MIRA INFORM REPORT
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Report Date : |
06.05.2014 |
IDENTIFICATION DETAILS
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Name : |
WUHAN GRAND HOYO CO., LTD. |
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Registered Office : |
No. 1, 6/f, Building 3, International Enterprise Centre No. 1 of Guanshan 2nd Road, Donghu New Technology Development Zone, Wuhan, Hubei Province 430079 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
13.04.2000 |
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Com. Reg. No.: |
420100000031337 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject includes developing,
researching and technology service of biology engineering, new materials, electronic
information. importing the materials, machinery, instrument, parts and
technology needed for its products; processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement; manufacturing pharmaceutical Ingredients.
manufacturing and selling food additives: Hoyo Brand L-cysteine, the
L-cysteine hydrochloride salt |
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No. of Employees |
240 |
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 : |
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, 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 and address
WUHAN GRAND HOYO CO.,
LTD.
NO. 1, 6/F, BUILDING 3, INTERNATIONAL ENTERPRISE CENTRE
NO. 1 OF GUANSHAN 2ND ROAD, DONGHU NEW TECHNOLOGY DEVELOPMENT ZONE, WUHAN, HUBEI PROVINCE 430079 PR CHINA
TEL: 86 (0) 27-87403608
FAX: 86 (0) 27-87403628
***Note: The (399 Luo Yu Road, Zhou Dao Quan Wuhan 430070 China.) was SC’s former operation address.
EXECUTIVE
SUMMARY
DATE OF REGISTRATION : APRIL 13, 2000
REGISTRATION NO. : 420100000031337
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE : QIAN ZHIQIANG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 50,000,000
staff : 240
BUSINESS CATEGORY : MANUFACTURING & trading
Revenue : CNY 255,630,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 89,690,000 (AS OF DEC. 31, 2013)
WEBSITE : www.whuhoyo.com
E-MAIL : whuhoyo@public.wh.hb.cn
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25 = 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.: 420100000031337 on April 13, 2000.
SC’s Organization Code Certificate No.: 71799172-9
SC’s registered capital: CNY 50,000,000
SC’s paid-in capital: CNY 50,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010 |
Legal Representative |
Zhou Jianzhong |
Qian Zhiqiang |
Current Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wuhan University Assets Operating Investment Management Co., Ltd. |
24.60 |
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Wuhan Wuyao Science & Technology Co., Ltd. |
4.00 |
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Wuhan East-lake Venture Capital Co. Ltd. |
6.40 |
|
Wuhan Sanzhen Industry Holding Co., Ltd. |
10.00 |
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Grand Pharma (China) Co., Ltd. (Former Name: Wuhan Grand Pharmaceutical Group Co., Ltd.) |
52.00 |
|
Liu Aifu |
3.00 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Qian Zhiqiang |
RECENT
DEVELOPMENT
SC has obtained the certificate of ISO 22000:2005
SHAREHOLDER
CHART & BACKGROUND
Name % of Shareholding
Wuhan University Assets Operating Investment Management Co., Ltd. 24.60
Wuhan Wuyao Science & Technology Co., Ltd. 4.00
Wuhan East-lake Venture Capital Co. Ltd. 6.40
Wuhan Sanzhen Industry Holding Co., Ltd. 10.00
Grand Pharma (China) Co., Ltd.
(Former Name: Wuhan Grand Pharmaceutical Group Co., Ltd.) 52.00
Liu Aifu 3.00
Wuhan University Assets Operating Investment Management Co., Ltd.
-------------------------------------------------
Date of Registration: September 21, 2005
Registration No.: 420100000045262
Legal Form: Sole State-Owned Enterprise
Chief Executive: Ying Weiwei
Registered Capital: CNY 152,000,000
Wuhan Wuyao Science & Technology Co., Ltd.
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Date of Registration: June 10, 2003
Registration No.: 420100000270253
Legal Form: Limited Liabilities Company
Chief Executive: Yang Bo
Registered Capital: CNY 5,000,000
Wuhan East-lake Venture Capital Co. Ltd.
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Date of Registration: December 27, 1999
Registration No.: 420100000035470
Legal Form: Limited Liabilities Company
Chief Executive: Wang Jianguo
Registered Capital: CNY 133,510,000
Wuhan Sanzhen Industry Holding Co., Ltd.
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Date of Registration: April 17, 1998
Registration No.: 420100000071259
Legal Form: Shares Limited Company
Chief Executive: Wang Xianbing
Registered Capital: CNY 709,569,692
Grand Pharma (China) Co., Ltd.
(Former Name: Wuhan Grand Pharmaceutical Group Co., Ltd.)
Date of Registration: 420100400000587
Registration No.: February 24, 1990
Legal Form: Chinese-foreign equity joint venture enterprise
Chief Executive: Xie Guofan
Registered Capital: CNY 185,000,000
Web: www.wuhan-pharm.com
MANAGEMENT
Qian Zhiqiang , Legal Representative, Chairman and General Manager
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Gender: M
Age:
Qualification: University
Working experience (s):
Before, worked in SC as general manager
At present, working in SC as legal representative, chairman and general manager
BUSINESS
OPERATION
SC’s registered business scope includes developing, researching and technology service of biology engineering, new materials, electronic information, etc, technology products; manufacturing and selling developed products; exporting its products; exporting products manufactured by other companies using Company’s technologies; importing the materials, machinery, instrument, parts and technology needed for its products; processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement; manufacturing pharmaceutical Ingredients (lysine hydrochloride, arginine hydrochloride, acetyl cysteine, carbocisteine, histidine hydrochloride, cysteine hydrochloride, acetyl tyrosine); manufacturing and selling food additives: Hoyo Brand L-cysteine, the L-cysteine hydrochloride salt (L-cysteine hydrochloride - water), L-aspartic acid, L-leucine, L-tyrosylacid, L-histidine, L-cystine, DL-methionine (DL-methionine), L-methionine (L-methionine). (with permit if needed)
SC is mainly engaged in manufacturing and selling amino acid.
