MIRA INFORM REPORT
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Report Date : |
20.03.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG HISYN PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Linhai Park, Chemical And Medical Raw Materials Base, Taizhou City, Zhejiang Province
317016 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
28.09.2003 |
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Com. Reg. No.: |
331000400002063 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling APIs and bulk
drugs |
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No. of Employees : |
300 |
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 : |
Usually 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
|
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
zhejiang
hisyn pharmaceutical co., ltd.
linhai park, chemical and medical raw
materials base
taizhou city, zhejiang province 317016 PR
CHINA
TEL: 86 (0) 576-85588628/85588308
FAX: 86 (0) 576-85588322
EXECUTIVE SUMMARY
Date of Registration : september 28, 2003
REGISTRATION NO. : 331000400002063
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
CHIEF EXECUTIVE : zhang zhihong (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
cny 58,000,000
staff : 300
BUSINESS CATEGORY :
manufacturing
Revenue : CNY 203,940,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 22,380,000 (AS OF DEC. 31, 2012)
WEBSITE : www.xinhuachem.com
E-MAIL :
xinhuachem@hi2000.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
ORDINARY
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
LEGAL STATUS & HISTORY
SC was
established as a Chinese-foreign equity joint venture enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 331000400002063 on September 28, 2003.
SC’s Organization Code Certificate
No.: 75491188-X
SC’s registered capital: cny 58,000,000
SC’s paid-in capital: cny 58,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhang Zhihong |
25 |
|
Hovione China Limited (Hong
Kong) |
75 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhang Zhihong |
|
Director |
Andrade Da Silva Comes Luis
Antonio |
|
Jorge Manuel De Carvalho
Pastilha |
|
|
Supervisor |
Sofia Lee |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name
% of Shareholding
Zhang Zhihong 25
Hovione China Limited (Hong Kong) 75
---------------------------------------------
Registration No.: 1151603
Legal Form: Private
Status: Live
MANAGEMENT
Zhang
Zhihong, Legal
Representative, Chairman, and General Manager
--------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 332603500427001
Ø
Age: 63
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman, and general manager
Also working in Zhejiang
Huangyan Xinhua Pharmaceutical & Chemical Factory as legal representative
Director
-----------
Andrade Da Silva Comes Luis
Antonio Passport No.: R548648
Jorge Manuel De Carvalho Pastilha Passport
No.: L277274
Supervisor
--------------
Sofia Lee Passport
No: k678212 (4)
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
iohexol, Polypeptide intermediate N - ( 9 - fluorene methoxy carbonyl ) - L -
alanine, Sino what triazine ( cyromazine ).
SC is
mainly engaged in manufacturing and selling APIs and bulk drugs.
SC’s
products mainly include:
Iohexol
Iopamidol
Ioversol
Iodixanol
Iothalamic Acid
Etc.
SC sources its materials 100% from domestic
market. SC sells 60% of its products in domestic market, and 40% to overseas
market, mainly Southeast Asian market.
The buying
terms of SC include 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. 300
staff at present.
SC owns an area as
its operating office & factory of approx. 18,000 sq. meters at the heading
address.
RELATED COMPANY
Related Companies,
n
Zhejiang Huangyan Xinhua Pharmaceutical & Chemical Factory
---------------------------------
Registration
No.: 331003000020022
Date
of Registration: September 3, 1996
Legal
Form: Shares jointly owned enterprise
Registered
Capital: CNY 3,000,000
Legal
Representative: Zhang Zhihong
n
Taizhou Nova Medicine Chemistry Co., Ltd.
---------------------------------------
Registration
No.: 331082000015650
Date
of Registration: May 13, 2002
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 5,880,000
Legal
Representative: Qian Weibing
Subsidiary,
n
Shanghai Hisyn Chemical & Biological Technology Co., Ltd.
Registration
No.: 310104000470167
Date
of Registration: August 27, 2010
Legal
Form: One-person Limited Liabilities Company
Registered
Capital: CNY 1,000,000
Legal
Representative: Hu Zhiqi
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
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
7,230 |
1,250 |
6,070 |
|
|
Accounts
receivable |
10,750 |
2,290 |
6,380 |
|
Advances to
suppliers |
0 |
0 |
0 |
|
Other receivable |
3,390 |
2,700 |
11,430 |
|
Inventory |
73,850 |
66,190 |
63,020 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
780 |
1,130 |
420 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
96,000 |
73,560 |
87,320 |
|
Fixed assets |
83,600 |
84,070 |
98,320 |
|
Construction in progress |
11,850 |
14,970 |
3,710 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other
non-current assets |
5,850 |
5,830 |
5,660 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
197,300 |
178,430 |
195,010 |
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|
============= |
============= |
============= |
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Short-term loans |
46,000 |
46,000 |
42,300 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
15,440 |
16,160 |
51,050 |
|
Wages payable |
0 |
0 |
0 |
|
Advances from clients |
0 |
0 |
0 |
|
Other payable |
1,420 |
1,200 |
660 |
|
Other current
liabilities |
88,560 |
79,790 |
78,620 |
|
|
------------------ |
------------------ |
------------------ |
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Current
liabilities |
151,420 |
143,150 |
172,630 |
|
Non-current liabilities |
23,000 |
16,000 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total
liabilities |
174,420 |
159,150 |
172,630 |
|
Equities |
22,880 |
19,280 |
22,380 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
197,300 |
178,430 |
195,010 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
166,430 |
203,940 |
|
Cost of sales |
160,450 |
189,600 |
|
Sales expense |
1,160 |
2,060 |
|
Management expense |
15,540 |
13,530 |
|
Finance expense |
4,710 |
4,540 |
|
Profit before
tax |
-14,490 |
3,100 |
|
Less: profit tax |
0 |
0 |
|
-14,490 |
3,100 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.63 |
0.51 |
0.51 |
|
*Quick ratio |
0.15 |
0.05 |
0.14 |
|
*Liabilities
to assets |
0.88 |
0.89 |
0.89 |
|
*Net profit
margin (%) |
-- |
-8.71 |
1.52 |
|
*Return on
total assets (%) |
-- |
-8.12 |
1.59 |
|
*Inventory /
Revenue ×365 |
-- |
146 days |
113 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
6 days |
12 days |
|
*
Revenue/Total assets |
-- |
0.93 |
1.05 |
|
* Cost of
sales / Revenue |
-- |
0.96 |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears fairly good in its line, and it
increased in 2012.
l SC’s net profit
margin is fair in 2011, average in 2012.
l SC’s return on
total assets is fair in 2011, average in 2012.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level in three years.
l
SC’s quick ratio is maintained in a poor level in
three years.
l
The inventory of SC appears large.
l
The accounts receivable of SC appear average.
l
SC’s short-term loans appear large.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high in three 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. The large amount of inventory & short-term
loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.26 |
|
UK Pound |
1 |
Rs.81.94 |
|
Euro |
1 |
Rs.70.21 |
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.