MIRA
INFORM REPORT
|
Report Date : |
05.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
HARBIN PHARMACEUTICAL GROUP CO., LTD. |
|
|
|
|
Registered Office : |
No. 109 Xuefu
Road, Nangang District, Harbin, Heilongjiang Province 150086 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2013 |
|
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|
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Date of Incorporation : |
28.12.1991 |
|
|
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Com. Reg. No.: |
230199100000366 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
manufacturer of western medicine, traditional Chinese medicine
preparation, western medicine raw materials, biological engineering medicine,
health care products |
|
|
|
|
No. of Employees : |
19,902 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
TATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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 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
HARBIN PHARMACEUTICAL
GROUP CO., LTD.
no. 109 xuefu road, nangang DISTRICT, HARBIN
HEILONGJIANG PROVINCE 150086 PR CHINA
TEL: 86 (0) 451-84604688
FAX: 86 (0) 451-84604688
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 28, 1991
REGISTRATION NO. : 230199100000366
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE : zhang lijun (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
cny 1,917,480,000
staff : 19,902
BUSINESS CATEGORY :
manufacturing & trading
REVENUE :
CNY 13,720,026,000 (FROM JAN. 1, 2013 TO SEP. 30, 2013)
EQUITIES :
CNY 8,890,865,000 (AS OF SEP. 30, 2013)
WEBSITE : www.hayao.com
E-MAIL : master@hayao.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : good
EXCHANGE RATE : CNY 6.10 = 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 shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 230199100000366 on December 28, 1991.
SC’s Organization Code Certificate
No.: 12817503-7
SC’s Tax No.: 230198128175037
SC’s registered capital: cny 1,917,480,000
SC’s paid-in capital: cny 1,917,480,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After the change |
|
-- |
Registration No. |
2301091345031 |
230199100000366 |
|
2010-11 |
Legal Representative |
Hao Weizhe |
Zhang Lijun |
|
2011 |
Registered
Capital |
CNY
1,242,005,473 |
CNY 1,614,607,115 |
|
-- |
Registered
Capital |
CNY 1,614,607,115 |
cny 1,917,480,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (as
of September 30, 2013) |
% of Shareholding |
|
Harbin Pharmaceutical Group
Holding Co., Ltd. |
45.06 |
|
China Jianyin Investment Co., Ltd. |
11.17 |
|
China Securities Investor
Protection Fund Corporation Limited |
2.24 |
|
Agricultural Bank of China
Co., Ltd. Shanghai Branch |
1.01 |
|
Zhejiang Province Financial
Development Corporation |
0.96 |
|
Shanghai Construction Property
Development Co., Ltd. |
0.64 |
|
Bank of China Co., Ltd.- Jiashi CSI 300 Index Securities Investment Fund |
0.28 |
|
Huaian Administration Center
of Public Accumulation Fund for Housing Construction |
0.26 |
|
AVIC Harbin Aircraft Industry
Group Co., Ltd. |
0.26 |
|
Yu Feng |
0.25 |
|
Other Shareholders |
37.87 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhang
Lijun |
|
Director |
Liu Zhanbin |
|
Liu Bo |
|
|
Li Benming |
|
|
Wu Zhijun |
|
|
Wu Yizhong |
|
|
Zhang Lijun |
|
|
Independent Director |
Wang Zhenchuan |
|
Wang Fusheng |
|
|
Chen Shulan |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600664.
SHAREHOLDER CHART &
BACKGROUND
Name (As of September 30, 2013) % of Shareholding
Harbin Pharmaceutical Group
Holding Co., Ltd. 45.06
China Jianyin Investment Co.,
Ltd. 11.17
China Securities Investor
Protection Fund Corporation Limited 2.24
Agricultural Bank of China Co., Ltd.
Shanghai Branch 1.01
Zhejiang Province Financial
Development Corporation 0.96
Shanghai Construction Property
Development Co., Ltd. 0.64
Bank of China Co., Ltd.- Jiashi
CSI 300 Index Securities Investment Fund 0.28
Huaian Administration Center of
Public
Accumulation Fund for Housing
Construction 0.26
AVIC Harbin Aircraft Industry
Group Co., Ltd. 0.26
Yu Feng 0.25
Other Shareholders 37.87
Harbin Pharmaceutical Group Holding
Co., Ltd.
---------------------------------------------------------------
Harbin Pharmaceutical Group
Holding Co., Ltd. is a state-holding Sino-foreign joint venture. The group
holds 2 public companies that are listed on the Shanghai Stock Exchange; Harbin
Pharmaceutical Group Co., Ltd. and Sanjing Pharmaceutical Co., Ltd. and 27
wholly owned holding and joint stock companies. Harbin Pharmaceutical Group
employs a staff of more than 20,000 people.
