MIRA
INFORM REPORT
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Report Date : |
01.11.2012 |
IDENTIFICATION DETAILS
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Name : |
HEBEI XINGANG PHARMACEUTICAL CO., LTD. |
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Formerly Known As : |
Hebei Xingang Biochemistry Co., Ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.07.2012 |
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Date of Incorporation : |
29.06.2001 |
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Com. Reg. No.: |
130100400002355 |
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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 raw materials |
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No. of Employees : |
300 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 : |
Slow |
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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 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.
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Source : CIA |
Company name & address
HEBEI XINGANG PHARMACEUTICAL CO., LTD.
NO. 25 ZHAOYUAN
ROAD, ZHAO COUNTY, SHIJIAZHUANG
HEBEI PROVINCE
051530 PR CHINA
TEL: 86 (0)
311-84930058
FAX: 86 (0)
311-84922430
EXECUTIVE SUMMARY
Date of Registration : JUNE 29, 2001
REGISTRATION NO. : 130100400002355
LEGAL FORM : CHINESE FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
REGISTERED CAPITAL :
CNY 9,000,000
staff :
300
BUSINESS CATEGORY :
MANUFACTURING
REVENUE :
CNY 83,420,000 (JAN. 1, 2012 TO
JUL. 31, 2012)
EQUITIES :
CNY 36,080,000 (AS OF JUL. 31, 2012)
WEBSITE : www.xgpharm.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
LEGAL STATUS & HISTORY
SC was
established as a Chinese foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 130100400002355 on June 29, 2001.
SC’s Organization Code Certificate
No.: 60130040-4
SC’s registered capital: CNY 9,000,000
SC’s paid-in capital: CNY 9,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2004 |
Company
Name |
Hebei
Xingang Biochemistry Co., Ltd. |
Hebei
Xingang Pharmaceutical Co., Ltd. |
|
-- |
Shareholder
(s) |
OverseasWay
Holding Co., Ltd. (Hong Kong) 30% Zhao
County Zhaozhou Bridge Biology Chemical Co., Ltd. 49% Hebei
Construction Investment Corp. 21% |
(Hong
Kong) Hebei International Investments Limited 30% Zhao
County Zhaozhou Bridge Biology Chemical Co., Ltd. 49% Hebei
Construction Investment Corp. 21% |
|
2009 |
Name of Shareholder |
Hebei
Construction Investment Corp. |
Hebei
Construction & Investment Group Co., Ltd. |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
(Hong
Kong) Hebei International Investments Limited |
30 |
|
Zhao
County Zhaozhou Bridge Biology Chemical Co., Ltd. |
49 |
|
Hebei Construction &
Investment Group Co., Ltd. |
21 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Ma Shuliang |
|
General Manager |
Li Haile |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(Hong Kong) Hebei International
Investments Limited 30
Zhao County Zhaozhou Bridge Biology
Chemical Co., Ltd. 49
Hebei Construction &
Investment Group Co., Ltd. 21
n
(Hong Kong) Hebei International
Investments Limited
-----------------------------------------------------------------------
Registration No.: 0935294
Legal Form: Private
Status: Live
n
Zhao County Zhaozhou Bridge Biology
Chemical Co., Ltd.
----------------------------------------------------------------------------
Registration No.:
130133000007414
Date of Registration: April 21,
1998
Legal Form: Limited Liabilities
Company
Registered Capital: CNY
2,440,000
Legal Representative: He Jinyan
n
Hebei Construction & Investment
Group Co., Ltd.
-----------------------------------------------------------------
Registration No.:
130000100002146
Date of Registration: March 21,
1990
Legal Form: Sole State-owned
Enterprise
Registered Capital: CNY
15,000,000,000
Legal Representative: Li
Lianping
MANAGEMENT
Ma
Shuliang, Legal
Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age:
Ø
Working
experience (s):
From 2006 to present, working in SC as legal representative
and chairman
Li Haile,
General Manager
-----------------------------------------------
Ø
Gender: M
Ø
Age:
Ø
Working
experience (s):
From 2006 to present, working in SC as general manager
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing Rifampicin and Rifandin Active
Pharmaceutical Ingredients, Rifamycin bio-fermentation products and downstream
products, and antibiotics type pharmaceutical intermediates; selling self-made
products.
SC is
mainly engaged in manufacturing and selling pharmaceutical intermediates and
raw materials.
SC’s products
mainly include: Rifamycin S Sodium, Rifamycin S, 3-Formyl Rifamycin SV,
Rifamycin SV Sodium, Rifampicin, Rifandine, and Rifabutin.
SC sources its
materials 100% from domestic market. SC sells 15% of its products in domestic
market, and 85% to the overseas market, mainly American and European countries.
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 and Credit of 30-60 days.
*Major Client*
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Longmarch Pharmaceuticals Co., Ltd.
*Major Supplier*
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Shijiazhuang Changan Jinluda Chemical
Factory
Staff & Office:
--------------------------
SC is
known to have approx. 300 staff
at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank
Bank of China
Zhao County Sub-branch
AC#:
08686308091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Jul. 31, 2012 |
|
4,760 |
|
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Accounts
receivable |
7,440 |
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Advances to
suppliers |
10,320 |
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Other receivable |
12,950 |
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Inventory |
23,680 |
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Non-current
assets within one year |
0 |
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Other current
assets |
460 |
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------------------ |
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Current assets |
59,610 |
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Fixed assets |
34,790 |
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Long-term
investment |
0 |
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Deferred income
tax assets |
0 |
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Other non-current
assets |
3,030 |
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|
------------------ |
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Total assets |
97,430 |
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============= |
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Short-term loans |
6,500 |
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Accounts payable |
24,350 |
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Welfares payable |
2,920 |
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Taxes payable |
-530 |
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Advances from
clients |
8,740 |
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Other payable |
14,290 |
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Other current
liabilities |
5,080 |
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------------------ |
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Current
liabilities |
61,350 |
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Non-current
liabilities |
0 |
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------------------ |
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Total
liabilities |
61,350 |
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Equities |
36,080 |
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------------------ |
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Total
liabilities & equities |
97,430 |
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============= |
Income Statement
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Unit: CNY’000 |
Jan.
1, 2012 to Jul. 31, 2012 |
|
Revenue |
83,420 |
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Cost of sales |
80,480 |
|
Sales expense |
460 |
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Management expense |
1,930 |
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Finance expense |
310 |
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Profit before
tax |
40 |
|
Less: profit tax |
10 |
|
30 |
Important Ratios
=============
|
|
As of Jul. 31, 2012 |
|
*Current ratio |
0.97 |
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*Quick ratio |
0.59 |
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*Liabilities
to assets |
0.63 |
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*Net profit
margin (%) |
0.04 |
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*Return on
total assets (%) |
0.03 |
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*Inventory /
Revenue ×210 |
60 days |
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*Accounts
receivable/ Revenue ×210 |
19 days |
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*
Revenue/Total assets |
0.86 |
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* Cost of
sales / Revenue |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair 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
SC’s short-term loans are in an average level.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.12 |
|
UK Pound |
1 |
Rs.87.07 |
|
Euro |
1 |
Rs.70.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
RATING EXPLANATIONS
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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.