MIRA INFORM REPORT
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Report Date : |
07.03.2013 |
IDENTIFICATION DETAILS
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Name : |
HENAN LIHUA
PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Middle of Huanghe Street, Hi-Tech Industry Development Zone,
Anyang City, Henan Province, 455000 PR |
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Country : |
China |
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Date of Incorporation : |
27.05.1994 |
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Com. Reg. No.: |
410000400000422 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject engaged in manufacturing and selling prednisone, prednisolone,
hydrocortisone and their derivatives. |
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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 : |
Unknown |
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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 & address
HENAN LIHUA PHARMACEUTICAL CO., LTD.
MIDDLE OF HUANGHE STREET,
HI-TECH INDUSTRY DEVELOPMENT ZONE,
ANYANG CITY, HENAN PROVINCE, 455000 PR CHINA
TEL: 86 (0) 372-2595136/3664975
FAX: 86 (0) 372-2595138
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAY 27, 1994
REGISTRATION NO. :
410000400000422
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH : 500
REGISTERED CAPITAL :
CNY 8,350,000
BUSINESS LINE : MANUFACTURING AND
TRADING
TURNOVER :
N/A
EQUITIES :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
N/A
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.24=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 Ren Min Bi
SC was registered as a Chinese-foreign equity joint venture enterprise at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on May 27, 1994.
Company Status: Chinese-Foreign Equity Joint Venture This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing
and selling prednisone acetate API, cortisone acetate API, prednisone API,
prednisolone API, hydrocortisone acetate API, hydrocortisone API, prednisolone
acetate API, hydrocortisone sodium succinate API, butyric acid hydrocortisone
API, betamethasone API, betamethasone sodium phosphate API, prednisolone sodium
phosphate API, triamcinolone API, triamcinolone acetonide API and ionic liquid.
SC
is mainly engaged in manufacturing and selling prednisone, prednisolone,
hydrocortisone and their derivatives.
Mr.
Li Yong is legal representative and chairman of SC at present.
SC is known
to have approx. 500 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the hi-tech industry development zone of
Anyang. Detailed information of the premise is unknown.
http://www.hnlihua.com/ The design
is professional and the content is well organized. At present it is both in Chinese and English versions.
Email: lhpco@vip.sina.com / henanlihua@vip.sina.com
Certificates:
=========
Henan Lihua has obtained GMP certificate issued by SFDA in 2002, ISO9001
certificate in 2003, CEP certificate of Prednisolone in 2003, ISO14001 certificate
in 2005, GMP certificate issued by Germany authority in 2006, CEP certificate
of prednisone in 2007. APIs manufactured by Henan Lihua Pharmaceutical Co.,
Ltd. have passed FDA inspection in Sept. 2009.
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name %
of shareholdings
Virgin Jinlian Co., Ltd. (B.V.I.) (In
Chinese Pinyin) 22
Anyang Yingda Material & Trading Co.,
Ltd. 16
Maikete (British Cayman) Co., Ltd. (Cayman
Islands) (In Chinese Pinyin) 42
Funiya (British Cayman) Co., Ltd. (Cayman
Islands) (In Chinese Pinyin) 20
Anyang Yingda Material & Trading Co.,
Ltd.
================================
Establishment Date: May 11, 2006
Chief Executive: Feng Wenzhong
Registered Capital: CNY 30,000
l
Legal Representative and Chairman:
Mr. Li Yong is currently responsible for the overall management of SC.
Working Experience(s):
At present
Working in SC as legal representative and chairman.
SC
is mainly engaged in manufacturing and selling prednisone, prednisolone,
hydrocortisone and their derivatives.
SC’s products mainly
include: prednisolone series, prednisone series, cortisone series, beta series,
ionic liquids, and etc.
SC sources its
materials 100% from domestic market. SC sells 20% of its products in domestic
market, and 80% to overseas market, mainly Europe, America and Southeast Asia.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
SC is not known to have any subsidiary at present.
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.
SC’s management
declined to release its bank details.
SC’s financial
reports were not found during our checks with the local Administration for
Industry and Commerce.
SC’s management declined
to release any financial information.
SC is considered medium-sized in its line with 17 years operation
history.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian
Rupees |
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US Dollar |
1 |
Rs.54.70 |
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UK Pound |
1 |
Rs.82.78 |
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Euro |
1 |
Rs.71.42 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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 |
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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.