MIRA INFORM REPORT
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Report No. : |
305235 |
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Report Date : |
28.01.2015 |
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) : |
31.12.2013 |
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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 : |
· Engaged in Manufacturing and Selling Freeze-Dried Powder Injection, Sterile Apis, Bulk Drug and Psychotropic Substances as well as Wholesale Chemical Raw Materials, Pharmaceutical Excipients and Midbody (with permit if needed) · 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. · Subject product ranges includes Amikacin, Buflomedil Hydrochloride, Amikacin Sulfate, Tazobactam, Hydroxyurea, Carmofur, Tegafur, Uracil & Alprazolam |
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No of Employees : |
1500 (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 : |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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
QILU TIANHE
PHARMACEUTICAL CO., LTD.
NO. 849 DONGJIA TOWN, LICHENG DISTRICT,
JI’NAN, SHANDONG PROVINCE, 250105 PR CHINA
TEL: 86 (0) 531-83126895 FAX: 86 (0) 531-83128097
EXECUTIVE
SUMMARY
INCORPORATION DATE : DEC. 7, 2006
REGISTRATION NO. : 370000400003356
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. LI BAOYONG (CHAIRMAN)
STAFF STRENGTH : 1,500 (Approximately)
REGISTERED CAPITAL : CNY 90,000,000
BUSINESS LINE : MANUFACTURING &
selling
TURNOVER : CNY 1,136,820,000 (AS
OF DEC. 31, 2013)
EQUITIES :
CNY 1,114,200,000 (AS OF DEC. 31, 2013)
PAYMENT :
No Complaints
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.2453 = 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 Chinese-foreign equity joint venture enterprise at provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 7, 2006.
Company Status: Chinese-foreign equity joint venture enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing and selling freeze-dried powder injection,
sterile APIs, bulk drug and psychotropic substances as well as wholesale
chemical raw materials, pharmaceutical excipients and midbody (with permit if
needed)
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.
Mr. Li
Baoyong has been legal representative, chairman and general manager of SC since
2006.
SC is known to have approx. 1,500 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
Ji’nan. Our checks reveal that SC owns the total premise, but SC’s accountant
refused to release the gross area.
http://www.qilu-tianhe.com/ The design is
professional and the content is well organized. At present it is in Chinese and
English versions.
Email: export@qilu-pharma.com
No significant events were found during our checks with the
local Administration for Industry and Commerce.
SC was awarded “Hi-Tech Enterprise”, “Ji’nan Innovative Enterprise”,
etc.
Organization code: 79261718X
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Antibiotics Hong Kong
International Limited 25
Qilu Pharmaceutical Co., Ltd. 75
* Antibiotics Hong Kong
International Limited
====================================================
Incorporation Date February
1, 1994
Registration No. : 0463233
Registered Legal Form Private company limited by shares
*Qilu Pharmaceutical Co., Ltd.
=====================================
Located in Jinan, Qilu Pharmaceutical is one
of the leading pharmaceutical companies in China. It focuses on developing,
manufacturing and marketing of generic drugs and active pharmaceutical
ingredients in the therapeutic areas of Oncology, Cerebrovascular &
Cardiovascular, Infections, Psychological and Neurological System, Respiratory
System, Ophthalmological Diseases, etc.
Registration no.:
370000228034515
Legal representative: Li Botao
Incorporation date: Aug. 21, 1992
Add: No. 243 Gongye North Road, Ji’Nan,
Shandong Province, 250100 PR China
Tel:
86 (0) 531-83126666
Fax: 86 (0) 531-83126688
Web: http://www.qilu-pharma.com/
Legal
representative, chairman
and general manager:
Mr. Li Baoyong, born in 1966 with university education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2006 to present Working in SC as chairman, legal representative and general manager.
Directors:
Fan Changying
Chen Lianbing
Wu Ke
Yang Chunliang
Supervisors:
Zhao Fengwei
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 European market.
