MIRA
INFORM REPORT
|
Report Date : |
12.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
HARBIN PHARMACEUTICAL GROUP CO., LTD. |
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Registered Office : |
No. 109 Xuefu Road, Nangang District, Harbin Heilongjiang Province 150086 PR |
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Country : |
China |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
28.12.1991 |
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Com. Reg. No.: |
230199100000366 |
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Legal Form : |
Shares Limited
Company |
|
|
|
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Line of Business : |
Subject is engaged in manufacturing western medicine, traditional
Chinese medicine preparation, western medicine raw materials, biological
engineering medicine, health care products |
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|
No. of Employees : |
19,188 |
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 : |
Satisfactory |
|
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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.
|
Source
: CIA |
Company name and address
HARBIN PHARMACEUTICAL GROUP CO.,
LTD.
NO. 109 XUEFU ROAD, NANGANG DISTRICT, HARBIN
HEILONGJIANG PROVINCE 150086 PR CHINA
TEL: 86 (0) 451-84604688
FAX: 86 (0) 451-84604688
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 28, 1991
REGISTRATION NO. : 230199100000366
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
zhang lijun (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 1,917,480,000
staff :
19,188
BUSINESS CATEGORY : manufacturing
REVENUE :
CNY 5,091,356,000 (FROM JAN. 1, 2014 TO MAR. 31, 2014)
EQUITIES :
CNY 8,939,769,000 (AS OF MAR. 31, 2014)
WEBSITE : www.hayao.com
E-MAIL :
master@hayao.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : good
EXCHANGE RATE :
CNY 6.24 = 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
Not yet be determined
LEGAL STATUS & HISTORY
SC was established as a shares
limited company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 230199100000366
on December 28, 1991.
SC’s Organization Code Certificate No.:
12817503-7
SC’s Tax No.: 230198128175037
SC’s registered capital: cny 1,917,480,000
SC’s paid-in capital: cny 1,917,480,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
2301091345031 |
230199100000366 |
|
2010-11 |
Legal Representative |
Hao Weizhe |
Zhang Lijun |
|
2011 |
Registered Capital |
CNY 1,242,005,473 |
CNY 1,614,607,115 |
|
-- |
Registered Capital |
CNY 1,614,607,115 |
cny 1,917,480,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (as
of March 31, 2014) |
% of Shareholding |
|
Harbin Pharmaceutical Group Holding Co., Ltd. |
45.06 |
|
China Jianyin Investment Co., Ltd. |
11.17 |
|
China Securities Investor Protection Fund Corporation Limited |
2.24 |
|
Agricultural Bank of China Co., Ltd. Shanghai Branch |
1.00 |
|
Zhejiang Province Financial Development Corporation |
0.96 |
|
Shanghai Construction Property Development Co., Ltd. |
0.64 |
|
Li Xiangxiang |
0.32 |
|
Yu Feng |
0.26 |
|
Huaian Administration Center of Public Accumulation Fund for Housing
Construction |
0.26 |
|
Bank of China Co., Ltd.- Jiashi CSI 300 Index Securities Investment
Fund |
0.24 |
|
Other Shareholders |
37.85 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Zhang Lijun |
|
Director |
Liu Zhanbin |
|
Liu Bo |
|
|
Li Benming |
|
|
Wu Zhijun |
|
|
Wu Yizhong |
|
|
Zhang Lijun |
|
|
Independent Director |
Wang Zhenchuan |
|
Wang Fusheng |
|
|
Chen Shulan |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600664.
SHAREHOLDER CHART & BACKGROUND
Name (As of March
31, 2014) %
of Shareholding
Harbin Pharmaceutical Group Holding Co., Ltd. 45.06
China Jianyin Investment Co., Ltd. 11.17
China Securities Investor Protection Fund Corporation Limited 2.24
Agricultural Bank of China Co., Ltd. Shanghai Branch 1.00
Zhejiang Province Financial Development Corporation 0.96
Shanghai Construction Property Development Co., Ltd. 0.64
Li Xiangxiang 0.32
Yu Feng 0.26
Huaian Administration Center of Public Accumulation Fund for Housing
Construction 0.26
Bank of China Co., Ltd.- Jiashi CSI 300 Index Securities Investment Fund 0.24
Other Shareholders 37.85
Harbin Pharmaceutical Group Holding Co., Ltd.
======================================
Harbin Pharmaceutical Group Holding Co., Ltd. is a state-holding
Sino-foreign joint venture. The group holds 2 public companies that are listed
on the Shanghai Stock Exchange; Harbin Pharmaceutical Group Co., Ltd. and
Sanjing Pharmaceutical Co., Ltd. and 27 wholly owned holding and joint stock
companies. Harbin Pharmaceutical Group employs a staff of more than 20,000
people.
