MIRA
INFORM REPORT
|
Report Date : |
01.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
Zhejiang Huahai Pharmaceutical co., ltd. |
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Registered Office : |
Xunqiao Economic Development Zone, Linhai,
Zhejiang Province 317024 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
28.02.2001 |
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Com. Reg. No.: |
330000000027652 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling API (Active Pharmaceutical Ingredient) and pharmaceutical intermediates. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
usd 5,000,000 |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Name and adderss
Zhejiang Huahai Pharmaceutical co., ltd.
XUNQIAO ECONOMIC
DEVELOPMENT ZONE, LINHAI,
ZHEJIANG province
317024 PR CHINA
TEL: 86 (0) 576-85991096 FAX: 86 (0) 576-85016010
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB.
28, 2001
REGISTRATION NO. : 330000000027652
REGISTERED LEGAL FORM : shares limited company
STAFF STRENGTH :
3,185
REGISTERED CAPITAL : CNY 538,607,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 1,022,845,000 (Consolidated, As
of Dec. 31, 2010)
EQUITIES :
CNY 1,318,344,000 (Consolidated, As of Dec. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 5,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly
good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.48 = 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
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 characteristics of the
shares limited co. are as follows: The establishment of the co.
requires at least five promoters and at least three of them must be PR-
China controlled legal persons. Natural person can not be allowed to serve
as promoters. The minimum registered capital
of a co. is CNY The board of directors must
consist of an odd number 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 three
years of the offer. Directors can not transfer the shares they hold in the
co. during their terms of office. 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 was
registered as a shares limited company at local Administration for Industry
& Commerce (AIC-The official body of issuing and renewing business license)
on Feb. 28, 2001.
SC’s registered business scope includes manufacturing preparations, hard
capsule, API and pharmaceutical intermediates; exporting self-made pharmaceutical
intermediates; importing raw materials, machinery equipment, instruments and
spare parts needed in manufacturing and researching by SC; main business:
manufacturing and selling API (Active Pharmaceutical Ingredient) and
pharmaceutical intermediates.
SC is mainly
engaged in manufacturing and selling API (Active Pharmaceutical Ingredient) and
pharmaceutical intermediates.
Mr. Chen
Baohua is the legal representative and
chairman of SC at present.
SC is known
to have approx. 3,185 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the development zone of Linhai. The detailed
premise information is unknown.
http://www.huahaipharm.com/
The design is professional and the content is well organized. At present, the
web is both in Chinese and English versions.
E-mail: postmaster@huahaipharm.com
SC is a listed company in Shanghai Stock Exchange Market with the code
600521.
SC is entitled as National Key Hi-tech Enterprise, National Pilot
Enterprise of Innovation, and China’s top 500 private enterprises, and possesses
a “State Certified Enterprise Technology Center”.
· awarded with the honor of “National-recognized enterprise technology
center”
· awarded with the honor of “Special contribution to 5.12 Wen chuan
earthquake relief efforts”
· award with the honor of “National Demonstration Project for Advanced
Technology Industrialization”
· awarded with the honor of “National Environment Friendly Enterprise”
· awarded with the honor of “Five Star Enterprise of Environmental
Protection” by Zhejiang Province
· awarded with the honor of “Key Hi-Tech Enterprise of China”
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
Unknown |
Registered no. |
3300001007639 |
Present one |
MAIN
SHAREHOLDERS: (As of Dec. 31, 2010)
Name
% of Shareholding
Chen Baohua 26.1
Zhou Minghua 22.33
China Construction Bank
-Yinhua Fuyu Subject Stock Security Investment Fund 2.73
Agricultural Bank of China
-Dacheng Jingyang Advanced Stock Security Investment Fund 2.34
Agricultural Bank of China
-Dacheng Innovation Growth Mixed Security Investment Fund 2.34
Dacheng Value Growth Security Investment Fund 2.01
Chen Kairen 1.45
Weng Zhenyu 1.43
Sun Detong 1.36
Industrial and Commercial Bank of China
-Guangfa Jufeng Stock Security Investment Fund 1.12
Other Shareholders 36.79
l
Legal Representative and Chairman:
Mr. Chen Baohua , born in 1962, senior engineer, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative
and chairman;
Also working in Zhejiang
Huahai Import & Export Co., Ltd., Linhai Huahai Pharmaceutical Equipment
Co., Ltd., Zhejiang Huahai Yintong Real Estate Co., Ltd. as legal
representative.
l
Vice Chairman:
Mr. Du Jun , born in 1956, with master’s
degree. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as vice chairman.
l
Deputy General Manager:
Zhu Yonghua
SC is mainly engaged
in manufacturing and selling API (Active Pharmaceutical Ingredient) and
pharmaceutical intermediates.
