MIRA
INFORM REPORT
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Report Date : |
16.09.2014 |
IDENTIFICATION DETAILS
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Name : |
HEBEI SHENGXUE DACHENG PHARMACEUTICAL CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
30.05.1997 |
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Com. Reg. No.: |
130124000008377 |
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Legal Form : |
Limited liabilities company |
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Line of Business : |
Manufacturing and selling active pharmaceutical ingredient
and importing raw materials & accessories, machinery, components, and
technology |
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No. of Employees |
695 |
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 – June 01, 2014
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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 and address
HEBEI SHENGXUE
DACHENG PHARMACEUTICAL CO., LTD.
NO. 50 SHENGXUE ROAD, LUANCHENG COUNTY, SHIJIAZHUANG
HEBEI PROVINCE 051430 PR CHINA
TEL: 86 (0) 311-85409124/85409207
FAX: 86 (0) 311-85409257
EXECUTIVE SUMMARY
DATE OF REGISTRATION : MAY 30, 1997
REGISTRATION NO. : 130124000008377
LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : WANG JIANFENG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 46,995,196
staff : 695
BUSINESS CATEGORY : MANUFACTURING & TRADING
REVENUE : CNY 164,196,000 (JAN. 1, 2013 TO JUL. 31, 2013)
EQUITIES : CNY 176,828,000 (AS OF JUL. 31, 2013)
WEBSITE : www.dcpharma.cn
E-MAIL : `z
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRly steady
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.23 = 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 limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 130124000008377 on May 30, 1997.
SC’s Organization Code Certificate No.: 10471856-X
SC’s registered capital: CNY 46,995,196
SC’s paid-in capital: CNY 46,995,196
Registration Change Record:-
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Date |
Change of Contents |
Before the change |
After the change |
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Legal Representative |
Gu Yunhua |
Li Jindong |
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Registered Capital |
CNY 7,000,000 |
CNY 13,000,000 |
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Registered Capital |
CNY 13,000,000 |
CNY 28,460,000 |
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-- |
Registration
No. |
1301241000039 |
130124000008377 |
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2012 |
Registered Capital |
CNY 28,460,000 |
CNY 46,995,196 |
Current Co search indicates SC’s shareholders & chief executives are as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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51 |
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Zhejiang Shenghua Biok Biology Co., Ltd. |
49 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman, and General Manager |
Wang Jianfeng |
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Director |
Liu Tiejun刘 |
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Li Qiang |
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Chen Weiqun |
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Zhang Wenjun |
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Supervisor |
Yang Chunfang |
|
Yuan Fang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name % of Shareholding
China Nuclear Uranium Corporation 51
Zhejiang Shenghua Biok Biology Co., Ltd. 49
China Nuclear Uranium Corporation
=============================
Registration No.: 100000000018485
Date of Registration: November 27, 1995
Legal Form: One-person Limited Liabilities Company
Registered Capital: CNY 148,000,000
Legal Representative: Du Yunbin
Zhejiang Shenghua Biok Biology Co., Ltd.
=================================
Registration No.: 330000400001808
Legal Form: Shares Limited Company
Registered Capital: CNY 405,549,248
Legal Representative: Shen Detang
Zhejiang Shenghua Biok Biology Co., Ltd. is one of the leading manufacturers and exporter specialized in bio-agrochemicals, medicaments for animal nutrition and health in China. BIOK is a public listed company (code: 600226) in Shanghai Stock Exchange Market since 1999.
Add: Zhongguan Industrial Park, Deqing, Zhejiang, 313220 China
International Trade Division:
Address: Room 904 & 906, Skyline Plaza, 181 Tianmushan Road, Hangzhou 310013, Zhejiang, China
Tel: +86 (0) 571-87788551/85528553
Fax: +86 (0) 571-87788550
Web: www.biok.com
Email: biok@biok.com
MANAGEMENT
Wang Jianfeng , Legal Representative, Chairman and General Manager
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Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general manager
Director
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Liu Tiejun
Li Qiang李
Chen Weiqun
Zhang Wenjun
Supervisor
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Yang Chunfang
Yuan Fang
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling active pharmaceutical ingredient (API) (Terramycin, Oxytetracycline, and Streptomycin Sulfate-production address is the heading one- No. 17 Fuqiangxi Road, Luancheng County, Shijiazhuang, Hebei Province, the operating period is to December 31, 2015), veterinary drugs (Streptomycin Sulfate, Terramycin, and Oxytetracycline, the operating period is to July 29, 2015), and feed additive (Vitamin I: VB2, the operating period is to August 7, 2013); exporting its products and technology, and importing raw materials & accessories, machinery, components, and technology.
