MIRA
INFORM REPORT
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Report Date : |
24.04.2013 |
IDENTIFICATION DETAILS
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Name : |
north china
pharmaceutical co., ltd. |
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Registered Office : |
No. 388, Heping East Road, Shijiazhuang, Hebei Province, 050015 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2012 |
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Date of Incorporation : |
25.08.1992 |
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Com. Reg. No.: |
130000000008365 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling all kinds of
pharmaceutical products. |
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No. of Employees : |
16,054 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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) |
|
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.
|
Source : CIA |
Company name and address
north china pharmaceutical co., ltd.
no. 388, heping east road, shijiazhuang, hebei
PROVINCE, 050015 PR CHINA
TEL: 86 (0) 311-85993999/85992039 FAX: 86 (0) 311-86060942
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 25, 1992
REGISTRATION NO. : 130000000008365
REGISTERED LEGAL FORM : Shares limited company
CHIEF EXECUTIVE :
MR. wang sheping (CHAIRMAN)
STAFF STRENGTH :
16,054
REGISTERED CAPITAL : CNY 1,378,577,558
BUSINESS LINE :
manufacturing & selling
TURNOVER :
CNY 7,996,118,000 (Consolidated, JAN. 1 TO SEP. 30, 2012)
EQUITIES :
CNY 1,224,103,000 (Consolidated, AS OF SEP. 30, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.23 = 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
Note: SC’s headquarters address is the heading one, while its sales
office is located in the (No. 392 Heping East Road, Shijiazhuang, Hebei).
SC was registered as a shares limited company at Hebei Provincial
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
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 Injection, tablets,
granules, bulk drugs, sterile bulk drugs, hard capsules, soft capsules,
suppositories, tinctures, powders, solutions, eye drops, mixture, pills, oral
liquid, oral liquid solvent, small volume injection, psychotropic substances,
hollow capsules, gels, lyophilized powder for injection and large volume
injection; manufacturing & selling pharmaceutical intermediates, plant
extracts; goods warehousing, transportation; importing and exporting
commodities and technology, excluding the items prohibited or limited by the
country; pharmaceutical and chemical technology transfer, technology
development, technical consulting services; equipment cleaning, machinery and
instruments installation, test & maintenance; wholesaling & retailing
food, packaging material, cosmetics, office supplies, labor supplies, daily
necessities, garments, building materials, communication equipment, electronic
products, plastic products, auto parts, office furniture, lubricant, hardware,
instruments, pharmaceutical glass products, chemical reagent,
mechanical equipment, electrical machinery and spare parts; the operation of
following items are limited to branches: 6% kasugamycin WP, 47% kasugamycin
copper Wang WP, 2% kasugamycin agent, 40% carbendazim WP pyrimethanil, 72%
agricultural streptomycin sulfate soluble powder processing; production of
pharmaceutical materials; veterinary drugs sales; wholesaling Chinese patent medicine, chemical crude
drug and their preparations, antibiotics bulk drugs & preparations,
biological and chemical drugs and biological products; retailing planning
supplies, health products, pharmaceutical intermediates, plant extracts;
manufacturing pharmaceutical glass, household glass products, industrial
oxygen; wholesaling & retailing pre-packaged food, chemical products, steel
and its products, aluminum and its products, paper, non-ferrous metals, coke;
domestic labor dispatch; R&D of Chinese medicine, Chinese and Western
medicine, biotechnology products, agricultural technology, veterinary medicine
and integrated technology.
SC is mainly engaged in manufacturing and selling all kinds of
pharmaceutical products.
Mr. Wang Sheping has been legal
representative and chairman of SC since 2009.
SC is known to have approx. 16,054
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 Shijiazhuang.
Detailed premise information is not available at present.
http://www.ncpc.com.cn
It belongs to North China Pharmaceutical Group Corp., including the information
about SC. The design is professional and the content is well organized. At
present it is in both Chinese and English versions.
E-mail: yanghaijing@ncpc.com
SC was listed in Shanghai Stock Exchange Market in 1994 with the stock
code 600812.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2004 |
Registered capital |
CNY 1,169,394,189 |
CNY 761,909,302 |
|
2006 |
Registered capital |
CNY 761,909,302 |
CNY 1,028,577,558 |
|
2012-10 |
Registered capital |
CNY 1,028,577,558 |
Present amount |
|
Unknown |
Registration No. |
1300001000509 |
Present one |
Tax Registration Certificate No.: 130102104397700
Organization Code: 10439770-0
MAIN SHAREHOLDERS: (As of Oct. 17, 2012)
Name % of
Shareholding
Jizhong Energy Group Co., Ltd. 25.39
North China Pharmaceutical Group Corporation 20.8
Industrial and Commercial Bank of China- Nuo’an Stock Securities
Investment Fund 3.25
China Life Insurance (Group) Company- Traditional –General Insurance
Products 1.1
Guotai Jun’an Securities Co., Ltd. Customer Credit Transactions Backed
Securities Accounts 0.96
Huatai Securities Co., Ltd. Customer Credit Transactions Backed
Securities Accounts 0.57
Guosen Securities Co., Ltd. Customer Credit Transactions Backed
Securities Accounts 0.48
Haitong Securities Co., Ltd. Customer Credit Transactions Backed
Securities Accounts 0.46
Zhang Renyu 0.44
Bank of China Limited - Jiashi CSI 300 Index Trading Securities Investment
Fund 0.42
Other shareholders 46.13
Jizhong Energy Group Co., Ltd.
