MIRA
INFORM REPORT
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Report Date : |
01.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG HISUN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No.46 Waisha Road, Jiaojiang District, Taizhou, Zhejiang Province,
318000 Pr |
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Country : |
China |
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Date of Incorporation : |
11.02.1998 |
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Com. Reg. No.: |
0002497 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Producing and Selling Chemical and Medical Raw Materials. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 5,000,000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ZHEJIANG
HISUN PHARMACEUTICAL CO., LTD.
NO.46 WAISHA ROAD, JIAOJIANG DISTRICT,
TAIZHOU,
ZHEJIANG PROVINCE, 318000 PR CHINA
TEL: 0086-576-88827883 FAX:
0086-576-88827887
EXECUTIVE SUMMARY
INCORPORATION DATE :
FEB. 11, 1998
REGISTRATION NO. :
0002497
REGISTERED LEGAL FORM : SHARES
LIMITED CO.
CHIEF EXECUTIVE :
MR. BAI HUA (CHAIRMAN)
STAFF STRENGTH :
2,835
REGISTERED CAPITAL : CNY 449,280,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 2,838,771,000 (AS OF DEC.
31, 2007)
EQUITIES :
CNY 1,363,001,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 5,000,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.82564 = USD 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
Note: Instead of the given name, SC’s complete name should be
the heading one. And instead of the given address, SC is operating in the
heading address.
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 Feb. 11, 1998.
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 co has
independent property of legal person and enjoys property rights of legal
person. The characteristics
of the shares limited co. are as follows: The
establishment of the co. requires at least two promoters and no more than
200, half of whom shall be domiciled in China.. Natural person are allowed
to serve as promoters. The minimum
registered capital of a co. is CNY 5M. while that of the co. with foreign
investment is CNY 5M. The total capital of a co. which propose to apply for
publicly listed must be no less than CNY 30M. The board of
directors must consist 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 one year of the
offer. 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 operating chemical and medical raw
materials, chemical intermediates, pharmaceutical preparation, bio-pharmacy,
Chinese patent medicine, traditional Chinese medicine preparation, medical
supplementary materials (limit to troche, hard capsule, TPI, freeze-dried
acanthopanax powder spasmolytic, low-capacity injection, powder for inhalation,
granular formulation and dry suspension), animal remedy (validity period of
China Animal Remedy Production License as of 8th November 2010,
validity period of China Animal Remedy Operation License as of 26th
December, 2008), exporting self-made chemical and pharmaceutical products,
preparation, and synthetic camphor; importing raw materials, machinery
equipment, instruments and meters, and components for its production and
scientific research (not to engage in
any items prohibited by laws, administrative regulation, State Council and
foreign investment of the state's industrial policy project, able to engage in items that needs permit
according to the regulation of the laws, administrative regulation, State
Council as well as the items that are restricted by foreign investment of the
state's industrial policy project, after obtaining the permit from relative
authorities and the registration in the AIC).
SC is mainly
engaged in producing and selling chemical and medical raw materials.
Mr. Bai Hua has
been legal representative and chairman of SC since 2007.
SC is known to have approx. 2,835 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 Taizhou. Our checks
reveal that SC owns the total premise about 200,000 square meters.
http://www.hisunpharm.com/
The design is professional and the content is well organized. At present it is
in Chinese version.
E-Mail: cyqiu@hisunpharm.com
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600267.
SC’s former registration
no. was 3300001001409.
