MIRA
INFORM REPORT
|
Report Date : |
11.06.2014 |
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) : |
2013 |
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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 : |
Subject 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. |
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No. of Employees : |
636 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 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 |
|
Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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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 and address
QILU TIANHE PHARMACEUTICAL CO.,
LTD.
NO. 849 DONGJIA TOWN, LICHENG DISTRICT
JI’NAN, SHANDONG PROVINCE 250105 PR CHINA
TEL: 86 (0) 531-83128588/83127714/83128396
FAX: 86 (0) 531-83128097
EXECUTIVE SUMMARY
Date of Registration : DECember 7, 2006
REGISTRATION NO. : 370000400003356
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE :
LI BAOYONG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 90,000,000
staff :
636
BUSINESS CATEGORY : manufacturing & TRADING
Revenue :
CNY 1,136,820,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 1,114,210,000 (AS OF DEC. 31, 2013)
WEBSITE : www.qilu-tianhe.com
E-MAIL :
export@qilu-pharma.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.25 = 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 Chinese-foreign
equity joint venture enterprise of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 370000400003356 on December
7, 2006.
SC’s Organization Code Certificate No.:
79261718-X
SC’s Tax No.: 37011279261718X
SC’s registered capital: CNY 90,000,000
SC’s paid-in capital: CNY 90,000,000
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 |
|
Antibiotics Hong Kong International Limited (Hong Kong) |
25 |
|
Qilu Pharmaceutical Co., Ltd. |
75 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, General Manager and Director |
Li Baoyong |
|
Director |
Fan Changying |
|
Chen Lianbing |
|
|
Wu Ke |
|
|
Yang Chunliang |
|
|
Supervisor |
Zhao Fengwei |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Antibiotics Hong Kong International Limited (Hong Kong) 25
Qilu Pharmaceutical Co., Ltd. 75
Antibiotics Hong Kong International Limited (Hong Kong)
----------------------------------------------
Date of Registration: February 1, 1994
Registration No.: 0463233
Legal Form: Private
Status: Live
Qilu Pharmaceutical Co., Ltd.
------------------------------------------
Qilu Pharmaceutical, one of the leading pharmaceutical companies in
China, develops, manufactures and markets quality and affordable generic drugs
in some important therapeutic areas of Oncology, Infections, Cerebrovascular
& Cardiovascular, Psychological and Neurological system, Respiratory
system, Ophthalmological Diseases.
Tel: 86 (0) 531-83126666/83127777
Fax: 86 (0) 531-83129688
Web: www.qilu-pharma.com
Registration No.: 370000228034515
Date of Registration: August 21, 1992
Legal Form: One-person Limited Liabilities Company
Registered Capital: CNY 600,000,000
Legal Representative: Li Botao
MANAGEMENT
Li Baoyong, Legal
Representative, Chairman, General Manager and Director
---------------------------------------------------------------------------------------------------------------
Gender: M
Age: 48
Qualification: University
Working experience
(s):
From 2006 to present, working in SC as legal representative, chairman,
general manager and director
Director
------------
Fan Changying
Chen Lianbing
Wu Ke
Yang Chunliang
Supervisor
---------------
Zhao Fengwei
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling active
pharmaceutical ingredients (amikacin, buflomedil hydrochloride, amikacin
sulfate, tazobactam, hydroxyurea, carmofur, tegafur, uracil), and psychotropic
drugs (alprazolam active pharmaceutical ingredients).
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 U.S.A., Russia,
Germany, Poland, Spain, India, South Korea
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.
Staff &
Office:
--------------------------
SC is known to have approx. 636
staff at present.
SC owns an area as its operating office & factory of approx. 280,000
sq. meters at the heading address.