======================
Registration no.: 130500000015140
Registered capital: CNY 6,816,722,800
Legal representative: Wang Sheping
North China Pharmaceutical Group Corporation
==================================
North China Pharmaceutical Group Corp. (NCPC) is a leading
pharmaceutical manufacturer in China. NCPC’s main business covers: over 590
varieties, ranging from antibiotic bulks and formulations, vitamins and
nutrition products, biotech products, immunosuppressant, and pesticide to
veterinary drugs. Being one of the world leading antibiotic producers both in
technology and production with 50 years development, pharmaceutical industry in
key economic indexes, ranking one of the Top500 Enterprises and the best
profit-makers in China
Registration no.: 130000000008902
Registered capital: CNY 1,345,646,500
Legal representative: Wang Sheping
Address: No. 388, Heping East Road, Shijiazhuang, Hebei Province
Tel: +86- 311-85993999
Fax: +86- 311-86672430
Website: http://www.ncpc.com.cn
Legal representative and chairman:
Mr. Wang Sheping, senior engineer, born in 1956, with Master’s Degree.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2009 to present Working
in SC as chairman and legal representative;
Also working in Jizhong Energy Group Co., Ltd., North China
Pharmaceutical Group Corporation, Jizhong Energy Resources Co., Ltd., etc. as
legal representative and chairman.
Vice Chairman and
General Manager:
Mr. Liu Wenfu, senior engineer, born in 1962 with Master’s Degree. He is
currently responsible for the daily management of SC.
Working
Experience(s):
Before 2009
Worked in North China Pharmaceutical Company Beta Pharmaceutical Co., Ltd., North China Pharmaceutical Group Semisyntech Co., Ltd., North
China Pharmaceutical Group Corporation
From 2009 to present Working in
SC as vice chairman and general manager.
Vice
Chairman:
Mr. Yang Haijing, senior accountant, born in 1971, with Master’s Degree.
He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as
vice chairman.
Independent
Directors:
Chen Jincheng
Yang Shengli
Wang Jinting
Shi Shaoxia
Guo Shichang
Directors:
Liu Guitong
Wei Ling
Wei Qingjie
Etc.
Supervisors:
Zhuang Mingfeng
Yao Yunpeng
Xie Yanrui
Etc.
SC is mainly engaged in manufacturing and selling all kinds of
pharmaceutical products.
SC’s products mainly include: antibiotic bulks and formulations,
vitamins and nutrition products, biotech products, immunosuppressant, and
pesticide to veterinary drugs, etc.
SC sources its materials 70% from domestic market, mainly in Hebei, and
30% from overseas market. SC sells 75% of its products in domestic market, and
25% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
==============
North China Pharmaceutical Group Corporation
North China Pharmaceutical Group Jiahua Chemical Co., Ltd.
*Major Customers:
==============
North China Pharmaceutical Group Semisyntech Co., Ltd.
North China Pharmaceutical Sinowin Co., Ltd.
Mayget Supply Co., Ltd.
Jizhong Energy Resources Co., Ltd.
=========================-
It was listed in Shenzhen Stock Exchange in 1999 with the stock code
000937.
Registration No.: 130000000009735
Incorporation Date:
Chairman: Wang Sheping
Etc.
SC
is known to invest in the following companies:
North China Pharmaceutical Kangxin Co., Ltd.
=================================
Registration No.: 130000400001160
Incorporation Date:
Chairman: Qiu Guifang
Hebei Welcome Pharmaceutical Co., Ltd.
==============================
Registration No.: 130000400001119
Incorporation Date:
Chairman: Zhou Xiaobing
Web: http://www.ncpcwelcome.com/
NCPC Victor Co., Ltd.
=====================
Registration No.: 130000400002164
Incorporation Date:
Chairman: Zhou Xiaobing
Web: http://www.ncpcvictor.com/
North China Pharmaceutical Huasheng Co., Ltd.
===================================
Registration No.: 130000400000589
Incorporation Date:
Chairman: Li Zengmin
North China Pharmaceutical Group Semisyntech Co., Ltd.
