MIRA
INFORM REPORT
|
Report Date : |
24.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
north china pharmaceutical co., ltd. |
|
|
|
|
Registered Office : |
No.
388, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.06.2014 |
|
|
|
|
Date of Incorporation : |
25.08.1992 |
|
|
|
|
Com. Reg. No.: |
130000000008365 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Subject is mainly
engaged in manufacturing and selling all kinds of pharmaceutical products. |
|
|
|
|
No. of Employees : |
15,450 (Including Subsidiaries) |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
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
north china pharmaceutical co., ltd.
no. 388, heping
east road, shijiazhuang, hebei PROVINCE, 050015 PR CHINA
TEL: 86 (0)
311-85993999/85992039 FAX: 86 (0)
311-86060942
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 25, 1992
REGISTRATION NO. : 130000000008365
REGISTERED LEGAL
FORM : Shares limited company
STAFF STRENGTH : 15,450
(including subsidiaries)
REGISTERED CAPITAL : CNY 1,630,804,729
BUSINESS LINE :
manufacturing & selling
TURNOVER : CNY
5,578,640,000 (Consolidated, JAN. 1 TO JUN. 30, 2014)
EQUITIES :
CNY 5,220,644,000 (Consolidated, AS OF JUN. 30, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION
: fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE : CNY 6.1366 =
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 headquarters address is the heading one, while
its sales office is located in the (
SC was registered as a shares limited company at
Hebei Provincial Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license).
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 co has independent property of legal person and enjoys property rights
of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co. requires at least two promoters and no
more than 200, half of whom shall be domiciled in The minimum registered capital of a co. is CNY The board of directors must consist 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 one year of the offer.
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 injection , tablets , granules, bulk drugs,
sterile bulk drugs , hard capsules, soft capsules , eye drops , oral solution ,
small volume injection , psychotropic drugs , gels, lyophilized powder
injection , a large volume injection; processing 6% kasugamycin WP , 47%
kasugamycin Wang WP copper , 2% kasugamycin agent, 40% carbendazim .
pyrimethanil WP , 72% of agricultural streptomycin sulfate soluble powder;
manufacturing and selling pharmaceutical intermediates, plant extracts , food
additives ( tomato lycopene , β- carotene ); cargo warehousing ,
transportation; importing and exporting commodities and technology, excluding
the items prohibited or limited by the country; pharmaceutical and chemical
technology transfer, technology development, technical consulting services;
machinery and equipment cleaning , electromechanical installation , calibration
maintenance; wholesaling and retailing food, packaging materials, cosmetics,
office supplies, labor supplies, daily merchandise, clothing , building
materials, communications equipment , electronic products, plastic rubber
products, automotive accessories, office furniture, lubricants , hardware,
instrumentation, pharmaceutical glass products, chemical reagents, mechanical equipment,
electrical machinery and spare parts; selling health supplies; domestic labor
dispatch; the operation of following items are limited to branches:
manufacturing pharmaceutical Excipients ( recombinant human serum albumin ) ,
suppositories , tinctures , powders, hollow capsules , mixture, pills , oral
liquid, solution; selling veterinary; wholesaling proprietary Chinese medicines
and chemical preparations , antibiotics, bulk drugs and their preparations ,
biochemical drugs, biological products , the second category of psychotropic
drugs; retailing planning supplies (excluding medicines, medical devices to be
approved) , health care products, pharmaceutical intermediates, plant extracts;
manufacturing medicinal bottles, household glass products, industrial oxygen;
wholesaling and retailing pre-packaged food, chemical products , steel and its
products, aluminum and its products, paper, non-ferrous metals, coke; R&D
of Chinese medicine, Chinese & Western medicine, bio-technology products,
pesticide and veterinary drug and integrated technologies.
SC is mainly engaged in manufacturing and selling all kinds of
pharmaceutical products.
Mr. Wang Sheping has been legal representative and chairman of SC since
2009.
