MIRA
INFORM REPORT
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Report Date : |
26.06.2013 |
IDENTIFICATION DETAILS
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Name : |
LIZHU PHARMACEUTICAL TRADING CO., LTD. |
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Registered Office : |
No. 132, |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
22.06.1991 |
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Com. Reg. No.: |
440400000161349 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
selling traditional Chinese and western medicine and preparation. |
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No. of Employees : |
190 |
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 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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 & address
LIZHU PHARMACEUTICAL TRADING CO., LTD.
NO. 132, NORTH
GUIHUA ROAD, GONGBEI, ZHUHAI
GUANGDONG
PROVINCE 519020 PR CHINA
TEL: 86 (0)
756-8819732/8870218
FAX: 86 (0)
756-8686178/8115227
EXECUTIVE SUMMARY
Date of Registration : JUNe 22, 1991
REGISTRATION NO. : 440400000161349
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : AN NING (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 60,000,000
staff : 190
BUSINESS CATEGORY : TRADING
Revenue : CNY 563,016,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 71,175,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.13 = 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
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 440400000161349 on June
22, 1991.
SC’s Organization Code Certificate
No.: 19254325-2
SC’s registered capital: CNY 60,000,000
SC’s paid-in capital: CNY 60,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
-- |
Registered No. |
4404001005954 |
440400000161349 |
|
2009-05 |
Legal Representative |
Wang Wuping |
An Ning |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Livzon Pharmaceutical Group Inc. |
66.7 |
|
Lizhu Group Lizhu Pharmaceutical Factory |
33.3 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
An Ning |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Livzon Pharmaceutical Group Inc. 66.7
Lizhu Group Lizhu Pharmaceutical Factory 33.3
Livzon Pharmaceutical Group Inc.
--------------------------------------------------
Livzon Pharmaceutical Group Inc. (Livzon),
founded in the year of 1985, has already established itself as one of the
leading pharmaceutical company in China. In 1993, Livzon became the first local
pharmaceutical company to list both A and B shares, with multifold turnover in
development, manufacture, and marketing of diversified pharmaceutical products.
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 :
January 26, 1985
Registration No. :
440400400032571
Legal Form : Shares Limited Company
Chief Executive :
Zhu Baoguo (Legal Representative)
Registered Capital :
CNY
295,721,852
Address: No.132, Guihua Road North, Gongbei,
Zhuhai, Guangdong, P.R. China
Tel: 86 (0) 756-8135153/8135859
Fax: 86 (0) 756-8870128
E-mail: overseas@livzon.com.cn
Web: www.livzon.com.cn
Lizhu Group Lizhu Pharmaceutical Factory
--------------------------------------------------------------
Date of Registration : November 26, 1989
Registration No. : 440400400026348
Chief Executive :
Zhu Baoguo (Legal Representative)
Registered Capital : CNY 442,109,309
Address: No.132,
Guihua Road North, Gongbei, Zhuhai, Guangdong, P.R. China
Tel: 86
0756-8135888
MANAGEMENT
An Ning, Legal Representative, Chairman, and General
Manager
---------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 41
Ø
Qualification:
University
Ø
Working
experience (s):
From 2009 to present, working in SC as legal representative,
chairman, and general manager
Working in Zhuhai Livzon Diagnostics Inc. and Zhuhai Lizhu Advertising Co., Ltd. as legal representative
Working in Livzon Pharmaceutical Group Inc. as vice CEO
BUSINESS OPERATION
SC’s registered business scope includes importing and exporting
traditional Chinese and western medicine preparation, medicine midbody; wholesaling traditional
Chinese medicine, chemical material medicine and preparation, antibiotic material
medicines and preparation, biology products and biology chemical products,
anabolic agents and peptide hormones.
SC is mainly
engaged in selling traditional Chinese and western medicine and preparation.
SC’s
products mainly include: traditional Chinese and western medicine and
preparation.
SC sources its
materials 100% from domestic market, mainly Zhuhai. SC sells 80% of its
products in domestic market, and 20% to the overseas market, mainly Southeast
Asia, American and European countries.
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.
*Major Supplier:
=============
Livzon Pharmaceutical Group Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 190
staff at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have the following branch:
-----------------------------------------------------
u
Lizhu Pharmaceutical Trading Co., Ltd. Liwei Branch
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’s
suppliers declined to make any comments.
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
Basic Bank:
Industrial and Commercial Bank of China Zhuhai Branch
AC#：200020719100196370
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
258 |
399 |
|
|
Notes receivable |
6,494 |
1,626 |
|
Accounts
receivable |
77,854 |
99,223 |
|
Advances to
suppliers |
3,742 |
2,940 |
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Other receivable |
148,444 |
204,199 |
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Inventory |
32,651 |
46,895 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
269,443 |
355,282 |
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Fixed assets |
32 |
33 |
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Construction in
progress |
0 |
0 |
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Intangible
assets |
0 |
0 |
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Long-term
investment |
900 |
900 |
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Deferred income
tax assets |
1,484 |
1,726 |
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Other
non-current assets |
0 |
0 |
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|
------------------ |
------------------ |
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Total assets |
271,859 |
357,941 |
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|
============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
114,147 |
134,917 |
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Advances from
clients |
4,088 |
1,344 |
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Wages payable |
118 |
118 |
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Taxes payable |
423 |
133 |
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Other payable |
84,093 |
150,254 |
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Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
202,869 |
286,766 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
202,869 |
286,766 |
|
Equities |
68,990 |
71,175 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
271,859 |
357,941 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
563,016 |
|
Cost of sales |
431,225 |
|
Sales expense |
126,082 |
|
Management expense |
241 |
|
Finance expense |
-1,304 |
|
Profit before
tax |
2,931 |
|
Less: profit tax |
746 |
|
2,185 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.33 |
1.24 |
|
*Quick ratio |
1.17 |
1.08 |
|
*Liabilities
to assets |
0.75 |
0.80 |
|
*Net profit
margin (%) |
-- |
0.39 |
|
*Return on
total assets (%) |
-- |
0.61 |
|
*Inventory /
Revenue ×365 |
-- |
31 days |
|
*Accounts
receivable / Revenue ×365 |
-- |
65 days |
|
*Revenue /
Total assets |
-- |
1.57 |
|
*Cost of sales
/ Revenue |
-- |
0.77 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly good in its line in 2012.
l
SC’s net profit margin is average in 2012.
l
SC’s return on total assets is average in 2012.
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 both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears fairly large
in both years.
l
SC has no short-term loans in both years.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average in both years.
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
fairly large amount of accounts receivable may
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
UK Pound |
1 |
Rs.92.25 |
|
Euro |
1 |
Rs.78.38 |
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.