MIRA
INFORM REPORT
|
Report Date : |
14.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
LIZHU PHARMACEUTICAL TRADING CO., LTD. |
|
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Registered Office : |
No. 132 North Guihua Road, Gongbei, Zhuhai,
Guangdong Province 519020 PR |
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Country : |
China |
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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 : |
Subject is engaged in selling traditional Chinese and western medicine
and preparation. |
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|
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No. of Employees : |
196 |
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 : |
Satisfactory |
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Payment Behaviour : |
No complaints |
|
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 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
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 :
196
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 6.05 = 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
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
---------------------------------------------------------------------------------------------
Gender: M
Age: 42
Qualification: University
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. 196
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:
-----------------------------------------------------
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 |
|
Other receivable |
148,444 |
204,199 |
|
Inventory |
32,651 |
46,895 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
269,443 |
355,282 |
|
Fixed assets |
32 |
33 |
|
Construction in progress |
0 |
0 |
|
Intangible assets |
0 |
0 |
|
Long-term investment |
900 |
900 |
|
Deferred income tax assets |
1,484 |
1,726 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
271,859 |
357,941 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
114,147 |
134,917 |
|
Advances from clients |
4,088 |
1,344 |
|
Wages payable |
118 |
118 |
|
Taxes payable |
423 |
133 |
|
Other payable |
84,093 |
150,254 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
202,869 |
286,766 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
202,869 |
286,766 |
|
Equities |
68,990 |
71,175 |
|
|
------------------ |
------------------ |
|
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
·
The revenue of SC appears fairly good in its line
in 2012.
·
SC’s net profit margin is average in 2012.
·
SC’s return on total assets is average in 2012.
·
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level in both years.
·
SC’s quick ratio is maintained in a normal level in
both years.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears fairly large
in both years.
·
SC has no short-term loans in both years.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is average in both years.
·
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.61.52 |
|
|
1 |
Rs.101.48 |
|
Euro |
1 |
Rs.84.11 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.