MIRA INFORM REPORT
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Report Date : |
02.02.2013 |
IDENTIFICATION DETAILS
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Name : |
HENAN LVYUAN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Industry Area, Qiliying Town, Xinxiang County Henan Province, 453000
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
30.04.2007 |
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Com. Reg. No.: |
410721100002314 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling pharmaceutical
products |
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No. of Employees : |
500 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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
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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 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.
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Source : CIA |
Company name and address
HENAN LVYUAN PHARMACEUTICAL CO., LTD.
INDUSTRY AREA, QILIYING TOWN, XINXIANG COUNTY HENAN PROVINCE, 453000 PR
CHINA
TEL: 86 (0) 373-5688888/5687001/5681500
FAX: 86 (0) 373-5687013
EXECUTIVE SUMMARY
Date of Registration : april 30, 2007
REGISTRATION NO. : 410721100002314
LEGAL FORM : LIMITED LIABILITIES
COMPANY
CHIEF EXECUTIVE :
WANG ZHIYI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 150,000,000
staff :
500
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 298,870,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 74,850,000 (AS OF DEC. 31, 2011)
WEBSITE : www.hnlyyy.com.cn
E-MAIL :
lyyy@hnlyyy.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.22 = 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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 410721100002314 on April
30, 2007.
SC’s Organization Code Certificate No.:
66186027-8
SC’s registered capital: CNY 150,000,000
SC’s paid-in capital: CNY 150,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
4107211001334 |
410721100002314 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
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Jiangsu GuoTai Int'l Group HuaTai Imp. & Exp. Co., Ltd. |
13.33 |
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Henan Xinxiang Huaxing Pharmaceutical Factory |
66.67 |
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Tong Shengli |
5.33 |
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Song Xiaoxia |
5.33 |
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He Xiaoping |
4.67 |
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Xu Suozhu |
4.67 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Wang Zhiyi |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name ` % of Shareholding
Jiangsu GuoTai Int'l Group HuaTai Imp. & Exp. Co., Ltd. 13.33
Henan Xinxiang Huaxing Pharmaceutical Factory 66.67
Tong Shengli 5.33
Song Xiaoxia 5.33
He Xiaoping 4.67
Xu Suozhu 4.67
Jiangsu GuoTai Int'l Group HuaTai Imp. & Exp. Co., Ltd.
=============================================
Add: 18&19/F, Guotai Building, Renmin Road, Zhangjiagang, Jiangsu
Province, 215600
Tel: 86 (0) 512-58696067
Henan Xinxiang Huaxing Pharmaceutical Factory
========================================
Date of Registration: August 18, 1989
Registration No.: 410721000000383
Chief Executive: Shi Shihui
Registered Capital: CNY 298,000,000
Address: Liuzhuang New Village, Xinxiang, Henan Province
Tel: 86 (0) 373-5680007
Fax: 86 (0) 373-5689898
MANAGEMENT
Wang Zhiyi, Legal
Representative, Chairman and General Manager
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Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
BUSINESS OPERATION
SC’s registered business scope includes high-tech active pharmaceutical
ingredients: 6 - aminopenicillanic acid (6-APA), 7 - amino -3 - to acetoxy
alkyl mycophenolate acid (7-ADCA), gulonic acid (VC production using
intermediate), sorbitol (produced with VC intermediate), amoxicillin,
ampicillin; importing and exporting goods and technology (excluding items
requiring permit from relative authorities or prohibited by the laws and
regulations of the country )
SC is mainly engaged in manufacturing and selling pharmaceutical
products.
SC’s products mainly include: Amoxicillin, Ampicillin, three pear
alcohol intermediate, etc.
SC sources its materials 100% from domestic market. SC sells 70% of its
products in domestic market and 30% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 500
staff at present.
SC rents an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
8,670 |
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Accounts receivable |
27,730 |
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Notes receivable |
5,710 |
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Advances to suppliers |
26,930 |
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Other receivable |
30 |
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Inventory |
28,050 |
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Non-current assets within one year |
0 |
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Other current assets |
20 |
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------------------ |
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Current assets |
97,140 |
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Fixed assets |
418,070 |
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Construction in progress |
0 |
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Intangible assets |
0 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
-93,760 |
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------------------ |
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Total assets |
421,450 |
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============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
245,850 |
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Wages payable |
570 |
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Advances from clients |
0 |
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Other payable |
-35,800 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
210,620 |
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Non-current liabilities |
135,980 |
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------------------ |
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Total liabilities |
346,600 |
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Equities |
74,850 |
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------------------ |
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Total liabilities & equities |
421,450 |
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Income Statement
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Unit: CNY’000 |
As
of Dec. 31, 2011 |
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Revenue |
298,870 |
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Cost of sales |
318,500 |
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Sales expense |
3,410 |
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Management expense |
7,730 |
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Finance expense |
2,660 |
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Profit before tax |
-31,470 |
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Less: profit tax |
0 |
|
-31,470 |
Important Ratios
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As
of Dec. 31, 2011 |
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*Current ratio |
0.46 |
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*Quick ratio |
0.33 |
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*Liabilities to assets |
0.82 |
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*Net profit margin (%) |
-10.53 |
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*Return on total assets (%) |
-7.47 |
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*Inventory / Revenue ×365 |
35 days |
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*Accounts receivable/ Revenue ×365 |
34 days |
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* Revenue/Total assets |
0.71 |
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* Cost of sales / Revenue |
1.07 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
The revenue of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a poor level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loan in 2011.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.32 |
|
|
1 |
Rs.84.60 |
|
Euro |
1 |
Rs.72.63 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
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NB |
New Business |
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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.