |
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RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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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 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China
has moved from a closed, centrally planned system to a more market-oriented one
that plays a major global role - in 2010 China became the world's largest exporter.
Reforms began with the phasing out of collectivized agriculture, and expanded
to include the gradual liberalization of prices, fiscal decentralization,
increased autonomy for state enterprises, creation of a diversified banking
system, development of stock markets, rapid growth of the private sector, and
opening to foreign trade and investment. China has implemented reforms in a
gradualist fashion. In recent years, China has renewed its support for
state-owned enterprises in sectors it considers important to "economic
security," explicitly looking to foster globally competitive national
champions. After keeping its currency tightly linked to the US dollar for
years, in July 2005 China revalued its currency by 2.1% against the US dollar and
moved to an exchange rate system that references a basket of currencies. From
mid 2005 to late 2008 cumulative appreciation of the renminbi against the US
dollar was more than 20%, but the exchange rate remained virtually pegged to
the dollar from the onset of the global financial crisis until June 2010, when
Beijing allowed resumption of a gradual appreciation. The restructuring of the
economy and resulting efficiency gains have contributed to a more than tenfold
increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis
that adjusts for price differences, China in 2010 stood as the second-largest
economy in the world after the US, having surpassed Japan in 2001. The dollar
values of China's agricultural and industrial output each exceed those of the
US; China is second to the US in the value of services it produces. Still, per
capita income is below the world average. The Chinese government faces numerous
economic challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy's rapid transformation. Economic
development has progressed further in coastal provinces than in the interior,
and by 2011 more than 250 million migrant workers and their dependents had
relocated to urban areas to find work. One consequence of population control
policy is that China is now one of the most rapidly aging countries in the
world. Deterioration in the environment - notably air pollution, soil erosion,
and the steady fall of the water table, especially in the North - is another
long-term problem. China continues to lose arable land because of erosion and
economic development. The Chinese government is seeking to add energy
production capacity from sources other than coal and oil, focusing on nuclear
and alternative energy development. In 2010-11, China faced high inflation
resulting largely from its credit-fueled stimulus program. Some tightening
measures appear to have controlled inflation, but GDP growth consequently
slowed to near 9% for 2011. An economic slowdown in Europe is expected to further
drag Chinese growth in 2012. Debt overhang from the stimulus program,
particularly among local governments, and a property price bubble challenge
policy makers currently. The government's 12th Five-Year Plan, adopted in March
2011, emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent on exports in the
future. However, China has made only marginal progress toward these rebalancing
goals.
Source : CIA
Company name and address
DIRUI INDUSTRIAL
CO., LTD.
NO. 95, YUNHE STREET, NEW & HIGH-TECH
DEVELOPMENT ZONE,
CHANGCHUN, JILIN PROVINCE, 130012 PR CHINA
TEL: 86 (0)
431-85100406/85100409/81931012 FAX: 86 (0) 431-85173354
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 26, 1994
REGISTRATION NO. :
220107020005041
REGISTERED LEGAL FORM : SHARES LIMITED CO.
CHIEF EXECUTIVE :
MR. SONG YONG (CHAIRMAN)
STAFF STRENGTH :
1,303
REGISTERED CAPITAL : CNY 46,000,000
BUSINESS LINE :
R&D, MANUFACTURE AND TRADE
TURNOVER :
CNY 358,055,000 (Consolidated, AS OF
DEC. 31, 2011)
EQUITIES :
CNY 251,607,000 (Consolidated, AS OF
DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2857 = 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
SC was registered as a limited liabilities company at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Dec. 26, 1994, and has been under the present legal form since
July, 2010.
Company Status:
Shares limited co. This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing class Ⅲ 6840 cynical laboratory analytical instruments and class Ⅱ 6840 clinical testing of the instruments (medical
equipment production license validity period as of Dec. 7, 2015), selling class
II medical device, 321 medical electronic equipment, 322 medical optical
apparatus, instruments and endoscopic equipment, 323 medical ultrasound
equipment and related equipment, 325 medical high frequency equipment, 328
magnetic resonance equipment for medical, 330 medical X-ray equipment,331
subsidiary of medical X-ray equipment and parts, and 354 operating room,
emergency room, exam room equipment and utensils; developing and selling raw
and auxiliary materials of self-produced products and semi-manufactured goods,
raw and auxiliary materials required by the research, machinery and equipment,
instrumentation, software, after-sales service of the operating products (the
items prohibited by national laws and regulations shall not be operated; the
special approval of the project not approved shall not operate)
SC is mainly
engaged in researching, developing, manufacturing and selling
urine, urinary sediment, biochemical, blood cells and other medical testing
equipment as well as supporting dipstick reagent.
