MIRA INFORM REPORT
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Report No. : |
335781 |
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Report Date : |
05.08.2015 |
IDENTIFICATION DETAILS
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Name : |
Hubei Hongyuan
Pharmaceutical Technology CO., LTD. |
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Registered Office : |
No. 428, Yishui North
Road, Fengshan Town, Luotian County, Huanggang
City, Hubei Province 438600 Pr |
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Country : |
China |
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Financials (as on) : |
31.05.2014 |
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Date of Incorporation : |
21.01.2002 |
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Com. Reg. No.: |
421123000005111 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling of Active Pharmaceutical Ingredients and
Intermediates. |
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No. of Employees : |
550 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 2014 more than 274 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
|
Source
: CIA |
Company
Name and address
Hubei Hongyuan Pharmaceutical Technology CO., LTD.
no. 428, yishui north
road, fengshan town, luotian county,
HUANGGANG CITY,
hubei province 438600 PR CHINA
TEL: 86 (0)
713-5072024/13636025632 FAX: 86 (0)
713-5072024
EXECUTIVE
SUMMARY
INCORPORATION DATE : jan. 21, 2002
REGISTRATION NO. :
421123000005111
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
550
REGISTERED CAPITAL : CNY 70,000,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 418,040,000 (JAN. 1 TO MAY 31, 2014)
EQUITIES :
CNY 176,036,000 (AS OF MAY 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY
6.2740=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:
The given numbers belong to Wuhan International Business Department of SC.
SC was registered as a limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Jan. 21, 2002 and
has been under the present legal form since April of 2014.
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 China. Natural person are allowed
to serve as promoters.
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 and selling
glyoxylate, glyoxal, lithium hexafluorophosphate; manufacturing and selling API
(metronidazole, benzoyl metronidazole, tinidazole, ornidazole, secnidazole and
metronidazole disodium phosphate), Lu agent, syrup, tablets, granules, mixture;
(validity period as of MAY 31, 2015); manufacturing and selling health care
products Ling Tu Fu Shen Brand Fu Qi Ren capsule (validity period as of Sep. 5,
2016); manufacturing and selling beverages (other drinks) (validity period as
of June 19, 2015); manufacturing and selling formaldehyde, formic acid
(validity period as of Mar. 29, 2015); manufacturing and selling dimetridazole
and pharmaceutical intermediates; selling sucralose; engaged in the coal
business accordance with the relevant provisions; importing and exporting goods
and technologies (excluding the items prohibited and limited by the state);
purchasing and selling agricultural and sideline products (excluding cocoon,
tobacco); retailing general merchandise. (with permit if needed)
SC is mainly
engaged in manufacturing and selling active pharmaceutical ingredients and
intermediates.
Mr.
Yin Guoping has been the legal representative, chairman and general manager of
SC since 2002.
SC is known to
have approx. 550 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 Luotian County. Our
checks reveal that SC rents the total premise about 18,000 square meters.
Note: SC has another factory:
No. 8 Fengshan Road, Industrial & Economic Development Zone, Luotian
County, Huanggang City, Hubei
http://www.hbhypharm.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: sales@hbhypharm.com
SC has passed ISO9001:2000 and GMP.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2002-5-29 |
Registered capital |
CNY 500,000 |
CNY 3,148,000 |
|
2007-7-3 |
Registered capital |
CNY 3,148,000 |
CNY 20,000,000 |
|
2008-3-19 |
Registration number |
4211231002149 |
Present one |
|
2008-8-4 |
Company name |
Luotian Hongyuan Biochemical Co., Ltd. |
Hubei Hongyuan Pharmaceutical Co., Ltd. |
|
Unknown |
Shareholdings |
Yin Guoping 32.10% Liao Liping 11.76% Fang Ligao 5.96% Other individuals 50.18% |
Yin Guoping 32.1% Liao Liping 11.91% Fang Ligao 5.96% Xiao Jiahuai 5.96% Duan Xiaoliu 5.96% Lei Gaoliang 5.96% Gong Bingtao
5.96% Liu Zhanliang
5.96% Li Xiaoxiong 5.95% Xu Shuangxi 5.95% He Jianping 4.76% Deng Zhihua 3.57% |
|
Shareholders |
Yin Guoping 32.1% Liao Liping 11.91% Fang Ligao 5.96% Xiao Jiahuai 5.96% Duan Xiaoliu 5.96% Lei Gaoliang 5.96% Gong Bingtao 5.96% Liu Zhanliang 5.96% Li Xiaoxiong 5.95% Xu Shuangxi 5.95% He Jianping 4.76% Deng Zhihua 3.57% |
Gong Chen 2% Lei Gaoliang 3% Liao Shengru 0.5% Xu Shuangxi 3% Deng Zhihua 3% Cheng Siyuan 1% Ding Zhihua 1% Duan Xiaoliu 3% Liao Zhongzhu 0.5% He Jianping 1% Li Xiaoxiong 2% Liu Zhanliang 3% Xiao Jiahuai 2.5% Yan Xiaohui 63% Liao Liping 10% Xiao Yaodong 1% Li Guoxin 0.5% |