SC’s products mainly include:
Cysteine series product and its derivatives (5)
L-Form Amino Acids (6)
DL-Form Amino Acids (3)
Acetyl Amino Acids (12)
Ester Amino Acids (14)
Compound Salts of Amino Acids (5)
SC sources its materials 100% from domestic market. SC sells 30% of its products in domestic market, and 70% to the overseas market, mainly USA, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customer*
---------------------
Pacific Rainbow International Inc.
Staff & Office:
--------------------------
SC is known to have approx. 240 staff at present.
SC owns an area as its operating office & factory of approx. 140,000 sq. meters at the heading address.
RELATED
COMPANY
SC is known to have 2 subsidiaries at present,
Hubei Grand Hoyo Biology Technology Co., Ltd.
Registration No.: 420710000002889
Date of Registration: January 29, 1999
Legal Form: Limited Liabilities Company
Registered Capital: CNY 5,000,000
Legal Representative: Huang Jianyong
Wuhan Grand Hoyo Pharmaceutical Co., Ltd.
Registration No.: 420100000105966
Date of Registration: July 8, 2002
Legal Form: Limited Liabilities Company
Registered Capital: CNY 20,500,000
Legal Representative: Zhang Bangguo
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
Basic Bank:
China Construction Bank Guanggu Sub-branch
AC#: 42001865608050003340
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
110 |
24,350 |
21,510 |
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Notes receivable |
0 |
5,820 |
22,330 |
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Accounts receivable |
30,220 |
18,100 |
20,940 |
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Other receivable |
0 |
220 |
220 |
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Advances to suppliers |
0 |
1,670 |
6,190 |
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Inventory |
0 |
27,490 |
43,300 |
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Non-current assets within one year |
0 |
0 |
0 |
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Other current assets |
960 |
0 |
20 |
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------------------ |
------------------ |
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Current assets |
31,290 |
77,650 |
114,510 |
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Long-term investment |
0 |
130 |
0 |
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Fixed assets |
2,270 |
23,970 |
30,090 |
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Construction in progress |
0 |
7,560 |
3,520 |
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Long-term prepaid expenses |
0 |
0 |
0 |
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Intangible assets |
0 |
3,130 |
3,240 |
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Deferred income tax assets |
0 |
510 |
1,310 |
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Other non-current assets |
0 |
0 |
0 |
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------------------ |
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Total assets |
33,560 |
112,950 |
152,670 |
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============= |
============= |
============= |
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Short-term loans |
0 |
0 |
0 |
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Notes payable |
0 |
0 |
0 |
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Accounts payable |
500 |
7,270 |
12,560 |
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Payroll payable |
0 |
60 |
3,060 |
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Taxes payable |
-360 |
60 |
-60 |
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Advances from clients |
0 |
1,620 |
1,220 |
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Dividends payable |
0 |
28,370 |
44,010 |
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Other payable |
0 |
2,050 |
2,190 |
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Other current liabilities |
-10 |
2,000 |
0 |
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------------------ |
------------------ |
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Current liabilities |
130 |
41,430 |
62,980 |
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Non-current liabilities |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Total liabilities |
130 |
41,430 |
62,980 |
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Equities |
33,430 |
71,520 |
89,690 |
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------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
33,560 |
112,950 |
152,670 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Revenue |
95,570 |
226,660 |
255,630 |
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Cost of sales |
26,410 |
189,480 |
237,760 |
|
Sales expense |
0 |
6,040 |
7,930 |
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Management expense |
1,550 |
15,020 |
22,220 |
|
Finance expense |
0 |
1,440 |
2,430 |
|
Profit before tax |
74,000 |
18,940 |
21,440 |
|
Less: profit tax |
0 |
3,020 |
3,360 |
|
74,000 |
15,920 |
18,080 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
*Current ratio |
240.69 |
1.87 |
1.82 |
|
*Quick ratio |
240.69 |
1.21 |
1.13 |
|
*Liabilities to assets |
0.004 |
0.37 |
0.41 |
|
*Net profit margin (%) |
77.43 |
7.02 |
7.07 |
|
*Return on total assets (%) |
220.50 |
14.09 |
11.84 |
|
*Inventory / Revenue ×365 |
-- |
44 days |
62 days |
|
*Accounts receivable / Revenue ×365 |
116 days |
29 days |
30 days |
|
*Revenue / Total assets |
2.85 |
2.01 |
1.67 |
|
*Cost of sales / Revenue |
0.28 |
0.84 |
0.93 |
FINANCIAL
COMMENTS
PROFITABILITY: FAIRLY GOOD
The revenue of SC appears fairly good in its line, and it increased year by year.
SC’s net profit margin is fairly good in three years.
SC’s return on total assets is fairly good in three years.
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 appear average.
SC has no short-term loans in three years.
SC’s revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.05 |
|
|
1 |
Rs.101.32 |
|
Euro |
1 |
Rs.83.34 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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|
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 |
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|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.