MIRA
INFORM REPORT
|
Report Date : |
23.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG HISOAR PHARMACEUTICAL CO., LTD. |
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Formerly Known as: |
Zhejiang Hisoar
Pharmaceutical & Chemical Co., Ltd. |
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Registered Office : |
No. 100, Waisha Branch Road, Jiaojiang District, Taizhou, Zhejiang Province, 318000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
07.05.1998 |
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Com. Reg. No.: |
330000000004437 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling specialty chemical raw materials and pharmaceutical intermediates |
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No. of Employees : |
1969 |
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 but Correct |
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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) |
|
China |
A2 |
A2 |
|
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.
|
Source : CIA |
company name & address
Zhejiang Hisoar Pharmaceutical Co., Ltd.
NO. 100, WAISHA
BRANCH ROAD, JIAOJIANG DISTRICT,
TAIZHOU, ZHEJIANG PROVINCE,
318000 PR CHINA
TEL: 86 (0)
576-88828065 FAX: 86 (0)
576-88820221
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 7, 1998
REGISTRATION NO. : 330000000004437
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
1,969
REGISTERED CAPITAL : CNY 324,490,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 1,145,374,000 (Consolidated, AS OF DEC. 31, 2012)
EQUITIES :
CNY 738,046,000 (Consolidated, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.1823 = 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 limited liabilities co. at Zhejiang Provincial Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on May 7, 1998 and has been under the present legal form since 2004.
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 co has independent property of legal person
and enjoys property rights of legal person. The characteristics of
the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The
board of directors must consist 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 one year of the
offer. 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 veterinary medicine (see scope <Veterinary Drug
Production License of the People's Republic of China>, validity period as of
Sep. 9, 2015), manufacturing bulk drugs (<Drug Production License of the
People's Republic of China>, validity period as of Dec. 22, 2015).
Manufacturing chemical materials and products, import and export business.
SC is mainly engaged in manufacturing and selling specialty chemical raw materials and pharmaceutical intermediates.
Mr.
Luo Yuhong has been legal representative
and chairman of SC since 2009.
SC is known
to have approx. 1,969 employees at present, including 826 production
staff, 180 management staff, 858 technicians, 44 financial staff, and 61
salesmen.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in Taizhou. Detail information of the premise is
unspecified.
http://www.hisoar.com The design is professional
and the content is well organized. At present it is in Chinese and English
versions.
Email: sales@hisoar.com
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002099.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2004 |
Company name |
Zhejiang Hisoar Pharmaceutical &
Chemical Co., Ltd. |
Present one |
|
Legal form |
Limited Liabilities Co. |
||
|
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Registration on. |
3300001010595 |
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|
Legal rep. |
Luo Bangpeng |
Tax Registration Certificate No.: 331002148233273
Organization Code: 14823327-3
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS: (as of Mar. 31, 2013)
Name %
of Shareholding
Luo Yuhong 21.26
Bank of China- Franklin Templeton Sealand
Small and Medium-sized Cap
Equity Securities Investment Fund 3.81
Bank of China- Franklin Templeton Sealand
Potential Combination
Equity Securities Investment Fund 3.76
Luo Bangpeng 2.8
Li Weijin 2.02
Zheng Zhiguo 1.51
Sinochem Ningbo Ltd. 1.18
Kuwait Investment Authority 0.92
China Everbright Bank Co., Ltd.- First-Trust
Leading Strategy
Open-ended Securities Investment Fund 0.71
Zhang Zhiyue 0.59
Other Shareholders 61.44
Legal
Representative and Chairman:
Mr. Luo Yuhong, born in 1976, with university education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2009 to present Working in SC as legal representative and chairman.
Also working in Jiangsu Hibroad Bio-Pharmaceutical Co., Ltd., Suzhou No. 4 Pharmaceutical Factory Co., Ltd. as chairman; in North China Pharmaceutical Group Haixiang Pharmaceutical Co., Ltd. as director.
General Manager:
Mr. Li Weijin, born in 1965, with university education, senior engineer.
He is currently responsible for the daily management of SC.
Working
Experience(s):
From 2009 to present Working
in SC as general manager.
Also working in Shanghai Hisoar Medical Technology Development Co., Ltd.