The Harbin Pharmaceutical Group is one of the top 500 state-run
large-scale enterprise groups and one of he 120 large-scale pilot enterprise
groups in China.
Website: www.hayao.com
Tel: +86-0451-84608188
Culture Office: +86-0451-84608188
Public Department: +86-0451-84856675
China Jianyin Investment Co., Ltd.
============================
Date of Registration: June 21, 1986
Registration No.: 100000000004443
Legal Form: Sole State-Owned
Enterprise
Chief Executive: Yang Qingwei
Registered Capital: CNY 20,692,250,000
China Securities Investor Protection Fund Corporation Limited
=================================================
Date of Registration: August 30, 2005
Registration No.: 100000000039745
Legal Form: Sole State-Owned
Enterprise
Chief Executive: Liu Hongtao
Registered Capital: CNY 6,300,000,000
Agricultural Bank of China Co., Ltd. Shanghai Branch
===========================================
Date of Registration: June 11, 1998
Registration No.: 310000000062305
Chief Executive: Liu Guiping
Zhejiang Province Financial Development Corporation
===========================================
Date of Registration: June 30, 1992
Registration No.: 330000000030146
Legal Form: State-Owned
Enterprise
Chief Executive: Xue Xiaohang
Registered Capital: CNY 2,000,000,000
Shanghai Construction Property Development Co., Ltd.
===========================================
Date of Registration: December 31, 2001
Registration No.: 310105000193838
Legal Form: One-person Limited
Liability Company
Chief Executive: Pei Jianqun
Registered Capital: CNY 1,000,000,000
MANAGEMENT
Zhang Lijun, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Gender: M
Age: 57
Qualification: Postgraduate
Working experience
(s):
From 2010 to present, working in SC as legal representative, chairman
and general manager
Director
----------
Liu Zhanbin
Liu Bo
Li Benming
Wu Zhijun
Wu Yizhong
Zhang Lijun
Independent
Director
---------------------------
Wang Zhenchuan
Wang Fusheng
Chen Shulan
BUSINESS OPERATION
SC’s registered business scope includes purchasing and selling chemical
raw materials and products (excluding
hazardous and poisonous chemicals), importing
and exporting with permits; the following items are limited to branches:
manufacturing medicine devices and pharmaceutical machinery (excluding items
specially regulated by state), medicine and pharmaceutical commerce, practice
production; manufacturing purified water, drinking, starch, feed additive,
foods, cosmetics and related packaging and printing; manufacturing avermectins;
manufacturing and selling health products (lotion); manufacturing and selling
health care food and daily chemicals.
SC is mainly engaged in manufacturing western medicine, traditional
Chinese medicine preparation, western medicine raw materials, biological
engineering medicine, health care products
Brand: 
SC’s products mainly include: Antibiotics, Chemical medicine
preparation, Traditional Chinese medicines, OTC medicines and health care
products, Medicine logistics, Bioengineering, ETC.
SC sources its materials 80% from domestic market, and 20% from overseas
market. SC sells 90% of its products in domestic market, and 10% 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.
*Major Suppliers:
---------------------
Harbin Pharm Group Sanjing Pharmaceutical Co., Ltd.
Harbin Hengtong Development Industry Corporation
Harbin Kangling Technology Development Co., Ltd
Harbin Pharm Group Bioengineering Co., Ltd.
Harbin Pharm Purchasing & Sales Co., Ltd.
Heilongjiang Harbin Pharm Liu Wuda Lianchi Spring Water Co., Ltd.
*Major Customers:
-----------------------
Harbin Pharm Group Sanjing Pharmaceutical Co., Ltd.
Harbin Pharm Group Harbin Linglan Medicine Sales Co., Ltd.
Harbin Hengtong Development Industry Corporation
Staff &
Office:
--------------------------
SC is known to have approx. 19,188
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is known to
invest in the following companies:
Harbin Pharm Group Medicine Co., Ltd.
Harbin Pharm Group Shiyitang Chinese Medicine Crude Drugs Co., Ltd.
Harbin Shiyitang Huana Medicine Co., Ltd.
Harbin Pharm Group Sanjing Pharmaceutical Co., Ltd.
Harbin Pharm Group Sanjing Jiabin Medicine Co., Ltd.
Hayao Cihang Pharmaceutical Co., Ltd.
Sichuan Shenghe Sanjing Pharmaceutical Co., Ltd.
Hunan Sanjing Medicine Commercial Co., Ltd.
Nanjing Sanjing Medicine Co., Ltd.
