MIRA INFORM REPORT
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Report Date : |
24.09.2012 |
IDENTIFICATION DETAILS
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Name : |
QILU
ANTIBIOTICS PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 849, Dongjia Town, Licheng District, Ji’nan, Shandong Province, 250105 PR |
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Country : |
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Date of Incorporation : |
29.05.1995 |
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Com. Reg. No.: |
370000400001223 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
Engaged in researching, developing, manufacturing and
selling Cefazolin Sodium |
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No. of Employees : |
500 |
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 : |
Satisfactory |
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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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.
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Source
: CIA |
Company
name and address
QILU ANTIBIOTICS PHARMACEUTICAL
CO., LTD.
NO. 849, DONGJIA TOWN, LICHENG DISTRICT,
JI’NAN,
SHANDONG PROVINCE, 250105 PR CHINA
TEL: 86 (0) 531-83128686/83128660 FAX: 86 (0) 531-83128687
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 29, 1995
REGISTRATION NO. : 370000400001223
REGISTERED LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 500
REGISTERED CAPITAL :
USD 20,504,100
BUSINESS LINE : R&D,
MANUFACTURING, TRADING
TURNOVER : CNY 1,129,200,000 (AS OF DEC. 31,
2011)
EQUITIES : CNY 552,500,000 (AS OF DEC. 31,
2011)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE : CNY 6.31 = USD
Adopted
abbreviations:
ANS -
amount not stated
NS -
not stated
SC -
subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a
Chinese-foreign equity joint venture enterprise at Shandong Provincial Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on May 29, 1995.
Company Status: Chinese-foreign equity joint venture
enterprise 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 and selling cephamycin and
pharmaceutical intermediates, researching and developing penicillin.
SC is
mainly engaged in researching, developing, manufacturing and selling Cefazolin
Sodium.
Mr.
Hou Chuanshan is legal representative, chairman and general manager of SC at
present.
SC is
known to have approx. 500 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
Ji’nan. Our checks reveal that SC owns the total premise about 25,000 square
meters.
http://www.qilu-antibiotics.com/ The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: export@qilu-antibiotics.com
Honors:
=====
*In January 2006, SC was awarded “Advanced Enterprise in
Foreign Trade in the Year
*In January 2005, SC was awarded “Advanced Enterprise in
Industry In-put in the Year
*In January 2004, SC was awarded “Big Contribution
Enterprise in Revenue in the Year
*In January 2004, SC was awarded “Advanced Enterprise in
Foreign Trade of Industry System”
*In January 2004, SC was appraised as “Advanced Enterprise
of Safe Production”
*In March 2003, SC was awarded “Advanced Enterprise in
Foreign Trade of Industry System” by Jinan Foreign Trade & Economy
Committee.
*In July 2002, SC was awarded “Youth Civilization Group” by
Shandong Labor Committee.
*In March 2002, SC was awarded “Advanced Enterprise in
Utilizing Foreign Capital” by Jinan city government.
*In June 2002, SC was awarded “The Best Foreign
Investigation Enterprise of Jinan City” by Jinan city government.
*In March 2002, SC was awarded “AA Class Enterprise by
Custom of Republic of China” by the Custom.
*In 2002, SC was awarded “Double-Excellent Enterprise in the
Year
*In 2001, SC was awarded “One of The Best Foreign
Investigation Enterprise” by Jinan city government.
*In 2000, SC was awarded “The Visualizing Foreign Enterprise
of Jinan” by Jinan city government.
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registered No. |
003642 |
370000400001223 |
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Registered Capital |
USD 12,500,000 |
USD 19,700,000 |
|
2011 |
Registered capital |
USD 19,700,000 |
Present amount |
|
Shareholders (% of shareholding) |
Qilu Pharmaceutical Co., Ltd. 49% Antibiotics Hong Kong International Limited 51% |
Present ones |
Note: SC changed its Chinese name, while its English name remains
the same.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Qilu Pharmaceutical Co., Ltd. 51.00
Antibiotics Hong Kong
International Limited 49.00
Qilu Pharmaceutical Co., Ltd.
=====================
It focuses on developing,
manufacturing and marketing generic drugs in therapeutic area of Oncology,
Cerebrovascular & Cardiovascular, Infections, Psychological and
Neurological system, Respiratory system, Ophthalmologic Diseases etc., as well
as active pharmaceutical ingredients.
