MIRA
INFORM REPORT
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Report Date : |
30.07.2014 |
IDENTIFICATION DETAILS
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Name : |
HEBEI CHANGSHAN BIOCHEMICAL PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 9, Fuqiang Road, Zhengding Town, Shijiazhuang, Hebei Province, 050800, P.R. |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.09.2000 |
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Com. Reg. No.: |
130000000011859 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in export of own products and import of machinery and equipment, spare parts, and raw and auxiliary materials needed for manufacturing (excluding goods and technology limited or prohibited by the country); producing hard capsules, small volume injection, tablets (including hormones), raw materials. |
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No of Employees : |
580 |
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 : |
Good |
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Payment Behaviour : |
No complaints |
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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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources
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Source
: CIA |
COMPANY NAME & ADDRESS
HEBEI CHANGSHAN BIOCHEMICAL PHARMACEUTICAL CO., LTD.
NO. 9, FUQIANG ROAD, ZHENGDING TOWN, SHIJIAZHUANG,
HEBEI PROVINCE, 050800, P.R. CHINA
TEL: 86
(0) 311-88712901/89190181 FAX:
86 (0) 311-89190182
EXECUTIVE SUMMARY
INCORPORATION DATE : Sep. 28, 2000
REGISTRATION NO. : 130000000011859
REGISTERED LEGAL FORM : SHARES LIMTIED COMPANY
STAFF STRENGTH :
580
REGISTERED CAPITAL : CNY 188,418,700
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 704,542,000 (CONSOLIDATED, AS OF DEC. 31, 2013)
EQUITIES :
CNY 1,285,523,000 (CONSOLIDATED, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1875= 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 Shares limited co. at local
Administration for Industry & Commerce (AIC - The official body of issuing and
renewing business license).
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 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. 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 export of own products and import
of machinery and equipment, spare parts, and raw and auxiliary materials needed
for manufacturing (excluding goods and technology limited or prohibited by the
country); producing hard capsules, small volume injection, tablets (including
hormones), raw materials.
SC
is mainly engaged in manufacturing and selling pharmaceutical products.
Mr. Gao Shuhua has been legal representative and chairman of
SC since 2000.
SC is known
to have approx. 580 employees at present, including 108 R & D staff,
109 quality management & inspection staff, 81 sales staff, 182 production
staff, 32 purchase staff, 16 financial staff, 35 administration staff and 17
other-position staff.
SC is currently
operating at the above stated address, and this address houses its operating
office and factory in the industrial zone of Shijiazhuang. SC’s accountant
declined to release the detailed information of the total premise.
Note:
SC is also known to have another operation address:
North
End of Yinchuan Avenue, Zhengding New Area, Shijiazhuang City,
http://www.heparin.cn The design is
professional and the content is well organized. At present the website is both
in Chinese and English version.
E-mail: zhengquan@heparin.cn
SC listed in Shenzhen Stock Exchange Market in 2011 with the stock code
300255.
Changes
of SC’s registered information:
|
Date |
Item |
Before the change |
After the change |
|
2002-2-27 |
Chinese name |
河北常山生化药业有限责任公司 |
河北常山生化药业股份有限公司 |
|
Legal form |
Limited liabilities company |
Shares limited co. |
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|
Registered number |
1301231000057 |
1300001002108 |
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|
2006 |
Chinese name |
河北常山生化药业股份有限公司 |
河北常山生化药业有限公司 |
|
Legal form |
Shares limited co. |
Limited liabilities company |
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|
2009 |
Chinese name |
河北常山生化药业有限公司 |
河北常山生化药业股份有限公司 |
|
Legal form |
Limited liabilities company |
Shares limited co. |
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|
Registered number |
1300001002108 |
Present one |
Note: SC changed
its Chinese name but remains the same English name.
Subject passed the annual inspection of 2012 with
Administration for Industry & Commerce.
Tax Registration Certificate No.: 130123732914772
Organization Code: 732914772
Since the establishment, SC has been awarded “Excellent Private Hi-tech
Enterprise in Hebei Province”, “Excellent Private Enterprise in Hebei
Province”, “Leading Enterprise in Agricultural Industrialization Operation in
Hebei Province”, “Export Brand Enterprise in Hebei Province”, etc.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (As of March 31, 2014)
Name %
of Shareholding
Gao Shuhua 31.83
SDIC High-tech Investment Co., Ltd. 13.85
Chen Xi
4.67
Hebei Huaxu Chemical Co., Ltd. 4.63
Bai Wenju 3.32
Bank of Communication-Nongyin Huili Industry
Growth Stock Securities Investment Fund 3.1
Ji Shengli 2.19
Industrial and
Commercial Bank of China-
Huitianfu
Health & Medical Stock Securities Investment Fund 2.03
Agricultural Bank of China-
Jingshun Great Wall Domestic Needs Growth II
Stock Securities Investment Fund 1.49
Industrial and Commercial Bank of China-
Tianhong
Selected Mixed Type Securities Investment Fund 1.41
Other shareholders 31.48
SDIC High-tech Investment Co., Ltd.
=============================
Registration no.: 100000000023843
Incorporation date: Sep. 12, 1996
Legal representative: Hao Jian
Hebei Huaxu Chemical Co., Ltd.
