SAMPLE CREDIT REPORT
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INQUIRY DETAILS
Given Name : CHINA NATIONAL PHARMACEUTICAL FOREIGN TRADE CORPORATION
Given Address : No. 20, Zhichunlu Road, Haidian District 100088, Beijing, China
IDENTIFICATION DETAILS
Name : CHINA NATIONAL PHARMACEUTICAL FOREIGN TRADE CORP.
Registered Office : Guoji Building, No. 20 Zhichun Road, Haidian District, Beijing 100086 Pr China
Date of Incorporation : May, 1981
Com. Reg. No.: 1000001000031
Legal Form : State - Owned Enterprise
Line of Business : Importing and exporting medicine and the related technology.
RATING & COMMENTS
Company Rating : A
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
Status : State Owned
Payment Behaviour : Regular
Litigation : Clear
NAME
CHINA NATIONAL PHARMACEUTICAL FOREIGN TRADE CORP.
ADDRESS
GUOJI BUILDING, NO. 20 ZHICHUN ROAD, HAIDIAN DISTRICT,
BEIJING, 100086 PR CHINA.
TEL : 86 (0) 10-62026699
FAX : 86 (0) 10-68316571
EXECUTIVE SUMMARY
INCORPORATION DATE MAY 1981
REGISTRATION NO. 1000001000031
REGISTERED LEGAL FORM STATE-OWNED ENTERPRISE
CHIEF EXECUTIVE MR. LI ZHIXIN (GENERAL MANAGER)
STAFF STRENGTH 144
REGISTERED CAPITAL RMB 44,970,000
BUSINESS LINE IMPORTING AND EXPORTING
TURNOVER RMB 730,230,000 (AS OF DEC. 31, 2003)
EQUITIES RMB 232,770,000 (AS OF DEC. 31, 2003)
PAYMENT AVERAGE
RECOMM. CREDIT RANGE UP TO RMB 25,000,000
MARKET CONDITION COMPETITIVE
FINANCIAL CONDITION FAIRLY GOOD
OPERATIONAL TREND STEADY
GENERAL REPUTATION AVERAGE
GENERAL REPUTATION RMB8.26 = US$1 AS OF 2009-03-10

Adopted abbreviations

ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
RMB - China Ren Min Bi Yuan
HISTORY

SC was reregistered as a state-owned enterprise at State Administration for Industry & Commerce (The official body of issuing and renewing business license) in May of 1981.

Company Status: State-owned enterprise

This form of business in PR China is defined as a commodity production or operational units of a socialist character which in accordance with the law, has autonomy in management, takes full responsibility for its profits and losses and practices independent business accounting. It is a legal person established directly by central / local government or enterprise owned by central or local government. In theory, the liabilities of this form of enterprise are ultimately borne by the government, since the adoption of company law in mid-1994, the Chinese government has planned to separate the ownership from management and liabilities bearing.

SC's registered business scopes include business of importing and exporting various goods and technology and acting as an agent for it; medical technology importing and exporting; affecting Chinese foreign equity joint venture enterprise and Chinese foreign contractual joint venture enterprise, compensation trade in agreement, business of country trade and transiting trade.

SC is mainly engaged in importing and exporting medicine and the related technology.

Mr. Li Zhixin has been general manager of SC since 2002.

SC owns 144 staff.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. Our checks reveal that SC owns the total premise about 3,000 square meters.

WEBSITE

http://www.sino-pharm.com The design is professional and the content is well organized. At present the web site is both in Chinese and English versions. E-mail: business@sinopharm.com

KEY EVENT / RECENT DEVELOPMENT

SC has been the list of Chinese one of the largest 500 enterprises in amount of importing and exporting since 1991.

OWNERSHIP / MANAGEMENT

MAIN SHAREHOLDERS

Name % of Shareholding
China National Pharmaceutical Group Corporation 100
MANAGEMENT

General Manager
Mr. Li Zhixin, 51 years old with university education. He is currently responsible for the overall management of SC.

Working Experience(s)
At present Working in SC as general manager.
At present Also working in SINOPHARM as general manager.

Vice-General Manager
Mr. Yan Bing, about 40 years old with university education. He is currently responsible for the daily management of SC.

Working Experience(s)
At present Working in SC as vice-general manager.

BUSINESS OPERATIONS

SC is mainly engaged in importing and exporting medicine and the related technology.

SC sources its materials 60% from domestic market, 40% from international market, mainly from European and American Countries. SC sells 40% of its products in domestic market and 60% to Japan, South Korea, European countries and Southeast Asia countries, etc.

The buying terms of SC include Check, T/T, L/C and Credit of 30-90 days. The payment terms of SC include T/T, Check, L/C and Credit of 30-90 days.

