MIRA
INFORM REPORT
|
Report Date : |
24.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG HUAYI PHARMACEUTICAL
CO., LTD. |
|
|
|
|
Registered Office : |
No. 15, Shuangfeng Road, Yi’nan Industrial Park, Fotang
Town, Yiwu, Zhejiang Province, 322002 PR |
|
|
|
|
Country : |
China |
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|
|
|
Financials (as on) : |
31.12.2013 |
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|
|
Date of Incorporation : |
07.09.2000 |
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|
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Com. Reg. No.: |
330700400002656 |
|
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|
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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|
|
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Line of Business : |
Engaged
in manufacturing and selling pharmaceutical intermediates and active
pharmaceutical ingredients. |
|
|
|
|
No. of Employees |
18 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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
ZHEJIANG HUAYI PHARMACEUTICAL CO., LTD.
NO. 15, SHUANGFENG ROAD, YI’NAN INDUSTRIAL PARK,
FOTANG TOWN, YIWU, ZHEJIANG PROVINCE, 322002 PR CHINA
TEL: 86 (0) 579-89948265/89948336 FAX:
N/A
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 7, 2000
REGISTRATION NO. :
330700400002656
REGISTERED LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. LI BANGLIANG (CHAIRMAN)
STAFF STRENGTH :
18
REGISTERED CAPITAL : USD 19,500,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 122,710,000 (AS OF DEC. 31,
2013)
EQUITIES : CNY 153,520,000 (AS OF DEC. 31,
2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2346=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 Renminbi
Note: SC’s current contact ways should be the heading
one, while the given contact numbers were the former ones.
SC was registered as a Chinese-foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Sep. 7, 2000.
Company
Status: Chinese-foreign equity joint venture enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing and selling
pharmaceutical intermediates (do not involve drugs), active
pharmaceutical ingredients, medicines (tablets, capsules, granules,
pharmaceutical production range see <Drug Production License>, validity
period as of Nov. 10, 2015) (with permit if needed).
SC is
mainly engaged in manufacturing and selling pharmaceutical intermediates and
active pharmaceutical ingredients.
Mr. Li
Bangliang has been legal representative and chairman of SC since 2000.
SC is known
to have approximately 180 employees at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of Yiwu.
Our checks reveal that SC owns the total premise about 70,000 square meters.
http://www.huayipharm.com/
The
design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-mail: zhp@zhp.com.cn
SC has already passed the ISO14001 environment management system
authentication and GMP certificate, was awarded as Zhejiang Province New and
High-technology Enterprise, the Foreign Investment Technologically Advanced
Enterprise, the Jinhua Well-known Company, etc.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2012-3 |
Registered capital |
USD 8,000,000 |
Present amount |
|
Shareholding |
Yiwu Huayi Investment Co., Ltd. 36% USUN Fine Chemical Products Limited 3% Esteve Quimica S.A. (Spain) 35 % Quimifina S.A. (Spain) 16% Provesan S.A. (Switzerland) 10% |
Present ones |
Subject passed the annual inspection of 2012 with
Administration for Industry & Commerce.
Organization Code: 721099303
See below for SC as executive party (defendant).
|
Executed Party |
Zhejiang Huayi Pharmaceutical Co., Ltd. |
|
Court |
Yiwu City People's Court |
|
Date
of Case |
|
|
Case Number |
(2010)03712 |
|
Claim
Amount |
RMB 10 |
|
Case
Status |
Completed |
|
Executed Party |
Zhejiang Huayi Pharmaceutical Co., Ltd. |
|
Court |
Yiwu City People's Court |
|
Date
of Case |
|
|
Case Number |
(2010)02974 |
|
Claim
Amount |
RMB 12,345 |
|
Case
Status |
N/A |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yiwu Huayi Investment Co., Ltd. 70.15
USUN Fine Chemical
Products Limited
4.82
Esteve Quimica S.A. (Spain) 14.36
Quimifina S.A. (Spain)
6.57
Provesan S.A. (Switzerland)
4.10
Yiwu Huayi Investment Co., Ltd.
=======================
Incorporation date: Oct. 4, 1995
Registration no.:
330700000000826
Legal representative: Li
Bangliang
Legal form: Shares limited co.
Tel: 86-579-85471633
USUN Fine
Chemical Products Limited
======================
Registration no.: 320100000077625
Registered capital: CNY
5,000,000
Legal representative: Wang
Haizhong
Tel: +86-25-84574920 / 84574726
/ 84574075 / 84574295 / 84574238
Fax: +86-25-84574930 / 84574839
l
Legal representative and
chairman:
Mr. Li Bangliang, born in 1946, with university education,
senior engineer. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as chairman and legal representative;
Also working in Yiwu Huayi Investment Co., Ltd., Huadong Medicine
Co., Ltd., Hangzhou Huadong Chinese Herbal Medicine Co., Ltd. (literal
translation), Hangzhou Huadong Pharmacy Chain Co., Ltd., etc. as legal representative
l
General manager:
Mr. Jin Xuhu, born in 1963, with
university education. He is currently responsible for the daily management of
SC.