Harbin Sanjing New Medicine Co., Ltd.
Harbin Sanjing Packaging Materials Co., Ltd.
Harbin Pharm Group Property Management Co., Ltd.
Heilongjiang Harbin Pharm Liu Wuda Lianchi Spring Water Co., Ltd.
Harbin Pharm Group Harbin Linglan Medicine Sales Co., Ltd.
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’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.
BANKING
Basic Bank:
Industrial Bank Co., Ltd. Harbin Hayao Road Sub-branch
AC#: 562010100100119039
Bank of China
AC#: N/a
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Mar. 31,
2014 |
|
1,764,640 |
1,641,522 |
|
|
Held for trading
financial assets |
0 |
0 |
|
Notes receivable |
2,694,529 |
2,650,855 |
|
Accounts receivable |
2,619,279 |
3,012,547 |
|
Advances to suppliers |
397,833 |
311,923 |
|
Interest receivable |
46,642 |
46,955 |
|
Dividends receivable |
0 |
0 |
|
Other receivable |
281,369 |
337,833 |
|
Inventory |
3,321,756 |
3,146,674 |
|
Non-current assets due within one year |
0 |
0 |
|
Other current assets |
21,556 |
20,777 |
|
|
------------------ |
------------------ |
|
Current assets |
11,147,604 |
11,169,086 |
|
Long-term equity investment |
25,393 |
25,138 |
|
Investment real estate |
24,430 |
23,908 |
|
Fixed assets |
3,898,759 |
3,819,763 |
|
Construction in progress |
637,691 |
764,319 |
|
Engineering materials |
0 |
0 |
|
Intangible assets |
433,606 |
430,298 |
|
Development expenditure |
2,182 |
1,764 |
|
Goodwill |
7,799 |
7,799 |
|
Long-term prepaid expenses |
44,241 |
44,837 |
|
Deferred income tax assets |
232,919 |
237,943 |
|
Other non-current assets |
724 |
722 |
|
|
------------------ |
------------------ |
|
Total assets |
16,455,348 |
16,525,577 |
|
|
============= |
============= |
|
Short-term loans |
27,000 |
42,000 |
|
Held for trading financial liabilities |
0 |
0 |
|
Notes payable |
1,532,390 |
1,183,421 |
|
Accounts payable |
3,217,353 |
3,425,901 |
|
Advances from clients |
463,408 |
361,664 |
|
Payroll payable |
573,890 |
485,315 |
|
Tax payable |
214,324 |
222,580 |
|
Interest payable |
0 |
0 |
|
Dividends payable |
80,000 |
80,000 |
|
Other payable |
783,003 |
994,166 |
|
Non-current liabilities due within one year |
101,883 |
102,062 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
6,993,251 |
6,897,109 |
|
Non-current liabilities |
688,955 |
688,699 |
|
|
------------------ |
------------------ |
|
Total liabilities |
7,682,206 |
7,585,808 |
|
Equities |
8,773,142 |
8,939,769 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
16,455,348 |
16,525,577 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
From Jan. 1,
2014 to Mar. 31, 2014 |
|
Revenue |
18,091,934 |
5,091,356 |
|
Cost of sales |
12,745,834 |
3,583,932 |
|
Taxes and surcharges |
104,025 |
36,875 |
|
Sales expense |
3,137,405 |
824,300 |
|
Management expense |
1,707,182 |
443,620 |
|
Finance expense |
-34,099 |
-8,500 |
|
Investment income |
15,125 |
-96 |
|
Non-operating income |
110,110 |
18,527 |
|
Non-operating expense |
48,782 |
255 |
|
Profit before tax |
299,306 |
222,185 |
|
Less: profit tax |
162,777 |
55,684 |
|
Profits |
136,529 |
166,501 |
Important Ratios
|
|
As of Dec. 31,
2013 |
As of Mar. 31,
2014 |
|
*Current ratio |
1.59 |
1.62 |
|
*Quick ratio |
1.12 |
1.16 |
|
*Liabilities to assets |
0.47 |
0.46 |
|
*Net profit margin (%) |
0.75 |
3.27 |
|
*Return on total assets (%) |
0.83 |
1.01 |
|
*Inventory / Revenue ×365/90 |
68 days |
56 days |
|
*Accounts receivable / Revenue ×365/90 |
53 days |
54 days |
|
*Revenue / Total assets |
1.10 |
0.31 |
|
*Cost of sales / Revenue |
0.70 |
0.70 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIRLY
GOOD
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
SC’s short-term loans are in an average level.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.33 |
|
|
1 |
Rs.99.42 |
|
Euro |
1 |
Rs.80.32 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
NNA |
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.