SC is known to have approx. 15,450
employees (including subsidiaries) at present, including 11,081
production staff, 939 marketing staff, 2,546 technical staff, 242 financial
staff, 171 administrative staff and 471 R&D staff.
SC is currently operating
at the above stated address, and this address houses its operating office and
factory in the industrial zone of Shijiazhuang. Detailed premise information is
not available at present.
http://www.ncpc.com.cn It belongs to North China
Pharmaceutical Group Corp., including the information about SC. The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: yanghaijing@ncpc.com
SC was listed in Shanghai Stock Exchange
Market in 1994 with the stock code 600812.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2004 |
Registered capital |
CNY 1,169,394,189 |
CNY 761,909,302 |
|
2006 |
Registered capital |
CNY 761,909,302 |
CNY 1,028,577,558 |
|
2012-10 |
Registered
capital |
CNY
1,028,577,558 |
CNY
1,378,577,558 |
|
Unknown |
Registration
No. |
1300001000509 |
Present one |
|
2013 |
Registered
capital |
CNY
1,378,577,558 |
Present
amount |
Tax Registration Certificate No.:
130102104397700
Organization Code: 10439770-0
See below for SC as executive party
(defendant).
|
Executed Party |
North China
Pharmaceutical Co., Ltd. |
|
Court |
Shijiazhuang
Chang’an District People's Court |
|
Date of
Case |
April 28, 2014 |
|
Case Number |
(2014)
00200 |
|
Claim
Amount |
RMB 593,240.75 |
|
Case Status |
In process |
|
Executed Party |
North China
Pharmaceutical Co., Ltd. |
|
Court |
Shijiazhuang
Intermediate People's Court |
|
Date of
Case |
April 16, 2013 |
|
Case Number |
(2013)
00114 |
|
Claim
Amount |
RMB 15,723,109 |
|
Case Status |
Completed |
|
Executed Party |
North China
Pharmaceutical Co., Ltd. |
|
Court |
Shijiazhuang
Chang’an District People's Court |
|
Date of
Case |
March 22, 2012 |
|
Case Number |
(2012)
00266 |
|
Claim
Amount |
RMB 1 |
|
Case Status |
Completed |
Etc.
Remark: Due to the lack of
information, we are unable to provide the cause of action, judgment or other
information.
MAIN SHAREHOLDERS: (As of Jun. 30, 2014)
Name %
of Shareholding
Jizhong Energy Group Co., Ltd. 36.93
North China Pharmaceutical Group Corporation 17.58
Industrial and Commercial Bank of China-
Lion Stock Securities Investment Fund 2.68
Li Shihong 0.4
Jin Xiaofeng 0.37
Minsheng Life Insurance Company Limited -
Traditional Insurance Products 0.33
Huaxia Growth Securities Investment Fund 0.28
Zhao Chengjin 0.28
Orient Securities Co., Ltd. 0.27
Wang Guangxiang 0.25
Other shareholders 40.63
Jizhong
Energy Group Co., Ltd.
======================
Registration no.: 130500000015141
Registered
capital: CNY 6,816,722,800
Legal representative: Wang Sheping
North China Pharmaceutical Group Corporation
==================================
North China Pharmaceutical Group Corp.
(NCPC) is a leading pharmaceutical manufacturer in China. NCPC’s main business
covers: over 590 varieties, ranging from antibiotic bulks and formulations,
vitamins and nutrition products, biotech products, immunosuppressant, and
pesticide to veterinary drugs. Being one of the world leading antibiotic
producers both in technology and production with 50 years development,
pharmaceutical industry in key economic indexes, ranking one of the Top500
Enterprises and the best profit-makers in China
Registration no.:
130000000008902
Registered
capital: CNY 1,345,646,500
Legal
representative: Wang Sheping
Address: No. 388, Heping
East Road, Shijiazhuang, Hebei Province
Tel: +86- 311-85993999
Fax: +86-
311-86672430
Website: http://www.ncpc.com.cn
l
Legal representative and chairman:
Mr. Wang Sheping, senior engineer, born in
1956, with Master’s Degree. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2009 to present Working in SC as chairman and
legal representative;
Also working in
Jizhong Energy Group Co., Ltd., North China Pharmaceutical Group
Corporation etc. as legal representative
and chairman.
l
Vice Chairman and General Manager:
Mr. Liu Wenfu, senior engineer, born in 1962
with Master’s Degree. He is currently responsible for the daily management of
SC.
