MIRA
INFORM REPORT
|
Report Date : |
29.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG XINHUA PHARMACEUTICAL CO., LTD. |
|
|
|
|
Registered Office : |
No. 1 Lutai Road, High-Tech District, Zibo City, Shandong Province, 255086 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
30.09.1993 |
|
|
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Com. Reg. No.: |
370300400000376 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
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Line of Business : |
Developing, manufacturing and selling chemical raw materials, preparation, chemical and other pharmaceutical products. |
|
|
|
|
No. of Employees : |
6,066 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
No Complaints |
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
SHANDONG XINHUA
PHARMACEUTICAL CO., LTD.
NO. 1 LUTAI ROAD, HIGH-TECH DISTRICT, ZIBO
CITY,
SHANDONG PROVINCE, 255086 PR CHINA
TEL: 86 (0) 533-2196024/2185102 FAX: 86 (0) 533-2287508/2282825
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 30, 1993
REGISTRATION NO. : 370300400000376
REGISTERED LEGAL FORM : SHARES limited COMPANY
STAFF STRENGTH :
6,066
REGISTERED CAPITAL : CNY 457,312,830
BUSINESS LINE :
DEVELOPING, MANUFACTURING & TRADING
TURNOVER :
CNY 2,971,520,000
(Consolidated, as of dec. 31, 2012)
EQUITIES :
CNY 1,776,989,000 (Consolidated, as of dec. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY 6.13= 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
Note: The (14 Dongyi Road Zhang Dian District
Zibo Shandong China) was SC’s former one, while SC is currently operating in
the heading address.
SC was registered as a shares limited company
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Sep. 30, 1993.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes Manufacturing western medicine, chemical
raw materials, food additives, health food, pharmaceutical equipment, medical
testing instruments and meters; technology transfer, services, technical
consulting, technical training of self-R&D projects; selling self-made
products; manufacturing, filling and selling tonnage oxygen and industrial
nitrogen
SC is mainly
engaged in developing, manufacturing and selling chemical raw materials,
preparation, chemical and other pharmaceutical products.
Mr. Zhang
Daiming is legal representative and chairman
of SC at present.
SC is known
to have approx. 6,066 employees at present, including 3,899 production
staff, 101 engineering technical staff, 413 administrative staff, 86 financial
staff, 168 R&D staff, 41 purchase staff, 1,005 marketing staff and 353
quality supervision and inspection personnel.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the Hi-Tech zone of Zibo. Detailed premise
information is not available at present.
Note: SC is also known to have another operation
address: (No. 19, Dongyi Road, Zhangdian District, Zibo City, Shandong
Province, 255005 PR China
http://www.xhzy.com
The design is professional and the content is well organized. At present the
web is in Chinese and English versions.
E-mail: xhzy@xhzy.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration number |
001489 |
Present one |
|
Legal representative |
Guo Qin |
Present one |
Tax
Registration Certificate No.: 370303164103727
Organization
Code: 16410372-7
SC
listed in Hong Kong Stock Exchange Market in 1996 with the stock code 0719.HK,
and listed in Shenzhen Stock Exchange in 1997 with the stock code 000756.
SC is the earliest established Chinese
pharmaceutical company, and has been granted the certifications of GMP, ISO
14001, ISO9001, ISO 10012, ISO 22000 and MHRA (England). The main products of
SC have been granted the COS Certificate from EDQM and passed the site
inspection from USA FDA. “XINHUA” brand was honoured with the title of
"Chinese Famous Brand" in China.
See below for SC as executive party (defendant).
|
Executed Party |
Shandong Xinhua Pharmaceutical Co., Ltd. |
|
Court |
Zibo Zhangdian District People's Court |
|
Date
of Case |
June 28, 2011 |
|
Case Number |
(2011) 00055 |
|
Claim
Amount |
RMB 30,000 |
|
Case
Status |
Completed |
|
Executed Party |
Shandong Xinhua Pharmaceutical Co., Ltd. |
|
Court |
Zibo Intermediate People's Court |
|
Date
of Case |
March 22, 2011 |
|
Case Number |
(2011) 00027 |
|
Claim
Amount |
RMB 611,185.1 |
|
Case
Status |
Completed |
|
Executed Party |
Shandong Xinhua Pharmaceutical Co., Ltd. |
|
Court |
Zibo Zhangdian District People's Court |
|
Date
of Case |
May 1, 2009 |
|
Case Number |
(2009) 00035 |
|
Claim
Amount |
RMB 200,000 |
|
Case
Status |
Completed |
|
Executed Party |
Shandong Xinhua Pharmaceutical Co., Ltd., Shandong Xinhua Pharmaceutical
Co., Ltd. New Medicine Sales Branch |
|
Court |
Hohhot Saihan District People's Court |
|
Date
of Case |
March 10, 2008 |
|
Case Number |
(2008) 00198 |
|
Claim
Amount |
RMB 130,000 |
|
Case
Status |
In process |
|
Executed Party |
Shandong Xinhua Pharmaceutical Co., Ltd. |
|
Court |
Zibo Zhangdian District People's Court |
|
Date
of Case |
December 17, 2007 |
|
Case Number |
(2007) 03108 |
|
Claim
Amount |
RMB 411,280 |
|
Case
Status |
In process |
|
Executed Party |
Shandong Xinhua Pharmaceutical Co., Ltd. |
|
Court |
People's Court of Zibo High-tech Industry Development Zone |
|
Date
of Case |
January 22, 2007 |
|
Case Number |
(2007) 00101 |
|
Claim
Amount |
RMB 169,675.48 |
|
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: (As of Dec. 31, 2012)
Name %
of Shareholding
Shandong Xinhua Pharmaceutical Group Co.,
Ltd. 36.32
HKSCC Nominees Limited 32.35
Qingdao Haowei Investment Development Co.,
Ltd. 2.05
Wang Cuiping 0.16
Zhang Linlin 0.14
Liu Shida 0.13
Haitong Securities Co. Ltd. Customer Credit
Transactions Backed Securities Account 0.11
Lin Ruhong 0.11
Zheng Huidan 0.11
Wang Zhihai 0.10
Other Shareholders 28.42
Shandong Xinhua Pharmaceutical Group Co.,
Ltd.
