MIRA INFORM REPORT
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Report No. : |
355686 |
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Report Date : |
24.12.2015 |
IDENTIFICATION DETAILS
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Name : |
HUBEI GUANGJI PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 1, Jiangdi Road, Wuxue City, Hubei Province 435400 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2015 |
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Date of Incorporation : |
28.05.1993 |
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Com. Reg. No.: |
420000000022877 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject engaged in iproduction and operation
of large volume injection (glass bottle, soft bag), active pharmaceutical
ingredients (riboflavin sodium phosphate, vitamin B2, entecavir, atorvastatin
calcium, los new, rina thiazole amine hydrochloride, for add ring element, according
to the versus mesylate, a bead of sand, clopidogrel hydrogen sulfate),
tablets, granules, gels, cream preparation (valid time will expire on
December 31, 2015); production and sales food additives (valid time will
expire on May 26, 2018); production and marketing feed additives (valid time
until September 6, 2015); production and sales bottled purified water (valid
time will expire on December 1, 2016); Internal staff canteen (including cold
dish, excluding decorating cakes, excluding raw seafood) (valid time will
expire on September 17, 2016); Import and export business of goods and
technology; production direct contact with drug packaging materials
(multi-layer co-extrusion infusion bag); production and marketing single
feed.) |
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No. of Employee : |
902 |
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 : |
Slow but correct |
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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 |
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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. 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
hubei guangji pharmaceutical co., ltd.
NO.
1, JIANGDI ROAD, WUXUE CITY,
HUBEI
PROVINCE 435400 PR CHINA
TEL: 86 (0) 713-6216068 FAX: 86 (0) 713-6212108
EXECUTIVE
SUMMARY
INCORPORATION
DATE : MAY 28, 1993
REGISTRATION
NO. : 420000000022877
REGISTERED
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF
EXECUTIVE : MR. GONG
DAOYI (CHAIRMAN)
STAFF
STRENGTH : 902
REGISTERED
CAPITAL : CNY 251,705,513
BUSINESS
LINE :
MANUFACTURING & TRADING
TURNOVER : CNY 375,774,000 (CONSOLIDATED, JAN. 1 TO
SEP. 30, 2015)
EQUITIES : CNY
481,721,000 (CONSOLIDATED, AS OF SEP. 30, 2015)
PAYMENT
: SLOW BUT CORRECT
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION :
FAIR
OPERATIONAL
TREND : FAIRLY STEADY
GENERAL
REPUTATION : WELL-KNOWN
EXCHANGE
RATE : CNY 6.4820= 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 Ren Min Bi
Note:
SC’s correct name shall be the heading one instead of the given one.
SC
was registered as a shares limited company at local Administration for Industry
& Commerce (AIC-The official body of issuing and renewing business license)
on May 28, 1993.
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 characteristics of the shares limited co. are as follows:
The establishment of the co.
requires at least five promoters and at least three of them must be PR- China controlled
legal persons. Natural person can not be allowed to serve as promoters.
The minimum registered capital of
a co. is CNY
The board of directors must
consist of an odd number 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 three years of
the offer. Directors can not transfer the shares they hold in the co. during
their terms of office.
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 production and operation of large volume
injection (glass bottle, soft bag), active pharmaceutical ingredients
(riboflavin sodium phosphate, vitamin B2, entecavir, atorvastatin calcium, los
new, rina thiazole amine hydrochloride, for add ring element, according to the
versus mesylate, a bead of sand, clopidogrel hydrogen sulfate), tablets,
granules, gels, cream preparation (valid time will expire on December 31,
2015); production and sales food additives (valid time will expire on May 26,
2018); production and marketing feed additives (valid time until September 6,
2015); production and sales bottled purified water (valid time will expire on
December 1, 2016); Internal staff canteen (including cold dish, excluding
decorating cakes, excluding raw seafood) (valid time will expire on September
17, 2016); Import and export business of goods and technology; production
direct contact with drug packaging materials (multi-layer co-extrusion infusion
bag); production and marketing single feed.)
SC
is mainly engaged in manufacturing and selling active pharmaceutical
ingredients and pharmaceutical preparation.