Working Experience(s):
Before 2009 Worked in North China Pharmaceutical Company Beta
Pharmaceutical Co., Ltd., North China Pharmaceutical Group Semisyntech Co., Ltd., North
China Pharmaceutical Group Corporation
From 2009 to
present Working in SC as vice chairman and general manager.
l
Vice Chairman:
Mr. Yang Haijing, senior accountant, born in
1971, with Master’s Degree. He is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working in SC as vice chairman.
l
Independent Directors:
Chen Jincheng
Yang Shengli
Wang Jinting
Shi Shaoxia
Guo Shichang
l
Directors:
Liu Guitong
Wei Ling
Wei Qingjie Etc.
l
Supervisors:
Zhuang Mingfeng
Yao Yunpeng
Xie Yanrui
Etc.
SC is mainly engaged in manufacturing and selling all kinds of
pharmaceutical products.
SC’s products mainly include: antibiotic bulks and formulations,
vitamins and nutrition products, biotech products, immunosuppressant, and
pesticide to veterinary drugs, etc.
SC sources its materials 70% from domestic market, mainly in Hebei, and
30% from overseas market. SC sells 85% of its products in domestic market, and
15% 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:
==============
SANOFI-AVENTIS
DEUTSCHLAND GMBH
AQUA-CHEM, INC.
Nantong Suzhong
Medicine Logistics Ltd.
Hebei Huafu
Installation Engineering Co., Ltd. (in Chinese pinyin)
Etc.
*Major Customers:
==============
JinHou
International Holding Co., Ltd.
Hebei Dayu
Materials Co., Ltd.
Zhejiang Hangtai
Industrial Co., Ltd. (in Chinese pinyin)
Jointown
Pharmaceutical Group Co., Ltd.
Etc.
SC is known to invest in the following companies:
North China Pharmaceutical
Kangxin Co., Ltd.
=================================
Registration No.:
130000400001160
Incorporation
Date:
Chairman:
Wang Wentao
Hebei Welcome
Pharmaceutical Co., Ltd.
==============================
Registration No.:
130000400001119
Incorporation
Date:
Chairman: Zhou
Xiaobing
Web: http://www.ncpcwelcome.com/
NCPC Victor Co.,
Ltd.
=====================
Registration No.:
130000400002164
Incorporation
Date:
Chairman: Zhou
Xiaobing
North China
Pharmaceutical Huasheng Co., Ltd.
===================================
Registration No.:
130000400000589
Incorporation
Date:
Chairman: Zhang
Tianbing
North China
Pharmaceutical Group Semisyntech Co., Ltd.
==========================================
Registration No.:
130000000023532
Incorporation
Date:
Chairman: Liu
Guitong
Etc.
Branches:
North China Pharmaceutical Co., Ltd. Glass
Branch
North China Pharmaceutical Co., Ltd.
Equipment Manufacturing and Installation Branch
North China Pharmaceutical Co., Ltd.
Tianxiang Branch
North China Pharmaceutical Co., Ltd.
Materials Supplying Branch
North China Pharmaceutical Co., Ltd. Sales
Branch
Etc.
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’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.
SC declined to release its bank details.