Working Experience(s):
At present Working in SC as general manager
Also working in East China Pharmaceutical
Group Limited as legal representative.
SC is
mainly engaged in manufacturing and selling pharmaceutical intermediates and
active pharmaceutical ingredients.
SC’s products mainly include:
API:
Pregabalin
Esomeprazole Sodium
Esomeprazole Magnesium
Enticavir
Clopidogrel Bisulfate
Telmisartan
Etc.
PI:
(S)-(+)-N,N-dimethyl-3-(1-naphthloxy)-3-(2-thienyl)-1-propanamine
oxalate
(S)-3-(dimethylamino)-1-(Thiefen-2-yl)
2-Chloromethyl-3,5-dimethyl-4-methoxy pyridine HCl
2-Hydroxymethyl-3.5-dimethyl-4-methoxy pyridine
EPEBT（intermediate
of pioglitazone HCL)
Etc.
SC sources its materials 95% from domestic market and 5%
from the overseas market, mainly India and Spain. SC sells 30% of its products
in domestic market, and 70% to overseas market, mainly Spain.
The buying terms of SC include Check, L/C, 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.
Note: SC’s management
declined to release its main clients and suppliers.
Huadong Medicine Co., Ltd.
Hangzhou Huadong Chinese Herbal Medicine Co., Ltd. (literal translation)
Hangzhou Huadong Pharmacy Chain Co., Ltd.
Hangzhou Huadong Medicine Group Investment Co., Ltd.
Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd.
Huadong Pharmaceutical (Hangzhou) Bailing Biotechnology Co., Ltd.
Huadong Pharmaceutical Supply Chain Management (Hangzhou) Co., Ltd.
SC is known to invest in
the following company:
Weifang
Hishine Pharmaceutical Co., Ltd.
===================
Registration no.: 370786200008033
Registered capital: CNY 20,000,000
Legal representative: Guan Fuliang
Tel: +86-536-2176822 2176828
Fax: +86-536-2170566
E-mail: sales@hishinepharm.com
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.
Bank
of China Yiwu Sub-branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
|
Cash & bank |
11,920 |
19,700 |
|
Notes receivable |
2,020 |
680 |
|
Inventory |
54,460 |
73,220 |
|
Accounts
receivable |
19,570 |
33,870 |
|
Advances to
suppliers |
1,370 |
2,210 |
|
Other
receivables |
30,530 |
16,000 |
|
Other current
assets |
0 |
150 |
|
|
------------------ |
------------------ |
|
Current assets |
119,870 |
145,830 |
|
Long-term
investments |
22,180 |
10,180 |
|
Fixed assets net
value |
47,060 |
51,980 |
|
Projects under
construction |
420 |
450 |
|
Intangible
assets |
15,520 |
9,710 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
205,050 |
218,150 |
|
|
============= |
============= |
|
Short loans |
29,000 |
0 |
|
Accounts payable |
15,130 |
31,090 |
|
Advances from
customers |
1,970 |
310 |
|
Welfare
Payable |
5,630 |
5,630 |
|
Taxes payable |
-1,480 |
-1,660 |
|
Withdraw the expenses
in advance |
40 |
10 |
|
Other accounts
payable |
1,230 |
930 |
|
Other
current liabilities |
10 |
1,690 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
51,530 |
38,000 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
51,530 |
38,000 |
|
Shareholders
equities |
153,520 |
180,150 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
205,050 |
218,150 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
|
Turnover |
122,710 |
243,040 |
|
Cost of goods
sold |
107,910 |
191,290 |
|
Taxes
and additional of main operation |
640 |
1,420 |
|
Income
from other operation |
190 |
1,450 |
|
Sales expense |
5,060 |
4,630 |
|
Management expense |
23,730 |
28,340 |
|
Finance expense |
-1,730 |
1,780 |
|
Investment
income |
0 |
30 |
|
Subsidy income |
1,970 |
4,760 |
|
Non-operating
income |
140 |
30 |
|
Non-operating expense |
1,260 |
400 |
|
Profit before
tax |
-11,850 |
21,450 |
|
Less: profit tax |
0 |
2,510 |
|
Net profit |
-11,850 |
18,940 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
*Current ratio |
2.33 |
3.84 |
|
*Quick ratio |
1.27 |
1.91 |
|
*Liabilities
to assets |
0.25 |
0.17 |
|
*Net profit margin
(%) |
-9.66 |
7.79 |
|
*Return on
total assets (%) |
-5.78 |
8.68 |
|
*Inventory
/Turnover ×365 |
162 days |
110 days |
|
*Accounts
receivable/Turnover ×365 |
59 days |
51 days |
|
*Turnover/Total
assets |
0.60 |
1.11 |
|
* Cost of
goods sold/Turnover |
0.88 |
0.79 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line, but it decreased in 2013.
l
SC’s net profit margin is fairly good in 2012, but
fair in 2013.
l
SC’s return on total assets is fairly good in 2012,
but fair in 2013.
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 fairly
good level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan appears average in 2013.
l
SC’s turnover is in an average level in 2012, but
fair in 2013, 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.58.48 |
|
|
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.79.80 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
PDT |
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.