MIRA
INFORM REPORT
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Report Date : |
17.09.2007 |
IDENTIFICATION DETAILS
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Name : |
Shijiazhuang
Pharmaceutical Group Huasheng Pharma. Co., Ltd. |
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Registered Office : |
No.276 |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
December 2, 1993 |
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Com. Reg. No.: |
130100100103 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Engaged in
manufacturing and selling bulk pharmaceuticals.
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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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
Shijiazhuang
Pharmaceutical Group Huasheng Pharma. Co., Ltd.
no.276
TEL :
86 (0) 311-87036208
FAX :
86 (0) 311-87896635
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 2, 1993
REGISTRATION NO. : 130100100103
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture
STAFF STRENGTH :
260
REGISTERED CAPITAL : CNY 4,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 146,520,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 14,220,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.52 = US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s
correct name should be the above stated one, instead of the given name –
Shijiazhuang Pharmaceutical Group Husheng Pharma Co Ltd.
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 2, 1993.
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 manufacturing tramadol hydrochloride injection, butylphthalide, azithromycin, acemetacin, enflurane,
oxiracetam, enalapril maleat, cephalexin hydrate, vitamin p4, carnitine,
diltiazem hydrochloride, acetylmidecamycin, alendronate sodium, levoamlodipine
maleate, cefradine, clarithromycin, roxithromycin, diammonium glycyrrhizinate,
asarone, carbazochrome sodium sulfonate, sodium ozagrel, nateglinide and sodium
fusidate bulk pharmaceuticals, and selling its products.
SC is mainly
engaged in manufacturing and selling bulk
pharmaceuticals.
Mr. Cai Dongchen
has been chairman of SC since 1993.
SC is known to
have approx. 260 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 Shijiazhuang. Our checks
reveal that SC rents the total premise about 8,000 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shijiazhuang Pharmaceutical Group Ouyi
Pharma Co., Ltd. 55
HongKong Yingli Co., Ltd. 45
Shijiazhuang Pharmaceutical Group Ouyi
Pharma Co., Ltd.:
===========================================
Shijiazhuang Pharmaceutical Group Ouyi
Pharma Co., Ltd.(hereafter referred as “Ouyi”)is one of the subsidiaries of
Shijiazhuang Pharmaceutical Group Co., Ltd.(CSPC). Ouyi is a large-sized
comprehensive pharmaceutical enterprise engaged in scientific research, manufacture,
and marketing of bulk pharmaceutical chemicals and finished dosage forms. The
predecessor of Ouyi Pharma is Shijiazhuang No.1 Pharmaceutical Factory which
was established in May, 1938. The annual industrial output amounts to CNY437.45
million with a taxable profit of about CNY54.69 million.
l
Chairman:
Mr. Cai Dongchen, about 50 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working
in SC as chairman.
l
General Manager:
Mr. Wang Ruiqi, about 45 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1993 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling bulk
pharmaceuticals.
SC’s products
mainly include: tramadol hydrochloride injection, butylphthalide,
azithromycin, acemetacin, enflurane, oxiracetam, enalapril maleat, cephalexin
hydrate, vitamin p4, carnitine, diltiazem hydrochloride, acetylmidecamycin,
alendronate sodium, levoamlodipine maleate, cefradine, clarithromycin,
roxithromycin, diammonium glycyrrhizinate, asarone, carbazochrome sodium
sulfonate, sodium ozagrel, nateglinide and sodium fusidate.
SC sources its materials 100% from domestic
market, mainly Ningxia. SC sells 80% of its products in domestic market, and
20% to overseas market, mainly
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include T/T, L/C and Credit of 30 days.
*Major Customer:
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ZheJiang YaTai Pharmaceutical Co., Ltd.
*Major Supplier:
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Ningxia Qiyuan Pharmaceutical Co., Ltd.
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 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.
Bank of Communications
AC#：131080130018150004732
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
6,630 |
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Inventory |
22,670 |
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Accounts
receivable |
21,840 |
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Other Accounts
receivable |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
17,020 |
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Current assets |
68,160 |
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Fixed assets net
value |
27,450 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
2,060 |
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Total assets |
97,670 |
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Short loans |
20,000 |
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Accounts payable |
14,790 |
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Other Accounts
payable |
46,490 |
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Advances from
clients |
960 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
1,210 |
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Current
liabilities |
83,450 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
83,450 |
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Equities |
14,220 |
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Total
liabilities & equities |
97,670 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
146,520 |
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Cost of goods
sold |
135,620 |
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Sales expense |
2,650 |
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Management expense |
9,980 |
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Finance expense |
410 |
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Profit before
tax |
-2,290 |
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Less: profit tax |
0 |
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Profits |
-2,290 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.82
*Quick ratio 0.55
*Liabilities to
assets 0.85
*Net profit
margin (%) -1.56
*Return on total
assets (%) -2.34
*Inventory
/Turnover ×365 56 days
*Accounts
receivable/Turnover ×365 54 days
*Turnover/Total
assets 1.50
* Cost of goods
sold/Turnover 0.93
PROFITABILITY:
FAIR
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair
level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in an acceptable
level.
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The accounts receivable of SC is maintained in an
acceptable level.
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SC’s short-term loan is TOO LARGE.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD100,000
would appear to be within SC’s capacities upon a periodical review basis.
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%)