MIRA
INFORM REPORT
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Report Date : |
12.09.2007 |
IDENTIFICATION DETAILS
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Name : |
HEBEI XINGANG PHARMACEUTICAL CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jun. 29, 2001 |
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Com. Reg. No.: |
130100400002355 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Engaged in manufacturing and selling intermediates and pharmaceutical
raw materials. |
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 : |
Up To usd 250,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
HEBEI XINGANG PHARMACEUTICAL CO., LTD.
NO.
TEL : 86 (0)
311-84930058
FAX : 86 (0) 311-84922430
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 29, 2001
REGISTRATION NO. : 130100400002355
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY 9,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 77,220,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 34,070,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.52= US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 Jun. 29, 2001.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The investing parties are free
to agree on method of profit distribution and liabilities bearing according
to the proportion of capital investment. Each investing parties contributes
funds, tangible assets, technology & etc. The board of directors
excises the high authority. The joint venture usually has a limited
duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes researching, developing and
manufacturing rifamycin biological ferment, intermediates and pharmaceutical raw
materials.
SC is mainly
engaged in manufacturing and selling intermediates and pharmaceutical raw
materials.
Mr. Ma Shuliang
has been chairman of SC since 2006.
SC is known
to have approx. 300 staff members 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
http://www.hbxgyy.com The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
SC was formerly named Hebei Xingang Biochemistry Co., Ltd., and adopted
present name in 2004.
In 2004 SC passed national GMP authentification.
MAIN SHAREHOLDERS:
Name %
of Shareholding
OverseasWay Holding Co., Ltd.
Zhao County Zhaozhou Bridge Biology Chemical
Co., Ltd. 49
Hebei Construction Investment Co., Ltd. 21
============================================
Zhao County Zhaozhou Bridge Biology Chemical
Co., Ltd.
Add:
Tel: 86 0311-4930058
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Chairman:
Mr. Ma Shuliang, in his
Working Experience(s):
From 2006 to present Working
in SC as chairman.
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General Manager:
Mr. Li Haile, in his
Working Experience(s):
From 2006 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling intermediates and pharmaceutical raw
materials.
SC’s products
mainly include: Rifamycin S Sodium, Rifamycin S, 3-Formyl Rifamycin SV, Rifamycin
SV Sodium, Rifampicin, Rifandine, and Rifabutin.
SC sources its
materials 100% from domestic market. SC sells 15% of its products in domestic
market, and 85% to the overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client:
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Longmarch Pharmaceuticals Co., Ltd.
*Major Supplier:
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SC is
not known to have any subsidiary at present.
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 refused to release any information of its
suppliers and the trade reference was not available.
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.
Bank of
AC#：08686308091001
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
2,860 |
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Advances to
suppliers |
0 |
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Accounts
receivable |
4,500 |
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Inventory |
10,040 |
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Other
receivables |
1,830 |
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Other current
assets |
1,030 |
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Current assets |
20,260 |
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Fixed assets net
value |
20,910 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
3,960 |
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Total assets |
45,130 |
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Short loans |
6,510 |
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Accounts payable |
1,900 |
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Advances from
clients |
0 |
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Taxes payable |
0 |
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Salaries payable |
0 |
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Other payable |
1,410 |
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Other current
liabilities |
1,240 |
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Current
liabilities |
11,060 |
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Long term
liabilities |
0 |
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Total
liabilities |
11,060 |
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Equities |
34,070 |
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Total
liabilities & equities |
45,130 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
77,220 |
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Cost of goods
sold |
62,390 |
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Sales expense |
650 |
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Management expense |
3,420 |
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Finance expense |
620 |
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Profit before
tax |
8,800 |
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Less: profit tax |
1,210 |
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Profits |
7,590 |
Important Ratios
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2006 |
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*Current ratio |
1.83 |
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*Quick ratio |
0.92 |
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*Liabilities
to assets |
0.25 |
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*Net profit
margin (%) |
9.83 |
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*Return on
total assets (%) |
16.82 |
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*Fixed
assets/Total assets |
0.46 |
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*Inventory
/Turnover ×365 |
47days |
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*Accounts
receivable/Turnover ×365 |
21days |
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*Turnover/Total
assets |
1.71 |
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* Cost of
goods sold/Turnover |
0.81 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good in 2006.
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SC’s return on total assets is good in 2006.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal
level in 2006.
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SC’s quick ratio is maintained in a normal level in
2006.
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The accounts receivable of SC is average.
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The inventory of SC is acceptable.
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The short loans of SC are acceptable.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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The debt ratio of SC is fairly low.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. A credit line up to USD 250,000 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. |
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%)