Consolidated Balance Sheet
Unit: CNY’000
|
|
As of Jun. 30, 2014 |
As of Dec. 31, 2013 |
|
Cash & bank |
1,274,614 |
1,049,438 |
|
Inventory |
1,618,132 |
1,518,007 |
|
Accounts receivable |
1,790,649 |
1,798,084 |
|
Notes receivable |
295,349 |
274,284 |
|
Other Accounts receivable |
834,572 |
775,708 |
|
Advances to supplies |
243,781 |
153,624 |
|
Non-current assets due with in one year |
35 |
70 |
|
Other current assets |
68,401 |
40,140 |
|
|
------------------ |
------------------ |
|
Current assets |
6,125,533 |
5,609,355 |
|
Fixed assets |
5,936,602 |
6,119,338 |
|
Projects under construction |
2,191,630 |
1,880,597 |
|
Disposal of fixed assets |
9 |
0 |
|
Long term investment |
349,337 |
276,862 |
|
Intangible assets |
321,953 |
329,501 |
|
Development expenditure |
321,340 |
273,867 |
|
Long-term deferred expense |
27,344 |
29,280 |
|
Deferred tax assets |
37,952 |
37,952 |
|
Goodwill |
3,337 |
3,336 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
15,315,037 |
14,560,088 |
|
|
============= |
============= |
|
Short loans |
1,497,119 |
2,114,387 |
|
Accounts payable |
2,099,342 |
2,024,291 |
|
Notes payable |
399,070 |
471,011 |
|
Accrued Payroll |
118,703 |
93,182 |
|
Taxes payable |
-55,452 |
-13,478 |
|
Interest payable |
16,957 |
12,439 |
|
Dividend payable |
18,890 |
18,890 |
|
Advances from customers |
235,157 |
258,794 |
|
Other Accounts payable |
659,447 |
761,161 |
|
Non-current liabilities due within one
year |
1,931,344 |
1,339,890 |
|
Other current liabilities |
1,068,433 |
12,401 |
|
|
------------------ |
------------------ |
|
Current liabilities |
7,989,010 |
7,092,968 |
|
Long-term loans |
1,521,404 |
2,624,814 |
|
Bond payable |
460,000 |
460,000 |
|
Specified payables |
16,280 |
16,300 |
|
Long-term payables |
93,959 |
206,392 |
|
Other liabilities |
13,740 |
13,740 |
|
|
------------------ |
------------------ |
|
Total liabilities |
10,094,393 |
10,414,214 |
|
Equities |
5,220,644 |
4,145,874 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
15,315,037 |
14,560,088 |
|
|
============= |
============= |
Consolidated Income Statement
Unit: CNY’000
|
|
Jan. 1 to Jun. 30, 2014 |
As of Dec. 31, 2013 |
|
Turnover |
5,578,640 |
12,438,144 |
|
Cost of goods sold |
4,840,655 |
11,162,228 |
|
Taxes and additional of main operation |
16,131 |
30,383 |
|
Sales expense |
346,831 |
630,679 |
|
Management expense |
225,681 |
491,875 |
|
Finance expense |
148,934 |
202,313 |
|
Assets impairment loss |
138 |
58,773 |
|
Investment income |
10,879 |
22,941 |
|
Non-operating income |
9,200 |
142,109 |
|
Non-operating expense |
2,497 |
3,142 |
|
Profit before tax |
17,852 |
23,801 |
|
Less: profit tax |
8,607 |
14,308 |
|
Profits |
9,245 |
9,493 |
Important Ratios
=============
|
|
As of Jun. 30, 2014 |
As of Dec. 31, 2013 |
|
*Current
ratio |
0.77 |
0.79 |
|
*Quick
ratio |
0.56 |
0.58 |
|
*Liabilities
to assets |
0.66 |
0.72 |
|
*Net profit
margin (%) |
0.17 |
0.08 |
|
*Return on
total assets (%) |
0.06 |
0.07 |
|
*Inventory
/Turnover ×365 |
/ |
45 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
53 days |
|
*Turnover/Total
assets |
0.36 |
0.85 |
|
* Cost of
goods sold/Turnover |
0.87 |
0.90 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is average.
l
SC’s short-term loan appears average.
l
SC’s turnover is in a fair level, 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 low.
Overall
financial condition of the SC: Fairly Stable.
SC is considered large-sized in its line
with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.87 |
|
|
1 |
Rs.99.63 |
|
Euro |
1 |
Rs.78.23 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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.