MIRA INFORM REPORT
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Report No. : |
309161 |
|
Report Date : |
26.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
LIVZON GROUP FUZHOU
FUXING PHARMACEUTICAL CO., LTD. |
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Registered Office : |
D3E, |
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Country : |
China |
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Date of Incorporation : |
13.11.1989 |
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Com. Reg. No.: |
350100400001335 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing of antibiotics type Active Pharmaceutical Ingredients,
chemical materials for sterile bulk drugs, health food ingredients, food
additives, intermediates & formulations, and pharmaceutical raw materials
for production. |
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|
|
No. of Employees : |
600 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 and Address
LIVZON GROUP FUZHOU FUXING PHARMACEUTICAL CO.,
LTD.
D3E,
FUZHOU, FUJIAN
PROVINCE 350000 PR CHINA
TEL: 86 (0)
591-83677745
FAX: 86 (0)
591-83549525
***Note: The (No.
530, Lianjiang Road, Fuzhou, P.R.China) was the former one.
EXECUTIVE
SUMMARY
Date of Registration : NOVember 13, 1989
REGISTRATION NO. : 350100400001335
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : USD 41,700,000
staff : 600
BUSINESS CATEGORY : manufacturing & TRADING
Revenue : CNY 329,845,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 393,828,000 (AS OF DEC. 31, 2013)
WEBSITE : www.fxpharm.com
E-MAIL : fuxing@fxpharm.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : FAIRLY 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.: 350100400001335 on November 13, 1989.
SC’s Organization Code Certificate No.:
61130302-7
SC’s registered capital: USD 41,700,000
SC’s paid-in capital: USD 41,700,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered
Capital |
USD 33,700,000 |
USD 41,700,000 |
|
2014-06-11 |
Legal
Representative |
An Ning |
Zhang Maohua |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Livzon
Pharmaceutical Group Inc. |
75 |
|
Ando
Development Limited (Hong Kong) |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
Zhang Maohua |
|
Director |
Yang Daihong |
|
Huang Yuxuan |
|
|
Tao Desheng |
|
|
Tang Yanggang |
|
|
Supervisor |
Si Yanxia |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Livzon Pharmaceutical Group Inc. 75
Ando Development Limited (Hong Kong) 25
Livzon
Pharmaceutical Group Inc.
----------------------------------------------
Livzon Pharmaceutical Group Inc. (Livzon)
was founded in 1985. In 1993, Livzon became the first local pharmaceutical
company to list both A and B shares in Shenzhen Stock Exchange with the code
000513, with multifold turnover in development, manufacture, and marketing of
diversified pharmaceutical products. After a consistent growth, it possesses 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.
Registration No.: 440400400032571
Date of Registration: January 26, 1985
Legal Form: Shares Limited Company
Chief Executive: Mr. Zhu Baoguo (Legal
Representative)
Registered Capital: CNY 295,721,852
Address: No.132, Guihua North Road, Gongbei,
Zhuhai, Guangdong, P.R. China
Tel: 0086-756- 8135888
Fax: 0086-756- 8886002
Website: http://www.livzon.com.cn
E-mail: web@livzon.com.cn
Ando Development
Limited (Hong Kong)
--------------------------------------------------------
CR No.: 0222981
Date of Registration: August 2, 1988
Company Status: Private
Active Status: Live
MANAGEMENT
Zhang Maohua,
Legal Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------------
Ø Gender: M
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Director
-------------
Yang Daihong
Huang Yuxuan
Tao Desheng
Tang Yanggang
Supervisor
--------------
Si Yanxia
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing antibiotics type
Active Pharmaceutical Ingredients, chemical materials for sterile bulk drugs, health
food ingredients, food additives, intermediates & formulations, and
pharmaceutical raw materials for production.
SC is mainly
engaged in manufacturing and selling Active Pharmaceutical Ingredients.
SC’s products
mainly include: Vancomycin HCL Sterile, L-phenylalanine, Kanamycin Mono
Sulphate, Kanamycin Acid Sulphate, Amikacin Sulfate, etc.
SC sources its
materials 100% from domestic market. SC sells 40% of its products in domestic
market, and 60% to the overseas market, mainly America, Europe, Japan, Korea,
and India.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 600 staff at
present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
Livzon New North River Pharmaceutical Co., Ltd.
Zhuhai
Free Trade Zone Livzon Syntpharm Co., Ltd.
Zhuhai
Livzon Pharmaceutical Trading Co., Ltd.
Zhuhai
Livzon Diagnostics Inc.
Etc.
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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
21,400 |
14,120 |
|
|
Notes receivable |
22,780 |
30,670 |
|
Accounts receivable |
23,050 |
37,060 |
|
Advances to suppliers |
4,460 |
14,480 |
|
Other receivable |
37,430 |
33,330 |
|
Inventory |
14,730 |
13,320 |
|
Deferred expenses |
330 |
0 |
|
Other current assets |
620 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
124,800 |
142,980 |
|
Fixed assets |
229,180 |
237,200 |
|
Construction in progress |
6,040 |
6,130 |
|
Project materials |
70 |
0 |
|
Long-term investment |
20,020 |
20,020 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
17,160 |
19,090 |
|
|
------------------ |
------------------ |
|
Total assets |
397,270 |
425,420 |
|
|
============= |
============= |
|
Short-term loans |
30,000 |
0 |
|
Accounts payable |
12,310 |
15,920 |
|
Advances from clients |
3,100 |
1,810 |
|
Other payable |
91,110 |
79,670 |
|
Other current liabilities |
7,520 |
18,140 |
|
|
------------------ |
------------------ |
|
Current liabilities |
144,040 |
115,540 |
|
Non-current liabilities |
700 |
710 |
|
|
------------------ |
------------------ |
|
Total liabilities |
144,740 |
116,250 |
|
Equities |
252,530 |
309,170 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
397,270 |
425,420 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
Revenue |
239,660 |
324,420 |
|
Cost of
sales |
202,540 |
251,190 |
|
Sales expense |
6,050 |
7,420 |
|
Management expense |
22,200 |
20,870 |
|
Finance expense |
280 |
1,720 |
|
Profit before tax |
12,470 |
42,970 |
|
Less: profit tax |
0 |
5,490 |
|
12,470 |
37,480 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Total assets |
450,374 |
589,781 |
|
|
------------- |
------------- |
|
Total liabilities |
51,572 |
195,953 |
|
Equities |
398,802 |
393,828 |
|
|
------------- |
------------- |
|
Revenue |
364,193 |
329,845 |
|
Profits |
26,553 |
-4,971 |
Important Ratios
=============
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
*Current ratio |
0.87 |
1.24 |
-- |
-- |
|
*Quick ratio |
0.76 |
1.12 |
-- |
-- |
|
*Liabilities to assets |
0.36 |
0.27 |
0.11 |
0.33 |
|
*Net profit margin (%) |
5.20 |
11.55 |
7.29 |
-1.51 |
|
*Return on total assets (%) |
3.14 |
8.81 |
5.90 |
-0.84 |
|
*Inventory / Revenue ×365 |
23 days |
15 days |
-- |
-- |
|
*Accounts receivable / Revenue ×365 |
36 days |
42 days |
-- |
-- |
|
*Revenue / Total assets |
0.60 |
0.76 |
0.81 |
0.56 |
|
*Cost of sales / Revenue |
0.85 |
0.77 |
-- |
-- |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue 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 average, comparing with
its revenue.
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 is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans in 2010.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.05 |
|
|
1 |
Rs.96.03 |
|
Euro |
1 |
Rs.70.43 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.