Mr.
Gong Daoyi has been the legal representative and chairman of SC since September
of 2015.
SC is
known to have approx. 902 employees at present, including 466 production
staff, 97 sales staff, 171technological staff, 22 financial staff and 146
administration staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Wuxue. Our checks reveal
that SC owns the total premise about 125,000 square meters.
http://www.guangjipharm.com/
It can’t open at present.
E-mail: stock@guangjipharm.com
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Reg. No. |
4200001000012 |
Present one |
|
2015-2-5 |
Legal representative |
Mr. He Mi |
Lin Zhidong |
|
2015-9-23 |
Lin Zhidong |
Present one |
SC
has been listed as an A-Share company in Shenzhen Stock Exchange Market with the
stock code 000952 since 1999.
SC
(abbreviated as GJPC hereinafter) has now developed into a large state-owned
pharmaceutical enterprise. SC is also the production base of riboflavin
designated by the State Pharmaceutical Administration.
SC
has got the certificate of Quality Management System Certificate
Organization
Code: 707016110
Tax
No.: 421182707016110
Credibility
Code: 91420000707016110B
See below for SC as executive party
(defendant).
|
Executed Party |
SC |
|
Court |
Wuxue City People's Court |
|
Date of Case |
2015-11-13 |
|
Case Number |
(2015) 00704 |
|
Claim Amount |
RMB 5,703,300 |
|
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: (As of
September 30, 2015)
Name % of Shareholding
Hubei
Province Changjiang Industry Investment Group Co., Ltd. 15.11
Shengji Equity Investment Funds (Shanghai) Co., Ltd. 4.94
Tibet Kangsheng Investment Management Co., Ltd. 4.37
Zhongrong
International Trust Co., Ltd. – Zhongrong-Rijindoujin
No.1 Structured Securities Investment Collection Capital Trust
Plan 4.16
National
Social Security Fund 114 Combination 2.01
Zhu
Jiman 1.57
Wang
Haiying 1.3
Hacheng
Zhouche (Shanghai) Equity Investment Management Co., Ltd. (literal translation) 1.2
Zhang
Liping 1.1
Suzhou
Ceren Investment Management Co., Ltd. (literal translation) 0.99
Other
Shareholders 63.25
Hubei Province Changjiang Industry Investment Group Co., Ltd.
=============================
Reg.
No.: 420000000045645
Legal
representative: Zou Shunming邹顺明
Incorporation
date: 2010-11-3
Tel:
+86 027 87113666
Fax:
+86 027 87113555
Email:
webmaster@cjtouzi.com
Legal representative and Chairman:
Mr.
Gong Daoyi, born in 1970, with master’s degree, senior engineer. He is
currently responsible for the overall management of SC.
Working
Experience(s):
From
September of 2015 to present Working in SC as legal representative
and chairman.
General manager:
Mr.
Chen Feibao, born in 1975, with master’s degree. He is currently responsible
for the daily management of SC.
Working
Experience(s):
At
present Working in SC as general manager.
Vice General Managers:
Mr.
Ruan Zhongyi, born in 1965, with university education, senior economist.
Mr.
Wang Xin born in 1967, with university education.
Mr.
Guo Shaozhi, born in 1970, with university education.
Mr.
Lu Zhengdong, born in 1978, with doctor’s degree.
They
are currently responsible for the daily management of SC.
Working
Experience(s):
At
present Working in SC as vice general
managers.
Directors:
Zou
Guangming
Yang
Hanming
Chen
Feibao
Zhang
Bin
Supervisors:
Li
Hong
Xia
Ridong
Su
Lei
SC
is mainly engaged in manufacturing and selling active pharmaceutical
ingredients and pharmaceutical preparation.
SC’s
products mainly include: Riboflavin (Kosher Certified), Riboflavin
5 Phosphate Sodium (Kosher Certified, Chinese GMP Cert.), and Biotin
SC’s
Brand: 
SC
sources its materials from domestic market. SC sells 60% of its products in
domestic market and 40% to overseas market.
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 refused to
release its major suppliers and clients.
