MIRA
INFORM REPORT
|
Report Date : |
28.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
QILU TIANHE PHARMACEUTICAL CO., LTD. |
|
|
|
|
Registered Office : |
No. 849 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
07.12.2006 |
|
|
|
|
Com. Reg. No.: |
370000400003356 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint
Venture |
|
|
|
|
Line of Business : |
manufacturing and selling active pharmaceutical
ingredients for antibiotics, antineoplastic agents, blood vessel of heart and
brain, psychotropic drugs and other related active pharmaceutical
ingredients, preparation and intermediate |
|
|
|
|
No. of Employees : |
1,500 |
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 & address
QILU TIANHE PHARMACEUTICAL CO.,
LTD.
NO. 849 DONGJIA TOWN, LICHENG DISTRICT,
JI’NAN, SHANDONG PROVINCE, 250105 PR CHINA
TEL: 86 (0) 531-83128006/83126892 FAX: 86 (0) 531-83128097
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 7, 2006
REGISTRATION NO. : 370000400003356
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 1,500
REGISTERED CAPITAL : CNY 90,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 778,850,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 857,710,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.3052 = 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 Chinese-foreign equity joint venture enterprise at provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 7, 2006.
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 active pharmaceutical ingredients
(amikacin, buflomedil hydrochloride, amikacin sulfate, tazobactam, hydroxyurea,
carmofur, tegafur, uracil, capecitabine, hydrochloric acid, ziprasidone);
psychotropic drugs (alprazolam bulk drugs); freeze-dried powder (penicillin),
sterile APIs (tazobactam sodium, ampicillin sodium, piperacillin sodium).
SC is mainly
engaged in manufacturing and selling active pharmaceutical ingredients for
antibiotics, antineoplastic agents, blood vessel of heart and brain,
psychotropic drugs and other related active pharmaceutical ingredients,
preparation and intermediate.
Mr. Li
Baoyong has been legal representative, chairman and general manager of SC since
2006.
SC is known to have approx. 1,500 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, but SC’s accountant
refused to release the gross area.
http://www.qilu-tianhe.com/
The
design is professional and the content is well organized. At present it is only
in Chinese version.
Email: export@qilu-pharma.com
No significant events were found during our checks with the
local Administration for Industry and Commerce.
SC was awarded “Hi-Tech Enterprise”, “Ji’nan Innovative Enterprise”,
etc.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Antibiotics Hong Kong
International Limited 25
Qilu Pharmaceutical Co., Ltd. 75
* Antibiotics Hong Kong
International Limited
===================================
Incorporation Date :
February 1, 1994
Registration No. : 0463233
Registered Legal Form : Private
*Qilu Pharmaceutical Co., Ltd.
======================
Located in Jinan, Qilu Pharmaceutical is one
of the leading pharmaceutical companies in China. It focuses on developing,
manufacturing and marketing of generic drugs and active pharmaceutical
ingredients in the therapeutic areas of Oncology, Cerebrovascular &
Cardiovascular, Infections, Psychological and Neurological System, Respiratory
System, Ophthalmological Diseases, etc.
Registration no.:
370000228034515
Legal representative: Li Botao
Add: No. 243 Gongye North Road, Ji’Nan,
Shandong Province, 250100 PR China
Tel: 86 (0) 531-83127714/83126666
Fax: 86 (0) 531-83127701/83126688
Web: http://www.qilu-pharma.com/
Legal
representative,
chairman and general manager:
Mr. Li Baoyong, born in 1966 with university
education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2006 to present Working in SC as chairman, legal representative and general manager.
SC is mainly
engaged in manufacturing and selling active pharmaceutical ingredients for antibiotics,
antineoplastic agents, blood vessel of heart and brain, psychotropic drugs and
other related active pharmaceutical ingredients, preparation and intermediate.
SC’s products
mainly include: amikacin, buflomedil hydrochloride, amikacin
sulfate, tazobactam, hydroxyurea, carmofur, tegafur, uracil, alprazolam, etc.
SC sources its materials 100%
from domestic market. SC sells 40% of its products in domestic market, and 60%
to overseas market, mainly European 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’s management declined to release its main clients and
suppliers.
According to SC’s
Website: http://www.qilu-pharma.com/
Qilu Antibiotics Pharmaceutical Co., Ltd.
Qilu King-Phar Pharmaceutical Co., Ltd.
Qilu Pharmaceutical Packing Co., Ltd.
Qilu Wanhe Medicines Marketing Co., Ltd.
Qilu Animal Health Products Co., Ltd.
Etc.
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.
Agricultural Bank of China Ji’nan Industrial North Road
Sub-branch
AC#：N/A
Shanghai Pudong
Development Bank
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2010 |
|
Cash & bank |
16,390 |
52,900 |
|
Notes receivable |
24,170 |
7,140 |
|
Inventory |
237,460 |
318,860 |
|
Accounts
receivable |
136,070 |
161,620 |
|
Advances to
suppliers |
36,650 |
91,410 |
|
Other
receivables |
8,610 |
3,420 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
459,350 |
635,350 |
|
Fixed assets |
572,840 |
481,790 |
|
Long term
investment |
0 |
0 |
|
Long-term deferred
expenses |
5,220 |
7,740 |
|
Projects under
construction |
99,070 |
81,640 |
|
Other assets |
170 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,136,650 |
1,206,520 |
|
|
============= |
============= |
|
Short loans |
10,000 |
0 |
|
Accounts payable |
69,130 |
186,010 |
|
Advances from
customers |
2,880 |
680 |
|
Employee
pay payable |
740 |
250 |
|
Taxes payable |
-4,990 |
-4,990 |
|
Other payable |
201,180 |
294,080 |
|
Accrued expenses |
0 |
0 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
278,940 |
476,030 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
278,940 |
476,030 |
|
Shareholders
equities |
857,710 |
730,490 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,136,650 |
1,206,520 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2010 |
|
Turnover |
778,850 |
779,150 |
|
Cost of goods sold |
554,240 |
514,890 |
|
Sales expense |
3,950 |
7,750 |
|
Management expense |
80,400 |
23,060 |
|
Finance expense |
7,500 |
14,990 |
|
Non-operating
income |
1,400 |
2,940 |
|
Non-operating expense |
950 |
790 |
|
Profit before
tax |
131,750 |
220,590 |
|
Less: profit tax |
17,100 |
27,570 |
|
Profits |
114,650 |
193,020 |
Important Ratios
=============
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2010 |
|
*Current ratio |
1.65 |
1.33 |
|
*Quick ratio |
0.80 |
0.66 |
|
*Liabilities
to assets |
0.25 |
0.39 |
|
*Net profit
margin (%) |
14.72 |
24.77 |
|
*Return on
total assets (%) |
10.09 |
16.00 |
|
*Inventory
/Turnover ×365 |
111 days |
149 days |
|
*Accounts
receivable/Turnover ×365 |
64 days |
76 days |
|
*Turnover/Total
assets |
0.69 |
0.65 |
|
* Cost of
goods sold/Turnover |
0.71 |
0.66 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is good in both years.
l
SC’s cost of goods sold is low, comparing with its
turnover in both years.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears fairly large in both
years.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
SC’s short-term loan appears average in 2011.
l
SC’s turnover is in a fair level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered large-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.26 |
|
UK Pound |
1 |
Rs.86.23 |
|
Euro |
1 |
Rs.68.64 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.