MAIN SHAREHOLDERS: (As of December 31, 2007)
Name %
of Shareholding
Zhejiang Hisun Group Co., Ltd. 46.13
Zhejiang Rongda Group Holdings Co., Ltd. 12.53
Agricultural Bank of China-Zongyou Core
Growing
Stock Securities Investment Fund 1.77
Everbright Securities Co., Ltd. 1.65
Agricultural Bank of China-Dacheng
Well-chosen Mixed
Securities Investment Fund 1.41
Agricultural Bank of China-Zongyou Core
Well-chosen
Stock Securities Investment Fund 1.11
Industrial and Commercial Bank of
China-Zhongyin
International Sustainable Growth Stock
Securities Investment Fund 0.98
Agricultural Bank of China- Bank of
Communications Shiluode
Well-chosen Stock Securities Investment Fund 0.84
Bank of China-Youbang Huatai Aggressive
Growth Mixed
Securities Investment Fund 0.69
Industrial and Commercial Bank of
China-Guotou Ruiyin
Core Enterprise Stock Securities Investment
Fund 0.67
Other shareholders 32.22
==============
Zhejiang Hisun Group Co., Ltd. was
established in 1997, and the legal representative was Mr. Gu Jianbin and its
registered capital was CNY 250,000,000.
Zhejiang Rongda Group Holdings Co., Ltd. was
one of top 3 largest groups of Zhejiang province Foreign Economic & Trade
Committee, and has about 10 subsidiaries. It was established in 2001, and the
legal representative was Mr. Li Fusheng
Address: No. 308, Zhongshan North
Road, Hangzhou
Tel: 0571-85774212
l
Legal representative, chairman and
general manager:
Mr. Bai Hua, about 61 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2007 to present Working
in SC as chairman and legal representative.
At present Working in Zhejiang
Hisun Group Co., Ltd as secretary of the Party committee and Director, in Hangzhou
HISUN Medicinal Plant Co., Ltd. as chairman, in Zhejiang Hisun Chemical CO., LTD. as chairman, Taizhou Jiaojiang Thermal Power Co., Ltd. as Director, in
Zhejiang Hisun Tianhua New Drug R&D Co., Ltd. and Zhejiang Hisun Biomaterials Co., Ltd. as chairman.
l
Vice-General manager:
Mr. Tao Zhengli
about 35 years old, with university education. He is currently responsible for
the daily management of SC.
Working Experience(s):
From 2007 to present Working
in SC as vice-general manager.
SC is mainly engaged in producing and selling
chemical and medical raw materials.
SC’s products mainly include: antineoplastic, cardio-vascular
pharmaceutical product, and antiparasitic agent, etc.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 90% of its products in domestic
market, and 10% to overseas market, mainly Hong Kong, American and European
countries.
The buying terms of
SC include Check, L/C, T/T and Credit of 30-60 days. The payment terms of SC
include Check, T/T, L/C, and Credit of 30-60 days.
*Major Supplier:
==============
Zhejiang Hisun
Chemical Co., Ltd.
Address: No. 46,
Waisha Road, Jiaojiang District, Taizhou, Zhejiang Province
Fax: 0576-88827789
*Major Customer:
==============
Zhejiang Hisun
Biomaterials Co., Ltd.
Address: No. 46,
Waisha Road, Jiaojiang District, Taizhou, Zhejiang Province
Fax: 0576-88827723
SC is known to invest
in the following companies:
ZHEJIANG
PHARMACEUTICAL INDUSTRY CO., LTD.
Registered Capital:
CNY 60,000,000
Investment Capital:
CNY 51,000,000
Hangzhou Haiyu
Pharmaceutical Preparation Co., Ltd.
Registered Capital:
CNY 50,000,000
Investment Capital:
CNY 50,000,000
Hangzhou HISUN
Medicinal Plant Co., Ltd.
Registered Capital:
CNY 24,206,700
Investment Capital:
CNY 21,206,729.17
Zhejiang Haizheng Machine
Manufacturing & Installing Co., Ltd.
Registered Capital:
CNY 6,500,000
Investment Capital:
CNY 6,500,000
Shanghai Angrui
Pharmaceutical Technology Co., Ltd.
Registered Capital:
CNY 2,000,000
Investment Capital:
CNY 2,000,000
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’s suppliers declined to make any comments.