=============================
Registration no.: 130182000006649
Legal representative: Gong Jiuchun
Web: http://www.hx-c.com/
Email: hbhxhg@163.com
Tel.: 0311-88128055
Fax: 0311-88120079
Address: East Section of Shifu Road,
Gaocheng City, Hebei Province
l
Legal representative and Chairman:
Mr. Gao Shuhua born in 1947, with junior college education, senior engineer.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working
in SC as legal representative and chairman
Also working in Hebei Changshan Jiukang Bio-Technology Co.,
Ltd. and Changshan Biochemical Pharmaceutical (Jiangsu) Co., Ltd. as legal
representative
l
General Manager:
Mr. Ji Shengli, born in 1963, with doctor’s degree. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2009 to present Working
in SC as general manager.
l
Vice Chairman:
Mr. Liu Yanbin, born in 1962, with master’s degree, senior economist. He
is currently responsible for the daily management of SC.
Working Experience(s):
From 2009 to present Working
in SC as vice chairman
l
Vice General Managers:
Liu Jian
Zhang Wei
Cai Hao
Huang Guosheng
Zhang Zhiying
Gao Xiaodong
Ding Jianwen
l
Directors:
Wang Jianfang
Wang Zuolin
Gao Xiaodong
Etc.
l
Supervisors:
Lin Shen
Cui Jie
Guo Yanxing
SC
is mainly engaged in manufacturing and selling pharmaceutical products.
SC’s products
mainly include: heparin, hyaluronic acid, low molecular weight heparin
injection, clindamycin phosphate injection, puerarin, etc.
SC sources its materials
90% from domestic market, and 10% from overseas market. SC sells 75% of its
products in domestic market, and 25% to overseas market.
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.
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TRADEMARKS & PATENTS |
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Registration No. |
7920323 |
7572551 |
7494969 |
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Registration Date |
2012-6-21 |
2010-9-21 |
2010-12-14 |
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Trademark Design |
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Etc.
Note: SC refused to release its major suppliers
and clients.
Subsidiaries
Hebei Changshan Jiukang Bio-Technology Co., Ltd. (literal translation)
=======================================
Incorporation date: 2012-10-26
Registration no.: 130000000026029
Legal representative: Gao Shuhua
Changshan Biochemical Pharmaceutical (
=======================================
Incorporation date: 1994-09-10
Registration no.: 320400400014269
Legal representative: Gao Shuhua
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 refused to release
its banking information.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
Cash & bank |
261,502 |
539,526 |
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Notes receivable |
7,441 |
6,656 |
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Inventory |
374,126 |
308,145 |
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Accounts
receivable |
129,824 |
107,840 |
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Advances to
suppliers |
357,377 |
143,635 |
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Interest
receivable |
445 |
2,759 |
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Other
receivables |
9,569 |
10,864 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
1,140,284 |
1,119,425 |
|
Fixed assets net
value |
220,886 |
112,695 |
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Projects under
construction |
136,775 |
101,858 |
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Long term
investment |
0 |
0 |
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Development
expense |
17,061 |
0 |
|
Goodwill |
4,356 |
4,356 |
|
Intangible
assets |
118,127 |
74,347 |
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Long-term
deferred expense |
19 |
58 |
|
Deferred tax
assets |
7,793 |
5,711 |
|
Other assets |
0 |
0 |
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------------------ |
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Total assets |
1,645,301 |
1,418,450 |
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|
============ |
============= |
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Short loans |
263,800 |
224,500 |
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Note payable |
13,455 |
0 |
|
Accounts payable |
4,161 |
4,261 |
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Advances from
clients |
18,694 |
15,240 |
|
Taxes payable |
16,760 |
12,973 |
|
Employee pay
payable |
3,638 |
2,271 |
|
Interest payable |
466 |
454 |
|
Other payable |
13,161 |
13,334 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
334,135 |
273,033 |
|
Long term
liabilities |
25,643 |
19,740 |
|
|
------------------- |
------------------ |
|
Total
liabilities |
359,778 |
292,773 |
|
Equities |
1,285,523 |
1,125,677 |
|
|
-------------------- |
------------------ |
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Total
liabilities & equities |
1,645,301 |
1,418,450 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2012 |
|
Turnover |
704,542 |
575,558 |
|
Cost of goods sold |
310,144 |
291,709 |
|
Taxes and additional of main operation |
4,670 |
3,058 |
|
Sales expense |
158,668 |
114,988 |
|
Management expense |
85,149 |
54,470 |
|
Finance expense |
13,406 |
2,967 |
|
Assets impairment loss |
251 |
2,270 |
|
Non-operating
income |
2,550 |
6,135 |
|
Non-operating expense |
51 |
571 |
|
Profit before
tax |
1,279,431 |
1,051,726 |
|
Less: profit tax |
19,534 |
12,665 |
|
Profits |
115,219 |
98,995 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
*Current ratio |
3.14 |
4.10 |
|
*Quick ratio |
2.29 |
2.97 |
|
*Liabilities
to assets |
0.22 |
0.21 |
|
*Net profit
margin (%) |
16.35 |
17.20 |
|
*Return on
total assets (%) |
7.00 |
6.98 |
|
*Inventory
/Turnover ×365 |
194 days |
195 days |
|
*Accounts
receivable/Turnover ×365 |
67 days |
68 days |
|
*Turnover/Total
assets |
0.43 |
0.41 |
|
* Cost of
goods sold/Turnover |
0.44 |
0.51 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line
in both years, and it increased in 2013.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of goods sold is low in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s quick ratio is maintained in a fairly good
level in both years.
l
The inventory of SC is fairly large in both years.
l
The accounts receivable of SC is average in both
years.
l
The short loans of SC are average in both years.
l
SC’s turnover is in a poor level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial conditions.
The large amount of inventory could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.10 |
|
|
1 |
Rs. 102.04 |
|
Euro |
1 |
Rs. 80.73 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
DPT |
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.