MIRA
INFORM REPORT
|
Report Date : |
10.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
hualan biological engineering inc. |
|
|
|
|
Registered Office : |
Jia No.1, Hualan Avenue, Xinxiang City Henan Province 453003 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
27.09.2000 |
|
|
|
|
Com. Reg. No.: |
410000400000088 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and Selling Blood Products. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
usd 2,500,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name & address
hualan biological engineering inc.
jia no.1, hualan
avenue, xinxiang city
henan province
453003 PR CHINA
TEL: 86 (0)
373-3519901 FAX: 86 (0) 373-3519911
EXECUTIVE SUMMARY
INCORPORATION DATE : sep. 27, 2000
REGISTRATION NO. : 410000400000088
REGISTERED LEGAL FORM : shares limited co.
STAFF STRENGTH :
456
REGISTERED CAPITAL : cny 217,080,000
BUSINESS LINE :
manufacturing
TURNOVER :
cny 351,138,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 639,975,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 2,500,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.86 = 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 Ren Min Bi
SC was registered as a shares limited co. at Henan Province
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on Sep. 27, 2000.
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
aremrestricted 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 manufacturing and selling biological & blood
products.
SC is mainly
engaged in manufacturing and selling blood products.
Mr. An Kang (安康)
has been chairman of SC since 2000.
SC is known
to have approx. 456 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 Xinxiang. Our checks
reveal that SC owns the total premise about 26,000 square meters.
http://www.hualanbio.com
The design is professional and the content is well organized. At present, the
web is both in Chinese and English versions.
E-mail: hualan@hualanbio.com
SC’s predecessor is Hualan Biological Engineering Ltd., which is a
nationally important hi-tech enterprise, engaged in R&D and production of
blood products, and was founded in 1992. SC became the first Chinese blood
product manufacturer being granted GMP Certificate in 1998. SC successively and
successfully completed several national, provincial and municipal technological
tasks.
SC listed on the Shenzhen Stock Exchange on June 25, 2004 (Stock code:
002007).
MAIN SHAREHOLDERS: (As of Dec. 31, 2007)
Name %
of Shareholding
Xinxiang Hualan Biological Technology Co., Ltd. 18.48
Xinxiang Jinkang Biological Science & Technology Development Co.,
Ltd. 15.83
Hong Kong Kekang Co., Ltd. 13.84
China Construction Bank-Security Investment Fund of Hanxing 4.59
Beijing Dongfang Shichen Biological Technology Co., Ltd. 4.43
Industrial and Commercial Bank of China-Security Investment Fund 2.81
Of Huitianfu Chengzhang
Industrial and Commercial Bank of China-Security Investment Fund 2.77
Of Huitianfu Junheng
Chinalife Insurance Company Ltd.- 005L-FH002 2.66
Hansheng Security Investment Fund 2.36
Industrial and Commercial Bank of China-Security Investment Fund of
Anxin 1.96
Other shareholders 30.27
Xinxiang Hualan Biological Technology Co., Ltd.
====================================
Incorporation date: 1996
Legal representative: Zhao Jingsheng
Registered capital: CNY 30,060,000
Address: Changye Road, Xinxiang City, Henan Province
Xinxiang Jinkang Biological Science & Technology Development Co.,
Ltd.
======================================================
Incorporation date: April 1994
Legal representative: An Ying
Registered capital: CNY 16,500,000
Address: Middle Section, Weiyi Road, Xiaodian Industrial Park, Xinxiang
Hong Kong Kekang Co., Ltd.
=====================
Incorporation date: June 2000
Registered capital: HKD 5,000,000
Address: FLAT/RM703 CHINA INSURANCE GROUP BLDG 141 DES VOEUX RD CENTRAL
HK.
Beijing Dongfang Shichen Biological Technology Co., Ltd.
==========================================
Incorporation date: Aug. 1, 2000
Registration number: 110108001481397
Legal representative: An Ying安颖
Registered capital: CNY 7,000,000
l
Chairman:
Mr. An Kang, 59 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
Worked in Lanzhou Biological Products Research Institute as
director, in Hualan Biological Engineering Ltd. as general manger;
From 2000 to present
Working in SC as chairman.
l
General Manager:
Mr. Lin Xiaojun, 43 years old with master’s degree. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1987 to 2002 Worked in Chengdu Biological
Products Research Institute;
From January to
October of 2003 Worked in Tianjin
Jianna Tianshili Biological Technology Development Co., Ltd. as deputy general manager;
From 2003 to 2005 Worked in Ningbo Rongan Biological
Pharmaceutical Co., Ltd. as deputy
general
manager and general manager;
From 2005 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling blood products.
SC’s products mainly include:
Ø
Human Albumin
Ø
Human Immunoglobulin, Intramuscular
Ø
Human Tetanus Immunoglobulin
Ø
Human Hepatitis B Immunoglobulin
Ø
Human Immunoglobulin (pH4) for Intravenous Injection
Ø
Human Coagulation Factor VIII
Ø
Human Prothrombin Complex
Ø
Surgical Lyophilized Fibrin Sealant, Huaman
Ø
Human Thrombin, Lyophilized for external use
Surgical Lyophilized Fibrin Sealant was listed in the national ‘863
Program’ (High Tech Research and Development Program).
SC sources its
materials 95% from domestic markets, mainly Sichuan, and 5% from overseas
market. SC sells 60% of its products in domestic markets, mainly Fujian, Henan,
Guangdong, Zhejiang, and Beijing, and 40% to overseas market, mainly European
and American countries.
