MIRA INFORM REPORT

 

 

Report No. :

509679

Report Date :

16.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

ANQIU LU'AN PHARMACEUTICAL CO., LTD.

 

 

Registered Office :

No. 35 Weixu North Road, Anqiu, Shandong Province 262100 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2016

 

 

Date of Incorporation :

07.12.1998

 

 

Unified Social Credit Code :

91370784165647304K

 

 

Legal Form :

Limited Liabilities Company

 

 

Line of Business :

Subject registered business scope includes manufacture, sales: tablets, hard capsules, large capacity injection, raw material drug (acetaminophen, hydrotalcite). Manufacture, sales: white emulsion, sodium acetate; sales: paper; import and export of goods and technology (excluding those limited or prohibited by the state; if needed with permit).

 

 

No. of Employees :

1,310

 

 

 

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

 

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.

After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.

The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.

The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.

 

Source : CIA

 

 

Company name & address

 

COMPANY NAME

ANQIU LU'AN PHARMACEUTICAL CO., LTD.

CURRENT ADDRESS/

REGISTERED ADDRESS

NO. 35 WEIXU NORTH ROAD, ANQIU, SHANDONG PROVINCE 262100 PR CHINA

TEL. NO.

86 (0) 536-4390238/4386559/4390070/4382798

FAX NO.

86 (0) 536-4390696

 

 

EXECUTIVE SUMMARY

 

Date of Registration                     : december 7, 1998

UNIFIED SOCIAL CREDIT CODE           : 91370784165647304K

LEGAL FORM                                       : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE                               : wang jun (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : CNY 60,000,000

staff                                                  : 1,310

BUSINESS CATEGORY             : manufacturing & trading

Revenue                                            : CNY 600,645,000 (AS OF DEC. 31, 2016)

EQUITIES                                             : CNY 182,574,000 (AS OF DEC. 31, 2016)

WEBSITE                                              : www.luanpharm.com

E-MAIL                                                 : luan@luanpharm.com

PAYMENT                                            : REGULAR

MARKET CONDITION                            : competitive

FINANCIAL CONDITION                         : FAIRly stable

OPERATIONAL TREND             : FAIRLY STEADY

GENERAL REPUTATION                       : average

 

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 unified social credit code: 91370784165647304K.

 

SC’s Import and Export Enterprise Code: 3700165647304

 

SC’s registered capital: CNY 60,000,000

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

--

Registration No.

3707842800098

370784228000989

Registered Capital

CNY 30,000,109

CNY 50,000,109.5

Registration No./

Unified Social Credit Code

370784228000989

91370784165647304K

2017-8-17

Registered Capital

CNY 50,000,109.5

CNY 15,819,457.9

2017-9-11

Registered Capital

CNY 15,819,457.9

CNY 60,000,000

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

 

% of Shareholding

Zhao Fenggang

2.60

Liang Ping

1.12

Zhao Shutao

3.64

Labor Union of Anqiu Lu'an Pharmaceutical Co., Ltd.

41.19

Wang Jun

47.63

Liu Xiyao

0.82

Zhang Jianbo

1.07

Li Yujun

0.49

Zheng Qunbao

0.37

Sun Xijun

0.36

Li Qingwen

0.71

 

SC’s Chief Executives:-

 

Position

 

Name

Legal Representative, Chairman and General Manager

Wang Jun

Director

Liu Xiyao

Zhao Shutao

Zhao Fenggang

Sun Xijun

Supervisor

Zhou Shubin

Li Qingwen

Zhao Ailian

 

 

RECENT DEVELOPMENT

 

SC (Former: Weifang No.4 Pharmaceutical Factory) is one of the leading bulk pharmaceutical enterprises specializing in manufacturing and exporting Paracetamol (Acetaminophen). Paracetamol DC is covered by EU GMP Certificate and its facilities passed Germany Government of Upper Bavaria Site Inspection. Paracetamol Finish Dosage is covered by Canada GMP Certificate and its facilities passed Health Canada's Site Inspection. US DMF for Acetaminophen API and Acetaminophen DC90 are filed and US FDA GMP Site Inspection is under triggling and TGA GMP Site Inspection is under processing as well. SC is approved by ISO9001/ISO14001/OHSAS14001.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                              % of Shareholding

 

Zhao Fenggang                                                             2.60

 

Liang Ping                                                                    1.12

 

Zhao Shutao                                                                 3.64

 

Labor Union of Anqiu Lu'an Pharmaceutical Co., Ltd.      41.19

 

Wang Jun                                                                     47.63

 

Liu Xiyao                                                                      0.82

 

Zhang Jianbo                                                                1.07

 

Li Yujun                                                                        0.49

 

Zheng Qunbao                                                              0.37

 

Sun Xijun                                                                      0.36

 

Li Qingwen                                                                    0.71

MANAGEMENT

 

Wang Jun, Legal Representative, Chairman and General Manager

----------------------------------------------------------------------------------------------

Gender: M

Nationality: China

Age: 57

ID# 370722600614001

Working experience (s):

 

At present, working in SC as legal representative, chairman and general manager

Also working in Weifang Luan Import And Export Co., Ltd., Anqiu Baiquan Beer Co., Ltd. and Weifang Baishantou Tourism Development Co., Ltd. as legal representative

 

Director

----------

Liu Xiyao

Zhao Shutao

Zhao Fenggang

Sun Xijun

 

Supervisor

---------------

Zhou Shubin

Li Qingwen

Zhao Ailian

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacture, sales: tablets, hard capsules, large capacity injection, raw material drug (acetaminophen, hydrotalcite). Manufacture, sales: white emulsion, sodium acetate; sales: paper; import and export of goods and technology (excluding those limited or prohibited by the state; if needed with permit).