The Harbin Pharmaceutical Group
is one of the top 500 state-run large-scale enterprise groups and one of he 120
large-scale pilot enterprise groups in China.
Website: www.hayao.com
Tel: +86-0451-84608188
Culture Office:
+86-0451-84608188
Public Department:
+86-0451-84856675
China Jianyin Investment Co., Ltd.
-----------------------------------------------
Date of Registration: June 21, 1986
Registration No.: 100000000004443
Legal Form: Sole State-Owned
Enterprise
Registered Capital: CNY 20,692,250,000
China Securities Investor Protection
Fund Corporation Limited
---------------------------------------------------------------------------------
Date of Registration: August 30, 2005
Registration No.: 100000000039745
Legal Form: Sole State-Owned
Enterprise
Registered Capital: CNY 6,300,000,000
Agricultural Bank of China Co., Ltd.
Shanghai Branch
-----------------------------------------------------------------------
Date of Registration: June 11, 1998
Registration No.: 310000000062305
Zhejiang Province Financial Development
Corporation
------------------------------------------------------------------------
Date of Registration: June 30, 1992
Registration No.: 330000000030146
Legal Form: State-Owned
Enterprise
Registered Capital: CNY 2,000,000,000
Shanghai Construction Property
Development Co., Ltd.
-----------------------------------------------------------------------
Date of Registration: December 31, 2001
Registration No.: 310105000193838
Legal Form: One-person Limited
Liability Company
Registered Capital: CNY 1,000,000,000
AVIC Harbin Aircraft Industry Group
Co., Ltd.
Web: www.hafei.com
Address: No. 15 Youxie Street, Pingfang
District, Harbin, Heilongjiang
Tel: 86 (0) 451-86580114
MANAGEMENT
Zhang
Lijun, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø
Qualification:
Postgraduate
Ø
Working
experience (s):
From 2010 to present, working in SC as legal representative,
chairman and general manager
Director
----------
Liu Zhanbin
Liu Bo
Li Benming
Wu Zhijun
Wu Yizhong
Zhang Lijun
Independent Director
---------------------------
Wang Zhenchuan
Wang Fusheng
Chen Shulan
BUSINESS OPERATION
SC’s registered business
scope includes purchasing and selling chemical raw materials and products (excluding
hazardous and poisonous chemicals),
importing and exporting with permits; the following items are limited to
branches: manufacturing medicine devices and pharmaceutical machinery
(excluding items specially regulated by state), medicine and pharmaceutical
commerce, practice production; manufacturing purified water, drinking, starch,
feed additive, foods, cosmetics and related packaging and printing;
manufacturing avermectins; manufacturing and selling health products (lotion);
manufacturing and selling health care food and daily chemicals.
SC is mainly
engaged in manufacturing western medicine, traditional Chinese medicine
preparation, western medicine raw materials, biological engineering medicine,
health care products
Brand: 
SC’s products mainly include:
Antibiotics, Chemical medicine preparation, Traditional Chinese medicines, OTC
medicines and health care products, Medicine logistics, Bioengineering, ETC
SC sources its materials 80%
from domestic market, and 20% from overseas market. SC sells 90% of its
products in domestic market, and 10% 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:
---------------------
Harbin Pharm Group
Sanjing Pharmaceutical Co., Ltd.
Harbin Hengtong
Development Industry Corporation
Harbin Kangling Technology Development Co., Ltd
Harbin Pharm Group Bioengineering Co., Ltd.
Harbin Pharm Purchasing & Sales Co., Ltd.
Heilongjiang Harbin Pharm Liu Wuda Lianchi Spring Water Co., Ltd.
*Major Customers:
-----------------------
Harbin Pharm Group
Sanjing Pharmaceutical Co., Ltd.
Harbin Pharm Group
Harbin Linglan Medicine Sales Co., Ltd.
Harbin Hengtong
Development Industry Corporation
Staff & Office:
--------------------------
SC is
known to have approx. 19,902
staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
SC is
known to invest in the following companies:
n
Harbin Pharm Group Medicine Co., Ltd.
n
Harbin Pharm Group Shiyitang Chinese Medicine Crude Drugs Co., Ltd.
n
Harbin Shiyitang Huana Medicine Co., Ltd.
n
Harbin Pharm Group Sanjing Pharmaceutical Co., Ltd.
n
Harbin Pharm Group Sanjing Jiabin Medicine Co., Ltd.
n
Hayao Cihang Pharmaceutical Co., Ltd.
n
Sichuan Shenghe Sanjing Pharmaceutical Co., Ltd.
