MIRA
INFORM REPORT
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Report Date : |
05.06.2013 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Liuzhuang New Village, |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
30.04.1986 |
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Com. Reg. No.: |
410721000000383 |
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Legal Form : |
Collective-Owned |
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Line of Business : |
Subject is engaged in manufacturing and selling medicines and its
materials. |
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No. of Employees : |
2,000 |
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 – March, 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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.
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Source
: CIA |
Company name and address
HENAN XINXIANG HUAXING PHARMACEUTICAL FACTORY
LIUZHUANG NEW VILLAGE, XINXIANG, HENAN PROVINCE, 453731 PR CHINA
TEL: 86
(0) 373-5680007 FAX: 86 (0)
373-5689898
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 30, 1986
REGISTRATION NO. :
410721000000383
REGISTERED LEGAL FORM : COLLECTIVE-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. SHI SHIHUI (GENERAL MANAGER)
STAFF STRENGTH : 2,000
REGISTERED CAPITAL : CNY 298,000,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 697,810,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 538,720,000 (AS OF DEC. 31,
2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1363 = USD 1
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available RMB
- China Ren Min Bi Yuan
SC was registered as a collective-owned
enterprise at local Administration for Industry & Commerce (The
official body of issuing and renewing business license) on Apr. 30, 1986.
Company Status: Collective-owned enterprise This form of business in PR
China is defined as a legal person. It is a private held entity owned by a set
number of private individuals (usually employees of the co., residents of a
village or town ), domestic business organizations or domestic
institutions. The co. is managed by the general manager who was appointed
by the employees representative meeting.
SC’s registered business scope includes main operating
injection (penicillin class, generic drugs, and cephalosporin), Active
Pharmaceutical Ingredients (inosine, lincomycin hydrochloride, penicillin
sodium, potassium penicillin, ampicillin sodium, erythromycin, vitamin B12,
vitamin C, food additives vitamin C, sodium cefazolin, ampicillin), antibiotic
fermentation (thiocyanate erythromycin, avermectin), organic fertilizer.
Concurrently: feed grade amino acids (I): L-lysine hydrochloride, lysine sulfate
and fermentation by-products. Importing and exporting goods and technologies
(excluding the items limited or prohibited by state) (with permit if needed). SC is mainly engaged in
manufacturing and selling medicines and materials.
Mr. Shi Shihui has been legal representative and general manager of SC
since 2004.
SC is known to have approximately 2,000 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 Xinxiang. Our
checks reveal that SC owns the total premise about 130,000 square meters.
http://www.xxhx.com.cn.
The design is professional and the content is well organized. At present it is
in Chinese version.
E-mail: xxhx@xxhx.com.cn
Changes of its
registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
|
2004-1 |
Legal representative |
Shi Shiling 史世领 |
Shi Shihui 史世会 |
|
Unknown |
Registration no. |
4107211000329 |
410721000000383 |
Certificates:
See below for SC as executive party (defendant).
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Executed Party |
Henan Xinxiang Huaxing Pharmaceutical Factory |
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Court |
Xinxiang City Xianxiang County People's Court |
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Date of Case |
Sep. 29, 2012 |
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Case Number |
(2012) 00421 |
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Claim Amount |
RMB 75,068 |
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Case Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of shareholdings
Liuzhuang Agricultural-Industrial-Commercial General Corp. (Literal
Translation) 100
Legal representative and general manager:
Mr. Shi Shihui, in his
Working
Experience(s):
From 2004 to present Working
in SC as legal representative and general manager.
Vice General Manager:
Mr. Wang Lianzhong, in his
Working
Experience(s):
From 2004 to present Working
in SC as vice general manager.
SC is mainly engaged in manufacturing and selling medicines and its
materials.
SC’s products mainly include: Penicillin G potassium, Penicillin G
sodium, lnosine, Erythromycinum, Ampicillin, Ampicillin Sodium, Persantin,
jiemycin, Ofloxacin, Penicillin sodium powder inj. Butyl acetate, Ethyl
acetate, Alcohol, Butanol and Acetone.
SC produces inosine of above 200 tons, penicillin of more than 1,000
tons, penicillin powder injections of 600,000,000 pieces, amylum of 20,000 tons
and other products such as persantin, ofloxacin, jiemycin, butanol, acetone,
alcohol as well per year.
SC sources its materials 100% from domestic markets. SC sells 80% of its
products in domestic markets and 20% to Southeast Asia, Europe and American
Countries.
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.
Note: SC’s
management declined to release its main clients and suppliers.
SC’s management declined to release subsidiaries information.
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 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.
Agriculture Bank of China Xinxiang Branch Liuzhuang Sub-branch
AC#: 390701040001639
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2012 |
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Cash & bank |
50,330 |
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Notes receivable |
31,050 |
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Inventory |
378,290 |
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Accounts receivable |
292,240 |
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Advances to suppliers |
5,080 |
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Other receivables |
72,360 |
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Other current assets |
60 |
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Current assets |
829,410 |
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Long-term investments |
35,000 |
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Fixed assets net value |
521,440 |
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Projects under construction |
150,610 |
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Intangible assets |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
1,536,460 |
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Short loans |
220,000 |
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Accounts payable |
135,650 |
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Advances from customers |
360 |
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Employee pay payable |
22,760 |
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Taxes payable |
-55,810 |
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Other accounts payable |
481,270 |
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Other current liabilities |
0 |
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----------------- |
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Current liabilities |
804,230 |
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Long term liabilities |
193,510 |
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Total liabilities |
997,740 |
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Shareholders equities |
538,720 |
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Total liabilities & equities |
1,536,460 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2012 |
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Turnover |
697,810 |
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Cost of goods sold |
993,040 |
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Taxes and additional of main operation |
0 |
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Sales expense |
6,930 |
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Management expense |
23,420 |
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Finance expense |
29,930 |
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Investment income |
76,040 |
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Non-operating income |
40 |
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Non-operating expense |
20 |
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Profit before tax |
-279,450 |
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Less: profit tax |
0 |
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Net profit |
-279,450 |
Important Ratios
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As of Dec. 31,
2012 |
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*Current ratio |
1.03 |
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*Quick ratio |
0.56 |
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*Liabilities to assets |
0.65 |
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*Net profit margin (%) |
-40.05 |
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*Return on total assets (%) |
-18.19 |
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*Inventory /Turnover ×365 |
198 days |
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*Accounts receivable/Turnover ×365 |
153 days |
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*Turnover/Total assets |
0.45 |
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* Cost of goods sold/Turnover |
1.42 |
PROFITABILITY:
POOR
The turnover of SC appears fairly good in its line.
SC’s net profit margin is poor.
SC’s return on total assets is poor.
SC’s cost of goods sold is too high, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears fairly large.
The accounts receivable of SC appears fairly large.
The short-term loan of SC appears fairly large in 2012.
SC’s turnover 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.
SC is considered large-sized in its line with fair financial conditions.
The large amount of inventory, accounts receivable and short loans could be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.64 |
|
|
1 |
Rs.86.68 |
|
Euro |
1 |
Rs.73.97 |
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 |
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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 |
|
<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.