MIRA
INFORM REPORT
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Report No. : |
306811 |
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Report Date : |
07.02.2015 |
IDENTIFICATION DETAILS
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Name : |
LIZHU PHARMACEUTICAL TRADING CO., LTD. |
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Registered Office : |
No. 132, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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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 Co. |
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Line of Business : |
Importing and exporting traditional Chinese and western medicine
preparation, pharmaceutical intermediates, etc. (according to No. 157
Provincial Economic and Trade Commission Yue Foreign Trade [1994]); wholesaling traditional Chinese
medicine, chemical material medicine, chemical medicine preparation,
antibiotic material medicines, antibiotic preparation, biochemical drugs,
biological products (excluding vaccines), anabolic agents and peptide
hormones |
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No. of Employee : |
260 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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.
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
LIZHU PHARMACEUTICAL TRADING CO., LTD.
NO. 132, NORTH GUIHUA ROAD, GONGBEI, ZHUHAI, GUANGDONG PROVINCE, 519020
PR CHINA
TEL: 86 (0) 756-8135970/8135233
FAX: 86 (0) 756-8135966
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUN. 22, 1991
REGISTRATION NO. :
440400000161349
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. TAO DESHENG (CHAIRMAN)
STAFF STRENGTH :
260
REGISTERED CAPITAL : CNY 60,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 758,470,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 70,260,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2126= 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 Ren Min Bi
SC was registered as a Limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Jun. 22, 1991.
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 importing and exporting
traditional Chinese and western medicine preparation, pharmaceutical
intermediates, etc. (according to No. 157 Provincial Economic and Trade
Commission Yue Foreign Trade [1994]);
wholesaling traditional Chinese medicine, chemical material medicine,
chemical medicine preparation, antibiotic material medicines, antibiotic
preparation, biochemical drugs, biological products (excluding vaccines),
anabolic agents and peptide hormones (validity period as of Sep. 23, 2014).
SC is mainly engaged in selling traditional Chinese and western medicine
and preparation.
Mr. Tao Desheng has been legal representative and chairman of SC since
April of 2014.
Also working in Zhuhai Livzon Diagnostics Inc., Zhuhai Lizhu Advertising
Co., Ltd. as legal representative, Livzon Pharmaceutical Group Inc. as
director.
SC is known to have approx. 260 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Zhuhai. Our checks reveal
that SC rents the total premise about 400 square meters.
SC is not known to host website of its own at present.
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registered no. |
4404001005954 |
Present one |
|
2009-5 |
Legal representative |
Wang Wuping |
An Ning |
|
2014-4-23 |
Legal representative |
An Ning |
Present one |
Tax registration no.: 440401192543252
Organization code: 192543252
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Livzon Pharmaceutical Group Inc. 66.7
Lizhu Group Lizhu Pharmaceutical Factory (in Chinese pinyin) 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. After a consistent growth, it
possesses a total capital of £¤2.2 billion CNY inclusive of 24 controlled
subsidiaries and joint ventures.
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.
The said company is a listed company in Shenzhen Stock Exchange Market
with the code of 000513.
Incorporation date: Jan. 26, 1985
Registration no.: 440400400032571
Registered capital: CNY 295,721,852
Legal rep.: Zhu Baoguo
Legal form: Shares limited co.
Address: No.132, North Guihua Road, Gongbei, Zhuhai, Guangdong, P.R.
China
Tel: 0086-756- 8135888
Fax: 0086-756-8870128
E-mail: overseas@livzon.com.cn
Lizhu Group Lizhu Pharmaceutical Factory (in Chinese pinyin)
=============================================
Incorporation date: Nov. 26, 1989
Registration no.: 440400400026348
Registered capital: CNY 450,000,000
Legal rep.: Zhu Baoguo
Legal
representative and chairman:
Mr. Tao Desheng (陶德胜), born in 1964,
with master’s degree. He is currently responsible for the overall management of
SC.
Working Experience(s):
From April of 2014 to present Working in SC as legal representative and
chairman.
Also working in Zhuhai Livzon Diagnostics Inc., Zhuhai Lizhu Advertising
Co., Ltd. as legal representative, Livzon Pharmaceutical Group Inc. as
president.
General Manager:
Dong Wei is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
Director:
Xu Guoxiang
Zhu Baoguo
Supervisor:
Si Yanxia
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. SC sells 85% of its
products in domestic market, and 15% to the overseas market, mainly 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.
Note: SC refused to release its major suppliers and clients.
Zhuhai Livzon Diagnostics Inc.
======================
Incorporation date:
Registration no.: 440400000007349
Registered capital: CNY 46,450,837
Legal rep.: Tao Desheng
Legal form: Shares limited co.
Web: http://www.livzondiagnostics.com
E-mail: info@livzondiagnostics.com
Tel: 0756-8919777/8919778
Fax: 0756-8919788
SC is known to invest in the following company:
Zhuhai Lizhu Advertising Co., Ltd.
=========================
Incorporation date:
Registration no.: 440400000255860
Registered capital: CNY 1,000,000
Legal rep.: Tao Desheng
Legal form: Limited liabilities co.
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 refused to
release any information of its suppliers and the trade reference was not
available.
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 Zhuhai Branch
AC#：N/A
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2013 |
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Cash & bank |
341,650 |
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Inventory |
82,810 |
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Notes receivable |
10,650 |
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Accounts receivable |
193,960 |
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Advances to suppliers |
2,960 |
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Other receivables |
5,960 |
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Other current assets |
0 |
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------------------ |
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Current assets |
637,990 |
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Fixed assets net value |
30 |
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Projects under construction |
0 |
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Long term investment |
900 |
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Deferred income tax assets |
3,030 |
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Other assets |
0 |
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------------------ |
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Total assets |
641,950 |
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============= |
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Short loans |
0 |
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Accounts payable |
372,340 |
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Advances from clients |
9,570 |
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Taxes payable |
4,410 |
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Employee pay payable |
120 |
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Other payable |
32,100 |
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Accrued expenses |
153,150 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
571,690 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
571,690 |
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Equities |
70,260 |
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------------------ |
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Total liabilities & equities |
641,950 |
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============= |
Income statement
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
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Turnover |
758,470 |
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Profit before tax |
550 |
|
Less: profit tax |
/ |
|
Net profit |
/ |
Note: SC’s
accountant refused to release the detailed income statement for Yr2013.
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
|
*Current ratio |
1.12 |
|
*Quick ratio |
0.97 |
|
*Liabilities to assets |
0.89 |
|
*Net profit margin (%) |
/ |
|
*Return on total assets (%) |
/ |
|
*Inventory /Turnover ×365 |
40 days |
|
*Accounts receivable/Turnover ×365 |
94 days |
|
*Turnover/Total assets |
1.18 |
|
* Cost of goods sold/Turnover |
/ |
The turnover of SC appears fairly good in its line.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The accounts receivable of SC appears fairly large.
The inventory of SC appears average.
SC has no short-term loan in 2013.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is well-known in its industry with fairly stable financial
conditions. The large amount of accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.74 |
|
|
1 |
Rs.94.65 |
|
Euro |
1 |
Rs.70.79 |
INFORMATION DETAILS
|
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 |
|
|
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.