n
Hunan Sanjing Medicine Commercial Co., Ltd.
n
Nanjing Sanjing Medicine Co., Ltd.
n
Harbin Sanjing New Medicine Co., Ltd.
n
Harbin Sanjing Packaging Materials Co., Ltd.
n
Harbin Pharm Group Property Management Co., Ltd.
n
Heilongjiang Harbin Pharm Liu Wuda Lianchi Spring
Water Co., Ltd.
n
Harbin Pharm Group Harbin Linglan Medicine Sales
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’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:
Industrial
Bank Co., Ltd. Harbin Hayao Road Sub-branch
AC#:
562010100100119039
Bank of China
AC#: N/a
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Sep. 30, 2013 |
|
2,016,806 |
2,184,206 |
|
|
Held for trading financial assets |
0 |
0 |
|
Notes receivable |
2,157,548 |
1,826,713 |
|
Accounts
receivable |
2,301,269 |
2,979,655 |
|
Advances to
suppliers |
501,377 |
446,223 |
|
Interest
receivable |
43,543 |
72,027 |
|
Dividends
receivable |
0 |
0 |
|
Other receivable |
371,217 |
269,477 |
|
Inventory |
3,230,215 |
2,772,367 |
|
Non-current
assets due within one year |
150,000 |
0 |
|
Other current
assets |
23,039 |
22,332 |
|
|
------------------ |
------------------ |
|
Current assets |
10,795,014 |
10,573,000 |
|
Long-term equity
investment |
17,674 |
24,692 |
|
Investment real
estate |
3,385 |
24,819 |
|
Fixed assets |
3,484,775 |
3,356,425 |
|
Construction in
progress |
657,356 |
1,047,865 |
|
Engineering
materials |
0 |
0 |
|
Intangible
assets |
431,933 |
422,351 |
|
Development
expenditure |
1,942 |
1,303 |
|
Goodwill |
8,259 |
8,259 |
|
Long-term
prepaid expenses |
55,177 |
50,436 |
|
Deferred income
tax assets |
210,942 |
220,259 |
|
Other
non-current assets |
722 |
722 |
|
|
------------------ |
------------------ |
|
Total assets |
15,667,179 |
15,730,131 |
|
|
============= |
============= |
|
Short-term loans |
250,640 |
127,000 |
|
Held for trading
financial liabilities |
0 |
0 |
|
Notes payable |
1,439,497 |
1,368,784 |
|
Accounts payable |
2,596,168 |
2,525,219 |
|
Advances from
clients |
432,468 |
458,876 |
|
Payroll payable |
522,815 |
455,555 |
|
Tax payable |
216,973 |
155,380 |
|
Interest payable |
0 |
0 |
|
Dividends
payable |
80,000 |
80,000 |
|
Other payable |
692,803 |
888,972 |
|
Non-current
liabilities due within one year |
101,166 |
101,703 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
6,332,530 |
6,161,489 |
|
Non-current
liabilities |
682,579 |
677,777 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
7,015,109 |
6,839,266 |
|
Equities |
8,652,070 |
8,890,865 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
15,667,179 |
15,730,131 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
From
Jan. 1, 2013 to Sep. 30, 2013 |
|
Revenue |
17,662,947 |
13,720,026 |
|
Cost of sales |
12,033,327 |
9,804,920 |
|
Taxes and surcharges |
125,938 |
80,410 |
|
Sales expense |
2,846,669 |
2,237,601 |
|
Management expense |
1,718,915 |
1,210,822 |
|
Finance expense |
-24,049 |
-18,346 |
|
Investment
income |
3,475 |
2,436 |
|
Non-operating
income |
215,620 |
82,379 |
|
Non-operating expense |
313,506 |
37,862 |
|
Profit before
tax |
811,861 |
379,960 |
|
Less: profit tax |
221,829 |
120,498 |
|
Profits |
590,032 |
259,462 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Sep. 30, 2013 |
|
*Current ratio |
1.70 |
1.72 |
|
*Quick ratio |
1.19 |
1.27 |
|
*Liabilities
to assets |
0.45 |
0.43 |
|
*Net profit
margin (%) |
3.34 |
1.89 |
|
*Return on
total assets (%) |
3.77 |
1.65 |
|
*Inventory /
Revenue ×365/270 |
67
days |
55 days |
|
*Accounts receivable
/ Revenue ×365/270 |
48
days |
59 days |
|
*Revenue /
Total assets |
1.13 |
0.87 |
|
*Cost of sales
/ Revenue |
0.68 |
0.71 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly good.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIRLY GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
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:
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.62.33 |
|
UK Pound |
1 |
Rs.102.18 |
|
Euro |
1 |
Rs.84.68 |
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.