MIRA
INFORM REPORT
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Report Date : |
09.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
HUBEI GUANGJI PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 1, Jiangdi Road, Wuxue City, Hubei Province 435400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
28.05.1993 |
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Com. Reg. No.: |
4200001000012 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling medicine, pharmaceutical and feed additive. |
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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Maximum Credit Limit : |
USD1000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name and Address
hubei guangji pharmaceutical co., ltd.
no. 1, jiangdi road, wuxue city
hubei province 435400 PR CHINA
TEL: 86 (0) 713-6216068 FAX: 86 (0) 713-6212108
EXECUTIVE SUMMARY
INCORPORATION DATE : May 28, 1993
REGISTRATION NO. : 4200001000012
REGISTERED LEGAL FORM : Shares limited co.
CHIEF EXECUTIVE : MR. he mi (CHAIRMAN)
STAFF STRENGTH : 1,145
REGISTERED CAPITAL : CNY 251,705,513
BUSINESS LINE : manufacturing
TURNOVER : CNY 388,696,038.06 (AS OF DEC. 31, 2006)
EQUITIES : CNY 477,263,971.94 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : up to usd 1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY Stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : Average
EXCHANGE RATE : CNY 7.72 = US$1 AS OF 2007-04-09
SC was registered as a shares limited co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on May 28, 1993.
Company Status: Shares limited co. This form of business in PR China
is defined as a legal person. Its registered capital is divided into shares
of equal par value and the co. raises capital by issuing share certificates
by promotion or by public offer. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to the
extent of its total assets. The characteristics of the shares limited co.
are as follows: The establishment of the co.
requires at least five promoters and at least three of them must be PR-
China controlled legal persons. Natural person can not be allowed to serve
as promoters. The minimum registered capital
of a co. is CNY 10M. while that of the co. with foreign investment is CNY
30M. The total capital of a co. which propose to apply for publicly listed
must not less than CNY 50M. The board of directors must
consist of an odd number of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within three
years of the offer. Directors can not transfer the shares they hold in the
co. during their terms of office. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes manufacturing and selling medicine, animal remedy, pharmaceutical preparation, foodstuff, feedstuff, additive, fine chemistry, glassware, and packing printing; catering service; auto freightage; exporting various kinds of medicine; and importing homegrown raw materials, accessories, machinery, apparatus and instruments, and components needed by manufacture. SC is mainly engaged in manufacturing and selling medicine, pharmaceutical preparation, and feed additive.
Mr. He Mi has been chairman of SC since 1999.
SC owns about 1,145 staff 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 Wuxue. Our checks reveal that SC owns the total
premise about 125,000 square meters.
http://www.guangjipharm.comThe design is professional and the content is well organized. At present, the web is both in Chinese and English versions.
E-mail: info@guangjipharm.com
SC has been listed as an A-Share
company on Shenzhen Stock Exchange with the code of 000952 since 1999.
Founded in 1969, SC (abbreviated
as GJPC hereinafter) has now developed into a large state-owned pharmaceutical
enterprise. SC is also the production base of riboflavin designated by
the State Pharmaceutical Administration.
Change:
In 2006, SC increased its
registered capital from CNY 171,226,000 to the present.
MAIN SHAREHOLDERS: (As of Dec, 31, 2006)
Name % of Shareholding
Wuxue National Assets Operation Corp. 16.32
Hefei High-tech Venture & Investment Co., Ltd. 6.59
Qionghai Mei’en Real Estate Development Corp. 3.62
Hainan Hainiu Agricultural Development Co., Ltd. 2.78
Shanghai Licheng Investment & Development Co., Ltd. 2.50
Hainan Jindiyuan Investment & Management Co., Ltd. 2.50
Hainan Shen-Niu-Mu Industrial & Commercial 2.50
Development Co., Ltd.
Beijing Jin-Ye-Heng-Chang Commercial Trade Co., Ltd. 2.27
Shanghai Longsheng Science & Technology Development Co., Ltd. 1.82
Wuxue Caizhen Accountant Industry Corp. 1.30
Other individuals 57.8
Wuxue National Assets Operation Corp. was established on October 20, 1994, its legal representative is Chen Yulin, and the registered capital was CNY 41,000,000, its main business include share capital operation, and so on. Wuxue National Assets Operation Corp.’s shareholder is Wuxue City Financial Bureau.
Chairman:
Mr. Mr. He Mi , born in 1940, 67 years old with university education. He is currently responsible for the overall management of SC.
Working
Experience(s):
Worked in Hubei Province Guangji Pharmaceutical Plant as workshop director, technical section chief, deputy factory director, factory director and secretary of the Party committee; and in Hubei Province Guangji Paper Manufacturing Plant as deputy factory director;
From 1999 to present Working in SC as chairman;
At present Working in Hubei Jifeng Industry Co., Ltd. as legal representative and chairman.
General Manager:
Mr. Wang Xin, born in 1966, 40 years old with university education. He is currently responsible for the daily management of SC.
Working
Experience(s):
Worked in Wuxue Experimental High School; and in SC’s office as deputy director, in SC’s foreign trade department as manager, in SC’s pharmaceutical sales Company as manager, in SC as manager assistant;
From 2006 to present Working in SC as general manager;
At present Working in SC as director.