==========================================
Registration No.: 130000000023532
Incorporation Date:
Chairman: Zuo Lihua
Web: http://www.semisyntech.com/
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 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.
SC declined to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As
of Sep. 30, 2012 |
As
of Dec. 31, 2011 |
|
Cash & bank |
1,072,514 |
1,431,884 |
|
Inventory |
1,544,080 |
1,385,548 |
|
Accounts receivable |
1,157,048 |
1,129,745 |
|
Notes receivable |
111,857 |
128,798 |
|
Other Accounts receivable |
440,068 |
417,862 |
|
Advances to supplies |
169,471 |
156,075 |
|
Non-current assets due with in one year |
627 |
682 |
|
Other current assets |
42,994 |
34,385 |
|
|
------------------ |
------------------ |
|
Current assets |
4,538,659 |
4,684,979 |
|
Fixed assets |
2,255,721 |
2,394,341 |
|
Projects under construction |
4,591,172 |
3,314,706 |
|
Project materials |
86 |
86 |
|
Disposal of fixed assets |
117,496 |
119,808 |
|
Long term investment |
277,044 |
300,940 |
|
Intangible assets |
256,913 |
268,777 |
|
Development expenditure |
179,726 |
123,297 |
|
Long-term deferred expense |
23,205 |
24,929 |
|
Deferred tax assets |
35,236 |
34,852 |
|
Goodwill |
3,308 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
12,278,566 |
11,266,715 |
|
|
============= |
============= |
|
Short loans |
3,249,100 |
2,978,593 |
|
Accounts payable |
1,507,366 |
1,492,348 |
|
Notes payable |
518,558 |
571,980 |
|
Accrued Payroll |
83,949 |
56,033 |
|
Taxes payable |
-173,013 |
-145,223 |
|
Interest payable |
11,699 |
14,455 |
|
Dividend payable |
7,631 |
9,304 |
|
Advances from customers |
132,688 |
123,989 |
|
Other Accounts payable |
637,299 |
601,912 |
|
Non-current liabilities due within one year |
1,638,981 |
645,000 |
|
Other current liabilities |
82,925 |
43,640 |
|
|
------------------ |
------------------ |
|
Current liabilities |
7,697,183 |
6,392,031 |
|
Specified payables |
16,150 |
16,150 |
|
Deferred tax liabilities |
128 |
137 |
|
Long term liabilities |
2,476,781 |
3,070,526 |
|
Long-term payables |
382,490 |
452,737 |
|
Other liabilities |
21,731 |
21,210 |
|
Debentures payable |
460,000 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
11,054,463 |
9,952,791 |
|
Equities |
1,224,103 |
1,313,924 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
12,278,566 |
11,266,715 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
Jan.
1 to Sep. 30, 2012 |
As
of Dec. 31, 2011 |
|
Turnover |
7,996,118 |
12,136,746 |
|
Cost of goods sold |
7,247,095 |
11,132,790 |
|
Taxes and additional of main operation |
18,634 |
31,954 |
|
Sales expense |
347,470 |
492,115 |
|
Management expense |
383,221 |
641,247 |
|
Finance expense |
135,675 |
209,884 |
|
Assets impairment loss |
3,683 |
43,480 |
|
Investment income |
16,490 |
32,884 |
|
Non-operating income |
56,042 |
533,797 |
|
Non-operating expense |
3,751 |
3,844 |
|
Profit before tax |
-70,879 |
148,113 |
|
Less: profit tax |
6,146 |
8,150 |
|
Profits |
-77,025 |
139,963 |
Important Ratios
=============
|
|
As
of Sep. 30, 2012 |
As
of Dec. 31, 2011 |
|
*Current ratio |
0.59 |
0.73 |
|
*Quick ratio |
0.39 |
0.52 |
|
*Liabilities to assets |
0.90 |
0.88 |
|
*Net profit margin (%) |
-0.96 |
1.15 |
|
*Return on total assets (%) |
-0.63 |
1.24 |
|
*Inventory /Turnover ×365 |
/ |
42 days |
|
*Accounts receivable/Turnover ×365 |
/ |
34 days |
|
*Turnover/Total assets |
0.65 |
1.08 |
|
* Cost of goods sold/Turnover |
0.91 |
0.92 |
PROFITABILITY:
AVERAGE
The turnover of SC appears good in its line.
SC’s net profit margin is average in 2011, and fair in the first 3
quarters of 2012.
SC’s return on total assets is average in 2011, and fair in the first 3
quarters of 2012.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears average.
The accounts receivable of SC is average.
SC’s short-term loan appears large.
SC’s turnover is average in 2011, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is high.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition.
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.30 |
|
UK Pound |
1 |
Rs.82.88 |
|
Euro |
1 |
Rs.70.80 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
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.