MIRA
INFORM REPORT
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Report Date : |
12.05.2014 |
IDENTIFICATION DETAILS
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Name : |
XI’AN LIJUN
PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 151 Hancheng South Road, Xi’an, Shaanxi Province, 710077 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
01.12.2004 |
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Com. Reg. No.: |
610100400004422 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in manufacturing active pharmaceutical ingredients
(erythromycin ethylsuccinate, tetracycline hydrochloride, calcium dobesilate,
clarithromycin, erythromycin, urapidil hydrochloride, armillarisin A,
azithromycin, erythromycin estolate, dirithromycin, nalmefene HCL,
edaravone), small-volume injection (including hormones), lyophilized powder
for injection, tablet(including hormones), category 2 psychotropic substances
(diazepam tablets and diazepam injection), hard capsule, soft capsule,
granules, powder-injection (Cephalosporins), dry suspension, health foods
(limited to Love Oral Solution, Gyrophora Red Oral Solution, Shengtai
Shuangkang Oral Solution, Yanglijia Effervescent Tablets and Zijin Propolis
Aloes Soft Capsule and Lijun Calcium Brand Aspartate Calcium), relative raw
materials and packing materials; wholesaling and selling self-made products
(the above items limited to manufacturing in the address of No.151, Hancheng
South Road, Xi’an, validity period as of Dec. 31, 2015); selling medicinal
raw materials, auxiliary materials and relative chemical products (excluding
the hazardous chemicals). (with permit if needed) |
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No of Employees : |
2,300 (approximately) |
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 : |
Exists |
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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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, 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 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. Debt overhang from its credit-fueled stimulus program in 2008-10,
particularly among local governments, and soaring property prices challenge
policy makers currently. Their efforts to cool a red-hot property market in
2011 appear to have curbed inflation, but contributed to slower GDP growth in
2012 and 2013. Slow recovery in Europe and other key export markets have also
retarded growth. 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 fixed investments
and exports in the future. 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
xi’an LIJUN pharmaceutical co., ltd.
no. 151 hancheng
south road, xi’an
shAanxi province,
710077 PR CHINA
TEL: 86 (0) 29-84682134/84264676/84264383 FAX: 86 (0) 29-84261550
EXECUTIVE SUMMARY
INCORPORATION DATE :
december 1, 2004
REGISTRATION NO. : 610100400004422
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
2,300
REGISTERED CAPITAL : CNY 330,000,000
BUSINESS LINE : manufacturing AND TRADING
TURNOVER :
CNY 869,330,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 797,460,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
CNY 6.2283= USD 1
Adopted
abbreviations:
ANS – amount not stated
NS – not stated
SC – subject company (the company inquired by you)
NA – not available
CNY – China Ren Min Bi Yuan
SC was registered as a Chinese-foreign equity joint venture enterprise at local
Administration for Industry & Commerce (AIC – The official body of issuing and
renewing business license) on December 1, 2004 and has been under present
ownership since Nov. of 2006.
Company Status: Wholly foreign-owned enterprise This form of business in PR China
is defined as a legal person. It is a limited co. established within the
territories of PR China with capital provided totally by the foreign
investors. More than one foreign investors may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scopes include manufacturing active pharmaceutical ingredients
(erythromycin ethylsuccinate, tetracycline hydrochloride, calcium dobesilate,
clarithromycin, erythromycin, urapidil hydrochloride, armillarisin A,
azithromycin, erythromycin estolate, dirithromycin, nalmefene HCL, edaravone),
small-volume injection (including hormones), lyophilized powder for injection,
tablet(including hormones), category 2 psychotropic substances (diazepam
tablets and diazepam injection), hard capsule, soft capsule, granules,
powder-injection (Cephalosporins), dry suspension, health foods (limited to
Love Oral Solution, Gyrophora Red Oral Solution, Shengtai Shuangkang Oral
Solution, Yanglijia Effervescent Tablets and Zijin Propolis Aloes Soft Capsule
and Lijun Calcium Brand Aspartate Calcium), relative raw materials and packing
materials; wholesaling and selling self-made products (the above items limited
to manufacturing in the address of No.151, Hancheng South Road, Xi’an, validity
period as of Dec. 31, 2015); selling medicinal raw materials, auxiliary
materials and relative chemical products (excluding the hazardous chemicals).
