MIRA INFORM REPORT
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Report Date : |
01.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
NORTH CHINA PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 388, Heping East Road, Shijiazhuang
City, Hebei Province, 050031 Pr |
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|
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
25.08.1992 |
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Com. Reg. No.: |
130000000008365 |
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|
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Legal Form : |
Shares Limited Company |
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|
|
|
Line of Business : |
manufacturing and selling
all kinds of pharmaceutical products |
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 6,000,000 |
|
Status : |
Good |
|
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 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name & address
NORTH
CHINA PHARMACEUTICAL CO., LTD.
NO. 388, HEPING
EAST ROAD, SHIJIAZHUANG CITY,
HEBEI PROVINCE, 050031 PR CHINA
TEL: 86 (0)
311-85992902/85993999 FAX: 86 (0) 311-85992662/85992039
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 25, 1992
REGISTRATION NO. : 130000000008365
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 15,616
REGISTERED CAPITAL : CNY 1,028,577,560
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 10,286,643,000 (CONSOLIDATED, AS OF dec. 31, 2010)
EQUITIES :
CNY 1,181,697,000 (CONSOLIDATED, AS OF dec. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 6,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY 6.49= 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: SC’s headquarters address is the heading one, while its sales office locates in the given address (No. 392 Heping East Road, Shijiazhuang, Hebei).
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 Aug. 25, 1992.
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 The minimum registered capital
of a co. is CNY 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 manufacturing and selling injection, tablets, granules, capsules, suppositories, tincture, hollow
capsules, solution, powder, oral solution, oral liquid solvents, mixture,
psychotropic medicine, small volume injection, freeze-dried powder, raw
material medicine, sterile material drugs, pesticides; manufacturing and
selling pharmaceutical
intermediates, plant extracts; export business of products and technology and
import business of mechanical equipment, spare parts, raw and auxiliary
materials and technology, but excluding items prohibited and limited by the
State; medicine and chemical industry technology transfer, technology
development, technical consulting services; equipment manufacturing,
installation; machinery and equipment cleaning, install; test, maintenance of
machinery and instruments; (The following items operated by the branches)
Chinese traditional patent medicine, chemical raw materials and preparations,
antibiotics and their preparations, biochemical medicines, biological products
wholesale; The second types of mental health drugs wholesale; health care
products, pharmaceutical intermediates, plant extracts, pesticides, veterinary
drugs and other food and beverage wholesale (pre-packaged health food products
wholesale); birth control supplies; import and export of goods and
technologies, excluding items prohibited and limited by the State; processing with imported materials, processing with
imported samples, assembling with imported parts, and compensation trade in
agreement; counter trade
& transit trade; manufacturing and selling pure water; sales of drinking fountains; medicinal bottles, household
glassware, industrial oxygen production; foods, chemical products, coal, packing
material, raw and auxiliary materials, cosmetics, office supplies, labor
supplies, general merchandise, apparel wholesale, retail; building materials,
communication equipment, electronic products, plastics, rubber products, auto
parts retail, office furniture, lubricants, hardware, instrumentation,
pharmaceutical glass products, chemicals, mechanical equipment, electrical
facilities, electrical machinery, spare parts, purchase and sale, as well as
wholesale and retail; goods, warehousing, transportation (general cargo,
hazardous goods), loading and unloading (with permit if needed).
SC is mainly
engaged in manufacturing and selling all kinds of pharmaceutical products.
Mr.
Wang Sheping has been legal representative and chairman of SC since 2009.
SC is known to have approx. 15,616 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 management declined to release detailed information of the
premise.
http://www.ncpc.com.cn It belongs
to North China Pharmaceutical Group Co., Ltd., including the information about
SC. The design is professional and the content is well organized. At present it
is in both Chinese and English versions.
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600812.
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
1300001000509 |
Present one |
MAIN
SHAREHOLDERS: (As of Dec. 31, 2010)
Name %
of Shareholding
North China Pharmaceutical Group Co., Ltd.
27.88
Industrial and Commercial Bank
of China-
Nuoan Security Investment Fund
3.59
China Life Insurance (Group) Company- Traditional- General
Insurance Products 1.36
China Life Insurance Company Ltd.-
Dividends-Individual Dividends-005LFH002Hu
1.26
Industrial Bank Co., Ltd.-
Industrial Trend Investment Mixed Securities Investment Fund 1.18
Industrial and Commercial Bank of China-
Rongtong Power Pioneer Stock Securities Investment Fund 1.15
Shenyin & Wanguo-Huifeng- MERRILLLYNCH INTERNATIONAL 0.79
MERRILLLYNCH INTERNATIONAL
Tongde Securities Investment Fund 0.78
Shanghai International Trust Co., Ltd. 0.74
China Construction Bank Corporation-
Huashangshengshi Growth Stock Securities Investment Fund 0.57
Other Shareholders 60.70
North China Pharmaceutical Group Co., Ltd.
================================
Legal representative: Wang Sheping
Registration No.: 130000000008902
Address: Heping East Road, Shijiazhuang,
Hebei
Web: http://www.ncpc.com.cn/
Tel: 0311-85993999
l
Legal representative and chairman:
Mr. Wang Sheping , born in 1956 with Mater’s degree, senior engineer. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2009 to present Working in SC as chairman and legal representative;
Also working in Jizhong Energy Resources Co., Ltd., North China Pharmaceutical Group Co., Ltd. as legal representative, etc.
l
General Manager:
Mr. Liu Wenfu, born in 1962, with master’s degree,
senior engineer. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2009 to present Working in SC as general manager
Also working in NCPC Beta Co., Ltd. as general manager
SC is mainly
engaged in manufacturing and selling all kinds of pharmaceutical products.