|
|
Registered capital |
CNY 20,000,000 |
Present amount |
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|
Shareholders and shareholding |
Gong Chen 2% Lei Gaoliang 3% Liao Shengru 0.5% Xu Shuangxi 3% Deng Zhihua 3% Cheng Siyuan 1% Ding Zhihua 1% Duan Xiaoliu 3% Liao Zhongzhu 0.5% He Jianping 1% Li Xiaoxiong 2% Liu Zhanliang 3% Xiao Jiahuai 2.5% Yan Xiaohui 63% Liao Liping 10% Xiao Yaodong 1% Li Guoxin 0.5% |
Present ones |
|
|
2014-4-8 |
Company name |
Hubei Hongyuan Pharmaceutical Co., Ltd. |
Present one |
|
Legal form |
Limited liabilities co. |
Present one |
Organization code: 73519634X
Honors:
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name Investment
amount % of Shareholding
Yan Xiaohui CNY
24,275,000 34.68
Yin Guoping CNY
15,275,000 21.82
Xu Shuangxi CNY
6,300,000 9
Liao Liping CNY
6,000,000 8.57
Hubei Hongyuan Charitable Foundation
(in Chinese Pinyin) CNY 2,700,000 3.86
Lei Gaoliang CNY
1,800,000 2.57
Duan Xiaoliu CNY
1,800,000 2.57
Liu Zhanliang CNY
1,800,000 2.57
Xiao Jiahuai CNY
1,500,000 2.14
Li Xiaoxiong CNY
1,200,000 1.71
Deng Zhihua CNY
1,200,000 1.71
Gong Chen CNY
1,200,000 1.71
Cheng Siyuan CNY
600,000 0.86
Ding Zhihua CNY
600,000 0.86
He Jianping CNY
600,000 0.86
Xiao Yaodong CNY
600,000 0.86
Liao Shengru CNY
550,000 0.79
Other 9 individuals CNY 2,000,000 2.86
l
Legal representative, Chairman and General Manager:
Mr. Yin Guoping, born in 1960, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as
legal representative, chairman and general manager
l Vice Chairman:
Mr. Yan Xiaohui is currently responsible for
the daily management of SC.
Working Experience(s):
At present Working in SC as vice
chairman
l Directors:
Xu Shuangxi
Duan Xiaoliu
Liu Zhanliang
l
Supervisors:
Gong Shuipeng
Lei Gaoliang
Wang Lintao
Li Guoxin
SC is mainly engaged in manufacturing and selling active pharmaceutical
ingredients and intermediates.
SC’s products mainly include: Metronidazole, 2-Methyl-5-Nitroimidazole,
2-Methylimidazole, Dimetridazole, Imidazole, 4-Nitroimidazole, and
Metronidazole Benzoate, etc.
SC sources its
materials 100% from domestic market, mainly Hubei province. SC sells 50% to
overseas market, mainly European and American countries, and 50% in domestic
market, mainly Hubei and Jiangsu province.
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.
Note:
SC’s management declined to release its major customers and suppliers.
Trademark & Patents
No record
According
to SC’s website:
Wuhan
International Business Department
Tel:
+86-27-59422698
Fax:
+86-27-59422633
E-mail:
sales@hbhypharm.com
Add:
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
Luotian Sub-branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of May 31, 2014 |
|
Cash & bank |
147,814 |
|
Inventory |
107,936 |
|
Bills receivable |
25,384 |
|
Accounts receivable |
83,805 |
|
Advances to
suppliers |
34,730 |
|
Other
receivables |
35,650 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
435,319 |
|
Fixed assets net
value |
224,778 |
|
Long term
investment |
45,490 |
|
Projects under construction |
28,955 |
|
Long-term
receivables |
2,700 |
|
Long-term
prepaid expenses |
4,682 |
|
Deferred tax
assets |
540 |
|
Intangible and
other assets |
33,557 |
|
|
------------------ |
|
Total assets |
776,021 |
|
|
=========== |
|
Short loan |
254,000 |
|
Accounts payable |
41,874 |
|
Bills payable |
155,000 |
|
Advances from
clients |
25,237 |
|
Salaries payable |
2,678 |
|
Taxes payable |
14,149 |
|
Other Accounts
payable |
11,170 |
|
Non-current
liabilities due within one year |
11,170 |
|
Other current liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
515,278 |
|
Long term
liabilities |
84,707 |
|
|
------------------ |
|
Total
liabilities |
599,985 |
|
Equities |
176,036 |
|
|
------------------ |
|
Total
liabilities & equities |
776,021 |
|
|
=========== |
Income Statement
Unit: CNY’000
|
|
Jan. 1 to May
31, 2014 |
|
Turnover |
418,040 |
|
Cost of goods sold |
346,698 |
|
Sales expense |
17,314 |
|
Management expense |
15,283 |
|
Finance expense |
13,320 |
|
Investment income |
753 |
|
Profit before tax |
23,764 |
|
Less: profit tax |
3,452 |
|
Profits |
20,312 |
Important
Ratios
=============
|
|
As of May 31, 2014 |
|
*Current ratio |
0.84 |
|
*Quick ratio |
0.64 |
|
*Liabilities
to assets |
0.77 |
|
*Net profit
margin (%) |
4.86 |
|
*Return on
total assets (%) |
2.62 |
|
*Inventory
/Turnover ×365 |
/ |
|
*Accounts
receivable/Turnover ×365 |
/ |
|
*Turnover/Total
assets |
0.54 |
|
* Cost of
goods sold/Turnover |
0.83 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good.
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 fairly large.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears large.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
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 short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.91 |
|
UK Pound |
1 |
Rs.99.82 |
|
Euro |
1 |
Rs.70.05 |
INFORMATION DETAILS
|
Report Prepared
by : |
ASH |
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.