SC's suppliers include

Xi'an Janssen Pharmaceutical, Ltd.
Suzhou Capsugel Co., Ltd.
Dow AgroSciences Corp
USA Huntsman Corp

SC's clients include

Sinopharm Jiangsu Co., Ltd.,

RELATED COMPANIES

SC is known to have 16 subsidiaries and 17 branches at present as following,

  • Sino-American Shanghai Squibb Pharmaceuticals Ltd
  • Suzhou Capsugel Co., Ltd.
  • Sino-Swed Pharmaceutical Corp. Ltd.
  • Xi'an Janssen Pharmaceutical, Ltd.
  • Chongqing GlaxoSmithKline Co., Ltd.
  • Sinopharm Jiangsu Co., Ltd.,
  • Qingdao Huazhong Pharmaceutical Co., Ltd.
  • Beihai Beituo Pharmaceutical Development Co., Ltd.
  • AstraZeneca Pharmaceutical Consulting Co., Ltd.
  • Beijing Sainuoqiang Pharmaceutical Foreign Trade Co., Ltd.
  • Beijing Sanlian Corp
  • China Dazhong Pharmaceutical Co., Ltd.
  • Beijing Weisiman Medical Machinery Co., Ltd.
  • Beijing Weiyi Fashion Co., Ltd.
  • Beijing Sainuohua Medical Machinery Co., Ltd.

Branches

  • China National Pharmaceutical Foreign Trade Corp Selling branch
  • China National Pharmaceutical Foreign Trade Corp Southeast Branch
  • China National Pharmaceutical Foreign Trade Corp Liaoning Corp
  • Guangdong South Pharmaceutical Foreign Trade Corp
  • Tianjin Free Trade Zone Sidate Pharmaceutical Chemical Co., Ltd.
  • Beijing Zhichuntang Drugstore
  • China National Pharmaceutical Foreign Trade (Hong Kong) Co., Ltd.
  • China National Pharmaceutical Foreign Trade (Ghana) Corp
  • China National Pharmaceutical Foreign Trade Corp Vietnam Representative
  • China National Pharmaceutical Foreign Trade Southwest Corp
  • Shenyang Shenzhou Pharmaceutical Corp
  • China National Pharmaceutical Foreign Trade Corp Houseroom
PAYMENT

Overall payment appraisal

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) 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 records and our debt collection record concerning SC.

Trade payment experience

A trade enquiry currently conducted with SC's supplier(s) reveal the following:

Products sold:
Date account opened:
Line of credit:
Terms:
Average monthly sales:
Current balance:
Rating Key :
Any Special Comments: _______________________________________

Payment record keys

1 = Prompt : Payment made before the credit period expires
2 = As agreed terms : Payment made upon due date
3 = Slightly slow but acceptable : Payment made 5 to 20 days beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond agreed terms
5 = Poor : Payment made over 45 days beyond agreed terms
6 = No comment : Account is newly opened & record is not yet established

Note

In some instances, payment beyond terms can be the result of disputes over merchandise, lost invoices, disputed accounts & etc.

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

Bank of China General Department
AC# : 00123108091001
Relationship: Normal.

FINANCIAL HIGHLIGHTS

Balance Sheet (as of Dec. 31, 2003)

Unit: RMB thousand yuan
Cash & bank 28,440
Inventory 52,750
Accounts receivable 43,890
Account payable advance 31,570
Other Accounts receivable 30,110
Other current assets 96,300
------------------
Current assets 283,060
Fixed assets 50,820
Fixed assets net value 40,480
Projects under construction 1,280
Long term investment 74,310
Other assets 22,980
------------------
Total assets 422,110
=============
Short loans 31,950
Accounts payable 86,700
Account receivable advance 45,970
Other Accounts payable 3,020
Other current liabilities -8,290
------------------
Current liabilities 159,350
Long term liabilities 29,990
Other liabilities 0
------------------
Total liabilities 189,340
Equities 232,770
------------------
Total liabilities & equities 422,110
=============


Income Statement (as of Dec. 31, 2003)

Unit: RMB thousand yuan
Turnover 730,230
Cost of goods sold 710,190
Sales expense 15,000
Management expense 29,460
Finance expense -220
Profit before tax 33,100
Less: profit tax 0
Profits 33,100


Important Ratios (as of Dec. 31, 2003)

*Current ratio 1.78
*Quick ratio 1.45
*Liabilities to assets 0.45
*Net profit margin (%) 4.53
*Return on total assets (%) 7.84
*Total liabilities / Net assets 0.81
*Fixed assets/Total assets 0.12
*Inventory /Turnover ×365 26 days
*Accounts receivable/Turnover × 365 22 days
*Turnover/Total assets 1.73
* Cost of goods sold/Turnover 0.97


FINANCIAL COMMENTS

Profitability

The turnover and the profit margin of SC appear fairly good in its line.

Working Capital Control

The current ratio of SC appears acceptable. With experienced management staff, SC seems to have no problem in its working capital control.

Liquidity

SC's quick ratio is maintained in an average level. It seems SC has no problem in meeting all its liabilities in the near future.

Solvency

Over years of development, the risk for SC to go into solvency is slim and it seems SC is able to meet all its obligations in the future.

Overall financial condition of the SC

Fairly good.

REMARKS

Over the past 23 years, SC has made a stable growth with satisfactory profit. A credit line up to RMB25,000,000 would appear to be within SC's capacities.