MIRA
INFORM REPORT
|
Report Date : |
04.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
Hebei
Jiheng (Group) Pharmaceutical Co., Ltd. |
|
|
|
|
Registered Office : |
No. 368 Jianshe Street,
Hengshui, Hebei Province 053000 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.06.2012 |
|
|
|
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Date of Incorporation : |
06.04.1999 |
|
|
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Com. Reg. No.: |
131100000008139 |
|
|
|
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Legal Form : |
One-Person Limited Liabilities Company |
|
|
|
|
Line of Business : |
Engaged in manufacturing granule, tablet, pilulae, hard
capsule, and bulk drugs |
|
|
|
|
No. of Employees : |
1,550 |
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 |
|
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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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 |
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
Source
: CIA
Company name and address
Hebei Jiheng (Group) Pharmaceutical
Co., Ltd.
NO. 368
JIANSHE STREET, HENGSHUI, HEBEI PROVINCE 053000 PR CHINA
TEL: 86
(0) 318-2120491/2133598
FAX: 86
(0) 318-2167985/2182958
EXECUTIVE SUMMARY
Date of Registration : apRil 6, 1999
REGISTRATION NO. : 131100000008139
LEGAL FORM : ONE-PERSON LIMITED LIABILITIES COMPANY
REGISTERED CAPITAL : CNY 38,000,000
staff : 1,550
BUSINESS CATEGORY : manufacturing
REVENUE :
CNY 312,428,000 (JAN. 1 2012 TO
JUN. 30, 2012)
EQUITIES : CNY 149,533,000 (AS OF JUN. 30,
2012)
WEBSITE : www.jihengpharmaceutical.com
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.36 = 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
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a one-person limited
liability company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 131100000008139.
SC’s Organization Code Certificate
No.: 23627089-1
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20191988%2004-Sep-2012_files/image003.jpg)
SC’s registered capital: CNY 38,000,000
SC’s paid-in capital: CNY 38,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Company Name |
Hengshui Jiheng Drug Co., Ltd |
Hengshui Jiheng Pharmacy Co.,
Ltd. |
|
|
Registered Capital |
CNY
1,580,000 |
CNY 8,000,000 |
|
|
Registered Capital |
CNY 8,000,000 |
CNY 20,329,700 |
|
Legal Form |
One-Person Limited Liability
Company |
Limited
Liability Company |
|
|
Legal Representative |
Xiao Qiusheng |
Han Borui |
|
|
|
Registered Capital |
CNY 20,329,700 |
CNY 32,000,000 |
|
|
Registered Capital |
CNY 32,000,000 |
CNY 38,000,000 |
|
|
Legal Representative |
Han Borui |
Wang Pingsheng |
|
Company Name |
Hengshui Jiheng Pharmacy Co.,
Ltd. |
Hebei
Jiheng (Group) Pharmacy Co., Ltd. |
|
|
|
Legal Form |
Limited Liability Company |
One-Person
Limited Liability Company |
|
-- |
Registered No. |
1311001000585 |
131100000008139 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hebei Jiheng Group Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Wang
Pingsheng |
|
General Manager |
Li
Guosheng |
RECENT DEVELOPMENT
Honors:
======
SC was awarded “Excellent Enterprise of Hebei Province”.
SC was awarded “2002 Annual Advanced Enterprise”.
SC was awarded “2002 Annual enterprise credit ratings AAA”.
SC was awarded “Foreign Economic Relations & Trade
Advanced Unit of Hebei Province.”
SC obtained Kosher Certificate, ISO Certificate, GMP
Certificate
Etc.
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20191988%2004-Sep-2012_files/image005.jpg)
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20191988%2004-Sep-2012_files/image007.jpg)
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20191988%2004-Sep-2012_files/image009.jpg)
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20191988%2004-Sep-2012_files/image011.jpg)
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Hebei Jiheng Group Co., Ltd. 100
------------------------------
Hebei Jiheng Group Co., Ltd. is a large enterprise with the
headquarters at Lubei Industrial Park in Hengshan City, which is also a top 100
enterprise in Hebei Province. Hebei Jiheng Group Co., Ltd., as its core enterprise, owns many branches
and subsidiaries, such as Jiheng Electro-Chemical Co., Ltd., Jiheng Chemical
Co., Ltd., Jiheng Pharmacy Co., Ltd., Huawei Pharmaceutical Co., Ltd., etc.,
which mainly specialize in producing more than 30 kinds of chemical products,
including ammonium persulphate, sodium persulfate, potassium persulphate,
dichloro, trichloro, cyanuric acid, ammonium bicarbonate, phos rock fertilizer
in bulk, aniline, vitriol, compound fertilizer, dimethylaniline, etc., and more
than ten kinds of chemical raw materials, including benzalagen, aminopyrine,
antipyrin, paracetamol, etc. More than twenty of these products and raw
materials, such as ammonium persulphate, sodium persulfate, potassium
persulphate, dichloro, trichloro, cyanuric acid, benzalagen, paracetamol, etc.,
are exported far to more than 40 countries covering Europe, America, Middle
East, South East Asia, Hong Kong, Macau, Taiwan, etc. and have always enjoyed
great popularity among all customers at home and abroad.