(with permit if needed)
SC is mainly
engaged in manufacturing and selling pharmaceutical products.
Mr.
Wu Qin has been legal representative and chairman of SC since 2004.
SC is known
to have approx. 2,300 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 Xi’an. Our checks reveal
that SC owns the total premise, but the gross area of the premise is
unspecific.
http://www.lijun.com The design is
professional and the content is well organized. At present it is in both Chinese
and English versions.
E-Mail: webmaster@lijun.com
Changes of its registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
2006-11 |
Registered Legal form |
Chinese-foreign equity joint venture
enterprise |
Wholly foreign-owned enterprise |
|
Registered capital |
CNY 210,900,000 |
CNY 280,000,000 |
|
|
Shareholders |
Rejoy Group Co.,
Ltd. 20% (Cayman Islands)
Lijun International Pharmaceutical (Holding) Co., Ltd. 80% 80 |
(Cayman Islands) Lijun International
Pharmaceutical (Holding) Co., Ltd. 100% |
|
|
Unknown |
Registered capital |
CNY 280,000,000 |
Present amount |
Organization code: 710172659
SC obtained the Certificate of GMP for API; Certificate of GMP for
Erythromycin Ethylsuccinate (API); Certificate of GMP for Tablets, Capsules,
Granules; Certificate of GMP for Small Volume Parenteral Solutions, Powder for
Injection, Lyophilized Powder for Injection; and Certificate of GMP for
Erythromycin (API).
SC obtained the Certificate of ISO14001.
Honors:
See
below for SC as executive party (defendant).
|
Executed
Party |
Xi’an Lijun Pharmaceutical Co., Ltd. |
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Court |
Shenyang City Intermediate People's Court |
|
Date of Case |
Sep. 23, 2013 |
|
Case
Number |
(2013) 00337 |
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Claim Amount |
RMB 20,482,690 |
|
Case Status |
Processing |
Remark: Due to the lack of information, we are unable to provide the cause of action,
judgment or other information.
MAIN SHAREHOLDERS:
Name
% of Shareholding
(British Cayman
Islands) Lijun International Pharmaceutical (Holding) Co., Ltd. 100
Lijun International Pharmaceutical
(Holding) Co., Ltd., registered in British Cayman Islands, which is
headquartered in HK International Convention and Exhibition Center, being
listed in HK Main Board in 2005 (stock code: 02005), has been engaged in
investment and financing business relying upon pharmaceutical and management in
Greater China.
Lijun International
Pharmaceutical (Holding) Co., Ltd. ("The Group") is one of the
leading pharmaceutical manufacturers in the PRC with 7 decades of operation
history and a well-established brand name. The Group is principally engaged in
the research, development, manufacture and sale of a wide range of
pharmaceutical products, including antibiotics, intravenous infusion solution,
non-antibiotics finished medicines, bulk pharmaceuticals and OTC and healthcare
products.
Registration No.: F0014044
Company Status: Listed
Active Status: Live
Chairman: Wu Qin
Web: www.lijun.com.hk
E-mail: caesar@lijun.com.hk
Tel: (852) 2688 0869
Fax: (852) 2787 3338
Legal
representative and chairman:
Mr. Wu Qin , born in 1952, graduated from the Open University of Hong Kong with a degree of Master in Business Administration in 2002, senior economist. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2004 to present Working
in SC as legal representative and chairman.
Also working in Lijun International Pharmaceutical (Holding) Co., Ltd. as Chairman.
General Manager:
Mr. Chen Xiaojun is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager.
SC is mainly engaged
in manufacturing and selling pharmaceutical products.