SC is mainly engaged in manufacturing and selling active pharmaceutical ingredients (APIs).
SC’s products mainly include:
Oxytetracycline
Oxytetracycline Hydrochloride
Streptomycin Sulphate
Colistin Sulphate
SC sources its materials 100% from domestic market. SC sells 70% in domestic market, and 30% to overseas market, mainly Southeast Asia, 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:
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Laboratorios Erma S.A.
Staff & Office:
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SC is known to have approx. 695 staff at present.
SC owns an area as its operating office and factory, but the detailed information is unknown.
***Note: SC’s other factory locates in No. 50 Shengxue Road, Luancheng County, Shijiazhuang City, Hebei Province
RELATED COMPANY
SC is known to have a subsidiary at present,
Hebei Shengxue Dacheng Tangshan Pharmaceutical Co., Ltd.
Registration No.: 130221000010154
Date of Registration: August 26, 2002
Legal Form: One-person Limited Liabilities Company
Registered Capital: CNY 3,000,000
Legal Representative: Liu Tiejun
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
The bank information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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38,117 |
19,994 |
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Notes receivable |
5,876 |
5,955 |
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Accounts receivable |
20,829 |
9,551 |
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Advances to suppliers |
8,012 |
8,599 |
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Dividends receivable |
7,978 |
7,978 |
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Other receivable |
76,487 |
144,919 |
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Inventory |
32,107 |
50,611 |
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Deferred expenses |
0 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
189,406 |
247,607 |
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Long-term investment |
295 |
295 |
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Fixed assets |
107,577 |
99,719 |
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Construction in progress |
0 |
8,682 |
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Intangible assets |
938 |
786 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
1,232 |
102 |
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Other non-current assets |
0 |
0 |
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Total assets |
299,448 |
357,191 |
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============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
27,318 |
21,049 |
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Wages payable |
10,697 |
10,078 |
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Taxes payable |
4,831 |
-975 |
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Advances from clients |
9,117 |
5,406 |
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Dividends payable |
77,318 |
55,318 |
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Other payable |
19,096 |
17,228 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
148,377 |
108,104 |
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Non-current liabilities |
54,766 |
49,766 |
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Total liabilities |
203,143 |
157,870 |
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Equities |
96,305 |
199,321 |
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Total liabilities & equities |
299,448 |
357,191 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Revenue |
407,267 |
298,097 |
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Cost of sales |
337,258 |
253,101 |
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Taxes and surcharges |
1,959 |
1,619 |
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Sales expense |
15,299 |
8,803 |
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Management expense |
23,573 |
32,872 |
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Finance expense |
5,212 |
3,596 |
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Non-operating income |
496 |
663 |
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Non-operating expense |
512 |
415 |
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Profit before tax |
27,968 |
-1,549 |
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Less: profit tax |
5,362 |
1,130 |
|
22,606 |
-2,679 |
Financial Summary
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Unit: CNY’000 |
As of Jul. 31, 2013 |
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Long term investment |
295 |
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Total assets |
370,152 |
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Total liabilities |
193,324 |
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Equities |
176,828 |
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Unit: CNY’000 |
Jan. 1, 2013 to Jul. 31, 2013 |
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Revenue |
164,196 |
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Profits |
3,583 |
Important Ratios
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
As of Jul. 31, 2013 |
|
*Current ratio |
1.28 |
2.29 |
-- |
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*Quick ratio |
1.06 |
1.82 |
-- |
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*Liabilities to assets |
0.68 |
0.44 |
0.52 |
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*Net profit margin (%) |
5.55 |
-0.90 |
2.18 |
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*Return on total assets (%) |
7.55 |
-0.75 |
0.97 |
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*Inventory / Revenue ×365 |
29 days |
62 days |
-- |
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*Accounts receivable / Revenue ×365 |
19 days |
12 days |
-- |
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*Revenue / Total assets |
1.36 |
0.83 |
0.44 |
|
*Cost of sales / Revenue |
0.83 |
0.85 |
-- |
FINANCIAL COMMENTS
PROFITABILITY: AVERAGE
The revenue of SC appears fairly good in its lines.
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 normal 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 has no short-term loans.
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 Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial conditions. Taking into consideration of SC’s good background, general performance, reputation as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.99 |
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|
1 |
Rs.99.09 |
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Euro |
1 |
Rs.79.03 |
INFORMATION DETAILS
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Report Prepared
by : |
PDT |
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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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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.