MIRA INFORM REPORT
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Report No. : |
349608 |
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Report Date : |
10.11.2015 |
IDENTIFICATION DETAILS
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Name : |
Qilu Antibiotics
(Linyi) Pharmaceutical Co., Ltd. |
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Registered Office : |
North of Huayuan (West) Road, Economic Development Zone, Linyi County, Shandong Province 251500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
01.06.2009 |
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Com. Reg. No.: |
371424200001217 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is
mainly engaged in researching, developing, manufacturing and selling
Cefazolin Sodium. |
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No. of Employees : |
300 |
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 |
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Maximum Credit Limit : |
USD 100,000 (Periodical Review) |
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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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 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 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.
|
Source
: CIA |
Company
name and address
Qilu Antibiotics (Linyi) Pharmaceutical Co.,
Ltd.
north of huayuan (west) road, economic
development zone
linyi county, shandong PROVINCE 251500 PR CHINA
TEL: 86 (0) 534-5059009
FAX: 86 (0) 534-5059008
EXECUTIVE
SUMMARY
Date of Registration : June 1, 2009
REGISTRATION NO. : 371424200001217
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY
30,000,000
staff : 300
BUSINESS CATEGORY : r
& d & MANUFACTURING & trading
Revenue : CNY 578,739,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 24,944,000 (AS OF DEC. 31, 2014)
WEBSITE : www.qilulinyi-antibiotics.com
E-MAIL : n/a
PAYMENT : AVERAGE
RECOMMENDED CREDIT LIMIT : USD 100,000 (PERIODICAL REVIEW)
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.35 = 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 limited liabilities company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 371424200001217
on June 1, 2009.
SC’s Organization Code Certificate No.:
68949063-5
%20PHARMACEUTICAL%20CO.,%20LTD.%20-%20349608%2010-Nov-2015_files/image008.jpg)
SC’s Tax No.: 371424689490635
SC’s registered capital: CNY 30,000,000
SC’s paid-in capital: CNY 30,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Qilu
Pharmaceutical Co., Ltd. |
60 |
|
Qilu
Antibiotics Pharmaceutical Co., Ltd. |
40 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Hou
Chuanshan |
|
General
Manager |
Zhao
Weiliang |
|
Supervisor |
Li Peng |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Qilu Pharmaceutical Co., Ltd. 60
Qilu Antibiotics Pharmaceutical Co., Ltd. 40
%20PHARMACEUTICAL%20CO.,%20LTD.%20-%20349608%2010-Nov-2015_files/image007.gif){kind=small}
Qilu
Pharmaceutical Co., Ltd.
-----------------------------------------
Date of Registration: August 21, 1992
Registration No.: 370000228034515
Registered Capital: CNY 600,000,000
Qilu Antibiotics
Pharmaceutical Co., Ltd.
-------------------------------------------------------
Date of Registration: May 29, 1995
Registration No.: 370000400001223
Legal Form: Chinese-Foreign
Equity Joint Venture Enterprise
Registered Capital: USD 20,504,100
MANAGEMENT
Hou
Chuanshan, Legal
Representative and Chairman
--------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø Working
experience (s):
At present, working
in SC as legal representative and chairman, also working in Qilu Antibiotics
Pharmaceutical Co., Ltd. as legal
representative
Zhao
Weiliang, General Manager
-------------------------------------------------------
Ø Gender: M
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC as general manger
Also as director in Qilu Antibiotics
Pharmaceutical Co., Ltd.
Supervisor
--------------
Li Peng
BUSINESS
OPERATION
SC’s registered
business scope includes manufacturing and selling drugs and Intermediates;
manufacturing and selling common pharmaceutical intermediates; international
trade.
SC is mainly
engaged in researching, developing, manufacturing and selling Cefazolin Sodium.
SC’s products
mainly include: Oncology, Cerebrovascular & Cardiovascular,
Anti-infectives, Psychological and Neurological, Biopharmaceuticals,
Respiratory, Ophthalmologic, NSAIDS, and etc.
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
Europe. SC sells 40% of its products in domestic market, and 60% to the
overseas market, mainly Europe.
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 30-60 days.
*Major Customers*
-----------------------
Central De
Productos Quimicos Sa De Cv
Helm De Mexico
S.A.
Staff & Office:
--------------------------
SC is known
to have approx. 300 staff at
present.
SC owns an area as
its operating office & factory of approx. 70,000 sq. meters at the heading
address.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
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 SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
24,260 |
7,448 |
51,254 |
|
|
Notes receivable |
2,549 |
11,385 |
14,394 |
|
Accounts receivable |
70,064 |
110,405 |
155,903 |
|
Advances to suppliers |
16,230 |
12,848 |
17,019 |
|
Other receivable |
7,371 |
2,986 |
5,465 |
|
Inventory |
149,098 |
163,038 |
193,736 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
269,572 |
308,110 |
437,771 |
|
Fixed assets |
490,811 |
489,548 |
468,850 |
|
Construction in progress |
3,028 |
1,641 |
580 |
|
Intangible assets |
37,122 |
40,819 |
39,947 |
|
Long-term investment |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
800,533 |
840,118 |
947,148 |
|
|
============= |
============= |
============= |
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Short-term loans |
620,000 |
0 |
0 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
108,707 |
123,199 |
153,428 |
|
Payroll payable |
462 |
0 |
0 |
|
Taxes payable |
-57,907 |
-46,318 |
-22,151 |
|
Advances from clients |
1 |
1,498 |
1,571 |
|
Other payable |
164,214 |
769,574 |
789,356 |
|
Other current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
835,477 |
847,953 |
922,204 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
835,477 |
847,953 |
922,204 |
|
Equities |
-34,944 |
-7,835 |
24,944 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
800,533 |
840,118 |
947,148 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
215,773 |
379,234 |
578,739 |
|
Cost of sales |
194,420 |
307,274 |
456,373 |
|
Sales expense |
657 |
929 |
1,803 |
|
Management expense |
46,708 |
66,275 |
89,931 |
|
Finance expense |
46 |
531 |
115 |
|
Non-operating income |
313 |
2,009 |
693 |
|
Non-operating
expense |
1 |
602 |
548 |
|
Profit before tax |
-25,747 |
5,769 |
30,451 |
|
Less: profit tax |
0 |
0 |
0 |
|
-25,747 |
5,769 |
30,451 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Current ratio |
0.32 |
0.36 |
0.47 |
|
*Quick ratio |
0.14 |
0.17 |
0.26 |
|
*Liabilities to assets |
1.04 |
1.01 |
0.97 |
|
*Net profit margin (%) |
-11.93 |
1.52 |
5.26 |
|
*Return on total assets (%) |
-3.22 |
0.69 |
3.22 |
|
*Inventory / Revenue ×365 |
253 days |
157 days |
123 days |
|
*Accounts receivable / Revenue ×365 |
119 days |
107 days |
99 days |
|
*Revenue / Total assets |
0.27 |
0.45 |
0.61 |
|
*Cost of sales / Revenue |
0.90 |
0.81 |
0.78 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line, and it increased year by year.
l SC’s net profit
margin is average in 2013 and 2014.
l SC’s return on
total assets is average in 2013 and 2014.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: POOR
l
The current ratio of SC is maintained in a poor
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
SC has no short-term loans in 2013 and 2014.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
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. The large amount of inventory & accounts receivable may be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.34 |
|
|
1 |
Rs.100.03 |
|
Euro |
1 |
Rs.71.45 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
ANK |
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.