===================================
Shandong Xinhua Pharmaceutical Group Co.,
Ltd. (the "Company") is one of the Top 500 king-sized enterprises and
a backbone pharmaceutical enterprise in China, to which 12 subsidiaries are
affiliated with several kinds of ownership systems and an enterprise technical
center in state-level is attached. The products of the Company are manufactured
and managed mainly in chemically-synthetic bulk pharmaceuticals, medical
preparations and chemical raw materials, simultaneously in pharmaceutical
intermediates, chemical corrosion-resistant equipment, etc. The Company has
passed the certifications in GMP, ISO9001, ISO14001, and ISO 10012.
Email: luoshizhong@xhzy.com
Address: No. 1 Lutai Road, High-Tech
District, Zibo City, Shandong, 255086 PR China
Tel: 0086-533- 2196666
Fax: 0086-533- 2282825
Registration No.: 370300018506066
Registered capital: CNY 298,500,000
Legal representative: Zhang Daiming
HKSCC Nominees Limited
====================
Incorporation Date: May 14, 1991
Registration No.: 0309729
Registered Legal Form: Private
Qingdao Haowei Investment Development Co.,
Ltd.
==================================
Reg. No.: 370202228031229
Legal representative: Wang Zekai
Registered capital: CNY 20,000,000
Legal form: Limited Liabilities Company
Incorporation date: June 12, 2000
l Legal Representative and Chairman:
Mr. Zhang Daiming
, born in 1962, senior economist, with master’s degree, is currently
responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative and
chairman.
Also working in Zibo XinHua-Perrigo
Pharmaceutical Co., Ltd., Shandong Xinhua Pharmaceutical Import and Export Co.,
Ltd., Shandong Xinhua Pharmaceutical Group Co., Ltd.,
Xinhua (Zibo) Properties Co., Ltd., Zibo Xinhua-Eastwest Pharmaceutical
Co., Ltd. as legal representative; First Branch, Second Branch, International
Trade Branch, Pharmaceutical Trade Branch as principal.
l General Manager and Director:
Mr.
Du Deping , born in 1969, senior engineer, with master’s degree, is currently
responsible for the daily management of SC.
Working Experience(s):
At
present Working in SC as general manager and director.
Also
working in Xinhua Pharmaceutical (Shouguang) Co., Ltd. and Zibo Xinhua
Pharmaceutical Design Institute Co., Ltd. as legal representative
l Vice General Managers:
Mr.
Du Deqing, born in 1964, senior engineer, with master’s degree
Mr.
Zhao Songguo, born in 1963, senior accountant
Mr.
He Tongqing, born in 1969, senior economist
Mr.
Dou Xuejie, born in 1959, senior engineer, with master’s degree
l Directors:
Zhu
Baoquan
Bai
Huiliang
Zhao
Songguo
Xu
Lie
Ren
Fulong
Zhao
Bin
l Supervisors:
Li
Tianzhong
Tao
Zhichao
Zhang
Yueshun
SC is mainly
engaged in developing, manufacturing and selling chemical raw materials,
preparation, chemical and other pharmaceutical products.
SC’s products mainly include: API, bulk pharmaceuticals, chemical products,
finished dosages, etc.
Brand: “XINHUA”
SC sources its materials 70% from domestic market, and 30% from overseas
market, mainly European countries. SC sells 60% of its products in domestic
market, and 40% to the overseas market, mainly Japan, American and European
countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Mitsubishi Corporation
Perrigo Company (U.S.A.)
China Shandong Group Limited
Shandong Ruizhong Pharmaceutical Co., Ltd.
Tianjin Tasly Medicine Distribution Group Co., Ltd.
