MIRA
INFORM REPORT
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Report Date : |
21.08.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG HUAYI PHARMACEUTICAL CO., LTD |
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Registered Office : |
No. 15, Shuangfeng Road, Yi’nan Industrial Park, Fotang Town, Yiwu, Zhejiang Province, 322002 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
07.09.2000 |
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Com. Reg. No.: |
330700400002656 |
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Legal Form : |
Chinese-Foreign
Equity Joint Venture Enterprise |
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Line of Business : |
manufacturing and selling pharmaceutical intermediates
and active pharmaceutical ingredients |
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No. of Employees : |
270 employees |
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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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
China |
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
ZHEJIANG HUAYI PHARMACEUTICAL CO., LTD.
NO. 15, SHUANGFENG ROAD, YI’NAN INDUSTRIAL PARK,
FOTANG TOWN, YIWU, ZHEJIANG PROVINCE, 322002 PR CHINA
TEL: 86 (0) 579-85471632/85471637
FAX: 86 (0) 579-85471640
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 7, 2000
REGISTRATION NO. :
330700400002656
REGISTERED
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT
VENTURE ENTERPRISE
CHIEF
EXECUTIVE : MR. LI
BANGLIANG (CHAIRMAN)
STAFF
STRENGTH : 270
REGISTERED
CAPITAL :
USD 19,500,000
BUSINESS
LINE :
MANUFACTURING AND TRADING
TURNOVER : CNY 285,850,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY
98,480,000 (AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : FAIRLY STABLE
OPERATIONAL
TREND :
STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.3604=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
SC was
registered as a Chinese-foreign
equity joint venture enterprise at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on Sep. 7,
2000.
Company
Status: Chinese-foreign equity joint venture enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s
registered business scope includes manufacturing and selling pharmaceutical
intermediates (do not involve
drugs), active pharmaceutical ingredients,
medicines (tablets, capsules, granules, pharmaceutical production range see
<Drug Production License>, validity period as of Nov. 10, 2015) (with
permit if needed).
SC is mainly engaged in
manufacturing and selling pharmaceutical intermediates and active
pharmaceutical ingredients.
Mr. Li Bangliang has been legal representative and chairman of
SC since 2000.
SC is known to have approximately
270 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 Yiwu. Our checks reveal
that SC owns the total premise about
70,000 square meters.
http://www.huayipharm.com/ The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail:
zhp@zhp.com.cn
SC has already
passed the ISO14001 environment management system authentication and GMP
certificate, was awarded as Zhejiang Province New and High-technology
Enterprise, the Foreign Investment Technologically Advanced Enterprise, the
Jinhua Well-known Company, etc.
Changes of its registered
information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2012-3 |
Registered capital |
USD 8,000,000 |
Present amount |
|
Shareholding |
Yiwu Huayi Investment Co., Ltd. 36% USUN Fine Chemical Products Limited 3% Esteve Quimica S.A. (Spain) 35 % Quimifina S.A. (Spain) 16% Provesan S.A. (Switzerland) 10% |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yiwu Huayi Investment Co., Ltd. 70.15
USUN Fine Chemical Products Limited
4.82
Esteve Quimica S.A. (Spain) 14.36
Quimifina S.A. (Spain) 6.57
Provesan S.A.
(Switzerland) 4.10
Yiwu Huayi Investment Co., Ltd.
========================
Incorporation date: Oct. 4, 1995
Registration no.: 330700000000826
Legal representative: Li Bangliang
Legal form: Shares limited co.
Tel: 86-579-85471633
Legal
representative and chairman:
Mr. Li Bangliang , born in 1946, with university education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2000 to present Working in SC as chairman and legal representative
Also working in Yiwu Huayi Investment Co., Ltd. as legal representative
General manager:
Mr. Jin Xuhu, born in 1963, with university education. He is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager
SC is mainly engaged in manufacturing and selling
pharmaceutical intermediates and active pharmaceutical ingredients.
