MIRA
INFORM REPORT
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Report No. : |
355397 |
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Report Date : |
21.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG
HUAHAI PHARMACEUTICAL CO., LTD. |
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Registered Office : |
Xunqiao Economic Development Zone, Linhai Zhejiang Province 317024 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2015 |
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Date of Incorporation : |
28.02.2001 |
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Com. Reg. No.: |
330000000027652 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is
mainly engaged in Manufacturing and Selling of APIs (Active Pharmaceutical
Ingredients) and Pharmaceutical Intermediates. Subject products mainly include: APIs and
pharmaceutical intermediates, such as Irbesartan and Hydrochlorothiazide
Tablets. |
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No. of Employees : |
4,281 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 also 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
ZHEJIANG HUAHAI PHARMACEUTICAL
CO., LTD.
XUNQIAO ECONOMIC DEVELOPMENT
ZONE, LINHAI
ZHEJIANG PROVINCE 317024 PR CHINA
TEL: 86 (0)
576-85016569/85010288/85016009/85991096
FAX: 86 (0) 576-85016010
EXECUTIVE SUMMARY
Date of Registration : FEBruary 28, 2001
REGISTRATION NO. : 330000000027652
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 793,137,771
staff : 4,281
BUSINESS CATEGORY :
manufacturing & trading
REVENUE : CNY 2,421,921,000 (Consolidated, Jan. 1, 2015 to Sep. 30, 2015)
EQUITIES : CNY
3,565,858,000 (Consolidated, as of Sep. 30, 2015)
WEBSITE : www.huahaipharm.com
E-MAIL : postmaster@huahaipharm.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : GOOD
EXCHANGE RATE : CNY 6.45 = 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.: 330000000027652 on February
28, 2001.
SC’s Organization Code Certificate No.:
14796881-7
SC’s Tax No.: 331082147968817
SC’s registered capital: CNY 793,137,771
SC’s paid-in capital: CNY 793,137,771
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered No. |
3300001007639 |
330000000027652 |
|
2012 |
Registered
Capital |
CNY 538,607,000 |
CNY 547,448,000 |
|
2013 |
Registered
Capital |
CNY 547,448,000 |
CNY 775,486,000 |
|
Registered
Capital |
CNY 775,486,000 |
CNY 785,302,271 |
|
|
2014 |
Registered
Capital |
CNY 785,302,271 |
CNY 785,653,271 |
|
2015-9-25 |
Registered
Capital |
CNY 785,653,271 |
CNY 793,137,771 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of September
30, 2015) |
% of Shareholding |
|
Chen Baohua |
26.76 |
|
Zhou
Minghua |
19.58 |
|
China
Securities Finance Corporation Limited |
2.08 |
|
National
Social Security Fund 111 combinations |
1.65 |
|
Central Huijin
Investment Ltd. |
1.48 |
|
Weng Zhenyu |
1.38 |
|
Norway
Central Bank - Owned Fund |
1.1 |
|
National
Social Security Fund 114 combinations |
0.9 |
|
Everbright
Securities Company Limited |
0.77 |
|
China Construction
Bank Co., Ltd.-Galaxy Industry Preferred Hybrid Securities Investment Fund |
0.68 |
|
Other
Shareholders |
43.62 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and General Manager |
Chen Baohua |
|
Chairman |
Tong Jianxin |
|
Director |
Su Yan |
|
Fei Zhongxin |
|
|
Shan Weiguang |
|
|
Du Jun |
|
|
Zhu Yonghua |
|
|
Yu Mingde |
|
|
Zhao Bowen |
|
|
Supervisor |
Gan Zhihe |
|
Jiang Wei |
|
|
Wang Hugen |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600521.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of September 30, 2015)
----------------------------------
Chen Baohua 26.76
Zhou Minghua 19.58
China Securities Finance Corporation Limited 2.08
National Social Security Fund 111
combinations 1.65
Central Huijin Investment Ltd. 1.48
Weng Zhenyu 1.38
Norway Central Bank - Owned Fund 1.1
National Social Security Fund 114
combinations 0.9
Everbright Securities Company Limited 0.77
China Construction Bank Co., Ltd.-Galaxy
Industry Preferred
Hybrid Securities Investment Fund 0.68
Other Shareholders 43.62
China Securities Finance Corporation Limited
--------------------------------------------------------
Unified Social Credit Code: 9111000058442472XT
Legal Form: Shares Limited Company
Registered Capital: CNY 100,000,000,000
Legal Representative: Nie Qingping
With the decision of State Council and the approval of China Securities
Regulatory Commission (hereinafter “CSRC”), China Securities Finance Co., Ltd.