Date of Registration :
September 8, 1998
Registration No. :
131100000013908
Legal Form : Limited Liabilities Company
Registered Capital :
CNY 133,600,000
Address: 58 Zhonghua Street,
Hengshui City, Hebei Province
Tel: 86-318-2150911/2141504
Fax: 86-318-2147805
Web: www.jihenggroup.com
E-mail: persulphate@jihenggroup.com
MANAGEMENT
Wang
Pingsheng, Legal Representative and Chairman
---------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø
Qualification: University
Ø
Working experience (s):
From 2004 to present, working in SC as legal
representative and chairman
Li
Guosheng, General Manager
----------------------------------------------------
Ø
Gender: M
Ø
Age: 42
Ø
Qualification: University
Ø
Working experience (s):
From 1999 to present, working in SC as general
manager
Huang
Shuzhen, Sales Manager
----------------------------------------------------
Ø
Mobile: 86 (0) 13932896368
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing granule, tablet, pilulae, hard
capsule, pulvis, liquor, tincture, bulk drugs (validity period as of Dec. 31,
2010), manufacturing food additives; importing and exporting self-made products
and technologies; importing mechanical equipments, components, raw materials,
accessories, and relative technology needed by SC, excluding commodities and
technologies prohibited by state.
SC is
mainly engaged in manufacturing granule, tablet, pilulae, hard capsule, and
bulk drugs.
Brand:
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20191988%2004-Sep-2012_files/image013.jpg){kind=small}
SC’s
products mainly include: analgin, paracetamol, folic acid, antipyrine, AICA,
bambuterol hydrochloride, aminopyrine, etc.
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20191988%2004-Sep-2012_files/image015.jpg)
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20191988%2004-Sep-2012_files/image017.jpg)
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20191988%2004-Sep-2012_files/image019.jpg)
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20191988%2004-Sep-2012_files/image021.jpg)
SC sources its materials 90%
from domestic market, mainly Hebei Province, and 10% from overseas market. SC
sells 70% of its products in domestic market, and 30% to overseas market,
mainly Korea, Japan, Indonesia, Saudi Arabia and European countries.
The buying terms of SC include Check, 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 Customers:
==============
Genethics
Pharmaceuticals Ltd.
Provimi
S.A.
Staff & Office:
--------------------------
SC is
known to have approx. 1,550
staff at present.
SC
rents an area as its operating office & factory of approx. 150,000 sq.
meters at the heading address.
RELATED COMPANY
%20PHARMACEUTICAL%20CO%20,%20LTD%20%20-%20191988%2004-Sep-2012_files/image001.gif){kind=small}
Hebei Jiheng (Group) Qingxian Chemical Co., Ltd.
u
Hebei Jiheng (Group) Pharmaceutical Shenzhou Co., Ltd.
u
Jiheng (Group) Bluesky Co., Ltd.
Etc.
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:
Agricultural Bank of China Hengshui Branch
AC#: 401001040000195
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Jun. 30, 2012 |
|
83,167 |
|
|
Notes receivable |
18,931 |
|
Accounts
receivable |
53,264 |
|
Advances
to suppliers |
0 |
|
Other
receivable |
60,238 |
|
Inventory |
35,235 |
|
Non-current
assets within one year |
0 |
|
Other
current assets |
0 |
|
|
------------------ |
|
Current
assets |
250,835 |
|
Fixed
assets |
73,886 |
|
Construction
in progress |
2,935 |
|
Intangible
assets |
34,239 |
|
Long-term
prepaid expenses |
20,000 |
|
Deferred
income tax assets |
0 |
|
Other
non-current assets |
0 |
|
|
------------------ |
|
Total
assets |
381,895 |
|
|
============= |
|
Short-term
loans |
53,000 |
|
Notes
payable |
58,124 |
|
Accounts
payable |
71,107 |
|
Wages
payable |
1,895 |
|
Advances
from clients |
0 |
|
Tax
payable |
-225 |
|
Other
payable |
48,461 |
|
Other
current liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
232,362 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
232,362 |
|
Equities |
149,533 |
|
|
------------------ |
|
Total
liabilities & equities |
381,895 |
|
|
============= |
Income Statement
|
Unit:
CNY’000 |
Jan. 1 2012 to Jun. 30, 2012 |
|
Revenue |
312,428 |
|
Cost of sales |
270,936 |
|
Sales expense |
20,334 |
|
Management expense |
6,303 |
|
Finance expense |
2,835 |
|
Profit
before tax |
11,639 |
|
Less:
profit tax |
2,910 |
|
8,729 |
Important
Ratios
=============
|
|
As of Jun. 30, 2012 |
|
*Current
ratio |
1.08 |
|
*Quick
ratio |
0.93 |
|
*Liabilities
to assets |
0.61 |
|
*Net
profit margin (%) |
2.79 |
|
*Return
on total assets (%) |
2.29 |
|
*Inventory
/ Revenue ×365/180 |
21
days |
|
*Accounts
receivable/ Revenue ×365/180 |
31
days |
|
*
Revenue/Total assets |
0.82 |
|
*
Cost of sales / Revenue |
0.87 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good
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 goods sold is average,
comparing with its revenue.
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
SC’s short-term loan is in an average
level.
l
SC’s revenue is in an average level,
comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.45 |
|
|
1 |
Rs.87.98 |
|
Euro |
1 |
Rs.69.69 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.
ZS