SC’s products mainly include:
*Bulk Drugs List
Erythromycin
Erythromycin
Ethylsuccinate
Erythromycin
Thiocyanate
Erythromycin
Phosphate
Clarithromycin
Azithromycin
Roxithromycin
Erythromycin
Estolate
Tetracycline HCL
Tetracycline Base
Sodium Erythorbate
Calcium Dobesilate
Etc.
*Preparations List
Erythromycin
Ethylsuccinate
Erythromycin
Enteric-coated
Clarithromycin
Azithromycin
Dispersible
Tetracycline
Oxytetracycline
Erythromycin
Estolate
Chloramphenicol
Etc.
SC sources its
materials 100% from domestic market, mainly from Shaanxi. SC sells 70% of its
products in domestic market, and 30% to overseas market, mainly to India.
The buying terms of SC include T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
Note:
SC declined to release its major customers and suppliers.
SC
is known to have the following branches:
Xi’an
Lijun Pharmaceutical Co., Ltd. Medicines Operating Department
==================================================
Incorporation
date: 2005-12-22
Registration
no.: 610100510007351
Principal:
Wu Yichao
Xi’an
Lijun Pharmaceutical Co., Ltd. Daqin Medicines Operating Department
=====================================================
Incorporation
date: 2005-12-22
Registration
no.: 610100510007360
Principal:
Wu Yichao
Xi’an
Lijun Pharmaceutical Co., Ltd. Dongjiao Medicines Operating Department
=====================================================
Incorporation
date: 2005-12-22
Registration
no.: 610100510007378
Principal:
Wu Yichao
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.
Industrial and Commercial Bank of China Xi’an Tumen Sub-Branch Fengxi
Office
AC#：3700022109006000568
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
|
Cash & bank |
28,150 |
|
Notes receivable |
156,320 |
|
Inventory |
143,230 |
|
Accounts
receivable |
205,460 |
|
Advances to
suppliers |
4,110 |
|
Prepaid expenses |
1,320 |
|
Other
receivables |
0 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
538,590 |
|
Long-term
investments |
130 |
|
Fixed assets net
value |
251,580 |
|
Projects under
construction |
116,080 |
|
Deferred income
tax assets |
10,320 |
|
Intangible
assets |
181,660 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
1,098,360 |
|
|
============= |
|
Short loans |
170,000 |
|
Notes payable |
0 |
|
Accounts payable |
44,480 |
|
Advances from
customers |
21,720 |
|
Employee
pay payable |
2,010 |
|
Accrued
expenses |
34,360 |
|
Taxes payable |
10,640 |
|
Other accounts
payable |
24,000 |
|
Other
current liabilities |
0 |
|
|
----------------- |
|
Current
liabilities |
307,210 |
|
Long term
liabilities |
-6,310 |
|
|
------------------ |
|
Total
liabilities |
300,900 |
|
Shareholders
equities |
797,460 |
|
|
------------------ |
|
Total
liabilities & equities |
1,098,360 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
|
Turnover |
869,330 |
|
Cost of goods
sold |
488,920 |
|
Taxes
and additional of main operation |
9,520 |
|
Sales expense |
236,000 |
|
Management expense |
91,810 |
|
Finance expense |
13,720 |
|
Asset impairment loss |
8,880 |
|
Investment
income |
-520 |
|
Non-operating
income |
21,240 |
|
Non-operating expense |
980 |
|
Profit before
tax |
40,220 |
|
Less: profit tax |
5,140 |
|
Net profit |
35,080 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
|
*Current ratio |
1.75 |
|
*Quick ratio |
1.29 |
|
*Liabilities
to assets |
0.27 |
|
*Net profit
margin (%) |
4.04 |
|
*Return on
total assets (%) |
3.19 |
|
*Inventory
/Turnover ×365 |
61 days
|
|
*Accounts
receivable/Turnover ×365 |
87 days
|
|
*Turnover/Total
assets |
0.79 |
|
* Cost of
goods sold/Turnover |
0.56 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is low, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears fairly large in
2013.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
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.60.05 |
|
UK Pound |
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.08 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.