MIRA
INFORM REPORT
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Report Date : |
17.07.2013 |
IDENTIFICATION DETAILS
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Name : |
HEBEI SHENGXUE DACHENG PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 17 Fuqiangxi Road, Luancheng County Shijiazhuang, Hebei Province 051430 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
30.05.1997 |
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Com. Reg. No.: |
130124000008377 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturer and selling of active pharmaceutical ingredient (API) include Oxytetracycline, Oxytetracycline Hydrochloride, Streptomycin Sulphate & Colistin Sulphate |
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No. of Employees : |
686 |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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.
Source
: CIA
Company name and address
HEBEI SHENGXUE
DACHENG PHARMACEUTICAL CO., LTD.
NO. 17 FUQIANGXI ROAD, LUANCHENG COUNTY
SHIJIAZHUANG, HEBEI PROVINCE 051430 PR CHINA
TEL: 86 (0) 311-85409124/85409207
FAX: 86 (0) 311-85409257
EXECUTIVE SUMMARY
Date of Registration : MAY 30, 1997
REGISTRATION NO. : 130124000008377
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 46,995,196
staff :
686
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 298,097,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 199,321,000 (AS OF DEC. 31, 2012)
WEBSITE : www.dcpharma.cn
E-MAIL :
marketing@dcpharma.cn
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRly steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.13 = 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.: 130124000008377
on May 30, 1997.
SC’s Organization Code Certificate No.:
10471856-X
SC’s registered capital: CNY 46,995,196
SC’s paid-in capital: CNY 46,995,196
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Representative |
Gu Yunhua |
Li Jindong |
|
|
Registered Capital |
CNY 7,000,000 |
CNY 13,000,000 |
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|
Registered Capital |
CNY 13,000,000 |
CNY 28,460,000 |
|
-- |
Registration No. |
1301241000039 |
130124000008377 |
|
2012 |
Registered Capital |
CNY 28,460,000 |
CNY 46,995,196 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
China Nuclear Uranium Corporation |
51 |
|
Zhejiang Shenghua Biok Biology Co., Ltd. |
49 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Wang Jianfeng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
China Nuclear Uranium Corporation 51
Zhejiang Shenghua Biok Biology Co., Ltd. 49
n China Nuclear
Uranium Corporation
------------------------------------------------
Registration No.: 100000000018485
Date of Registration: November 27, 1995
Legal Form: One-person Limited Liabilities
Company
Registered Capital: CNY 100,000,000
Legal Representative: Du Yunbin
n Zhejiang Shenghua
Biok Biology Co., Ltd.
-------------------------------------------------------
Registration No.: 330000400001808
Legal Form: Shares Limited Company
Registered Capital: CNY 405,549,248
Legal Representative: Zhang Wenjun
Zhejiang Shenghua Biok Biology Co., Ltd. is
one of the leading manufacturers and exporter specialized in bio-agrochemicals,
medicaments for animal nutrition and health in China. BIOK is a public listed
company (code: 600226) in Shanghai Stock Exchange Market since 1999.
Add: Zhongguan Industrial Park, Deqing,
Zhejiang, 313220 China
International Trade Division:
Address: Room 904 & 906, Skyline Plaza,
181 Tianmushan Road, Hangzhou 310013, Zhejiang, China
Tel: +86 (0) 571-87788551/85528553
Fax: +86 (0) 571-87788550
Web: www.biok.com
Email: biok@biok.com
MANAGEMENT
Wang Jianfeng , Legal Representative, Chairman and General
Manager
--------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as legal representative, chairman and general manager
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing and selling active
pharmaceutical ingredient (API) (Terramycin, Oxytetracycline, and Streptomycin
Sulfate-production address is the heading one- No. 17 Fuqiangxi Road, Luancheng
County, Shijiazhuang, Hebei Province, the operating period is to December 31,
2015), veterinary drugs (Streptomycin Sulfate, Terramycin, and Oxytetracycline,
the operating period is to July 29, 2015), and feed additive (Vitamin I: VB2,
the operating period is to August 7, 2013); exporting its products and
technology, and importing raw materials & accessories, machinery,
components, and technology.