Trademark & Patents
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Registration No. |
7919852 |
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Registration Date |
2011-1-21 |
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Trademark Design |
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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.
Note: SC’s
management declined to release its main clients and suppliers.
According to the website: http://www.qilu-pharma.com/
Qilu Antibiotics Pharmaceutical Co., Ltd.
Registration no.: 370000400001223
http://www.qilu-antibiotics.com/
Shandong Qilu King-Phar Pharmaceutical Co.,
Ltd.
Registration no.: 370124000001330
Shandong Qilu Huanghe Medical Packing Co., Ltd.
Registration no.: 370000228041236
Shandong Qilu Wanhe Medicines Marketing Co., Ltd.
Registration no.: 370000228041718
Qilu Animal Health Products Co., Ltd.
Registration
no.: 370000228041244
Overall payment appraisal :
( ) Excellent (
) Good (X) No Complaints ( )
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.
Agricultural Bank of China Ji’nan Industrial North Road
Sub-branch
AC#：N/A
Shanghai Pudong
Development Bank
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
as of Dec. 31,
2012 |
|
Cash & bank |
162,910 |
71,730 |
|
Notes receivable |
27,390 |
13,450 |
|
Inventory |
146,900 |
151,970 |
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Accounts
receivable |
209,670 |
173,240 |
|
Advances to
suppliers |
10,580 |
17,350 |
|
Other
receivables |
21,420 |
30,100 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
578,870 |
457,840 |
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Fixed assets |
637,950 |
647,820 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
340 |
29,630 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
1,217,160 |
1,135,290 |
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============= |
============= |
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Short loans |
0 |
0 |
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Note payable |
6,060 |
0 |
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Accounts payable |
97,320 |
156,380 |
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Advances from
customers |
1,260 |
730 |
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Employee
pay payable |
440 |
670 |
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Taxes payable |
-5,090 |
-6,380 |
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Other payable |
2,970 |
11,960 |
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Other
current liabilities |
0 |
0 |
|
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----------------- |
----------------- |
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Current
liabilities |
102,960 |
163,360 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
102,960 |
163,360 |
|
Shareholders
equities |
1,114,200 |
971,930 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
1,217,160 |
1,135,290 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
as of Dec. 31,
2012 |
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Turnover |
1,136,820 |
1,037,660 |
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Cost of goods sold |
813,370 |
774,040 |
|
Taxes and
additional of main operations |
6,280 |
8,110 |
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Sales expense |
6,970 |
6,130 |
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Management expense |
150,620 |
123,380 |
|
Finance expense |
3,780 |
1,630 |
|
Asset impairment loss |
0 |
-680 |
|
Non-operating
income |
9,780 |
3,650 |
|
Non-operating expense |
230 |
630 |
|
Profit before
tax |
165,350 |
128,070 |
|
Less: profit tax |
23,690 |
19,380 |
|
Profits |
141,660 |
108,690 |
Important Ratios
=============
|
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as of Dec. 31,
2013 |
as of Dec. 31,
2012 |
|
*Current ratio |
5.62 |
2.80 |
|
*Quick ratio |
4.20 |
1.87 |
|
*Liabilities
to assets |
0.08 |
0.14 |
|
*Net profit
margin (%) |
12.46 |
10.47 |
|
*Return on
total assets (%) |
11.64 |
9.57 |
|
*Inventory
/Turnover ×365 |
47 days |
54 days |
|
*Accounts
receivable/Turnover ×365 |
67 days |
61 days |
|
*Turnover/Total
assets |
0.93 |
0.91 |
|
* Cost of
goods sold/Turnover |
0.72 |
0.75 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its line, and
increased in 2013.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is fairly good in 2012
and good in 2013.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover in both years.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s quick ratio is maintained in a normal level in
2012 and fairly good level in 2013.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in an average level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.46 |
|
UK Pound |
1 |
Rs.92.77 |
|
Euro |
1 |
Rs.69.03 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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.