RELATED COMPANY
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
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
Basic Bank:
Agricultural Bank of China Ji’nan Industrial North Road Sub-branch
AC#: 116601040007201
Shanghai Pudong Development Bank
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
42,790 |
52,900 |
16,390 |
71,730 |
162,910 |
|
|
Notes receivable |
9,080 |
7,140 |
24,170 |
13,450 |
27,390 |
|
Accounts receivable |
152,620 |
161,620 |
136,070 |
173,240 |
209,670 |
|
Advances to suppliers |
3,100 |
91,410 |
36,650 |
17,350 |
10,590 |
|
Other receivable |
140,870 |
3,420 |
8,610 |
30,100 |
21,420 |
|
Inventory |
162,150 |
318,860 |
237,460 |
151,970 |
146,890 |
|
Non-current assets within one year |
0 |
0 |
0 |
0 |
0 |
|
Other current assets |
270 |
0 |
0 |
0 |
0 |
|
|
---------------- |
---------------- |
--------------- |
---------------- |
---------------- |
|
Current assets |
510,880 |
635,350 |
459,350 |
457,840 |
578,870 |
|
Fixed assets |
357,600 |
481,790 |
572,840 |
647,820 |
637,950 |
|
Construction in progress |
0 |
81,640 |
99,070 |
29,630 |
340 |
|
Long-term prepaid expenses |
8,230 |
7,740 |
5,220 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
0 |
0 |
|
Other non-current assets |
0 |
0 |
170 |
0 |
0 |
|
|
---------------- |
---------------- |
--------------- |
---------------- |
---------------- |
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Total assets |
876,710 |
1,206,520 |
1,136,650 |
1,135,290 |
1,217,160 |
|
|
========== |
========== |
========= |
========== |
========== |
|
Short-term loans |
0 |
0 |
10,000 |
0 |
0 |
|
Accounts payable |
95,210 |
186,010 |
69,130 |
156,380 |
97,320 |
|
Wages payable |
3,090 |
250 |
740 |
670 |
440 |
|
Taxes payable |
-15,590 |
-4,990 |
-4,990 |
-6,380 |
-5,090 |
|
Advances from clients |
1,970 |
680 |
2,880 |
730 |
1,260 |
|
Other payable |
276,020 |
294,080 |
201,180 |
11,960 |
2,970 |
|
Accrued expenses |
6,190 |
0 |
0 |
0 |
0 |
|
Other current liabilities |
0 |
0 |
0 |
0 |
6,050 |
|
|
---------------- |
---------------- |
--------------- |
---------------- |
---------------- |
|
Current liabilities |
366,890 |
476,030 |
278,940 |
163,360 |
102,950 |
|
Non-current liabilities |
0 |
0 |
0 |
0 |
0 |
|
|
---------------- |
---------------- |
--------------- |
---------------- |
---------------- |
|
Total liabilities |
366,890 |
476,030 |
278,940 |
163,360 |
102,950 |
|
Equities |
509,820 |
730,490 |
857,710 |
971,930 |
1,114,210 |
|
|
---------------- |
---------------- |
--------------- |
---------------- |
---------------- |
|
Total liabilities & equities |
876,710 |
1,206,520 |
1,136,650 |
1,135,290 |
1,217,160 |
|
|
========== |
========== |
========= |
========== |
========== |
Income Statement
|
Unit: CNY’000 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
Revenue |
689,760 |
779,150 |
778,850 |
1,037,660 |
1,136,820 |
|
Cost of sales |
456,300 |
514,890 |
554,240 |
774,040 |
803,980 |
|
Sales expense |
8,200 |
7,750 |
3,950 |
6,130 |
6,970 |
|
Management expense |
11,450 |
23,060 |
80,400 |
123,380 |
150,620 |
|
Finance expense |
-2,010 |
14,990 |
7,500 |
1,630 |
3,780 |
|
Non-operating income |
850 |
2,940 |
1,400 |
3,650 |
2,800 |
|
Non-operating expense |
690 |
790 |
950 |
630 |
580 |
|
Profit before tax |
215,980 |
220,590 |
131,750 |
128,070 |
165,350 |
|
Less: profit tax |
27,000 |
27,570 |
17,100 |
19,380 |
23,680 |
|
188,980 |
193,020 |
114,650 |
108,690 |
141,670 |
Important Ratios
|
|
2009 |
2010 |
2011 |
2012 |
2013 |
|
*Current ratio |
1.39 |
1.33 |
1.65 |
2.80 |
5.62 |
|
*Quick ratio |
0.95 |
0.66 |
0.80 |
1.87 |
4.20 |
|
*Liabilities to assets |
0.42 |
0.39 |
0.25 |
0.14 |
0.08 |
|
*Net profit margin (%) |
27.40 |
24.77 |
14.72 |
10.47 |
12.46 |
|
*Return on total assets (%) |
21.56 |
16.00 |
10.09 |
9.57 |
11.64 |
|
*Inventory / Revenue ×365 |
86 days |
149 days |
111 days |
54 days |
48 days |
|
*Accounts receivable / Revenue ×365 |
81 days |
76 days |
64 days |
61 days |
68 days |
|
*Revenue / Total assets |
0.79 |
0.65 |
0.69 |
0.91 |
0.93 |
|
*Cost of sales / Revenue |
0.66 |
0.66 |
0.71 |
0.75 |
0.71 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
·
The revenue of SC appears fairly good in its line,
and it was rising in 2012 and 2013.
·
SC’s net profit margin is good in five years.
·
SC’s return on total assets is good in five years.
·
SC’s cost of sales is low, comparing with its
revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a fairly
good level in 2012 and 2013.
·
SC’s quick ratio is maintained in a fairly good
level in 2013.
·
The inventory of SC appears average in 2012 and
2013.
·
The accounts receivable of SC is maintained in an
average level in five years.
·
SC has no short-term loan in 2012 and 2013.
·
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIRLY
GOOD
·
The debt ratio of SC is low in five years.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.26 |
|
|
1 |
Rs.99.63 |
|
Euro |
1 |
Rs.80.59 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
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.