MIRA INFORM REPORT
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Report No. : |
355525 |
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Report Date : |
22.12.2015 |
IDENTIFICATION DETAILS
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Name : |
ANQIU LU’AN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 35 Weixu North Road, Anqiu City, Shandong Province 262100 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
07.12.1998 |
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Com. Reg. No.: |
370784228000989 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Manufacture and sales of tablets, hard capsules, large capacity
injection, raw material drug (acetaminophen, hydrotalcite) (the valid term is
subject to the license). Manufacture and sales of white emulsion, sodium
acetate; sales of paper; import and export of goods and technology (with
permit if needed) |
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No. of Employees : |
About 1,300 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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WITH FINANCIALS |
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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 : |
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, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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, 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. 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 2014 stood as the largest economy in the world, surpassing the US for the first time in modern history. Still, China's per capita income is below the world average.
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. In 2014 the People’s Bank of China (PBOC) doubled the daily trading band within which the RMB is permitted to fluctuate.
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 2014 more than 274 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China also implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
Name & address
ANQIU LU’AN PHARMACEUTICAL CO., LTD.
NO. 35 WEIXU NORTH ROAD, ANQIU CITY
SHANDONG PROVINCE 262100 PR CHINA
TEL: 86 (0) 536-4386659/4390070/4382798 FAX: 86 (0) 536-4390696/4390238
EXECUTIVE
SUMMARY
INCORPORATION DATE :
DEC. 7, 1998
REGISTRATION NO. :
370784228000989
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. WANG JUN (LEGAL
REPRESENTATIVE)
STAFF STRENGTH :
ABOUT 1,300
REGISTERED CAPITAL :
CNY 50,000,109.5
BUSINESS LINE :
MANUFACTURING AND SELLING
TURNOVER :
CNY 493,320,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 126,140,000 (AS OF
DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.4867 = 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 limited liabilities company at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on Dec. 7, 1998.
Company Status: Limited liabilities co. This form of business in PR China is defined as a legal
person. No more than fifty shareholders contribute its registered capital
jointly. Shareholders bear limited liability to the extent of shareholding,
and the co. is liable for its debts only to extent of its total assets. The
characteristics of this form of co. are as follows: Upon the establishment of the co., an investment
certificate is issued to the each of shareholders. The board of directors is comprised of three to thirteen
members. The minimum registered capital for a co. is CNY 30,000. Shareholders may take their capital contributions in
cash or by means of tangible assets or intangible assets such as industrial
property and non-patented technology. Cash contributed by all shareholders must account for at
least 30% of the registered capital. Existing shareholders have pre-exemption right to
purchase shares of the co. offered for sale by the other shareholders and
to subscribe for the newly increased registered capital of the co.
SC’s registered business scope includes manufacture and sales of
tablets, hard capsules, large capacity injection, raw material drug
(acetaminophen, hydrotalcite) (the valid term is subject to the license).
Manufacture and sales of white emulsion, sodium acetate; sales of paper; import
and export of goods and technology (with permit if needed)
SC is mainly engaged in manufacturing and selling various medicines.
Mr. Wang Jun has been the legal representative and chairman of SC since
1998.
SC is known to have approx. 1,300 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 Anqiu. Our
checks reveal that SC rents the total premise.
http://www.luanpharm.com
The design is professional and the content is well organized. At present the
web is both in Chinese and English versions.
E-mail: luan@luanpharm.com
See below for SC as executive party (defendant).
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Executed Party |
SC |
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Court |
Anqiu City People's Court |
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Date of Case |
2010-6-8 |
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Case Number |
(2010) 00832 |
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Claim Amount |
RMB 214,030.2 |
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Case Status |
Completed |
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Executed Party |
SC |
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Court |
Anqiu City People's Court |
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Date of Case |
2008-2-25 |
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Case Number |
(2008) 00427 |
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Claim Amount |
RMB 24,086.96 |
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Case Status |
Completed |
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Executed Party |
SC |
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Court |
Anqiu City People's Court |
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Date of Case |
2007-3-12 |
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Case Number |
(2007) 00632 |
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Claim Amount |
RMB 1,136 |
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Case Status |
Completed |
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Executed Party |
SC |
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Court |
Anqiu City People's Court |
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Date of Case |
2006-11-29 |
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Case Number |
(2006) 03385 |
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Claim Amount |
RMB 24,086.96 |
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Case Status |
Completed |
Remark: Due to the lack of information, we are
unable to provide the cause of action, judgment or other information.
SC (Former: Weifang No.4 Pharmaceutical Factory) is one of the leading bulk
pharmaceutical enterprises specializing in manufacturing and exporting
Paracetamol (Acetaminophen).
SC’s former registered number was 3707842800098,
and its former registered capital was CNY
30,000,109.
Organization Code: 165647304
MAIN SHAREHOLDERS:
Name Amount
(CNY) % of
Shareholding
Anqiu Lu’An Pharmaceutical Co., Ltd. Labor Union 32,249,186.69 64.50
Wang Jun 10,439,901.76 20.88
Zhao Shutao 1,306,022.02 2.61
Zang Baolian 909,909.56 1.82
Yu Jingqing 909,909.56 1.82
Zhao Fenggang 686,064.68 1.37
Other 29 individuals 3,499,115.23 7.00
Legal
Representative and Chairman:
Mr. Wang Jun, born in 1960, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working in SC as legal
representative and chairman.
Also working in Weifang
Lu’an Import & Export Co., Ltd. as legal representative.
General Manager
and Director:
Zhao Shutao is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager
and director.