(hereinafter “CSF”), as a financial institution specialized in securities, was
jointly founded by Shanghai Stock Exchange, Shenzhen Stock Exchange and China
Securities Depository and Clearing Corporation Limited.
Tel: 86 (0) 10-63211666/63211663
Postcode: 100032
Fax: 86 (0) 10-63211601
Website: www.csf.com.cn
Address: CPIC Plaza，28 Fengsheng
Hutong，Xicheng District
Beijing 100032
Central Huijin Investment Ltd.
-------------------------------------
Registration No.: 100000000038533
Legal Form: Sole State-owned Enterprise
Registered Capital: CNY 828,208,627,183.88
Legal Representative: Ding Xuedong
Website: www.huijin-inv.cn
Everbright Securities Company Limited
-------------------------------------------------
Registration No.: 100000400009059
Legal Form: Shares Limited Company
Registered Capital: CNY 3,906,698,839
Legal Representative: Xue Feng
Website: www.ebscn.com
MANAGEMENT
Chen Baohua, Legal
Representative and General Manager
----------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø Qualification: Senior
Engineer
Ø Working experience
(s):
At present, working in SC as legal
representative and general manager;
Also working in Zhejiang Huahai Medical Sale Co.,
Ltd., Zhejiang Huahai Import & Export Co., Ltd., Linhai Huahai
Pharmaceutical Equipment Co., Ltd., etc. as legal representative
Tong Jianxin,
Chairman
-------------------------------------------
Ø
Gender: M
Ø
Age: 62
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as chairman
Director
-------------
Su Yan
Fei Zhongxin
Shan Weiguang
Du Jun
Zhu Yonghua
Yu Mingde
Zhao Bowen
Supervisor
--------------
Gan Zhihe
Jiang Wei
Wang Hugen
BUSINESS OPERATION
SC’s registered business scope includes manufacturing drug (range see
the People's Republic of China Pharmaceutical Production License, valid until
December 2, 2015); manufacturing pharmaceutical intermediates; import and
export business.
SC is mainly engaged
in manufacturing and selling APIs (Active Pharmaceutical Ingredients) and
pharmaceutical intermediates.
SC’s products mainly include: APIs and
pharmaceutical intermediates, such as Irbesartan and Hydrochlorothiazide
Tablets, etc.
SC sources its materials
50% from domestic market, and 50% from overseas market. SC sells 14% of its
products in domestic market, mainly Zhejiang province, and 86% 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 Customer:
=============
Balkanpharma Dupnitza AD
Azelis Deutschland Pharma Gmbh
Arrow Pharm (Malta) Ltd.
Merck Sharp & Dohme Asia Pacific Services Pte Ltd.
Chemo Ag Vienna Lugano Branch
*Major suppliers:
============
Lupin Limited
Shanghai Kingsun Pharma & Tech. Co., Ltd.
Rexam HealthCare Packaging
USV Limited
Staff & Office:
--------------------------
SC is known
to have approx. 4,281 staff
at present.
SC owns an area as
its operating office & factory of approx. 1,200,000 sq. meters at the
heading address.
RELATED COMPANY
SC is known to
have the following subsidiaries at present, as follows:
n
Linhai Huanan Chemical Co., Ltd.
n
Zhejiang Huahai Medical Sale Co., Ltd.
n
Zhejiang Huahai Import & Export Co., Ltd.
n
Shanghai Aobo Bio-pharmaceutical Tech. Co., Ltd.
n
Shanghai Shuanghua Biological Medicine Technology Development Co., Ltd.
n
Shanghai SynCores Technologies, Inc.
n
Zhejiang Huahai Yintong Real Estate Co., Ltd.
n
Linhai Huahai Pharmaceutical Equipment Co., Ltd.
Etc.
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’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.
