MIRA
INFORM REPORT
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Report Date : |
15.10.2013 |
IDENTIFICATION DETAILS
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Name : |
QILU TIANHE 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 : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
07.12.2006 |
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Com. Reg. No.: |
370000400003356 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
manufacturing and selling of active pharmaceutical ingredients for
antibiotics, antineoplastic agents, blood vessel of heart and brain,
psychotropic drugs and other related active pharmaceutical ingredients,
preparation and intermediate. |
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No. of Employees : |
1,500 |
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 : |
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 – March 31st, 2013
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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.
|
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
CHIEF EXECUTIVE : MR. LI BAOYONG (CHAIRMAN)
STAFF
STRENGTH : 1,500
REGISTERED
CAPITAL : CNY 90,000,000
BUSINESS
LINE :
MANUFACTURING & selling
TURNOVER : CNY 1,037,660,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY
971,930,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.12 = 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,
piperacillin, olmesartan medoxomil, imatinib mesylate, escitalopram oxalate,
strontium ranelate); psychotropic drugs (alprazolam bulk drugs); freeze-dried
powder (penicillin), sterile APIs (tazobactam sodium, ampicillin sodium, parra
amoxicillin sodium and tazobactam sodium (8:1), 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.
For the past two years there is no record of litigation.
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.
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 the website: http://www.qilu-pharma.com/
Qilu Antibiotics Pharmaceutical Co., Ltd.
Registration no.: 370000400001223
Qilu King-Phar Pharmaceutical Co., Ltd.
Registration no.: 370124000001330
Qilu Pharmaceutical Packing Co., Ltd.
Registration no.: 370000228041236
Qilu Wanhe Medicines Marketing Co., Ltd.
Registration no.: 370000228041718
Qilu Animal Health Products Co., Ltd.
Registration
no.: 370000228041244 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,
2012 |
|
Cash & bank |
16,390 |
71,730 |
|
Notes receivable |
24,170 |
13,450 |
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Inventory |
237,460 |
151,970 |
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Accounts
receivable |
136,070 |
173,240 |
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Advances to suppliers |
36,650 |
17,350 |
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Other
receivables |
8,610 |
30,100 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
459,350 |
457,840 |
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Fixed assets |
572,840 |
647,820 |
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Long term
investment |
0 |
0 |
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Long-term
deferred expenses |
5,220 |
0 |
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Projects under
construction |
99,070 |
29,630 |
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Other assets |
170 |
0 |
|
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------------------ |
------------------ |
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Total assets |
1,136,650 |
1,135,290 |
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============= |
============= |
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Short loans |
10,000 |
0 |
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Accounts payable |
69,130 |
156,380 |
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Advances from
customers |
2,880 |
730 |
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Employee
pay payable |
740 |
670 |
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Taxes payable |
-4,990 |
-6,380 |
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Other payable |
201,180 |
11,960 |
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Accrued expenses |
0 |
0 |
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Other
current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
278,940 |
163,360 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
278,940 |
163,360 |
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Shareholders
equities |
857,710 |
971,930 |
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------------------ |
------------------ |
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Total
liabilities & equities |
1,136,650 |
1,135,290 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
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Turnover |
778,850 |
1,037,660 |
|
Cost of goods sold |
554,240 |
774,040 |
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Taxes and
additional of main operations |
/ |
8,110 |
|
Sales expense |
3,950 |
6,130 |
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Management expense |
80,400 |
123,380 |
|
Finance expense |
7,500 |
1,630 |
|
Asset impairment
loss |
/ |
-680 |
|
Non-operating
income |
1,400 |
3,650 |
|
Non-operating expense |
950 |
630 |
|
Profit before
tax |
131,750 |
128,070 |
|
Less: profit tax |
17,100 |
19,380 |
|
Profits |
114,650 |
108,690 |
Important Ratios
=============
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
|
*Current ratio |
1.65 |
2.80 |
|
*Quick ratio |
0.80 |
1.87 |
|
*Liabilities
to assets |
0.25 |
0.14 |
|
*Net profit
margin (%) |
14.72 |
10.47 |
|
*Return on
total assets (%) |
10.09 |
9.57 |
|
*Inventory
/Turnover ×365 |
111 days |
54 days |
|
*Accounts receivable/Turnover
×365 |
64 days |
61 days |
|
*Turnover/Total
assets |
0.69 |
0.91 |
|
* Cost of
goods sold/Turnover |
0.71 |
0.75 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
and in increased in 2012.
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 normal level in
both years.
l
The inventory of SC appears fairly large in 2011,
but average in 2012.
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, and
SC has no short-term loans in 2012.
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.61.30 |
|
UK Pound |
1 |
Rs.97.99 |
|
Euro |
1 |
Rs.83.15 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.