SC is mainly
engaged in manufacturing and selling active pharmaceutical ingredient (API).
SC’s products
mainly include:
Oxytetracycline
Oxytetracycline
Hydrochloride
Streptomycin
Sulphate
Colistin Sulphate
SC sources its
materials 100% from domestic market. SC sells 70% in domestic market and 30% to
overseas market, mainly Southeast Asia, etc.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 686 staff at
present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
***Note: SC’s
other factory locates in No. 50 Shengxue Road, Luancheng County, Shijiazhuang
City, Hebei Province
RELATED COMPANY
SC is known to
have a subsidiary at present,
n
Hebei Shengxue Dacheng Tangshan Pharmaceutical Co.,
Ltd.
Registration No.: 130221000010154
Date of Registration: August 26, 2002
Legal Form: One-person Limited Liabilities
Company
Registered Capital: CNY 3,000,000
Legal Representative: Liu Tiejun
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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
38,117 |
19,994 |
|
|
Notes receivable |
5,876 |
5,955 |
|
Accounts
receivable |
20,829 |
9,551 |
|
Advances to suppliers |
8,012 |
8,599 |
|
Dividends
receivable |
7,978 |
7,978 |
|
Other receivable |
76,487 |
144,919 |
|
Inventory |
32,107 |
50,611 |
|
Deferred
expenses |
0 |
0 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
189,406 |
247,607 |
|
Long-term
investment |
295 |
295 |
|
Fixed assets |
107,577 |
99,719 |
|
Construction in
progress |
0 |
8,682 |
|
Intangible
assets |
938 |
786 |
|
Long-term
prepaid expenses |
0 |
0 |
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Deferred income
tax assets |
1,232 |
102 |
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Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
299,448 |
357,191 |
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|
============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
|
Accounts payable |
27,318 |
21,049 |
|
Wages payable |
10,697 |
10,078 |
|
Taxes payable |
4,831 |
-975 |
|
Advances from
clients |
9,117 |
5,406 |
|
Dividends
payable |
77,318 |
55,318 |
|
Other payable |
19,096 |
17,228 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
148,377 |
108,104 |
|
Non-current
liabilities |
54,766 |
49,766 |
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|
------------------ |
------------------ |
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Total
liabilities |
203,143 |
157,870 |
|
Equities |
96,305 |
199,321 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
299,448 |
357,191 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
407,267 |
298,097 |
|
Cost of sales |
337,258 |
253,101 |
|
Taxes and surcharges |
1,959 |
1,619 |
|
Sales expense |
15,299 |
8,803 |
|
Management expense |
23,573 |
32,872 |
|
Finance expense |
5,212 |
3,596 |
|
Non-operating
income |
496 |
663 |
|
Non-operating expense |
512 |
415 |
|
Profit before
tax |
27,968 |
-1,549 |
|
Less: profit tax |
5,362 |
1,130 |
|
22,606 |
-2,679 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.28 |
2.29 |
|
*Quick ratio |
1.06 |
1.82 |
|
*Liabilities
to assets |
0.68 |
0.44 |
|
*Net profit
margin (%) |
5.55 |
-0.90 |
|
*Return on
total assets (%) |
7.55 |
-0.75 |
|
*Inventory /
Revenue ×365 |
29 days |
62 days |
|
*Accounts
receivable / Revenue ×365 |
19 days |
12 days |
|
*Revenue /
Total assets |
1.36 |
0.83 |
|
*Cost of sales
/ Revenue |
0.83 |
0.85 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears fairly good in its lines,
and it decreased in 2012.
l
SC’s net profit margin is fairly good in 2011, fair
in 2012.
l
SC’s return on total assets is fairly good in 2011,
fair in 2012.
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 normal
level in 2011, fairly good in 2012.
l
SC’s quick ratio is maintained in a fairly good
level in both years.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
SC has no short-term loans in both years.
l
SC’s revenue is in an average 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.39 |
|
UK Pound |
1 |
Rs.89.90 |
|
Euro |
1 |
Rs.77.23 |
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.