MIRA INFORM
REPORT
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Report Date : |
25.02.2011 |
IDENTIFICATION DETAILS
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Name : |
HUBEI HONGYUAN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 428, Yishui North Road, Fengshan Town, Luotian County, Hubei Province 438600 Pr |
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Country : |
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Financials (as on) : |
31.12.2008 |
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Date of Incorporation : |
21.01.2002 |
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Com. Reg. No.: |
421123000005111 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
manufacturing active pharmaceutical
ingredients and intermediates |
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 : |
USD 1,500,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
HUBEI HONGYUAN PHARMACEUTICAL
CO., LTD.
no. 428,
428
TEL: 86 (0) 713-5072428 FAX: 86 (0) 713-5072224
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 21, 2002
REGISTRATION NO. :
421123000005111
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 300
REGISTERED
CAPITAL : CNY 20,000,000
BUSINESS
LINE :
MANUFACTURING
TURNOVER : CNY 455,149,000
(AS OF DEC. 31, 2008)
EQUITIES : CNY
141,440,000 (AS OF DEC. 31, 2008)
PAYMENT
: AVERAGE
RECOMM.
MARKET
CONDITION : CPMPETITIVE
FINANCIAL
CONDITION : fairly good
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : WELL-KNOWN
EXCHANGE
RATE : CNY 6.83=USD 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 limited liabilities co. at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on Jan. 21, 2002.
Company Status: Limited liabilities co. This form of business in PR China
is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes manufacturing and selling bulk drugs (metronidazole,
formyl metronidazole, tinidazole, ornidazole, secnidazole) (validity period as
of December 30, 2010) ; manufacturing and selling Glyoxal, formaldehyde, 2 - methyl Mimi,
metronidazole (refers only to pharmaceutical intermediates), nitrification
material, L-carnitine tartrate, L-carnitine fumarate, acetyl L-carnitine
hydrochloride, 50% feed grade L-carnitine, A5 (4 - cyano-3 - hydroxybutyrate),
melatonin, benserazide hydrochloride, Dimetridazole Mimi, formic acid,
glyoxylic acid, sodium, warfarin sodium, taurine, 4-hydroxycoumarin, sucralose,
biotin, glycolic acid, electrolysis of silver, paper products, plastic
products, organic cyano-frequency sodium copper products, pharmaceutical raw material
intermediates(able to engage in items that need permit according to the
regulations of the State Council, after obtaining the permit from relative
authorities and the registration in the AIC);
operatiing of the business export own products and technology;
management of the enterprise for production of raw and auxiliary materials,
instruments, meters, mechanical equipment, spare parts and technology import
and export business (excluding the items prohibited or limited by the country);
assemblying with imported parts, and compensation trade in agreement; motor
vehicle transportation, and wholesaling coals.(validity period as of July 19,
2010); acquisiting and processing poria; manufacturing and selling
carboxymethyl pachymaran, Carboxymethylpachymaran granules, capsules, soft
capsules, honeysuckle drink, herbal tea honeysuckle, honeysuckle tablet,
chrysanthemum drink, chrysanthemum tea, Poria, Poria cake, Poria fans,
chestnut, canned, canned fruit, wild vegetables, sweet persimmons, fresh
chestnut, fresh persimmon (validity period as of October 17, 2010);
agricultural products and daily necessities retail acquisition.
SC is mainly engaged in manufacturing active
pharmaceutical ingredients and intermediates.
Mr. Yin Guoping is the
chairman and general manager since 2002.
SC is known to have approx. 300 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
http://www.hybiochem.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: sales@hybiochem.com
SC has passed
ISO9001:2000 and GMP.
Changes of its registered
information:
|
Date of change |
Item |
Before the
change |
After the
change |
|
|
Registered capital |
CNY 500,000 |
CNY 3,148,000 |
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Registered capital |
CNY 3,148,000 |
Present amount |
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Registration
number |
4211231002149 |
Present one |
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Company name |
Luotian Hongyuan Biochemical Co., Ltd. |
Present one |
|
Unknown |
Shareholdings |
Yin Guoping 32.10% Liao Liping 11.76% Fang Ligao 5.96% Other individuals 50.18% |
Present ones |
MAIN SHAREHOLDERS:
Name % of Shareholding
Yin Guoping 32.1
Liao Liping 11.92
Fang Ligao 5.96
Other 9 individuals 50.02
l
Chairman
and General Manager:
Mr. Yin Guoping, ID#
422125600423001, born in 1960, with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and general manager.
l
Deputy
General Manager:
Mr. Xu Shuangxi, in
his
Working Experience(s):
From 2002 to present Working in SC as Deputy General Manager
SC is mainly engaged in manufacturing active
pharmaceutical ingredients and intermediates.