Assistant Manager:
Mr. He Xiangxing, born in 1949, 58 years old with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
Worked in Wuxue City Guanqiao Community and Daye Non-ferrous Metal; and working in Hubei Province Guangji Pharmaceutical Plant’s office as workshop director;
At present Working in SC as assistant manager.
SC is mainly engaged in manufacturing and selling medicine, pharmaceutical preparation, and feed additive.
SC’s products mainly include: Riboflavin (Kosher Certified), Riboflavin 5 Phosphate Sodium Kosher Certified, Chinese GMP Cert.), and Biotin, etc.
SC’s Brand: “Kanjiang”
SC sources its materials 95% from
domestic market, and 5% from overseas market. SC sells 50% of its products in
domestic market, mainly Hubei province, and 50% to overseas market, mainly
European and American countries.
The buying terms of SC include
T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T, L/C and
Credit of 15-30 days.
*Major Suppliers:
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Wuxue Sanli Water Manufacturing
Co., Ltd.
Wuhan Yangguang Guangji
Pharmaceutical Development Co., Ltd.
SC is known to have 6 subsidiaries
at present, as follows:
Hainan Fulijie Biochemical Co.,
Ltd.
Wuhan Yangguang Guangji
Pharmaceutical Development Co., Ltd.
Hubei Jifeng Industry Co., Ltd.
Hubei Anhua Mansion Co., Ltd.
Hubei Guangji Pharmaceutical Jikang Medical Co., Ltd.
Wuxue Sanli Water Manufacturing
Co., Ltd.
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 Commerical Bank of China Wuxue Sub-branch
AC#：1814077101000616109
Relationship: Normal.
Consolidated Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Cash & bank |
22,110 |
62,109 |
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Short Investment |
10,000 |
10,500 |
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Inventory |
60,020 |
50,867 |
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Bills receivable |
2,955 |
2,399 |
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Accounts receivable |
110,989 |
79,251 |
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Other Accounts receivable |
106,848 |
44,332 |
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Accounts payable in advance |
53,556 |
39,443 |
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To be apportioned expense |
0 |
0 |
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Other current assets |
0 |
2 |
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Current assets |
366,478 |
288,903 |
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Fixed assets |
353,225 |
336,821 |
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Fixed assets net value |
330,635 |
319,122 |
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Projects under construction |
22,590 |
17,699 |
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Long term investment |
118,676 |
119,263 |
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Other assets |
44,061 |
40,037 |
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Total assets |
882,440 |
785,024 |
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Short loans |
172,000 |
135,000 |
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Bills payable |
9,000 |
12,650 |
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Accounts payable |
31,039 |
39,156 |
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Salaries payable |
4,756 |
5,711 |
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Welfares payable |
4,438 |
4,069 |
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Shares payable |
0 |
0 |
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Taxes payable |
-6,695 |
-5,482 |
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Other Accounts payable |
21,351 |
21,258 |
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Withdraw the expenses in advance |
0 |
0 |
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Other current liabilities |
35,664 |
17,482 |
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Current liabilities |
271,553 |
229,844 |
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Long term liabilities |
79,129 |
77,500 |
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Other liabilities |
0 |
0 |
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Total liabilities |
350,682 |
307,344 |
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Minority Interests |
423 |
416 |
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Equities |
531,335 |
477,264 |
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Total liabilities & equities |
882,440 |
785,024 |
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Consolidated Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Turnover |
345,834 |
388,696 |
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Cost of goods sold |
260,876 |
271,515 |
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Sales expense |
15,368 |
14,005 |
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Management expense |
31,786 |
52,463 |
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Finance expense |
15,720 |
13,328 |
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Investment profits |
-2,012 |
-263 |
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Non-operating income |
0 |
0 |
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Non-operating expense |
3,856 |
11,629 |
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Profit before tax |
16,216 |
25,493 |
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Less: profit tax |
7,651 |
9,835 |
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Minority Interests |
1 |
-7 |
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Profits |
8,564 |
15,665 |
Important Ratios
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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*Current ratio |
1.35 |
1.26 |
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*Quick ratio |
1.13 |
1.04 |
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*Liabilities to assets |
0.40 |
0.39 |
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*Net profit margin (%) |
2.48 |
4.03 |
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*Return on total assets (%) |
0.97 |
2.00 |
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*Inventory /Turnover ×365 |
63 days |
48 days |
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*Accounts receivable/Turnover ×365 |
117 days |
74 days |
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*Turnover/Total assets |
0.39 |
0.50 |
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* Cost of goods sold/Turnover |
0.75 |
0.70 |
PROFITABILITY: FAIRLY GOOD
- The turnover of SC appears fairly good in its line in 2005 and 2006.
- SC’s net profit margin was increased in 2006, and it is maintained in a normal level.
- SC’s return on total assets of 2006 also moved up and remains normal.
- SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
- The current ratio of SC is maintained in a fairly good level in both years.
- SC’s quick ratio is maintained in a normal level in both years.
- The inventory of SC is maintained in a fair level.
- The accounts receivable of SC was maintained in a large level in 2005, but in 2006, it appears normal.
- The short-term loan of SC appears large in 2005 and 2006.
- 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 low.
- The risk for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial conditions. The large amount of short-term loan could be a threat to SC’s financial condition. A credit line up to USD 1,000,000 would appear to be within SC’s capacities.
RATING EXPLANATIONS
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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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)