MIRA
INFORM REPORT
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Report Date : |
21.06.2014 |
IDENTIFICATION DETAILS
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Name : |
HUBEI GUANGJI PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 1, Jiangdi Road, Wuxue City, Hubei Province 435400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 (Consolidated) |
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Date of Incorporation : |
28.05.1993 |
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Com. Reg. No.: |
420000000022877 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
· Engaged in manufacturing large volume injection, pharmaceutical ingredients, tablets, granules, ointments, gels, creams; manufacturing and selling food additives and feed additives; manufacturing and selling bottled pure water; catering services; import and export of commodities and technology; manufacturing inner packaging materials directly contact with drugs; manufacturing and selling single feed. · Subject Product ranges includes Riboflavin (Kosher Certified), Riboflavin 5 Phosphate Sodium (Kosher Certified, Chinese GMP Cert.), and Biotin. |
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No of Employees : |
(Approximately) 937 (including 478
production staff, 102 sales staff, 182 technological staff, 22 financial
staff and 153 administration staff) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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, 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 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. Debt overhang from its credit-fueled stimulus program in 2008-10,
particularly among local governments, and soaring property prices challenge
policy makers currently. Their efforts to cool a red-hot property market in
2011 appear to have curbed inflation, but contributed to slower GDP growth in
2012 and 2013. Slow recovery in Europe and other key export markets have also
retarded growth. 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 fixed investments
and exports in the future. 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
hubei guangji pharmaceutical co., ltd.
no. 1, jiangdi road, wuxue city,
hubei province 435400 PR CHINA
TEL: 86 (0) 713-6216068 FAX: 86 (0) 713-6212108
EXECUTIVE SUMMARY
INCORPORATION DATE : may 28, 1993
REGISTRATION NO. : 420000000022877
REGISTERED LEGAL FORM : shares limited company
CHIEF EXECUTIVE :
MR. he mi (CHAIRMAN)
STAFF STRENGTH :
937
REGISTERED CAPITAL : CNY 251,705,513
BUSINESS LINE :
manufacturing & TRADING
TURNOVER : CNY 487,080,000 (Consolidated, As of Dec. 31, 2013)
EQUITIES : CNY 735,041,000 (Consolidated, As of Dec. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.231= 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: SC’s correct name shall be the heading one instead of the given one.
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 May 28, 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 characteristics of the
shares limited co. are as follows: The establishment of the co.
requires at least five promoters and at least three of them must be PR-
China controlled legal persons. Natural person can not be allowed to serve
as promoters. The minimum registered capital
of a co. is CNY 10M. while that of the co. with foreign investment is CNY
30M. The total capital of a co. which propose to apply for publicly listed
must not less than CNY 50M. The board of directors must
consist of an odd number 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 three
years of the offer. Directors can not transfer the shares they hold in the
co. during their terms of office. 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 large volume
injection, pharmaceutical ingredients, tablets, granules, ointments, gels, creams; manufacturing and selling food additives and
feed additives; manufacturing and selling bottled pure water; catering services; import and export of
commodities and technology; manufacturing inner packaging materials directly
contact with drugs; manufacturing and selling single feed.
SC is mainly
engaged in manufacturing and selling active pharmaceutical ingredients and
pharmaceutical preparation.
Mr. He Mi is the legal representative, chairman and deputy general manager of SC
at present.
SC is
known to have approx. 937 employees at present, including 478 production staff, 102 sales staff, 182
technological staff, 22 financial staff and 153 administration staff.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Wuxue. Our checks reveal that SC owns the total premise about 125,000 square
meters.
http://www.guangjipharm.com/
The design is professional and the content is well organized. At present, the
web is both in Chinese and English versions.
E-mail: stock@guangjipharm.com,
info@guangjipharm.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Reg. No. |
4200001000012 |
Present one |
SC has been listed as an A-Share company in Shenzhen Stock
Exchange Market with the stock code 000952 since 1999.
SC (abbreviated as GJPC hereinafter) has now developed into
a large state-owned pharmaceutical enterprise. SC is also the
production base of riboflavin designated by the State Pharmaceutical
Administration.
SC has got the certificate of Quality Management System Certificate,
etc.
Subject passed the annual
inspection of 2012 with Administration for Industry & Commerce.
Organization Code: 707016110
Tax No.: 421182707016110
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS: (As of March 31, 2014)
Name
% of Shareholding
Wuxue National Assets Operation Corp. 15.11
Zhang Guoming 0.88
Pang Chunxiang 0.57
Beijing
Jinxiu Dadi Old People’s Article Co., Ltd. (literal translation) 0.39
Jiang Gendi 0.35
CITIC Securities Co., Ltd.
Appointed Purchase Back Special Account 0.34
Li Guohui 0.33
Pang Yongpei 0.3
Xu Deming 0.28
Chen Xiongjun 0.28
Other Shareholders 81.17
Wuxue National Assets Operation Corp.
=============================
Reg.
No.: 421182000045495
Legal
representative: Zhang Zhian
Incorporation
date: Aug. 20, 2004
Legal
representative, Chairman and Deputy General Manager:
Mr. He Mi, born in 1941, senior engineer. He is currently responsible
for the overall management of SC.