BANKING
The bank
information of SC is not filed in SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
As of Sep. 30, 2015 |
|
533,194 |
526,633 |
816,618 |
|
|
Trading financial
assets |
15,603 |
0 |
0 |
|
Accounts receivable |
542,275 |
789,300 |
893,394 |
|
Notes receivable |
9,801 |
22,765 |
33,710 |
|
Advances to suppliers |
15,928 |
35,295 |
45,458 |
|
Interest receivable |
482 |
0 |
0 |
|
Other receivable |
210,356 |
12,882 |
15,245 |
|
Inventory |
785,914 |
785,909 |
1,021,471 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
485,361 |
183,723 |
23,425 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
2,598,914 |
2,356,507 |
2,849,321 |
|
Investment property |
0 |
0 |
0 |
|
Fixed assets |
1,053,419 |
1,204,011 |
1,334,378 |
|
Construction in progress |
444,288 |
518,529 |
675,595 |
|
Project materials |
0 |
0 |
0 |
|
Fixed assets in liquidation |
0 |
0 |
0 |
|
Intangible assets |
237,361 |
327,660 |
379,250 |
|
Goodwill |
32,835 |
32,835 |
65,919 |
|
Long-term deferred expense |
0 |
0 |
0 |
|
Deferred income tax assets |
14,611 |
25,930 |
38,528 |
|
Other non-current assets |
84,676 |
44,544 |
95,574 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
4,466,104 |
4,510,016 |
5,438,565 |
|
|
============= |
============= |
============= |
|
Short-term loans |
519,879 |
496,862 |
1,076,465 |
|
Notes payable |
102,179 |
272,043 |
277,485 |
|
Accounts payable |
255,558 |
195,959 |
223,860 |
|
Payroll payable |
58,939 |
67,433 |
48,471 |
|
Taxes payable |
86,615 |
104,662 |
47,872 |
|
Interest payable |
11,552 |
859 |
1,638 |
|
Advances from clients |
14,668 |
24,285 |
16,309 |
|
Other payable |
10,624 |
33,299 |
30,455 |
|
Other current liabilities |
300,112 |
1,594 |
24,514 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
1,360,126 |
1,196,996 |
1,747,069 |
|
Non-current liabilities |
86,692 |
46,945 |
125,638 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
1,446,818 |
1,243,941 |
1,872,707 |
|
Equities |
3,019,286 |
3,266,075 |
3,565,858 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
4,466,104 |
4,510,016 |
5,438,565 |
|
|
============= |
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec.
31, 2014 |
Jan. 1, 2015 to Sep. 30, 2015 |
|
Revenue |
2,296,408 |
2,584,988 |
2,421,921 |
|
Cost of
sales |
1,289,258 |
1,430,074 |
1,299,094 |
|
Business
Taxes and Surcharges |
18,912 |
9,848 |
19,488 |
|
Sales expense |
150,994 |
274,469 |
297,853 |
|
Management expense |
422,207 |
525,841 |
427,314 |
|
Finance expense |
36,912 |
30,778 |
-5,447 |
|
Asset impairment loss |
10,019 |
17,750 |
10,744 |
|
Investment income |
21,566 |
28,332 |
1,567 |
|
Non-operating income |
23,561 |
17,674 |
20,232 |
|
Non-operating expense |
11,110 |
12,088 |
6,235 |
|
Profit before tax |
412,299 |
312,947 |
390,034 |
|
Less: profit tax |
48,877 |
56,216 |
48,272 |
|
363,422 |
256,731 |
341,762 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Dec.
31, 2014 |
As of Sep. 30, 2015 |
|
*Current ratio |
1.91 |
1.97 |
1.63 |
|
*Quick ratio |
1.33 |
1.31 |
1.05 |
|
*Liabilities to assets |
0.32 |
0.28 |
0.34 |
|
*Net profit margin (%) |
15.83 |
9.93 |
14.11 |
|
*Return on total assets (%) |
8.14 |
5.69 |
6.28 |
|
*Inventory / Revenue ×365/270 |
125 days |
111 days |
114 days |
|
*Accounts receivable / Revenue ×365/270 |
87 days |
112 days |
100 days |
|
*Revenue / Total assets |
0.51 |
0.57 |
0.45 |
|
*Cost of sales / Revenue |
0.56 |
0.55 |
0.54 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC appears
fairly good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of goods sold is low, comparing with its
revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a fair level, 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 low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.42 |
|
|
1 |
Rs.99.17 |
|
Euro |
1 |
Rs.72.14 |
|
CNY |
1 |
Rs.10.22 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
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.