MIRA INFORM REPORT
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Report Date : |
14.06.2011 |
IDENTIFICATION DETAILS
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Name : |
HUBEI GUANGJI PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 1, Jiangdi Road, Wuxue City, Hubei Province 435400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
28.05.1993 |
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Com. Reg. No.: |
420000000022877 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling active pharmaceutical ingredients, pharmaceutical
preparation, and feed additive |
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 3,500,000 |
|
Status : |
Satisfactory |
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 guangji
pharmaceutical co., ltd.
no. 1, jiangdi road, wuxue city,
hubei province 435400 PR CHINA
TEL: 86
(0) 713-6216068 FAX: 86 (0)
713-6212108
EXECUTIVE SUMMARY
INCORPORATION DATE : may 28, 1993
REGISTRATION NO. : 420000000022877
REGISTERED LEGAL FORM : shares limited company
STAFF
STRENGTH : 1,074
REGISTERED
CAPITAL :
CNY 251,705,513
BUSINESS
LINE :
manufacturing
TURNOVER : CNY 483,316,000 (Consolidated, As
of Dec. 31, 2010)
EQUITIES : CNY 839,353,000
(Consolidated, As of Dec. 31, 2010)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : up to usd 3,500,000
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
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 May
28, 1993.
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’s registered
business scope includes manufacturing active pharmaceutical ingredients, large volume injection, tablets, granules,
ointments, gels, creams; manufacturing and selling food additives, feed additives, single feed; printing
packaging and decorating printed matter; catering services; manufacturing and selling bottled pure water; import and
export of commodities and technology (excluding items prohibited and limited by
the county); manufacturing packing materials directly torched with drug.
SC is mainly engaged in manufacturing and
selling active pharmaceutical ingredients, pharmaceutical preparation, and feed
additive.
Mr. He Mi is the legal representative and
chairman of SC at present.
SC is known to have approx. 1,074
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 Wuxue. Our checks reveal that SC owns the total premise about 125,000 square meters.
http://www.guangjipharm.com/
The design is professional and the content is well organized. At present, the web
is both in Chinese and English versions.
E-mail: info@guangjipharm.china.com
SC has been listed as
an A-Share company in Shenzhen Stock Exchange Market with the stock code 000952
since 1999.
SC (abbreviated as
GJPC hereinafter) has now developed into a large state-owned pharmaceutical
enterprise. SC is also the production base of riboflavin designated by the
State Pharmaceutical Administration.
In 2006, SC
increased its registered capital from CNY 171,226,000 to the present amount;
SC’s registration No. was changed from 4200001000012 to the present one.
SC has got the
certificate of Quality Management System Certificate, etc.
MAIN SHAREHOLDERS: (As of Dec. 31,
2010)
Name
% of Shareholding
Wuxue National
Assets Operation Corp. 15.11
Industrial and Commercial Bank of China-Security Investment Fund 2.10
of Nuo’an Balance
Citic
Securities-China Construction Bank-
Citic Securities
Stock & Security
Win-win Collective
Asset Management Plan 0.52
Wang Jungang 0.47
Cinda Securities
Co., Ltd. 0.44
Sun Jing 0.40
China Life Insurance
(Group) Company-Traditional-General Insurance 0.40
Products
Beijing
International Trust Co., Ltd.
-Jingfu No. 3
Security Investment Collective Capital Trust Plan 0.39
China Life Insurance
Company Limited
005L-FH002
Wang Zhenyun 0.38
Other Shareholders 79.40
Wuxue National Assets Operation Corp.
=============================
Wuxue National Assets Operation Corp. was established on October 20, 1994, its legal representative is Chen Yulin, and the registered capital was CNY 41,000,000, its main business include share capital operation, and so on. Wuxue National Assets Operation Corp.’s shareholder is Wuxue City Financial Bureau. (According to the annual report of SC)
l
Legal
representative and Chairman:
Mr. He Mi, born in
1940, senior engineer. He is currently responsible for the overall management
of SC.
Working Experience(s):
Worked in Hubei Province Guangji Pharmaceutical Plant as workshop director, technical section chief, deputy factory director, factory director and secretary of the Party committee; and in Hubei Province Guangji Paper Manufacturing Plant as deputy factory director;
At present Working in SC as legal representative and chairman;
Also working in Hubei Jifeng Industry Co., Ltd. and Guangji Pharmaceutical (Mengzhou) Co., Ltd. as chairman.
l
General
manager:
Mr. Wang Xin, born in 1966, Economist. He is currently responsible for the daily management of SC.
Working Experience(s):
Worked in Wuxue Experimental High School; and in SC’s office as deputy director, in SC’s foreign trade department as manager, in SC’s pharmaceutical sales Company as manager, in SC as manager assistant;
From 2006 to present Working in SC as general manager.
Deputy General Managers:
Xing Junkai
Song Zhiwu
Wang Hongyong
Ruan Zhongyi
SC is mainly engaged in manufacturing and
selling active pharmaceutical ingredients, pharmaceutical preparation, and feed
additive.