Mr. Song Yong is legal representative and chairman of SC at
present.
SC is known
to have approx. 1,303 employees at present, including 522 production
staff, 84 management staff, 312 technicians, 30 financial staff, and 355
salesmen.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the new & high-tech development zone of
Changchun. Our checks reveal that SC owns the total premise, but the gross area
of the premise is unspecific.
http://www.dirui.com.cn
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: dirui.china@dirui.com.cn
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
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2010-7 |
Company’s Chinese name |
长春迪瑞实业有限公司 |
Present one |
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Legal form |
Limited Liabilities Company |
Present one |
Note: SC changed its Chinese name in 2010, while its English name
remains the same.
SC has got the certificates of CMD-9001, CMD-13485, ISO9001, etc.
Etc.
SC is planning to list in Growth Enterprise Market.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Changchun Ruifa Investment Co., Ltd. (in
Chinese Pinyin) 71.74
Shanghai Fosun Pharmaceutical (Group) Co.,
Ltd. 6.46
Song Yong 11.54
Song Jie 5.25
Gu Xiaofeng 4.20
Other 34 individuals 0.81
Changchun Ruifa Investment Co., Ltd. (in
Chinese Pinyin)
=========================================
Legal rep.: Song Yong
Registered capital: CNY 25,000,000
l
Legal Representative and Chairman:
Mr. Song Yong , born in 1963, with master’s degree. He is currently responsible
for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and
chairman.
Also working in Changchun Ruifa Investment Co., Ltd.
as legal representative.
l
Vice Chairman:
Mr. Gu Xiaofeng , born in 1960, with
university education. He is currently responsible for the daily management of
SC.
Working Experience(s):
At present Working in SC as vice chairman.
l
General Manager:
Ms. Song Jie , born in 1971, with university
education. She is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
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Directors:
Jiang Feng
Ding Jiahua
Ji Feng
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Supervisors:
Yu Ge
Yu Mingxin
Zhang Lichong
SC is mainly
engaged in researching, developing, manufacturing and
selling urine, urinary sediment, biochemical, blood cells and other medical
testing equipment as well as supporting dipstick reagent.
SC’s products mainly include:
Chemistry Analyzer
• CS-6400 Auto-Chemistry Analyzer
• CS-1600 Auto-Chemistry Analyzer
• CS-800 Auto-Chemistry Analyzer
• CS-600B Auto-Chemistry Analyzer
• CS-400 Auto-Chemistry Analyzer
• CS-300B Auto-Chemistry Analyzer
• CS-T240 Auto-Chemistry Analyzer
• DR-7000D Chemistry Analyzer
Hematology Analyzer
• BF-6800 Automatic Hematology Analyzer
• BF-6500 Automatic Hematology Analyzer
• BCC-3000B Hematology Analyzer
Urine Analyzer
• Automatic Urinalysis System(FUS-100/H-800)
• FUS-100 Urine Sediment Analyzer
• Automatic Urinalysis System(FUS-200/H-800)
• H-1000 Automatic Urine Analyzer
• H-800 Automatic Urine Analyzer
• FUS-200 Urine Sediment Analyzer
• H-500 Urine Analyzer
• H-100 Urine Analyzer
Fecal Occult Blood Analyzer
• FB-100 Fecal Occult Blood Analyzer
Reagents and Consumables
• Urinalysis Strips
• Urinalysis Control
• Automatic Urine
Analyzer Detergent
• Urine Sediment
Analyzer Reagent
• Hematology Analyzer
Reagent
• Chemistry Reagent
• Chemistry Control and
Calibration Serum
• Chemistry Analyzer
Detergent
• ISE Reagent
SC sources its materials 70% from domestic
market, and 30% from overseas market. SC sells 60% of its products in domestic
market, and 40% to overseas market, mainly Germany, the United States, Turkey,
Russia, etc.
The buying terms of SC include Check, 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 Customers:
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Beijing Biochem Hengye Science & Technology Development Co. Ltd.