(in Chinese Pinyin) as legal representative; in Jiangsu Hibroad
Bio-Pharmaceutical Co., Ltd. and Suzhou No. 4 Pharmaceutical Factory Co., Ltd.
as director.
Vice General
Managers:
· Mr. Pan Qinghua, born in 1970, with technical secondary education, engineer.
Mr.
Shen Lihua, born in 1966, with junior college education, engineer.
Ms.
Xu Huaqing, born in 1981, with university education.
They are currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as vice general managers.
Directors:
Zhou Yali
Chen Wensen
Li Youxing
Luo Yanbin
Bei Nianjiao
Supervisors:
Guo Shihua
Chen Zhenghua
Gong Weizhong
SC is mainly
engaged in manufacturing and selling specialty chemical raw materials and
pharmaceutical intermediates.
SC’s products mainly include:
1,2,3-Trimethoxy
benzene
2-Methyl-3-Trifluoromethyl
Aniline
3-Methoxy
Acetophenone
3-Hydroxy
Acetophenone
4-Nitro-3-trifluoromethyl
aniline
Ethyl
7-Chloro-2-oxoheptanoate
Cilastatin
intermediate
S-(+)-2,2-Dimethylcyclopropame
Carboxamide
Cilastatin
intermediate
(z)-(s)-7-chloro-2-(2,2-dimethyl-cyclopropanecarboxamido)-2-heptenoic
acid
Cilastatin
intermediate
Cilastatin acid
Cilastatin
intermediate
Cyclopropylamine
Cyclopropylethanone
Cyclopropyl
acetylene
Etc.
Branch: 
SC sources its materials 100% from domestic
market. SC sells 30% of its products in domestic market, and 70% to overseas
market.
The buying terms of SC include Check, 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.
*Major Customers:
==============
Boehringer Ingelheim International Trading (Shanghai) Co., Ltd.
Acs Dobfar S.P.A
Savior Lifetec Corporation
Pfizer Asia Manufacturing Pte Ltd
Note: SC’s management declined to release its major suppliers.
SC is known to have the following subsidiaries:
Zhejiang Hisoar Pharmaceutical Sales Co., Ltd.
==================================
Incorporation
date: Jan. 31, 2007
Registration
no.: 331002000036637
Legal
form: One-Person Limited Liability Company
Legal
rep.: Chen Zhenghua
Registered
capital: CNY 30,000,000
Add:
No. 100, Waisha Sub-road, Jiaojiang District, Taizhou, Zhejiang Province
浙江省台州市椒江区外沙支路100号
Tel:
86 (0) 576-88827750
Fax:
86 (0) 576-88861260
Taizhou Quanfeng Medicine Chemical Co., Ltd.
===================================
Incorporation
date: Nov. 13, 1998
Registration
no.: 331000400004036
Registered
capital: USD 2, 416,400
Legal
rep.: He Xijun
Legal
form: Chinese-foreign equity joint venture enterprise
Zhejiang
Hisoar Chuannan Pharmaceutical Co., Ltd.
======================================
Incorporation
date: Sep. 21, 2010
Registration
no.: 331082000056611
Registered
capital: CNY 200,000,000
Legal
rep.: Pan Qinghua
Legal
form: One-person Limited Liability Company
Shanghai
Hisoar Medical Technology Development Co., Ltd. (in Chinese Pinyin)
==================================================
Incorporation
date: Oct. 26, 2010
Registration
no.: 310104000474166
Registered
capital: CNY 5,000,000
Legal
rep.: Li Weijin
Legal
form: One-person Limited Liability Company
North
China Pharmaceutical Group Haixiang Pharmaceutical Co., Ltd.
===================================================
Incorporation
date: Mar. 29, 2001
Registration
no.: 130000000010489
Registered
capital: CNY 13,200,000
Legal
rep.: Wang Yan
Legal
form: Limited Liabilities Co.
Suzhou No. 4 Pharmaceutical Factory Co., Ltd.
=================================
Web: http://www.spf4.com
E-mail: szsy@spf4.com
Tel: 86(0512)-65334311
Fax: 86(0512)-65560866
Jiangsu
Hibroad Bio-Pharmaceutical 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 records 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.