SC’s products mainly include:
*active
pharmaceutical ingredients
ciprofloxacin base
ciprofloxacin hydrochloride
carithromycin
clarithromycin granule
clopidogrel sulfate
enrofloxacin base
enrofloxacin hydrochloride
levetiracetam
lansoprazole powder
omeprazole powder
*advanced
pharmaceutical intermediates
5-[4-{2-(5-ethyl-2-pyridyl) ethoxy} benzylidene]
2,4-thiazolidinedione
erythromycin A 9-oxime
2'.4.'-O-bis
(trimethylsilyl)-6-O-methylerythromycin A
2-chloromethyl-3.5.-dimethyl-4-methoxy
pyridine hydrochloride
2-hydroxymethyl-3.5.-dimethyl-4-methoxy
pyridine
SC sources
its materials 80% from domestic market and 20% from the overseas market, mainly
India and Spain. SC sells 40% of its products in domestic market, and 60% to
overseas market, mainly Spain.
The
buying terms of SC include Check, L/C, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C, and Credit of 30-60 days.
Note: SC’s
management declined to release its main clients and suppliers.
SC is not known to have
any subsidiary at present.
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 China Yiwu Sub-branch
AC#850007145408091001
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2010 |
as of Dec. 31, 2011 |
|
Cash & bank |
14,500 |
8,960 |
|
Notes receivable |
2,420 |
3,160 |
|
Inventory |
69,080 |
59,910 |
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Accounts receivable |
39,340 |
33,340 |
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Advances to suppliers |
12,290 |
1,830 |
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Other receivables |
630 |
100 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
138,260 |
107,300 |
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Long-term investments |
0 |
0 |
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Fixed assets net value |
49,220 |
49,520 |
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Projects under construction |
1,420 |
1,660 |
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Intangible assets |
11,470 |
10,570 |
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Other assets |
0 |
0 |
|
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------------------ |
------------------ |
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Total assets |
200,370 |
169,050 |
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|
============= |
============= |
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Short loans |
30,000 |
20,000 |
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Accounts payable |
27,700 |
24,420 |
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Advances from customers |
920 |
1,980 |
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Welfare Payable |
4,750 |
5,050 |
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Taxes payable |
-2,270 |
-3,230 |
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Other payable |
120 |
100 |
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Other accounts payable |
10,440 |
22,250 |
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Other current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current liabilities |
71,660 |
70,570 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
71,660 |
70,570 |
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Shareholders equities |
128,710 |
98,480 |
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------------------ |
------------------ |
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Total liabilities & equities |
200,370 |
169,050 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2010 |
as of Dec. 31, 2011 |
|
Turnover |
255,520 |
285,850 |
|
Cost of goods sold |
223,160 |
242,770 |
|
Taxes and additional of main
operation |
270 |
880 |
|
Income from other operation |
5,490 |
2,620 |
|
Sales expense |
5,610 |
5,430 |
|
Management
expense |
21,570 |
24,660 |
|
Finance expense |
3,140 |
4,870 |
|
Subsidy income |
8,740 |
1,470 |
|
Non-operating income |
170 |
80 |
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Non-operating expense |
250 |
90 |
|
Profit before tax |
15,920 |
11,320 |
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Less: profit tax |
1,950 |
1,010 |
|
Net profit |
13,970 |
10,310 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
*Current ratio |
1.93 |
1.52 |
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*Quick ratio |
0.97 |
0.67 |
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*Liabilities to assets |
0.36 |
0.42 |
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*Net profit margin (%) |
5.47 |
3.61 |
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*Return on total assets (%) |
6.97 |
6.10 |
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*Inventory /Turnover ×365 |
99 days |
77 days |
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*Accounts receivable/Turnover ×365 |
57 days |
43 days |
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*Turnover/Total assets |
1.28 |
1.69 |
|
* Cost of goods sold/Turnover |
0.87 |
0.85 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears fairly good in its line, and it increased in 2011.
l
SC’s net
profit margin is fairly good in 2010 but average in 2011.
l
SC’s return
on total assets is fairly good in both 2 years.
l
SC’s
cost of goods sold is average in both 2 years, comparing with its turnover.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a normal level in both 2 years.
l
SC’s
quick ratio is maintained in a normal level in 2010 but fair in 2011.
l
The
inventory of SC appears fairly large in both 2 years.
l
The
accounts receivable of SC appears average in both 2 years.
l
SC’s
short-term loan appears average in both 2 years.
l
SC’s
turnover is in an average level in both 2 years, 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 stable
SC is considered
medium-sized in its line with fairly stable financial conditions. The large
amount of inventory could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.70 |
|
UK Pound |
1 |
Rs.87.55 |
|
Euro |
1 |
Rs.68.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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.