SC’s products mainly include: API and
pharmaceutical intermediates, such as Irbesartan and Hydrochlorothiazide
Tablets, etc.
SC sources its
materials 50% from domestic market, and 50% from overseas market. SC sells 30%
of its products in domestic market, mainly Zhejiang province, and 70% to
overseas market.
The buying terms of SC include T/T, 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 Clients:
===========
Kraemer &
Martin Pharma Handles-Gmbh
Chemo S A.-Lugand
Branch
Tapi Puerto Rico
Inc.
Note:
SC declined to release its major suppliers.
SC is known to have the following subsidiaries at present, as follows:
Linhai Huanan Chemical Co., Ltd.
Zhejiang
Huahai Medical Sale Co., Ltd.
Zhejiang
Huahai Import & Export Co., Ltd.
Shanghai
Aobo Bio-pharmaceutical Tech. Co., Ltd.
Shanghai
Shuanghua Biological Medicine Technology Development Co., Ltd.
Shanghai
SynCores Technologies, Inc.
Zhejiang
Huahai Yintong Real Estate Co., Ltd.
Linhai
Huahai Pharmaceutical Equipment Co., Ltd.
Etc.
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.
The detailed banking
information wasn’t find in local AIC.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
282,556 |
223,467 |
|
Inventory |
492,223 |
584,085 |
|
Notes receivable |
6,493 |
1,303 |
|
Accounts
receivable |
200,918 |
281,904 |
|
Other Accounts
receivable |
7,033 |
5,144 |
|
Advances to
suppliers |
6,359 |
35,085 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
995,582 |
1,130,988 |
|
Fixed assets net
value |
436,672 |
493,399 |
|
Projects under
construction |
184,775 |
303,102 |
|
Investment real
estate |
7,154 |
6,772 |
|
Long term
investment |
0 |
0 |
|
Other assets |
111,066 |
120,006 |
|
|
------------------ |
------------------ |
|
Total assets |
1,735,249 |
2,054,267 |
|
|
============= |
============= |
|
Short loans |
0 |
40,070 |
|
Notes payable |
65,427 |
102,966 |
|
Accounts payable |
51,811 |
78,822 |
|
Payroll payable |
19,912 |
25,035 |
|
Taxes payable |
27,386 |
19,293 |
|
Other Accounts
payable |
19,634 |
13,003 |
|
Advance from
clients |
144,815 |
268,465 |
|
Non-current
liabilities due within one year |
20,000 |
150,000 |
|
Other current
liabilities |
218 |
271 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
349,203 |
697,925 |
|
Non-current
liabilities |
173,778 |
37,998 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
522,981 |
735,923 |
|
Equities |
1,212,268 |
1,318,344 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,735,249 |
2,054,267 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Turnover |
927,967 |
1,022,845 |
|
Cost of goods
sold |
541,002 |
593,529 |
|
Sales expense |
27,161 |
42,540 |
|
Management expense |
166,527 |
268,079 |
|
Finance expense |
8,565 |
6,893 |
|
Investment
income |
0 |
0 |
|
Profit before
tax |
195,460 |
127,802 |
|
Less: profit tax |
31,073 |
34,270 |
|
Profits |
164,387 |
93,532 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
2.85 |
1.62 |
|
*Quick ratio |
1.44 |
0.78 |
|
*Liabilities to
assets |
0.30 |
0.36 |
|
*Net profit
margin (%) |
17.71 |
9.14 |
|
*Return on
total assets (%) |
9.47 |
4.55 |
|
*Inventory
/Turnover ×365 |
194 days |
208 days |
|
*Accounts
receivable/Turnover ×365 |
79 days |
101 days |
|
*Turnover/Total
assets |
0.53 |
0.50 |
|
* Cost of
goods sold/Turnover |
0.58 |
0.58 |
PROFITABILITY: FAIRLY GOOD
l
The turnover of SC appears fairly good in its line
and it increased in 2010.
l
SC’s net profit margin is fairly good, but it
decreased in 2010.
l
SC’s return on total assets is fairly good, but it
decreased in 2010.
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 2009 and in a normal level in 2010.
l
SC’s quick ratio is maintained in a normal level in
2009, but in a fair level in 2010.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears average in 2010.
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 large-sized in its line with fairly good financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition. In view of its favorable background and market conditions, the given
credit amount would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.72 |
|
|
1 |
Rs.71.95 |
|
Euro |
1 |
Rs.64.79 |
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 |
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 |
|
-- |
NB |
New Business |
-- |
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.