*Major Suppliers:
=============
Zibo Qianyu Trading Co., Ltd. (in Chinese pinyin)
Shandong, Shanxi Coal Chemical Co., Ltd.
Shandong Dacheng Pesticide Co., Ltd.
Weifang Baili Chemical Co., Ltd.
SC is known to have the
following subsidiaries:
Shandong
Xinhua Pharmaceutical Import and Export Co., Ltd.
Zibo
Xinhua Pharmaceutical Design Institute Co., Ltd.
Shandong
Xinhua Pharmaceutical (Europe) Co., Ltd.
Zibo
Xinhua-Eastwest Pharmaceutical Co., Ltd.
Zibo
XinHua-Perrigo Pharmaceutical Co., Ltd.
Xinhua
Pharmaceutical (Shouguang) Co., Ltd.
Shandong
Xinhua Pharmaceutical Trading Co., Ltd.
Xinhua
(Zibo) Properties Co., Ltd.
Zibo
Xinhua Pharmacy Chain Co., Ltd.
Xinhua
Pharmaceutical (Gaomi) Co., Ltd.
Branches
========
First
Branch
Second
Branch
International
Trade Branch
Pharmaceutical Trade Branch
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 records and our debt collection record concerning SC.
Trade payment experience: SC’s suppliers
declined to make any comments.
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.
Industrial and
Commercial Bank of China Zibo Branch
Account No.: N/A
Relationship:
Normal
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2011 |
|
Cash & bank |
422,144 |
299,229 |
|
Inventory |
489,673 |
423,789 |
|
Accounts receivable |
255,710 |
262,870 |
|
Notes
receivable |
88,663 |
83,972 |
|
Other Accounts receivable |
56,408 |
23,131 |
|
Advances to suppliers |
83,994 |
44,548 |
|
Other current assets |
3,275 |
3,504 |
|
|
------------------ |
------------------ |
|
Current assets |
1,399,867 |
1,141,043 |
|
Fixed assets |
1,422,986 |
1,063,156 |
|
Available-for-sale financial assets |
156,303 |
136,072 |
|
Long term investment |
26,469 |
23,355 |
|
Investment
Property |
68,906 |
37,142 |
|
Projects
under construction |
273,977 |
363,330 |
|
Intangible
assets |
257,879 |
223,504 |
|
Goodwill
|
2,715 |
0 |
|
Deferred assets |
19,168 |
16,588 |
|
Other non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
3,628,270 |
3,004,190 |
|
|
============= |
============= |
|
Short loans |
419,855 |
296,147 |
|
Notes payable |
122,278 |
113,522 |
|
Accounts payable |
274,151 |
244,633 |
|
Advances from clients |
14,523 |
18,507 |
|
Accrued
payroll |
16,424 |
24,854 |
|
Dividends payable |
5,311 |
15,111 |
|
Taxes payable |
-3,165 |
-7,979 |
|
Interest payable |
516 |
740 |
|
Other accounts payable |
94,121 |
87,032 |
|
Non-current liabilities
maturing within one year |
73,515 |
179,000 |
|
Other current liabilities |
2,897 |
590 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,020,426 |
972,157 |
|
Long term liabilities |
830,855 |
282,294 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,851,281 |
1,254,451 |
|
Equities |
1,776,989 |
1,749,739 |
|
|
------------------ |
------------------ |
|
Total liabilities &
equities |
3,628,270 |
3,004,190 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2011 |
|
Turnover |
2,971,520 |
2,937,528 |
|
Cost of goods sold |
2,447,201 |
2,391,581 |
|
Taxes and additional of main operation |
15,429 |
13,159 |
|
Sales expense |
239,898 |
199,663 |
|
Management expense |
215,688 |
176,046 |
|
Finance expense |
60,254 |
37,269 |
|
Investment
income |
5,791 |
9,017 |
|
Assets impairment loss |
17,546 |
56,900 |
|
Non-operating
income |
66,955 |
32,371 |
|
Non-operating expense |
13,269 |
11,087 |
|
Profit before tax |
34,981 |
93,211 |
|
Less: profit tax |
8,719 |
13,592 |
|
Profits |
26,262 |
79,619 |
Important
Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2011 |
|
*Current ratio |
1.37 |
1.17 |
|
*Quick ratio |
0.89 |
0.74 |
|
*Liabilities to assets |
0.51 |
0.42 |
|
*Net profit margin (%) |
0.88 |
2.71 |
|
*Return on total assets
(%) |
0.72 |
2.65 |
|
*Inventory /Turnover ×365 |
61 days |
53 days |
|
*Accounts
receivable/Turnover ×365 |
32 days |
33 days |
|
*Turnover/Total assets |
0.82 |
0.98 |
|
* Cost of goods
sold/Turnover |
0.82 |
0.81 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level in
2011 and normal in 2012
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears average.
l
SC’s turnover is in an average level in 2011 but
fair in 2012, comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low in 2011 and average in
2012.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.74 |
|
|
1 |
Rs.84.17 |
|
Euro |
1 |
Rs.72.02 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.