Address: No. 243, Gongye North
Road, Jinan, Shandong
Tel: 86-531-8312
6666/7777/8888/9999
Fax: 86-531-8312 6688/9688
E-mail: export@qilu-pharma.com
Web: http://www.qilu-pharma.com
Antibiotics Hong Kong
International Limited
================================
Registered number: 0463233
Incorporated date: Feb. 1, 1994
Legal form: Private
l Legal
representative, chairman and general manager:
Mr. Hou Chuanshan, born in 1965 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.
Also working in Qilu
Antibiotics (Linyi) Pharmaceutical Co., Ltd. as legal representative.
l Directors:
Sun Tongshun
Ma Tongxi
Li Yan
Zhao Weiliang
SC is mainly
engaged in researching, developing, manufacturing and selling Cefazolin Sodium.
SC’s
products mainly include: Oncology, Cerebrovascular & Cardiovascular,
Anti-infectives, Psychological and Neurological, Biopharmaceuticals,
Respiratory, Ophthalmologic, NSAIDS, and etc.
SC is
one of the largest bulk Cephalosporin production bases in China. It is the
forthgoer among other competitors to have undergone GMP (Good Manufacture
Practice) approved by the China State Drug Administration (SDA).
SC
sources its materials 80% from domestic market, and 20% from the overseas
market, mainly Europe. SC sells 90% of its products in domestic market, and 10%
to the overseas market, mainly Europe.
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.
Note: SC’s management refused to
release its main clients and suppliers.
Qilu Antibiotics (Linyi)
Pharmaceutical Co., Ltd.
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.
Agriculture Bank of China North Gongye Road Sub-Branch
AC#：32515116601040001394
Relationship:
Normal.
Balance
Sheet
Unit:
CNY’000
|
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As of Dec. 31, 2011 |
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Cash
& bank |
31,910 |
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Inventory |
284,240 |
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Bills
receivable |
43,350 |
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Accounts
receivable |
193,750 |
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Other
Accounts receivable |
420 |
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Advances
to suppliers |
15,560 |
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To
be apportioned expense |
0 |
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Other
current assets |
20 |
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------------------ |
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Current
assets |
569,250 |
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Fixed
assets net value |
288,540 |
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Projects
under construction |
34,540 |
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Long-term
investment |
6,080 |
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Deferred
tax assets |
940 |
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Intangible
and other assets |
3,080 |
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|
------------------ |
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Total
assets |
902,430 |
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============= |
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Short
loans |
0 |
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Accounts
payable |
355,500 |
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Advance
from customers |
1,440 |
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Accrued
payroll |
1,190 |
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Other
Accounts payable |
2,420 |
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Notes
payable |
0 |
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Taxes
payable |
-10,620 |
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Withdraw
the expenses in advance |
0 |
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Other
current liabilities |
0 |
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------------------ |
|
349,930 |
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Long
term liabilities |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
349,930 |
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Equities |
552,500 |
|
|
------------------ |
|
902,430 |
|
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|
============= |
Income
Statement
Unit:
CNY’000
|
|
As of Dec. 31, 2011 |
|
Turnover |
1,129,200 |
|
Cost of goods sold |
950,710 |
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Taxes and additional of main
operation |
1,350 |
|
Sales expense |
4,840 |
|
Management expense |
56,690 |
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Finance expense |
2,990 |
|
Assets impairment loss |
-3,590 |
|
Non-operating
income |
1,090 |
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Non-operating expense |
70 |
|
Profit
before tax |
117,230 |
|
Less:
profit tax |
17,170 |
|
Profits |
100,060 |
Important
Ratios
=============
|
|
As of Dec. 31, 2011 |
|
*Current
ratio |
1.63 |
|
*Quick
ratio |
0.81 |
|
*Liabilities
to assets |
0.39 |
|
*Net
profit margin (%) |
8.86 |
|
*Return
on total assets (%) |
11.09 |
|
*Inventory
/Turnover ×365 |
92
days |
|
*Accounts
receivable/Turnover ×365 |
63
days |
|
*Turnover/Total
assets |
1.25 |
|
*
Cost of goods sold/Turnover |
0.84 |
PROFITABILITY:
FAIRLY GOOD
l The
turnover of SC appears fairly good.
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 average,
comparing with its turnover.
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 accounts receivable of SC is fairly
large.
l
The inventory of SC is fairly large.
l
SC has no short loans in 2011.
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 Stable.
SC is well-known in its industry with fairly stable
financial conditions..
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.90 |
|
|
1 |
Rs.87.60 |
|
Euro |
1 |
Rs.70.00 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.