 

SC is mainly engaged in manufacturing and selling pharmaceutical raw material.

 

SC’s products mainly include:

Product & Output

 

Package

Specification

Paracetamol

(Acetaminophen)

40,000mt/year

25kg/fibre drum
11mt/20’fcl
25kg/fibre carton
14mt/20’fcl
25kg/woven bag
17mt/20’fcl
50kg/fibre drum
10mt/20’fcl
100kg/fibre drum
16mt/40’fcl
500kg/big bag
20mt/40’fcl
600kg/ big bag
19.2mt/40’fcl

EP

BP

USP

CP

Paracetamol DC 
fluid bed
(Acetaminophen DC)
5000mt/year
Paracetamol DC 
Spraying dry
(Acetaminophen DC)
3000mt/year

25kg/fibre drum
11mt/20’fcl
25kg/fibre carton
14mt/20’fcl
50kg/fibre drum
10mt/20’fcl

DC90, DC96, DC88

DC85, DC83, DC77

Paracetamol Tablet/Caplet
(Acetaminophen Tablet/Caplet)
8 Billion Tabs/year

30 kg/fiber drum

BP
USP

Capsule
10 Billion/year

As per customer’s request

Hard Capsule

Soft Capsule

IV Solution

400 million bottles or bags/year

500 ml, 250 ml, 150ml, 100ml, 50ml / glass bottle, plastic bottle, soft bag

CP

P-Aminophenol

10000 mt/year

25 kg/fibre drum
11mt/20’fcl
50kg/fibre drum
10mt/20’fcl
100kg/fibre drum
8mt/20’fcl

In-House Standard

Sodium Acetate
5000 mt/year

25 kg/woven bag

In-House Standard

White Emulsion

360 mt/year

1 kg/plastic bottle
24 kg/fiber carton
25 kg/fiber drum

In-House Standard

 

SC’s brand: “Luan”.

 

 

SC sources its materials 100% from domestic market. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly Southeast Asia, etc.

 

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.

 

*Major Customers*

==============

Flavine North America Inc.

Sanofi Aventis De Colombia, S.A.

Zeta Pharmaceuticals Llc

 

Staff & Office:

--------------------------

SC is known to have approx. 1,310 staff at present.

 

SC owns an area as its operating office and factory, but the detailed information is unknown.

 

 

RELATED COMPANY

 

SC is known to have the following subsidiaries,

 

Anqiu Baiquan Beer Co., Ltd.

---------------------------------

Date of Registration: October 9, 2016

Unified Social Credit Code: 91370784MA3CJ0KJXN

Chief Executive: Wang Jun

Registered Capital: CNY 1,000,000

 

Weifang Baishantou Tourism Development Co., Ltd.

---------------------------------------

Date of Registration: October 13, 2011

Unified Social Credit Code: 91370784584536457H

Chief Executive: Wang Jun

Registered Capital: CNY 2,000,000

 

Weifang Dingzheng Investment Co., Ltd.

------------------------------------

Date of Registration: August 21, 2009

Unified Social Credit Code: 913707006944012119

Chief Executive: Zhao Huajun

Registered Capital: CNY 4,759,000

 

Weifang Luan Import And Export Co., Ltd.

---------------------------------

Date of Registration: March 19, 2008

Unified Social Credit Code: 91370784673160295Q

Chief Executive: Wang Jun

Registered Capital: CNY 1,000,000

 

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 records 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

 

Financial Summary

Unit: CNY’000

As of Dec. 31, 2015

As of Dec. 31, 2016

Total assets

1,868,780

1,994,383

 

-------------

-------------

Total liabilities

1,681,790

1,811,809

Equities

186,990

182,574

 

-------------

-------------

Revenue

622,780

600,645

Profit before tax

5,160

580

Less: profit tax

0

174

Profits

5,160

406

 

Important Ratios

=============

 

As of Dec. 31, 2015

As of Dec. 31, 2016

*Liabilities to assets

0.90

0.91

*Net profit margin (%)

0.83

0.07

*Return on total assets (%)

0.28

0.02

*Revenue/Total assets

0.33

0.30

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: AVERAGE

The revenue of SC appears fairly good in its line.

SC’s net profit margin is average.

SC’s return on total assets is average.

 

LIQUIDITY: AVERAGE

SC’s revenue is in a fair level, comparing with the size of its total assets.

 

LEVERAGE: FAIR

The debt ratio of SC is fairly high.

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

INR 67.53

UK Pound

1

INR 91.49

Euro

1

INR 80.53

CNY

1

INR 10.63

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TRU

 

 

RATING EXPLANATIONS

 

Credit Rating

 

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.