RNA Molekuler Biyolojik Urunler San.Tic.Ltd.Sti (Turkey)
Electronic Pezeshki Pishrafteh CO., Ltd. (Iran)
RANDOX Laboratories Ltd. (Northern Ireland)
Jilin Ruiyi Medical Supplies Co., Ltd.
*Major Suppliers:
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Shenzhen Jiezhun Precision Machinery Co., Ltd.
Shenzhen Kepu Precision Machinery Co., Ltd.
Dalian Burket Fludid Control Systems Co., Ltd.
Arrow (China) Electronic Commerce Co., Ltd.
IDEX Trading (Shanghai) Co., Ltd.
Changchun Dirui Pharmaceutical Co., Ltd.
Legal rep.: Ma Yonghong
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, so the trade reference is not available.
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.
The bank information of SC is not available.
Consolidated
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2011 |
as of Dec. 31, 2010 |
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Cash & bank |
84,674 |
59,410 |
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Inventory |
120,261 |
74,999 |
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Accounts
receivable |
47,048 |
28,754 |
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Advances to
suppliers |
13,565 |
10,468 |
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Other
receivables |
8,437 |
3,446 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
273,985 |
177,077 |
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Long-term
investments |
0 |
0 |
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Fixed assets net
value |
53,786 |
46,803 |
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Projects under
construction |
48,896 |
0 |
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Intangible
assets |
8,652 |
8,180 |
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Deferred income
tax assets |
538 |
313 |
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Other assets |
0 |
0 |
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Total assets |
385,857 |
232,373 |
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Short loans |
50,000 |
0 |
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Notes payable |
18,037 |
0 |
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Accounts payable |
28,686 |
35,071 |
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Advances from
customers |
11,559 |
4,403 |
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Employee Payable |
6,053 |
4,314 |
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Taxes payable |
9,983 |
6,069 |
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Other accounts
payable |
384 |
1,299 |
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Other current
liabilities |
0 |
0 |
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----------------- |
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Current
liabilities |
124,702 |
51,156 |
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Long term
liabilities |
9,548 |
5,921 |
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------------------ |
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Total
liabilities |
134,250 |
57,077 |
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Shareholders
equities |
251,607 |
175,296 |
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Total
liabilities & equities |
385,857 |
232,373 |
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Consolidated
Income Statement
Unit: CNY’000
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as of Dec. 31, 2011 |
as of Dec. 31, 2010 |
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Turnover |
358,055 |
231,187 |
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Cost of goods
sold |
167,541 |
115,755 |
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Taxes and
additional of main operation |
2,872 |
1,406 |
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Sales expense |
61,589 |
38,535 |
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Management expense |
41,946 |
29,388 |
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Finance expense |
2,778 |
1,611 |
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Asset impairment loss |
2,191 |
1,352 |
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Investment
income |
0 |
17,633 |
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Non-operating
income |
9,400 |
7,513 |
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Non-operating expense |
406 |
497 |
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Profit before
tax |
88,132 |
67,789 |
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Less: profit tax |
11,821 |
7,556 |
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Net profit |
76,311 |
60,233 |
Important Ratios
=============
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as
of Dec. 31, 2011 |
as
of Dec. 31, 2010 |
|
*Current ratio |
2.20 |
3.46 |
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*Quick ratio |
1.23 |
2.00 |
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*Liabilities
to assets |
0.65 |
0.25 |
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*Net profit
margin (%) |
21.31 |
26.05 |
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*Return on total
assets (%) |
19.78 |
25.92 |
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*Inventory
/Turnover ×365 |
123 days |
119 days |
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*Accounts
receivable/Turnover ×365 |
48 days |
46 days |
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*Turnover/Total
assets |
0.93 |
0.99 |
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* Cost of
goods sold/Turnover |
0.47 |
0.50 |
PROFITABILITY: GOOD
The turnover of SC appears fairly good in its line in both years, and it
increased in 2011.
l
SC’s net profit margin is good in both years.
SC’s return on total assets is good in both years.
SC’s cost of goods sold is low in both years, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s quick ratio is maintained in a fairly good
level in 2010 but normal in 2011.
l
The inventory of SC appears fairly large in both years.
l
The accounts receivable of SC appears average in both years.
l
SC’s short-term loan is in an average level in
2011.
l
SC’s turnover is in an average level in both years, comparing with the size
of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low in 2010 but average in
2011.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable financial conditions.
The large amount of inventory could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.69 |
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|
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.68.15 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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 |
|
-- |
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.