Directors:
Zhao Fenggang
Yu Jingqing
Sun Xijun
Supervisors:
Zang Baolian
Zhou Shubin
Li Fukui
SC is mainly engaged in manufacturing and selling various medicines.
SC’s products mainly include:
|
Product & Output |
Package |
Specification |
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Paracetamol (Acetaminophen) 40,000mt/year |
|
EP BP USP CP |
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Paracetamol DC |
25kg/fibre drum |
DC90, DC96, DC88 DC85, DC83, DC77 |
|
Paracetamol Tablet/Caplet |
30 kg/fiber drum |
BP |
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Capsule |
As per customer’s request |
Hard Capsule Soft Capsule |
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IV Solution 400 million bottles or bags/year |
500 ml, 250 ml, 150ml, 100ml, 50ml / glass bottle, plastic bottle,
soft bag |
CP |
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P-Aminophenol 10000 mt/year |
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In-House Standard |
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Sodium Acetate |
25 kg/woven bag |
In-House Standard |
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White Emulsion 360 mt/year |
1 kg/plastic bottle |
In-House Standard |
SC’s brand is “Lu’an”.
SC sources its materials 90% from domestic market, and 10% from overseas
market. SC sells 20% of its products in domestic market, and 80% to overseas
market.
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 15-30 days.
Note: SC declined to release its major suppliers and clients.
TRADEMARKS & PATENTS
Registration No.: 4490473
Registration Date: 2008-4-21
Trademark Design:
Registration No.: 4498852
Registration Date: 2008-4-28
Trademark Design:
Registration No.: 11030947
Registration Date: 2013-10-14
Trademark Design:
Registration No.: 1056225
Registration Date: 1997-7-21
Trademark Design: 
SC is known to invest in the following
company:
Weifang
Lu’an Import & Export Co., Ltd.
============================
Reg. No.: 370784200000830
Legal representative: Wang Jun
Registered capital: CNY 1,000,000
Incorporation date: March 19, 2008
Anqiu Lu’an Chemical Synthesis Co., Ltd. (literal
translation)
============================
Reg. No.: 370784018012988
Legal representative: Zhao Fenggang (
Incorporation date: Sep. 6, 2005
Anqiu Heng’an Small Loans Co., Ltd. (literal
translation)
============================
Reg. No.: 370784000000766
Legal representative: Wang Zhongzhu
Incorporation date: June 13, 2011
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.
SC’s management declined to release its bank information.
Balance Sheet
Unit: CNY’000
|
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As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
Cash & bank |
/ |
23,520 |
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Inventory |
/ |
225,950 |
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Accounts receivable |
/ |
104,262 |
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Short-term investment |
/ |
3,053 |
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Prepaid expenses |
/ |
4,782 |
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Other receivables |
/ |
962,549 |
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------------------ |
------------------ |
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Current assets |
/ |
1,324,116 |
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Fixed assets net value |
/ |
606,613 |
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Long term investment |
/ |
18,769 |
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Projects under construction |
/ |
160,354 |
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Intangible assets |
/ |
34,203 |
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------------------ |
------------------ |
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Total assets |
2,337,450 |
2,144,055 |
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=========== |
=========== |
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Short loan |
/ |
8,277 |
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Accounts payable |
/ |
80,218 |
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Note payable |
/ |
1,007,470 |
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Taxes payable |
/ |
-42,459 |
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Other accounts payable |
/ |
17,737 |
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Other levies payable |
/ |
-52 |
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|
------------------ |
------------------ |
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Current liabilities |
/ |
1,071,191 |
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Long term liabilities |
/ |
950,732 |
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Deferred tax credit |
/ |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
2,211,310 |
2,021,923 |
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Equities |
126,140 |
122,132 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
2,337,450 |
2,144,055 |
|
|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
Turnover |
493,320 |
476,766 |
|
Cost of goods sold |
/ |
390,819 |
|
Taxes and additional of main operation |
/ |
123 |
|
Sales expense |
/ |
5,789 |
|
Management expense |
/ |
35,781 |
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Finance expense |
/ |
46,954 |
|
Other business profit |
/ |
3,733 |
|
Investment income |
/ |
1,620 |
|
Non-operating income |
/ |
2,053 |
|
Non-operating expense |
/ |
38 |
|
Profit before tax |
5,140 |
4,668 |
|
Less: profit tax |
1,130 |
1,168 |
|
Profits |
4,010 |
3,500 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
*Current ratio |
/ |
1.24 |
|
*Quick ratio |
/ |
1.03 |
|
*Liabilities to assets |
0.94 |
0.94 |
|
*Net profit margin (%) |
0.81 |
0.73 |
|
*Return on total assets (%) |
0.17 |
0.16 |
|
*Inventory /Turnover ×365 |
/ |
173 days |
|
*Accounts receivable/Turnover ×365 |
/ |
80 days |
|
*Turnover/Total assets |
0.21 |
0.22 |
|
* Cost of goods sold/Turnover |
/ |
0.82 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in its
line
in both years.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average in 2013.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in 2013.
SC’s quick ratio is maintained in a normal level in 2013.
The inventory of SC appears fairly large in 2013.
The accounts receivable of SC is maintained in an average level in 2013.
SC’s short loans are average in 2013.
SC’s turnover is in a poor level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high in both years.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.32 |
|
|
1 |
Rs.98.98 |
|
Euro |
1 |
Rs.72.13 |
|
CNY |
1 |
Rs.10.24 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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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 |
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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 |
|
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.