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 Commercial Bank Taizhou Jiaojiang Branch
AC#1207011109021000728
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Cash & bank |
190,357 |
200,010 |
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Bills receivable |
49,505 |
34,128 |
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Accounts receivable |
330,106 |
368,829 |
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Other receivables |
9,918 |
2,026 |
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Advances to suppliers |
41,257 |
67,066 |
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Inventory |
449,786 |
401,137 |
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Prepaid expenses |
0 |
0 |
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Other current assets |
1,322 |
1,178 |
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------------------ |
------------------ |
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Current assets |
1,072,251 |
1,074,374 |
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Fixed
assets |
1,558,226 |
1,714,831 |
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Fixed assets net value |
1,289,891 |
1,391,318 |
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Projects under construction |
268,318 |
323,508 |
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Project materials |
17 |
5 |
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Long term investment |
7,385 |
2,378 |
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Investment Real Estate |
3,666 |
3,554 |
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Other assets |
191,108 |
190,422 |
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------------------ |
------------------ |
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Total assets |
2,832,636 |
2,985,559 |
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============= |
============= |
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Short loans |
835,460 |
715,000 |
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Bills payable |
74,141 |
29,287 |
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Accounts payable |
219,683 |
264,356 |
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Advances from clients |
7,437 |
48,904 |
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Accrued payroll |
89,173 |
86,009 |
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Tax payable |
3,187 |
14,535 |
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Interest payable |
1,659 |
2,100 |
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Other payable |
62,943 |
100,478 |
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Non-Current liabilities due with in one
year |
74,000 |
60,000 |
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Surcharge payable |
0 |
0 |
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Other current liabilities |
500 |
3,870 |
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------------------ |
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Current liabilities |
1,368,183 |
1,324,539 |
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Long term liabilities |
174,000 |
284,000 |
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------------------ |
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Total liabilities |
1,542,183 |
1,608,539 |
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Equities |
1,268,258 |
1,363,001 |
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Minority Shareholders’ equity |
22,195 |
14,019 |
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------------------ |
------------------ |
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Total liabilities & equities |
2,832,636 |
2,985,559 |
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Income Statement
Unit: CNY’000
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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Turnover |
2,311,506 |
2,838,771 |
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Cost of goods sold |
2,202,098 |
2,638,050 |
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Sales expense |
82,969 |
113,895 |
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Management expense |
244,241 |
321,313 |
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Finance expense |
55,313 |
64,679 |
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Investment income |
582 |
1,384 |
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Profit before tax |
106,411 |
193,943 |
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Less: profit tax |
22,845 |
51,114 |
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Profits |
83,566 |
142,829 |
Important Ratios
=============
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
0.78 |
0.81 |
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*Quick ratio |
0.45 |
0.51 |
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*Liabilities to assets |
0.54 |
0.54 |
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*Net profit margin (%) |
3.62 |
5.03 |
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*Return on total assets (%) |
2.95 |
4.78 |
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*Inventory /Turnover ×365 |
72 days |
52 days |
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*Accounts receivable/Turnover ×365 |
53 days |
48 days |
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*Turnover/Total assets |
0.82 |
0.95 |
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* Cost of goods sold/Turnover |
0.95 |
0.93 |
PROFITABILITY: FAIRLY GOOD
l
The turnover of
SC appears fairly good in its line.
l
SC’s net profit
margin is average, and it increased in 2007.
l
SC’s return on
total assets is average, and it increased in 2007.
l
SC’s cost of
goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
l
The current
ratio of SC is maintained in a fair level.
l
SC’s quick
ratio is maintained in a fair level.
l
The inventory
conversion period of SC appears fairly long.
l
The accounts
receivable of SC appears fairly large.
l
SC’s short-term
loan is in a LARGE level.
l
SC’s turnover
is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio
of SC is average.
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. The large
amount of short loan could be a threat to SC’s financial condition. A credit
line up to USD 5,000,000 would appear to be within SC’s capacities upon a
periodical review basis.
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
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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 |
|
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 |
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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%)