MIRA INFORM REPORT
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Report Date : |
20.03.2013 |
IDENTIFICATION DETAILS
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Name : |
HUBEI HONGYUAN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 428, Yishui North Road,
Fengshan Town, Luotian County, Hubei
Province 438600 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
21.01.2002 |
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Com. Reg. No.: |
421123000005111 |
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Legal Form : |
Limited Liabilities Co |
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Line of Business : |
Manufacturing
and selling active pharmaceutical ingredients and intermediates. |
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No. of Employees : |
500 |
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 : |
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 – 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
HUBEI HONGYUAN PHARMACEUTICAL CO., LTD.
no. 428,
yishui north road, fengshan town, luotian county,
hubei
province 438600 PR CHINA
TEL: 86
(0) 713-5072428/5072024 FAX: 86
(0) 713-5072224
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 21, 2002
REGISTRATION NO. :
421123000005111
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
500
REGISTERED CAPITAL :
CNY 20,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 733,409,000 (AS OF DEC. 31, 2010)
EQUITIES : CNY 231,985,000 (AS OF DEC. 31, 2010)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE :
MODERATE AMOUNT
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE (AS OF DEC. 31, 2010)
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE : CNY
6.22=USD
Adopted
abbreviations:
ANS -
amount not stated
NS -
not stated
SC -
subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Jan. 21, 2002.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes manufacturing and selling
glyoxylate, lithium hexafluorophosphate; manufacturing and selling API
(metronidazole, benzoyl metronidazole, tinidazole, ornidazole, secnidazole), Lu
agent, syrup, mixture; manufacturing and selling health care products Ling Tu
Fu Shen Brand Fu Qi Ren capsule; wholesaling coal; manufacturing and selling
carboxymethylpachymaran, carboxymethylpachymaran granules, capsules, soft
capsules, honeysuckle drinks, herbal tea honeysuckle, honeysuckle tablet, drink
chrysanthemum, chrysanthemum tea, Poria, Poria cake, Poria fans, chestnuts,
canned, canned fruit, sweet persimmons, fresh chestnuts, fresh persimmon;
manufacturing and sellin formaldehyde, glyoxal, formic acid; manufacturing and
selling pharmaceutical intermediates and fine chemicals; manufacturing and
selling sucralose; exporting self-made products and technology; importing raw
and auxiliary materials, instruments, meters, mechanical equipment, spare parts
and technology used for self-production (excluding the goods and technology
prohibited or limited by the country); processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement; purchasing agricultural products and retailing
general merchandise. (with permit if needed))
SC is
mainly engaged in manufacturing and selling active pharmaceutical ingredients
and intermediates.
Mr. Yin Guoping has been the legal representative, chairman and
general manager since 2002.
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 industrial zone of
Luotian County. Our checks reveal that SC rents the total premise about 18,000
square meters.
http://www.hbhypharm.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: sales@hbhypharm.com
SC has passed ISO9001:2000 and GMP.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
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Registered capital |
CNY 500,000 |
CNY 3,148,000 |
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2007-7-3 |
Registered capital |
CNY 3,148,000 |
Present amount |
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Registration number |
4211231002149 |
Present one |
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Company name |
Luotian Hongyuan Biochemical Co., Ltd. |
Present one |
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Unknown |
Shareholdings |
Yin Guoping 32.10% Liao Liping 11.76% Fang Ligao5.96% Other individuals 50.18% |
Yin Guoping 32.1% Liao Liping 11.91% Fang Ligao 5.96% Xiao Jiahuai 5.96% Duan Xiaoliu 5.96% Lei Gaoliang 5.96% Gong Bingtao 5.96% Liu Zhanliang 5.96% Li Xiaoxiong 5.95% Xu Shuangxi 5.95% He Jianping 4.76% Deng Zhihua 3.57% |
|
Unknown |
Shareholders |
Yin Guoping 32.1% Liao Liping 11.91% Fang Ligao 5.96% Xiao Jiahuai 5.96% Duan Xiaoliu 5.96% Lei Gaoliang 5.96% Gong Bingtao 5.96% Liu Zhanliang 5.96% Li Xiaoxiong 5.95% Xu Shuangxi 5.95% He Jianping 4.76% Deng Zhihua 3.57% |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Gong Chen 2
Lei Gaoliang 3
Liao Shengru 0.5
Xu Shuangxi 3
Deng Zhihua 3
Cheng Siyuan 1
Ding Zhihua 1
Duan Xiaoliu 3
Liao Zhongzhu 0.5
He Jianping 1
Li Xiaoxiong 2
Liu Zhanliang 3
Xiao Jiahuai 2.5
Yan Xiaohui 63
Liao Liping 10
Xiao Yaodong 1
Li Guoxin 0.5
l Legal
representative, Chairman and General Manager:
Mr. Yin Guoping, ID#
422125600423001, born in 1960, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2002 to present
Working in SC as legal representative, chairman and general manager
l Deputy
General Manager:
Mr. Xu Shuangxi , in his
Working Experience(s):
From 2002 to present Working in SC as deputy general
manager
SC is
mainly engaged in manufacturing and selling active pharmaceutical ingredients
and intermediates.
SC’s products mainly include: Metronidazole,
2-Methyl-5-Nitroimidazole, 2-Methylimidazole, Dimetridazole, Imidazole,
4-Nitroimidazole, and Metronidazole Benzoate, etc.
SC
sources its materials 100% from domestic market, mainly Hubei province. SC
sells 70% to overseas market, mainly European and American countries, and 30%
in domestic market, mainly Hubei and Jiangsu province.
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, Check and Credit of 30-60
days.
Note: SC’s management declined to release its major customers and
suppliers.
SC is known to have the following subsidiaries:
Luotian Hengyuan Pharmaceutical Co., Ltd.
Luotian Hengxingyuan Chemical Co., Ltd.
Etc.
According SC’s website:
Wuhan International Business Department
Tel: +86-27-59422698
Fax: +86-27-59422633
E-mail: sales@hbhypharm.com
Add:
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.
Bank
of China Luotian Sub-branch
AC#：06332508093001
Relationship:
Normal.
Financial summary
Unit:
CNY’000
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As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
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Total
liabilities |
154,893 |
168,411 |
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Equities |
201,842 |
231,985 |
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Total
assets |
356,735 |
400,396 |
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============= |
============= |
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Turnover |
547,146 |
733,409 |
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Profits |
15,857 |
38,705 |
Note: we did not find SC’s
detailed financial reports for Yr2009 & Yr2010. SC’s management declined to
release its financial information of Yr2011.
Important Ratios
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As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
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*Liabilities
to assets |
0.43
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0.42
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*Net
profit margin (%) |
2.90
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5.28
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*Return
on total assets (%) |
4.45
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9.67
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*Turnover/Total
assets |
1.53
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1.83
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PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line, and it increased greatly in 2010.
l
SC’s net profit margin is average in
2009 and fairly good in 2010.
l
SC’s return on total assets is fairly
good.
l
SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Stable.
SC is considered medium-sized in its line with a development
history of 10 years. Taking into consideration of SC’s general performance,
reputation as well as market conditions we would rate SC as an average credit
risk company.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.26 |
|
|
1 |
Rs.81.93 |
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Euro |
1 |
Rs.70.21 |
INFORMATION DETAILS
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Report Prepared
by : |
PDT |
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.