MIRA
INFORM REPORT
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Report Date : |
23.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG HAISEN PHARMACEUTICAL CO., LTD. |
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Formerly Known As : |
Dongyang Chemical Pharmaceutical Co., Ltd. |
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Registered Office : |
Liushi Street,
Dongyang City, Zhejiang Province 322104 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
07.12.1998 |
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Com. Reg. No.: |
330783000011022 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling bulk drugs and
powder |
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No. of Employees : |
550 |
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 – June 30th, 2012
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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
ZHEJIANG HAISEN
PHARMACEUTICAL CO., LTD.
Liushi STREET, Dongyang City, Zhejiang PROVINCE 322104 PR CHINA
TEL: 86 (0) 579-86773108/86847688
FAX: 86 (0) 579-86850033/86773083
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 7, 1998
REGISTRATION NO. : 330783000011022
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 11,000,000
staff : 550
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 150,765,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 88,440,000 (AS OF DEC. 31, 2012)
WEBSITE : www.dongyangpharm.com
E-MAIL :
sale@haisen.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.18 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 330783000011022 on December
7, 1998.
SC’s Organization Code Certificate No.: 70458128-8
SC’s Tax No. 330783704581288
SC’s registered capital: CNY 11,000,000
SC’s paid-in capital: CNY 11,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After the change |
|
|
Company
Name |
Dongyang
Chemical Pharmaceutical Co., Ltd. |
Zhejiang
Haisen Pharmaceutical Co., Ld. |
|
Registered Capital |
CNY
3,000,000 |
CNY 11,000,000 |
|
|
Shareholder
(s) (% of Shareholding) |
Wang
Dongyan 6.66% Guo
Haiyan 10.67% Ai
Linyi 22.67% Wang
Shiyue 60% |
Wang
Dongyan 1.82% Ai
Lin 6.18% Wang
Yuxiao 9.09% Guo Haiyan 12.00% Wang
Shiyue 70.91% |
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|
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Registration No. |
3307832000328 |
330783000011022 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang
Dongyan |
1.82 |
|
Ai
Lin |
6.18 |
|
Wang
Yuxiao |
9.09 |
|
Guo
Haiyan |
12.00 |
|
Wang
Shiyue |
70.91 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Wang Shiyue |
|
Supervisor |
Wang Dongyan |
RECENT DEVELOPMENT
SC has obtained ISO9001, ISO14001 and GMP certificates, and the
application for FDA and CEP certificates are just in the process.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Wang Dongyan 1.82
ID# 330724641221142
Ai Lin 6.18
ID# 510102196110288410
Wang Yuxiao 9.09
ID# 330724198608260022
Guo Haiyan 12.00
ID# 330724620504002
Wang Shiyue 70.91
ID# 330724600104001
MANAGEMENT
Wang Shiyue, Legal Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 53
Ø
ID# 330724196001040016
Ø
Qualification:
University
Ø
Working
experience (s):
From 1992 to 1998, worked in Hengdian Group Pharmaceutical Chemical Factory as principal
From 1998 to present, working in SC as legal representative, chairman and general manager
Wang Dongyan, Supervisor
-----------------------------------------------
Ø
Gender: F
Ø
Age:
49
Ø
ID#
330724196412211422
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
bulk drugs, powder, and chemical synthesis of pharmaceutical intermediates; and
international trade.
SC is
mainly engaged in manufacturing and selling bulk drugs and powder.
Brand: ANNAIJIN
SC’s products mainly include:
Paroxetine HCL
Analgin;Dipyrone
Metamizole sodium
Aminopyrine
Antipyrine;Phenazone
Propyphenazone
L-Glutamine
Granisetron Hydrochloride
Sucralfate
(-)trans-4R-(4-fluorophenyl)-3S-hydroxymethyl-1-methyl piperidine
2-hydroxy-4-amino butylic acid (HABA)
1-(4-fluorophenyl)-1, 3-dihydro-isobenzofuran-5-carbonitrile
Escitalopram oxalate
Etc.