Main Products: pharmaceutical raw material, health care products,
preparation products, 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.
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.
*Major Suppliers:
=============
North China Pharmaceutical Group Aino Co.,
Ltd.
Shenzhen South China Pharmaceutical (NCPC)
Co., Ltd.
North China Pharmaceutical Group Hualuan
Co., Ltd.
North China Pharmaceutical Group Jiahua
Chemical Co., Ltd.
North China Pharmaceutical Huaying Co., Ltd.
*Major Customers:
==============
North China
Pharmaceutical Group Co., Ltd.
North China
Pharmaceutical Group Pharmacy Co., Ltd.
North China
Pharmaceutical Group New Drug R&D Co., Ltd.
North China Pharmaceutical Group Hualuan
Co., Ltd.
NCPC Create Pharmaceutical
Co., Ltd.
SC is known to invest in the following companies:
-------------------------------------------------------------
Jizhong Energy Group Finance Co., Ltd.
Yunnan
Huayao Pengqiao Co., Ltd. (in Chinese Pinyin)
North
China Pharmaceutical Aoqide Pharmaceutical Co., Ltd. (in Chinese Pinyin)
NCPC
Plan & Design Institute Co., Ltd.
North China Pharmaceutical Huaying Co., Ltd.
(in Chinese Pinyin)
North China Pharmaceutical Jintan Biotechnology Co., Ltd. (in Chinese
Pinyin)
Puyang
Huaan Glass Co., Ltd. (in Chinese Pinyin)
Jilin
Xinghuan Pharmaceutical Co., Ltd. (in Chinese Pinyin)
Huangshi
Huacheng Pharmaceutical Co., Ltd. (in Chinese Pinyin)
NCPC Animal Health Products 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 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.
SC’s management
declined to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2009 |
as
of Dec. 31, 2010 |
|
Cash & bank |
1,630,660 |
977,961 |
|
Notes receivable |
300,406 |
593,147 |
|
Inventory |
799,362 |
1,198,169 |
|
Accounts
receivable |
668,605 |
881,442 |
|
Advances to
supplies |
184,067 |
92,916 |
|
Dividends
receivable |
18,322 |
18,322 |
|
Other
receivables |
25,984 |
173,289 |
|
Other current
assets |
5,724 |
47,404 |
|
|
------------------ |
------------------ |
|
Current assets |
3,633,130 |
3,982,650 |
|
Fixed assets |
2,406,580 |
2,585,266 |
|
Projects under
construction |
533,209 |
1,896,380 |
|
Long-term
investments |
362,307 |
272,453 |
|
Project
materials |
415 |
86 |
|
Intangible
assets |
248,909 |
251,669 |
|
Development
expenditure |
51,261 |
87,739 |
|
Long-term
deferred expenses |
9,659 |
10,430 |
|
Deferred
tax assets |
55,490 |
33,688 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
7,300,960 |
9,120,361 |
|
|
============= |
============= |
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Short loans |
2,970,430 |
2,612,387 |
|
Notes payable |
254,255 |
206,151 |
|
Accounts payable |
667,139 |
924,149 |
|
Advances from
customers |
80,282 |
150,369 |
|
Employee
pay payable |
113,502 |
60,162 |
|
Taxes payable |
45,671 |
-72,527 |
|
Dividends
payable |
1,106 |
5,481 |
|
Other Accounts
payable |
271,752 |
388,675 |
|
Non-current
liabilities due with in one year |
35,000 |
511,000 |
|
Other
current liabilities |
56,426 |
46,887 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
4,495,563 |
4,832,734 |
|
Other
non-current liabilities |
1,914,480 |
3,105,930 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
6,410,043 |
7,938,664 |
|
Shareholders
equities |
890,917 |
1,181,697 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
7,300,960 |
9,120,361 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2009 |
as of Dec. 31,
2010 |
|
Turnover |
4,882,520 |
10,286,643 |
|
Cost of goods sold |
3,388,190 |
8,764,078 |
|
Sales expense |
299,613 |
372,585 |
|
Management expense |
680,296 |
647,300 |
|
Finance expense |
215,851 |
215,987 |
|
Investment
income |
29,571 |
10,795 |
|
Profit before
tax |
-282,041 |
362,141 |
|
Less: profit tax |
113,882 |
100,336 |
|
Net profit |
-395,923 |
261,805 |
Important Ratios
=============
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
*Current ratio |
0.81 |
0.82 |
|
*Quick ratio |
0.63 |
0.58 |
|
*Liabilities
to assets |
0.88 |
0.87 |
|
*Net profit
margin (%) |
-8.11 |
2.55 |
|
*Return on
total assets (%) |
-5.42 |
2.87 |
|
*Inventory /Turnover
×365 |
60days |
43 days |
|
*Accounts
receivable/Turnover ×365 |
50days |
31 days |
|
*Turnover/Total
assets |
0.67 |
1.13 |
|
* Cost of
goods sold/Turnover |
0.69 |
0.85 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line,
and it increased greatly in 2010.
l
SC’s net profit margin is fair in 2009 and average
in 2010.
l
SC’s return on total assets is fair in 2009 and
average in 2010.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both 2 years.
l
SC’s quick ratio is maintained in a fair level in
both 2 years.
l
The inventory of SC appears average in both 2
years.
l
SC’s accounts receivable appears average in both 2
years.
l
SC’s short-term loan is large in both 2 years.
l
SC’s turnover is in an average level in 2010,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is low.
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-term loan could be a threat to SC’s financial
condition. A credit line up to USD 6,000,000 appears
to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.03 |
|
UK Pound |
1 |
Rs.74.43 |
|
Euro |
1 |
Rs.64.75 |
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.