MIRA
INFORM REPORT
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Report Date : |
01.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
Hebei Welcome
Pharmaceutical Co., Ltd. |
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Registered Office : |
No. 11 North
Zhaiying Street, Shijiazhuang Hebei Province, 050031 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
23.09.1993 |
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Com. Reg. No.: |
130000400001119 |
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Legal Form : |
Chinese-Foreign Contractual Joint Venture Enterprise |
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Line of Business : |
Manufacturing and Selling Vitamin C and Series Products. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name
& address
Hebei Welcome Pharmaceutical Co., Ltd.
NO. 11 NORTH
ZHAIYING STREET, SHIJIAZHUANG
HEBEI PROVINCE,
050031 pr china
TEL: 86 (0)
311-85681188 FAX: 86 (0)
311-85061173
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER 23, 1993
REGISTRATION NO. : 130000400001119
REGISTERED LEGAL FORM : CHINESE-FOREIGN
CONTRACTUAL JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
1,600
REGISTERED CAPITAL : USD 23,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 484,333,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 262,578,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 1,500,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.8318 = US$ 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a Chinese-foreign contractual joint
venture enterprise at provincial Administration for Industry & Commerce (AIC
- The official body of issuing and renewing business license) on September 23,
1993.
Company Status: Chinese-foreign contractual 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. The investing parties are free to agree
on the proportion of profit and product distribution and liabilities
bearing according to the provisions of the contract. If the ownership of all fixed
assets is to be given to the Chinese party upon expiration of the term of
cooperation as agreed upon by the Chinese and foreign parties in the
contract, the foreign party may recover its investment during the term of
cooperation according to the provisions of the contract. The foreign party
may recover its investment before the venture has paid its income tax upon
examination and approval of the finance and tax authorities according to
State taxation regulations. In case the foreign party recovers its
investment within the term of cooperation according to the above
paragraphs, the foreign and Chinese parties shall be liable to the debts of
the venture in accordance with laws and the contract. The joint venture usually has a limited duration of 10
to 50 years.
SC’s registered
business scope includes manufacturing and selling vitamin C materials and
series products, fructo-oligosacchride series products (validity period as of
December 31, 2010); purchasing and exporting and products not under quota
licensing control or specially operated commodities.
SC is mainly
engaged in manufacturing and selling vitamin C and series products.
Mr. Huang Pinqi has
been legal representative and chairman of SC since December 2003.
SC is known to have approx. 1,600 employees 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. SC’s
accountant refused to release the detailed information of the premise.
http://www.ncpcwelcome.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: service@mail.ncpcwelcome.com
SC’s quality system meets the international standards of ISO9001 and
ISO14001.
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
1999-09 |
Legal representative |
Hong Shunyi |
Liu Shouwen |
|
1999-09 |
Registered capital |
USD 8,000,000 |
USD 23,000,000 |
|
2003-12 |
Legal representative |
Liu Shouwen |
Huang Pinqi |
|
2008-03 |
Registration No. |
130000100049 |
130000400001119 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hong Kong Triplewell International Co., Ltd. 23.91
Hong Kong Jinxian Ltd. (in Chinese Pinyin) 10.87
North China Pharmaceutical Co., Ltd. 65.22
*North China Pharmaceutical Co., Ltd
================================================
North China Pharmaceutical Co., Ltd. is a
listed company at Shanghai Stock Exchange.
l
Legal representative and chairman:
Mr. Huang Pinqi, born in 1964, with doctor’s
degree. He is currently responsible for the overall management of SC.
Working Experience(s):
Worked in SC as
general manager;
From 2003 to present Working
in SC as chairman and legal representative;
At present Working in North
China Pharmaceutical Group Corporation as deputy general manager, and in North
China Pharmaceutical Co., Ltd as board member.
SC is mainly
engaged in manufacturing and selling vitamin C and series products.
Main Products:
Ascorbic Acid (Vitamin C), Sodium Ascorbate, Calcium Ascorbate, Directly
Compressible Vitamin C, Coated Vitamin C, Gulonic Acid, L － Ascor-bate
-2-polyhosphate, Mineral Active Water, etc.
SC’s registered
trademark is “Hua Bei Brand”.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 70% of its products in domestic
market, and 30% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
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 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.
Bank of Communications Shijiazhuang Heping East Sub-branch
AC#131080060010123601249
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
|
Cash & bank |
20,164 |
|
Notes receivable |
31,298 |
|
Inventory |
224,596 |
|
Accounts
receivable |
191,357 |
|
Advances to
suppliers |
75,300 |
|
Other receivables |
260,343 |
|
Prepaid expenses |
2,675 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
805,733 |
|
Total fixed
assets |
246,159 |
|
Long term
investment |
0 |
|
Intangible
assets |
16,750 |
|
Other assets |
0 |
|
|
------------------ |
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Total assets |
1,068,642 |
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|
============= |
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Short-term loans |
50,000 |
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Notes payable |
65,852 |
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Accounts payable |
275,357 |
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Advances from
customers |
83,957 |
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Other payable |
265,109 |
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Accrued payroll |
5,000 |
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Welfare expenses
payable |
17,356 |
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Taxes payable |
34,953 |
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Surcharge
payable |
5,327 |
|
Accrued expenses |
3,153 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
806,064 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
806,064 |
|
Equities |
262,578 |
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|
------------------ |
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Total
liabilities & equities |
1,068,642 |
|
|
============= |
Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
|
Turnover |
484,333 |
|
Cost of goods sold |
407,076 |
|
Taxes and additional of main operation |
533 |
|
Income from
other operations |
6,120 |
|
Sales expense |
37,555 |
|
Management expense |
23,158 |
|
Finance expense |
-1,449 |
|
Non-operating
income |
1,844 |
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Non-operating expense |
8,152 |
|
Profit before
tax |
17,271 |
|
Less: profit tax |
0 |
|
Profits |
17,271 |
Important Ratios
=============
|
|
as
of Dec. 31, 2006 |
|
*Current ratio |
1.00 |
|
*Quick ratio |
0.72 |
|
*Liabilities
to assets |
0.75 |
|
*Net profit
margin (%) |
3.57 |
|
*Return on
total assets (%) |
1.62 |
|
*Inventory
/Turnover ×365 |
170 days |
|
*Accounts
receivable/Turnover ×365 |
145 days |
|
*Turnover/Total
assets |
0.45 |
|
* Cost of
goods sold/Turnover |
0.84 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears fairly large.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered large-sized in its
line with fairly stable financial conditions. A credit line up to USD 1,500,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.37 |
|
UK Pound |
1 |
Rs.84.00 |
|
Euro |
1 |
Rs.65.96 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)