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 45% of its products in domestic market, and 55%
to overseas market, mainly Southeast Asian countries.
The
buying terms of SC include 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 Supplier:
============
Sichuan
Industrial Institute of Antibiotics
Staff & Office:
--------------------------
SC is
known to have approx. 550
staff at present.
SC owns an area as
its operating office & factory of approx. 150,000 sq. meters at the heading
address.
RELATED
COMPANY
SC is known to have 3
subsidiaries at present,
u
Zhejiang Changshan Wantong Real Estate Development Co., Ltd.
----------------------------------------
Date of Registration: June 4, 2008
Registration No.: 330822000005034
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 50,000,000
u
Dongyang Guofeng Microfinance Co., Ltd.
---------------------------------------
Date of Registration: December 19, 2008
Registration No.: 330783000027387
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 400,000,000
u
Dongyang Haisen Trading Co., Ltd.
---------------------------------
Date of Registration: July 25, 2005
Registration No.: 330783000046871
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 1,000,000
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’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.
BANKING
Basic Bank:
Bank
of China Dongyang Sub-branch
AC#: 367558336191
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
17,827 |
4,260 |
|
|
Notes receivable |
2,600 |
1,934 |
|
Accounts
receivable |
20,071 |
27,747 |
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Advances to
suppliers |
0 |
0 |
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Other receivable |
60,611 |
55,460 |
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Inventory |
38,732 |
27,032 |
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Non-current
assets within one year |
0 |
0 |
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Deferred
expense |
0 |
0 |
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Other current
assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
139,841 |
116,433 |
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Fixed assets |
24,341 |
40,357 |
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Construction in
progress |
12,711 |
1,904 |
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Intangible
assets |
18,029 |
17,866 |
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Long-term
investment |
27,789 |
40,289 |
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Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
222,711 |
216,849 |
|
|
============= |
============= |
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Short-term loans |
115,254 |
94,091 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
24,957 |
25,523 |
|
Welfare payable |
0 |
0 |
|
Taxes payable |
1,224 |
1,600 |
|
Advances from
clients |
5,353 |
1,003 |
|
Other payable |
2,378 |
5,173 |
|
Other unpaid
expenses |
456 |
370 |
|
Accrued expenses |
2,054 |
649 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
151,676 |
128,409 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
151,676 |
128,409 |
|
Equities |
71,035 |
88,440 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
222,711 |
216,849 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
166,582 |
150,765 |
|
Cost of sales |
129,688 |
106,770 |
|
Taxes and surcharges |
1,314 |
1,100 |
|
Sales expense |
3,378 |
2,809 |
|
Management expense |
18,193 |
22,648 |
|
Finance expense |
7,426 |
5,946 |
|
Investment
income |
1,558 |
0 |
|
Subsidy income |
4,879 |
5,096 |
|
Non-business
income |
59 |
281 |
|
Non-business expense |
1,760 |
1,669 |
|
Profit before
tax |
12,403 |
15,198 |
|
Less: profit tax |
621 |
600 |
|
11,782 |
14,598 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.92 |
0.91 |
|
*Quick ratio |
0.67 |
0.70 |
|
*Liabilities
to assets |
0.68 |
0.59 |
|
*Net profit
margin (%) |
7.07 |
9.68 |
|
*Return on
total assets (%) |
5.29 |
6.73 |
|
*Inventory /
Revenue ×365 |
85 days |
66 days |
|
*Accounts
receivable/ Revenue ×365 |
44 days |
68 days |
|
* Revenue/Total
assets |
0.75 |
0.70 |
|
* Cost of
sales / Revenue |
0.78 |
0.71 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good in both
years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average in both years.
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. The large amount of short-term loans
may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.17 |
|
UK Pound |
1 |
Rs.82.45 |
|
Euro |
1 |
Rs.70.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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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.