SC’s products mainly
include: Metronidazole, 2-Methyl-5-Nitroimidazole, 2-Methylimidazole,
Dimetridazole, Imidazole, 4-Nitroimidazole, and Metronidazole Benzoate, etc.
SC’s annual outputs
are: Glyoxal 20,000 tons , Formaldehyde 10,000 tons , 2-Methylimidazole 5,000
tons (including 500 tons of 99% and above of 2-Methylimidazole ),
2-Methyl-5-Nitroimidazole 5,000 tons , Metronidazole 3800 tons , Melatonin 50
tons , L-Carnitine 100 tons , L-Carnitine L-Tartrate 100 tons , L-Carnitine
Fumarate 100 tons , Acetyl-L-Carnitine HCl 100 tons , 50% L-Carnitine
(feedstuffs grade) 100 tons , A5 (4-Cyano-3-hydroxybutyrate)12 tons , flavor
1,000 tons , Dimetridazole series 1,200 tons and Benserazide hydrochloride
series 5 tons .
SC sources its materials 100% from domestic
market, mainly
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, Check and Credit of 30-60 days.
*Major Customer:
==============
Taixing Yuandong
Chemical Co., Ltd.
SC is known to have the following
subsidiaries and branches at present:
· Luotian Hengyuan Pharmaceutical Co., Ltd.
· Luotian Hengxingyuan Chemical Co., Ltd.
According to
SC’s website:
Wuhan International Trade Department:
Add.: No. G, Floor 15,
Unit B, Building B-C, Zhong Jian Plaza, 2-6# of Zhongnan Road, Wuchang
District, Wuhan, Hubei, 430000, china.
Tel: +86-27-59422698
Fax: +86-27-59422633
E-mail: sales@hybiochem.com
Address: 516-517, Pearls
Corporate,
Tel: +91-11-2790 2000
Fax: +91-11-2790 2001
E-mail: iro@hbhypharm.com
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
AC# 06332508093001
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2008 |
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Cash & bank |
15,680 |
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Inventory |
30,060 |
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Notes receivable |
24,960 |
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Accounts receivable |
28,630 |
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Advances to suppliers |
36,130 |
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Other Accounts receivable |
610 |
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Other current assets |
520 |
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------------------ |
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Current assets |
136,590 |
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Fixed assets |
75,480 |
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Long term investment |
4,690 |
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Projects under construction |
8,740 |
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Intangible and other assets |
37,180 |
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------------------ |
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Total assets |
262,680 |
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============= |
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Short loans |
10,000 |
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Notes payable |
22,530 |
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Accounts payable |
44,440 |
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Advances from clients |
1,790 |
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Welfares payable |
500 |
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Taxes payable |
1,220 |
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Other Accounts payable |
12,960 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
440 |
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------------------ |
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Current liabilities |
93,880 |
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Long term liabilities |
15,000 |
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Other liabilities |
12,360 |
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------------------ |
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Total liabilities |
121,240 |
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Equities |
141,440 |
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------------------ |
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Total liabilities & equities |
262,680 |
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============= |
Income Statement
Unit: CNY’ 000
|
|
As of Dec. 31, 2008 |
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Turnover |
455,149 |
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Cost of goods sold |
415,106 |
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Tax and additional of main operation |
1,380 |
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Sales expense |
11,587 |
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Management
expense |
8,480 |
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Finance expense |
2,772 |
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Subsidy income |
0 |
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Non-operating income |
435 |
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Non-operating expense |
438 |
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Profit before tax |
15,821 |
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Less: profit tax |
3,955 |
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Profits |
11,866 |
Note: SC’s management declined to
release its financial reports of Yr2009, and the above are the latest financial
reports from local AIC.
Important Ratios
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|
|
As of Dec. 31, 2008 |
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*Current ratio |
1.45 |
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*Quick ratio |
1.13 |
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*Liabilities to assets |
0.46 |
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*Net profit margin (%) |
2.61 |
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*Return on total assets (%) |
4.52 |
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*Inventory /Turnover ×365 |
24 days |
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*Accounts receivable/Turnover ×365 |
23 days |
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*Turnover/Total assets |
1.73 |
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* Cost of goods sold/Turnover |
0.91 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears fairly good in its line.
l
SC’s net
profit margin is average.
l
SC’s
return on total assets is fairly good.
l
SC’s cost
of goods sold is fairly high, 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 normal level.
l
The
inventory of SC is maintained in an average level.
l
The accounts
receivable of SC is maintained in an average level.
l
The
short loan of SC is maintained in an average level.
l
SC’s
turnover is in an average 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 average.
Overall financial condition of the SC: Fairly
good.
SC is considered
medium-sized in its line with fairly good financial conditions. A credit line up to USD 1,500,000 appears to be
within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.37 |
|
|
1 |
Rs.73.54 |
|
Euro |
1 |
Rs.62.39 |
RATING EXPLANATIONS
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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 |
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 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.