MIRA INFORM REPORT
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Report No. : |
349499 |
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Report Date : |
17.11.2015 |
IDENTIFICATION DETAILS
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Name : |
xi’an LIJUN
pharmaceutical co., ltd. |
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Registered Office : |
No. 151 Hancheng South Road, Lianhu District, Xi’an Shaanxi Province,
710077 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
01.12.2004 |
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Com. Reg. No.: |
610100400004422 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing active pharmaceutical ingredients (erythromycin
ethylsuccinate, tetracycline hydrochloride, calcium dobesilate, clarithromycin,
erythromycin, urapidil hydrochloride, armillarisin A, azithromycin,
erythromycin estolate, dirithromycin, nalmefene HCL, edaravone), small-volume
injection (including hormones), lyophilized powder for injection,
tablet(including hormones), category 2 psychotropic substances (diazepam
tablets and diazepam injection), hard capsule, soft capsule, granules,
powder-injection (Cephalosporins), dry suspension, health foods (limited to
Love Oral Solution, Gyrophora Red Oral Solution, Shengtai Shuangkang Oral
Solution, Yanglijia Effervescent Tablets and Zijin Propolis Aloes Soft
Capsule and Lijun Calcium Brand Aspartate Calcium), relative raw materials
and packing materials; wholesaling and selling self-made products (the above
items limited to manufacturing in the address of No.151, Hancheng South Road,
Xi’an, validity period as of Dec. 31, 2015); selling medicinal raw materials,
auxiliary materials and relative chemical products (excluding the hazardous
chemicals). (with permit if needed) |
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No. of Employees : |
2,000 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
Exist |
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 |
|
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. 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.
|
Source
: CIA |
Company
name & address
xi’an LIJUN pharmaceutical co., ltd.
no. 151 hancheng south road, Lianhu district,
xi’an
shAanxi province, 710077 PR CHINA
TEL: 86 (0) 29-84682134/84264676/84264383 FAX: 86 (0) 29-84261550
EXECUTIVE
SUMMARY
INCORPORATION DATE : december 1, 2004
REGISTRATION NO. : 610100400004422
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. chen xigong (CHAIRMAN)
STAFF STRENGTH :
2,000
REGISTERED CAPITAL : CNY 330,000,000
BUSINESS LINE :
manufacturing AND TRADING
TURNOVER :
CNY 820,780,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 591,160,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.36= USD 1
Adopted
abbreviations:
ANS – amount not stated NS
– not stated SC – subject company (the
company inquired by you)
NA – not available CNY
– China Ren Min Bi Yuan
SC was registered as a Chinese-foreign
equity joint venture enterprise at local Administration for Industry
& Commerce (AIC – The official body of issuing and renewing business
license) on December 1, 2004 and has been under present ownership since Nov. of
2006.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign investors.
More than one foreign investors may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business scopes include manufacturing active
pharmaceutical ingredients (erythromycin ethylsuccinate, tetracycline
hydrochloride, calcium dobesilate, clarithromycin, erythromycin, urapidil
hydrochloride, armillarisin A, azithromycin, erythromycin estolate,
dirithromycin, nalmefene HCL, edaravone), small-volume injection (including
hormones), lyophilized powder for injection, tablet(including hormones),
category 2 psychotropic substances (diazepam tablets and diazepam injection),
hard capsule, soft capsule, granules, powder-injection (Cephalosporins), dry
suspension, health foods (limited to Love Oral Solution, Gyrophora Red Oral
Solution, Shengtai Shuangkang Oral Solution, Yanglijia Effervescent Tablets and
Zijin Propolis Aloes Soft Capsule and Lijun Calcium Brand Aspartate Calcium),
relative raw materials and packing materials; wholesaling and selling self-made
products (the above items limited to manufacturing in the address of No.151,
Hancheng South Road, Xi’an, validity period as of Dec. 31, 2015); selling
medicinal raw materials, auxiliary materials and relative chemical products
(excluding the hazardous chemicals). (with permit if needed)
SC is mainly engaged in manufacturing and selling pharmaceutical
products.
