MIRA INFORM REPORT
|
Report Date : |
05.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
Qilu Antibiotics
(Linyi) Pharmaceutical Co., Ltd. |
|
|
|
|
Registered Office : |
North of Huayuan (West) Road, Economic Development
Zone Linyi County, Shandong Province 251500
PR |
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|
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Country : |
China |
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|
|
Financials (as on) : |
31.12.2013 |
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|
Date of Incorporation : |
01.06.2009 |
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Com. Reg. No.: |
371424200001217 |
|
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|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Researching,
Developing, Manufacturing and Selling of Cefazolin Sodium. |
|
|
|
|
No of Employees : |
300 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
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Payment Behaviour : |
Slow |
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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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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, growth of the
private sector, development of stock markets and a modern banking system, 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 considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China 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 and
expanded the daily trading band within which the RMB is permitted to fluctuate.
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 2013 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
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (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. Several factors are
converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. However, China has made only
marginal progress toward these rebalancing goals. The new government of
President XI Jinping has signaled a greater willingness to undertake reforms
that focus on China's long-term economic health, including giving the market a
more decisive role in allocating resources.
|
Source
: CIA |
COMPANY
NAME & ADDRESS
Qilu Antibiotics (Linyi) Pharmaceutical Co.,
Ltd.
north of huayuan
(west) road, economic development zone
linyi county,
shandong PROVINCE 251500 PR CHINA
TEL: 86 (0)
534-5059009
FAX: 86 (0)
534-5059008
EXECUTIVE
SUMMARY
Date of Registration : June 1, 2009
REGISTRATION NO. : 371424200001217
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 30,000,000
staff :
300
BUSINESS CATEGORY : r & d & MANUFACTURING
& trading
Revenue :
CNY 379,234,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY -7,835,000 (AS OF DEC. 31, 2013)
WEBSITE : www.qilulinyi-antibiotics.com
E-MAIL :
n/a
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : POOR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21 = 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.: 371424200001217
on June 1, 2009.
SC’s Organization Code Certificate No.:
68949063-5
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20275013%2005-Jul-2014_files/image008.jpg)
SC’s Tax No.: 371424689490635
SC’s registered capital: CNY 30,000,000
SC’s paid-in capital: CNY 30,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Qilu Pharmaceutical Co., Ltd. |
60 |
|
Qilu Antibiotics Pharmaceutical Co., Ltd. |
40 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Hou Chuanshan |
|
General Manager |
Zhao Weiliang |
|
Supervisor |
Li Peng |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Qilu Pharmaceutical Co., Ltd. 60
Qilu Antibiotics Pharmaceutical Co., Ltd. 40
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20275013%2005-Jul-2014_files/image007.gif){kind=small}
Qilu
Pharmaceutical Co., Ltd.
=========================
Date of Registration: August 21, 1992
Registration No.: 370000228034515
Registered Capital: CNY 600,000,000
Qilu Antibiotics
Pharmaceutical Co., Ltd.
=================================
Date of Registration: May 29, 1995
Registration No.: 370000400001223
Legal Form: Chinese-Foreign
Equity Joint Venture Enterprise
Registered Capital: USD 20,504,100
MANAGEMENT
Hou Chuanshan (侯传山), Legal Representative and Chairman
--------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø Working experience
(s):
At present, working in SC as legal representative
and chairman, also working in Qilu Antibiotics Pharmaceutical Co., Ltd. as legal representative
Zhao Weiliang (赵卫良), General Manager
-------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general manger,
also as director of Qilu Antibiotics Pharmaceutical Co., Ltd.
Supervisor
--------------
Li Peng
BUSINESS
OPERATION
SC’s registered business
scope includes manufacturing and selling drugs and Intermediates; manufacturing
and selling common pharmaceutical intermediates; international trade.
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 sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
Europe. SC sells 40% of its products in domestic market, and 60% 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 Check, T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known
to have approx. 300 staff at
present.
SC owns an area as
its operating office & factory of approx. 70,000 sq. meters at the heading
address.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
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 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.
BANKING
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
24,260 |
7,448 |
|
|
Notes receivable |
2,549 |
11,385 |
|
Accounts
receivable |
70,064 |
110,405 |
|
Advances to
suppliers |
16,230 |
12,848 |
|
Other receivable |
7,371 |
2,986 |
|
Inventory |
149,098 |
163,038 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
269,572 |
308,110 |
|
Fixed assets |
490,811 |
489,548 |
|
Construction in
progress |
3,028 |
1,641 |
|
Intangible
assets |
37,122 |
40,819 |
|
Long-term
investment |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
800,533 |
840,118 |
|
|
============= |
============= |
|
Short-term loans |
620,000 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
108,707 |
123,199 |
|
Payroll payable |
462 |
0 |
|
Taxes payable |
-57,907 |
-46,318 |
|
Advances from
clients |
1 |
1,498 |
|
Other payable |
164,214 |
769,574 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
835,477 |
847,953 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
835,477 |
847,953 |
|
Equities |
-34,944 |
-7,835 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
800,533 |
840,118 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
215,773 |
379,234 |
|
Cost of sales |
194,420 |
307,274 |
|
Sales expense |
657 |
929 |
|
Management expense |
46,708 |
66,275 |
|
Finance expense |
46 |
531 |
|
Non-operating
income |
313 |
2,009 |
|
Non-operating expense |
1 |
602 |
|
Profit before
tax |
-25,747 |
5,769 |
|
Less: profit tax |
0 |
0 |
|
-25,747 |
5,769 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
*Current ratio |
0.32 |
0.36 |
|
*Quick ratio |
0.14 |
0.17 |
|
*Liabilities
to assets |
1.04 |
1.01 |
|
*Net profit
margin (%) |
-11.93 |
1.52 |
|
*Return on
total assets (%) |
-3.22 |
0.69 |
|
*Inventory /
Revenue ×365 |
253 days |
157 days |
|
*Accounts
receivable / Revenue ×365 |
119 days |
107 days |
|
*Revenue /
Total assets |
0.27 |
0.45 |
|
*Cost of sales
/ Revenue |
0.90 |
0.81 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average in 2013.
l SC’s return on
total assets is average in 2013.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: POOR
l
The current ratio of SC is maintained in a poor
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
SC has no short-term loans in 2013.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered medium-sized in its line with poor financial
conditions. The large amount of inventory & accounts receivable may be a
threat to SC’s financial condition..
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.79 |
|
|
1 |
Rs.102.66 |
|
Euro |
1 |
Rs.81.32 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIT |
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.