SC’s management declined
to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
as of Dec. 31, 2011 |
|
Cash & bank |
194,603 |
157,662 |
|
Trading
financial assets |
0 |
561 |
|
Notes receivable |
6,535 |
27,398 |
|
Inventory |
305,990 |
311,352 |
|
Accounts
receivable |
188,494 |
172,357 |
|
Advances to
supplies |
127,747 |
162,402 |
|
Interest
receivable |
808 |
0 |
|
Other
receivables |
12,781 |
16,334 |
|
Other current
assets |
29,876 |
943 |
|
|
------------------ |
------------------ |
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Current assets |
866,834 |
849,009 |
|
Long-term
investments |
4,448 |
5,952 |
|
Fixed assets |
524,073 |
395,334 |
|
Projects under
construction |
375,596 |
115,825 |
|
Project
materials |
16,204 |
6,849 |
|
Intangible
assets |
75,047 |
58,832 |
|
Goodwill |
28,425 |
0 |
|
Deferred income
tax assets |
5,209 |
3,334 |
|
Other assets |
22,183 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,918,019 |
1,435,135 |
|
|
============= |
============= |
|
Short loans |
210,941 |
235,026 |
|
Notes payable |
192,591 |
124,084 |
|
Accounts payable |
185,901 |
117,430 |
|
Advances from
customers |
4,830 |
1,793 |
|
Salaries
and welfare payable |
12,743 |
12,393 |
|
Taxes payable |
3,465 |
8,019 |
|
Interest payable |
3,570 |
719 |
|
Dividends
payable |
2,051 |
2,051 |
|
Other accounts
payable |
30,190 |
15,090 |
|
Due
within one year of non-current liabilities |
35,000 |
20,000 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
681,282 |
536,605 |
|
Long term
liabilities |
498,691 |
161,569 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,179,973 |
698,174 |
|
Shareholders
equities |
738,046 |
736,961 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,918,019 |
1,435,135 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
as of Dec. 31, 2011 |
|
Turnover |
1,145,374 |
1,298,438 |
|
Cost of goods
sold |
920,877 |
986,601 |
|
Taxes
and additional of main operation |
5,039 |
4,969 |
|
Sales expense |
16,947 |
16,926 |
|
Management expense |
162,130 |
150,770 |
|
Finance expense |
29,288 |
18,202 |
|
Asset impairment loss |
5,703 |
149 |
|
Sound value flexible assets |
-561 |
561 |
|
Investment
income |
-1,504 |
-498 |
|
Non-operating
income |
27,794 |
10,448 |
|
Non-operating expense |
6,522 |
4,443 |
|
Profit before tax |
24,597 |
126,889 |
|
Less: profit tax |
4,373 |
22,844 |
|
Net profit |
20,224 |
104,045 |
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2011 |
|
*Current ratio |
1.27 |
1.58 |
|
*Quick ratio |
0.82 |
1.00 |
|
*Liabilities
to assets |
0.62 |
0.49 |
|
*Net profit
margin (%) |
1.77 |
8.01 |
|
*Return on
total assets (%) |
1.05 |
7.25 |
|
*Inventory
/Turnover ×365 |
98 days |
88 days |
|
*Accounts
receivable/Turnover ×365 |
61 days |
49 days |
|
*Turnover/Total
assets |
0.60 |
0.90 |
|
* Cost of
goods sold/Turnover |
0.80 |
0.76 |
PROFITABILITY: AVERAGE
· The turnover of SC appears good in its line, but it declined in 2012.
SC’s net profit margin is fairly good in 2011,
but average in 2012.
SC’s
return on total assets is fairly good in 2011, but average in 2012.
SC’s
cost of goods sold is average in both years, comparing with its turnover.
LIQUIDITY: AVERAGE
· The current ratio of SC is maintained in a normal level in both years.
SC’s
quick ratio is maintained in a normal level in both years.
The
inventory of SC appears fairly large in both years.
The
accounts receivable of SC appears average in both years.
SC’s
short-term loan is in an average level in both years.
SC’s
turnover is in a fair level in both years, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
· The debt ratio of SC is average in both years.
The
risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered large-sized in its line with stable financial
conditions
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 |
|
---- |
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.