The buying terms of SC include T/T, Check, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
==============
Sichuan Intercreate Bio-process Technology Co. Ltd.
Sichuan Nigale Biomedical Co., Ltd.
*Major Customers:
==============
Fujian Dongxing Pharmaceutical Co., Ltd.Henan Aisheng Pharmaceutical Co., Ltd.Guangdong Kangnuo Pharmaceutical Co., Ltd.Beijing Tianxingpuxin Bio-Med Co., Ltd.Hangzhou Kangyang Biological Pharmaceutical Co., Ltd.
SC is known to have the following subsidiaries at present: Hualan Biological Engineering (Suzhou) Co., Ltd. Hualan Biological Pharmaceutical Marketing Co., Ltd. Hualan Biological Vaccine Co., Ltd. Du’an Hualan Blood-taking Co., Ltd. Luchuan Hualan Blood-taking Co., Ltd. Hezhou Hualan Blood-taking Co., Ltd. Hualan Biological (Dushan) Blood-taking Co., Ltd. Hualan Biological (Longli) Blood-taking Co., Ltd. Hualan Biological (Luodian) Blood-taking Co., Ltd. Hualan Biological (Huishui) Blood-taking Co., Ltd. Hualan Biological (Weng’an) Blood-taking Co., Ltd. Hualan Biological (Changshun) Blood-taking Co., Ltd. Hualan Biological Chongqing Banan Blood-taking Co., Ltd. Hualan Biological Wulong Blood-taking Co., Ltd. Bobai Hualan Blood-taking Co., Ltd. Hualan Biological Engineering Chongqing Co., Ltd. Xinxiang Taihang Poultry Farming 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’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.
Bank of China
Xinxiang Branch Shengli Sub-branch
AC#:
630202018118094001
Relation: Normal
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2006 |
As of Dec. 31, 2007 |
|
Cash & bank |
201,588 |
149,347 |
|
Bills receivable |
13,536 |
8,552 |
|
Advances to
suppliers |
145,448 |
186,604 |
|
Accounts
receivable |
38,001 |
19,489 |
|
Inventory |
81,082 |
107,837 |
|
Other accounts receivable |
4,077 |
7,512 |
|
Expenses to be
apportioned |
0 |
0 |
|
Other current
assets |
54 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
483,786 |
479,341 |
|
Fixed assets net
value |
218,094 |
351,343 |
|
Projects under construction |
84,160 |
36,986 |
|
Project
materials |
370 |
215 |
|
Long term
investment |
0 |
0 |
|
Other assets |
30,161 |
90,344 |
|
|
------------------ |
------------------ |
|
Total assets |
816,571 |
958,229 |
|
|
============= |
============= |
|
Short loans |
140,000 |
115,000 |
|
Bills payable |
0 |
0 |
|
Accounts payable |
41,205 |
61,669 |
|
Salaries payable |
13,383 |
1,222 |
|
Taxes payable |
5,166 |
7,424 |
|
Advances from
clients |
1,360 |
1,302 |
|
Other accounts
payable |
17,546 |
47,758 |
|
Drawing-expense
in advance |
0 |
0 |
|
Other current
liabilities |
4,867 |
15,000 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
223,527 |
249,375 |
|
Long term
liabilities |
0 |
35,000 |
|
Other
liabilities |
4,140 |
4,140 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
227,667 |
288,515 |
|
Minority
interest |
33,178 |
29,739 |
|
Equities |
555,726 |
639,975 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
816,571 |
958,229 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2006 |
As of Dec. 31, 2007 |
|
Turnover |
354,994 |
351,138 |
|
Cost of goods
sold |
217,677 |
162,312 |
|
Sales expense |
25,386 |
24,993 |
|
Management expense |
19,085 |
34,804 |
|
Finance expense |
-831 |
3,277 |
|
Profit before
tax |
90,784 |
128,205 |
|
Less: profit tax |
12,545 |
11,214 |
|
Profits |
78,239 |
116,991 |
Important Ratios
=============
|
|
As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
|
*Current ratio |
2.16 |
1.92 |
|
*Quick ratio |
1.80 |
1.49 |
|
*Liabilities
to assets |
0.28 |
0.30 |
|
*Net profit
margin (%) |
22.04 |
33.32 |
|
*Return on
total assets (%) |
9.58 |
12.21 |
|
*Inventory
/Turnover ×365 |
83days |
112days |
|
*Accounts
receivable/Turnover ×365 |
39days |
20days |
|
*Turnover/Total
assets |
0.43 |
0.37 |
|
* Cost of
goods sold/Turnover |
0.61 |
0.46 |
PROFITABILITY: FAIRLY
GOOD
l
The turnover of SC appears fairly good in its line in 2006 and 2007.
l
SC’s net profit margin is fairly good, and it was rising in 2007
l
SC’s return on total assets is fairly good in 2006 and 2007.
l
SC’s cost of goods sold is low, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly good level in both 2
years.
l
SC’s quick ratio is maintained in a fairly good level in both 2 years.
l
The inventory of SC appears fairly large in 2007.
l
The accounts receivable of SC is maintained in an average level.
l
The short-term loan of SC appears fairly large.
l
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good financial
conditions. Taking into consideration of SC’s general performance, reputation as
well as market conditions, we would rate SC as an average credit risk company.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.16 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.67.95 |
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%)