Mr. Chen Xigong (陈西功) has been legal
representative and chairman of SC since 2014.
SC is known to have approx. 2,000 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 Xi’an. Our
checks reveal that SC owns the total premise, but the gross area of the premise
is unspecific.
http://www.lijun.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-Mail: lijunex@lijun.cn
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2006-11 |
Registered Legal form |
Chinese-foreign equity joint venture
enterprise |
Wholly foreign-owned enterprise |
|
Registered capital |
CNY 210,900,000 |
CNY 280,000,000 |
|
|
Shareholders |
Rejoy Group Co., Ltd. 20% (Cayman Islands) Lijun
International Pharmaceutical (Holding) Co., Ltd. 80% 80 |
(Cayman Islands) Lijun International Pharmaceutical (Holding) Co.,
Ltd. 100% |
|
|
Unknown |
Registered capital |
CNY 280,000,000 |
Present amount |
|
2014-10-31 |
Shareholder |
(Cayman Islands) Lijun International Pharmaceutical (Holding) Co.,
Ltd. 100% |
Present one |
|
Legal representative |
Wu Qin |
Present one |
Organization code: 710172659
SC obtained the Certificate of GMP for API; Certificate of GMP for
Erythromycin Ethylsuccinate (API); Certificate of GMP for Tablets, Capsules,
Granules; Certificate of GMP for Small Volume Parenteral Solutions, Powder for
Injection, Lyophilized Powder for Injection; and Certificate of GMP for
Erythromycin (API).
SC obtained the Certificate of ISO14001.
Honors:
See below for SC as executive party (defendant).
|
Executed Party |
Xi’an Lijun Pharmaceutical Co., Ltd. |
|
Court |
Shenyang City Intermediate People's Court |
|
Date of Case |
Sep. 23, 2013 |
|
Case Number |
(2013) 00337 |
|
Claim Amount |
RMB 20,482,690 |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
United Investment Group Co., Ltd. (Samoa) (Literal Translation) 100
Legal
representative and chairman:
Mr. Chen Xigong is currently responsible for the overall management of
SC.
Working Experience(s):
From 2014 to present Working
in SC as legal representative and chairman
SC is mainly engaged in manufacturing and selling pharmaceutical
products.
SC’s products mainly include:
*Bulk Drugs List
Erythromycin
Erythromycin Ethylsuccinate
Erythromycin Thiocyanate
Erythromycin Phosphate
Clarithromycin
Azithromycin
Roxithromycin
Erythromycin Estolate
Tetracycline HCL
Tetracycline Base
Sodium Erythorbate
Calcium Dobesilate
Etc.
*Preparations List
Erythromycin Ethylsuccinate
Erythromycin Enteric-coated
Clarithromycin
Azithromycin Dispersible
Tetracycline
Oxytetracycline
Erythromycin Estolate
Chloramphenicol
Trademarks &
patents
|
Registration No. |
10448956 |
9118783 |
9117406 |
|
Registration Date |
2013-05-14 |
2012-02-28 |
2012-03-28 |
|
Trademark Design |
|
|
|
SC sources its materials 100% from domestic market, mainly from Shaanxi.
SC sells 70% of its products in domestic market, and 30% to overseas market,
mainly to India.
The buying terms of SC include 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 declined
to release its major customers and suppliers.
Xi’an Lijun Logistics Co., Ltd.
-------------------------------
Reg. no.: 610000100142469
Legal representative: Zhang Hong 张弘
Incorporation date: 1999-11-8
SC is known to have the following branches:
Xi’an Lijun Pharmaceutical Co., Ltd. Medicines Operating Department
==================================================
Incorporation date: 2005-12-22
Registration no.: 610100510007351
Principal: Wu Yichao 吴奕潮
Xi’an Lijun Pharmaceutical Co., Ltd. Daqin Medicines Operating
Department
=====================================================
Incorporation date: 2005-12-22
Registration no.: 610100510007360
Principal: Wu Yichao 吴奕潮
Xi’an Lijun Pharmaceutical Co., Ltd. Dongjiao Medicines Operating
Department
=====================================================
Incorporation date: 2005-12-22
Registration no.: 610100510007378
Principal: Wu Yichao
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.