Working
Experience(s):
Worked in Hubei Province Guangji Pharmaceutical Plant as workshop
director, technical section chief, deputy factory director, factory director
and secretary of the Party committee; and in Hubei Province Guangji Paper
Manufacturing Plant as deputy factory director;
At present Working in SC as legal
representative, chairman and deputy general manager
Also working in Guangji
Pharmaceutical (Mengzhou) Co., Ltd. and Hubei Puxin Industry Microbial
Technology Development Co., Ltd. as legal representative
Vice General
Managers:
Wang Hongyong
Ruan Zhongyi
Wang Xin
Song Tiande
Guo Shaozhi
Directors:
Li Gang
Wang Zhuanxu
Chen Quanyun
Supervisors
Fu Jianxin
He Feng
Song Tiande
Guo Wenchao
Xiang Yanghua
SC is mainly
engaged in manufacturing and selling active pharmaceutical ingredients and
pharmaceutical preparation.
SC’s products mainly include:
Riboflavin (Kosher Certified), Riboflavin
5 Phosphate Sodium (Kosher Certified, Chinese GMP Cert.), and Biotin.
SC’s Brand: 
SC
sources its materials 95% from domestic market, and 5% from overseas market. SC
sells 60% of its products in domestic market and 40% 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.
Note: SC refused to release its major suppliers and
clients.
Subsidiaries
· Hubei Guangji Pharmaceutical Jikang Medical Co., Ltd.
· Guangji Pharmaceutical (Mengzhou) Co., Ltd.
· Hubei Huisheng Pharmaceutical Co., Ltd.
· Hubei Puxin Industry Microbial Technology Development Co., Ltd. (literal translation)
Branch
· Guang’ao Paper Products Factory
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.
Industrial
and Commercial Bank of China Wuxue Sub-branch
AC#：1814077101000616109
Relationship:
Normal.
Consolidated
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
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Cash & bank |
111,039 |
125,013 |
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Inventory |
170,793 |
181,939 |
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Notes receivable |
10,338 |
8,571 |
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Accounts
receivable |
63,626 |
50,752 |
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Other Accounts
receivable |
62,990 |
25,124 |
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Advances to
suppliers |
31,992 |
24,415 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
450,778 |
415,814 |
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Fixed assets net
value |
639,827 |
652,369 |
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Held-to-maturity
investment |
0 |
6,000 |
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Projects under
construction |
215,529 |
203,073 |
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Project
materials |
3,054 |
8,376 |
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Long term
investment |
38,995 |
74,379 |
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Intangible
assets |
185,034 |
190,894 |
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Development
expenditure |
11,853 |
0 |
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Long-term
deferred expenses |
215 |
0 |
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Deferred assets |
6,540 |
5,067 |
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------------------ |
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Total assets |
1,551,825 |
1,555,972 |
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============= |
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Short loans |
184,216 |
251,482 |
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Notes payable |
100,990 |
127,700 |
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Accounts payable |
231,404 |
179,745 |
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Payroll payable |
28,165 |
18,869 |
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Dividend payable |
3,249 |
3,249 |
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Taxes payable |
-28,650 |
-33,951 |
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Other Accounts
payable |
136,665 |
75,410 |
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Advance from
clients |
15,287 |
14,618 |
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Non-current
liabilities maturing within one year |
18,000 |
0 |
|
Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
689,326 |
637,122 |
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Non-current
liabilities |
127,458 |
158,803 |
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|
------------------ |
------------------ |
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Total
liabilities |
816,784 |
795,925 |
|
Equities |
735,041 |
760,047 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
1,551,825 |
1,555,972 |
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============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2012 |
|
487,080 |
394,156 |
|
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Cost of goods sold |
427,202 |
380,562 |
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Taxes and additional of main operation |
1,789 |
1,832 |
|
Sales expense |
20,345 |
16,629 |
|
Management expense |
85,659 |
76,137 |
|
Finance expense |
28,982 |
25,978 |
|
Asset impairment loss |
6,246 |
12,407 |
|
Gains on the
changes in the fair value |
0 |
8 |
|
Investment income |
25,081 |
673 |
|
52,312 |
17,642 |
|
|
Non-operation expenses |
678 |
891 |
|
Profit before
tax |
-6,428 |
-101,957 |
|
Less: profit tax |
-1,472 |
1,592 |
|
Profits |
-4,956 |
-103,549 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.65 |
0.65 |
|
*Quick ratio |
0.41 |
0.37 |
|
*Liabilities
to assets |
0.53 |
0.51 |
|
*Net profit
margin (%) |
-1.02 |
-26.27 |
|
*Return on
total assets (%) |
-0.32 |
-6.65 |
|
*Inventory
/Turnover ×365 |
128 days |
168 days |
|
*Accounts
receivable/Turnover ×365 |
48 days |
47 days |
|
*Turnover/Total
assets |
0.31 |
0.25 |
|
* Cost of
goods sold/Turnover |
0.88 |
0.97 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good
in its line and it increased in 2013.
l
SC’s net profit margin is poor in 2012
and fair in 2013.
l
SC’s return on total assets is fair in both years.
l
SC’s cost of goods sold is high in 2012
and average in 2013, comparing with its turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a fair level in both years.
l
SC’s quick ratio is maintained in a
poor level in 2012 and a fair level in 2013.
l
The inventory of SC is fairly large in
both years.
l
The accounts receivable of SC is
maintained in an average level in both years.
l
The short-term loan of SC appears
average in 2013.
l
SC’s turnover is in a poor level in
both years, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
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.60.28 |
|
UK Pound |
1 |
Rs.102.77 |
|
Euro |
1 |
Rs.82.12 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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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.