SC’s products mainly include: Riboflavin (Kosher Certified), Riboflavin
5 Phosphate Sodium Kosher Certified, Chinese GMP Cert.), and Biotin, etc.
SC’s Brand: “Kanjiang”
SC sources its materials 95% from domestic market,
and 5% from overseas market. SC sells 50% of its products in domestic market,
mainly Hubei province, and 50% to overseas market, mainly European and American
countries.
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 Suppliers:
=============
Wuhan Zhongxi Material Trade Co., Ltd.
Shanxi Changye Jinze Biological Engineering
Co., Ltd.
Wuhan Zhongjing Industry Trade Co., Ltd.
Jiangxi Jiujiang Xinkangda Chemical
Industrial Co., Ltd.
Haikou Agriculture & Industry & Trade
(Luoniushan) Co., Ltd.
*Major Clients:
===========
Wuhan Jishun Shengsheng Trade Co., Ltd.
Hubei Jinchao Construction Decoration
Material Co., Ltd.
SC is known to have
the following subsidiaries at present, as follows:
Hainan Fulijie
Biochemical Co., Ltd.
Hubei Guangji Pharmaceutical Jikang Medical Co., Ltd.
Wuxue Sanli Water Manufacturing Co., Ltd.
Guangji Pharmaceutical (Mengzhou) Co., Ltd.
Hubei Huisheng Pharmaceutical Co., Ltd.
Hubei Jifeng Industry Co., Ltd.
Hubei Anhua Mansion Co., Ltd.
Hubei Zhonghe Chinese Herb Medicine Development 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.
Industrial and Commercial Bank of China Wuxue Sub-branch
AC#：1814077101000616109
Relationship: Normal.
Consolidated Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
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Cash & bank |
188,814 |
211,753 |
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Inventory |
52,375 |
97,618 |
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Notes receivable |
4,196 |
5,561 |
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Accounts receivable |
63,750 |
51,541 |
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Other Accounts receivable |
46,506 |
32,926 |
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Advances to suppliers |
84,243 |
57,395 |
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Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
439,884 |
456,794 |
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Fixed assets net value |
583,985 |
642,578 |
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Projects under construction |
99,660 |
137,769 |
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Project materials |
1,232 |
165 |
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Long term investment |
94,406 |
70,360 |
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Other assets |
84,672 |
76,750 |
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------------------ |
------------------ |
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Total assets |
1,303,839 |
1,384,416 |
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============= |
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Short loans |
135,000 |
207,127 |
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Notes payable |
10,800 |
9,504 |
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Accounts payable |
87,670 |
86,572 |
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Payroll payable |
29,718 |
22,340 |
|
Dividend payable |
3,249 |
3,249 |
|
Taxes payable |
-5,721 |
-16,736 |
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Other Accounts payable |
56,460 |
81,056 |
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Advance from clients |
11,603 |
11,440 |
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Other current liabilities |
0 |
1 |
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------------------ |
------------------ |
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Current liabilities |
328,779 |
404,553 |
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Non-current liabilities |
158,151 |
140,510 |
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------------------ |
------------------ |
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Total liabilities |
486,930 |
545,063 |
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Equities |
816,909 |
839,353 |
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------------------ |
------------------ |
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Total liabilities & equities |
1,303,839 |
1,384,416 |
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============= |
============= |
Consolidated Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
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Turnover |
448,197 |
483,316 |
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Cost of goods sold |
353,851 |
388,604 |
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Sales expense |
14,772 |
18,437 |
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Management
expense |
47,889 |
55,061 |
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Finance expense |
4,562 |
14,329 |
|
Investment income |
22,112 |
1,265 |
|
Profit before tax |
43,603 |
15,608 |
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Less: profit tax |
6,405 |
6,164 |
|
Profits |
37,198 |
9,444 |
Important Ratios
=============
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
*Current ratio |
1.34 |
1.13 |
|
*Quick ratio |
1.18 |
0.89 |
|
*Liabilities to assets |
0.37 |
0.39 |
|
*Net profit margin (%) |
8.30 |
1.95 |
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*Return on total assets (%) |
2.85 |
0.68 |
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*Inventory /Turnover ×365 |
43 days |
74 days |
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*Accounts receivable/Turnover ×365 |
52 days |
39 days |
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*Turnover/Total assets |
0.34 |
0.35 |
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* Cost of goods sold/Turnover |
0.79 |
0.80 |
PROFITABILITY: AVERAGE
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 in 2009, but average in 2010.
l
SC’s
return on total assets is average, but it decreased in 2010.
l
SC’s
cost of goods sold is average, 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-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 large-sized in its line with fairly good financial conditions. The large amount of short-term loan could be a threat to SC’s financial condition. A credit line up to USD 3,500,000 would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.87 |
|
UK Pound |
1 |
Rs.72.83 |
|
Euro |
1 |
Rs.64.37 |
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 |
|
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.