Industrial and Commercial Bank of China Xi’an Tumen Sub-Branch Fengxi
Office
AC#：3700022109006000568
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
as of Dec. 31,
2014 |
|
Cash & bank |
28,150 |
110,310 |
|
Notes receivable |
156,320 |
115,760 |
|
Inventory |
143,230 |
117,380 |
|
Accounts receivable |
205,460 |
198,470 |
|
Advances to suppliers |
4,110 |
4,830 |
|
Prepaid expenses |
1,320 |
1,530 |
|
Other receivables |
0 |
18,450 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
538,590 |
566,730 |
|
Long-term investments |
130 |
130 |
|
Fixed assets net value |
251,580 |
357,560 |
|
Projects under construction |
116,080 |
19,300 |
|
Deferred income tax assets |
10,320 |
9,960 |
|
Intangible assets |
181,660 |
206,180 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,098,360 |
1,159,860 |
|
|
============= |
============= |
|
Short loans |
170,000 |
390,000 |
|
Notes payable |
0 |
20,000 |
|
Accounts payable |
44,480 |
72,720 |
|
Advances from customers |
21,720 |
9,930 |
|
Employee pay payable |
2,010 |
3,320 |
|
Accrued expenses |
34,360 |
32,080 |
|
Taxes payable |
10,640 |
7,340 |
|
Other accounts payable |
24,000 |
33,760 |
|
Dividends payable |
0 |
5,990 |
|
Interest payable |
0 |
1,000 |
|
Other current liabilities |
0 |
0 |
|
|
----------------- |
------------------ |
|
Current liabilities |
307,210 |
576,140 |
|
Long term liabilities |
-6,310 |
-7,440 |
|
|
------------------ |
------------------ |
|
Total liabilities |
300,900 |
568,700 |
|
Shareholders equities |
797,460 |
591,160 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,098,360 |
1,159,860 |
|
|
============= |
============= |
Income
Statement
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
as of Dec. 31,
2014 |
|
Turnover |
869,330 |
820,780 |
|
Cost of goods sold |
488,920 |
445,540 |
|
Taxes and additional of main operation |
9,520 |
8,370 |
|
Sales expense |
236,000 |
206,810 |
|
Management expense |
91,810 |
94,870 |
|
Finance expense |
13,720 |
22,630 |
|
Asset impairment loss |
8,880 |
1,340 |
|
Investment income |
-520 |
200 |
|
Non-operating income |
21,240 |
3,500 |
|
Non-operating expense |
980 |
680 |
|
Profit before tax |
40,220 |
46,690 |
|
Less: profit tax |
5,140 |
6,260 |
|
Net profit |
35,080 |
40,430 |
Important
Ratios
=============
|
|
as of Dec. 31,
2013 |
as of Dec. 31,
2014 |
|
*Current ratio |
1.75 |
0.98 |
|
*Quick ratio |
1.29 |
0.78 |
|
*Liabilities to assets |
0.27 |
0.49 |
|
*Net profit margin (%) |
4.04 |
4.93 |
|
*Return on total assets (%) |
3.19 |
3.49 |
|
*Inventory /Turnover ×365 |
61 days |
53 days |
|
*Accounts receivable/Turnover ×365 |
87 days |
89 days |
|
*Turnover/Total assets |
0.79 |
0.71 |
|
* Cost of goods sold/Turnover |
0.56 |
0.54 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in its line, but it decreased in
2014.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is low, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level in 2013, but
fair in 2014.
SC’s quick ratio is maintained in a normal level in 2013, but fair in
2014.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loan of SC appears fairly large in 2014.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is fairly low.
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 short loans could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.17 |
|
|
1 |
Rs.100.65 |
|
Euro |
1 |
Rs.70.97 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
TPT |
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.