TRADEMARKS & PATENTS
|
Registration No. |
6153001 |
6360039 |
|
Registration Date |
2010-2-21 |
2010-3-28 |
|
Trademark Design |
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|
SC is known to invest in
the following companies:
Guangji Pharmaceutical (Mengzhou) Co., Ltd.
------------------------------------------------
Reg.
No.: 410883100000339
Legal
representative: Wang Zhuanxu
Incorporation
date: 2007-4-24
Hubei
Anhua Tower Co., Ltd. (literal translation)
------------------------------------------------
Reg.
No.: 420000000039420
Legal
representative: Liu Dongfang
Incorporation
date: 1993-1-16
Hubei Huisheng Pharmaceutical Co., Ltd.
------------------------------------------------
Credibility
Code: 9142120069514689XG
Legal
representative: Zheng Zaoliang
Incorporation
date: 2009-11-24
Hubei Guangji Pharmaceutical Jikang Medical Co., Ltd.
------------------------------------------------
Reg.
No.: 421182000017459
Legal
representative: Zheng Guohai
Incorporation
date: 2002-3-13
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.
Industrial
and Commercial Bank of China Wuxue Sub-branch
AC#：1814077101000616109
Relationship:
Normal.
Consolidated Balance Sheet
Unit:
CNY’000
|
|
As of Sep. 30, 2015 |
As of Dec. 31, 2014 |
|
Cash & bank |
158,087 |
194,781 |
|
Notes receivable |
6,236 |
4,389 |
|
72,381 |
29,890 |
|
|
Advances to suppliers |
7,324 |
13,003 |
|
Other Accounts receivable |
33,857 |
29,406 |
|
99,593 |
151,476 |
|
|
Other current assets |
40,299 |
54,982 |
|
|
------------------ |
------------------ |
|
417,777 |
477,927 |
|
|
Available-for-sale financial assets |
10,134 |
10,133 |
|
Long term investment |
28,388 |
29,281 |
|
Fixed assets net value |
520,934 |
551,705 |
|
Projects under construction |
393,864 |
299,896 |
|
Project materials |
3,875 |
3,046 |
|
Intangible assets |
182,958 |
182,876 |
|
Development expenditure |
11,356 |
10,600 |
|
Long-term deferred expenses |
9,824 |
682 |
|
Other non-current assets |
8,294 |
16,323 |
|
|
------------------ |
------------------ |
|
1,587,404 |
||
|
|
============= |
============= |
|
Short loans |
80,000 |
171,993 |
|
Notes payable |
75,274 |
81,450 |
|
Accounts payable |
174,018 |
209,198 |
|
Advance from clients |
17,952 |
31,074 |
|
Payroll payable |
25,076 |
40,112 |
|
Taxes payable |
9,416 |
13,562 |
|
Dividend payable |
3,249 |
3,249 |
|
Other Accounts payable |
101,697 |
126,252 |
|
Non-current liabilities maturing within one year |
9,000 |
17,000 |
|
|
------------------ |
------------------ |
|
495,682 |
693,890 |
|
|
Non-current liabilities |
610,001 |
383,131 |
|
|
------------------ |
------------------ |
|
1,105,683 |
1,077,021 |
|
|
Equities |
481,721 |
505,448 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,587,404 |
1,582,469 |
|
|
============= |
============= |
Consolidated Income Statement
Unit:
CNY’000
|
|
Jan. 1 to Sep. 30, 2015 |
As of Dec. 31, 2014 |
|
375,774 |
485,858 |
|
|
Cost of goods sold |
276,315 |
440,528 |
|
Taxes and additional of main operation |
3,025 |
1,748 |
|
Sales expense |
15,016 |
27,217 |
|
Management expense |
75,898 |
126,922 |
|
Finance expense |
26,705 |
26,048 |
|
Asset impairment loss |
7,965 |
90,213 |
|
Investment income |
-543 |
365 |
|
6,302 |
10,058 |
|
|
Non-operation expenses |
335 |
6,658 |
|
Profit before tax |
-23,726 |
-223,053 |
|
Less: profit tax |
0 |
6,539 |
|
Profits |
-23,726 |
-229,592 |
Important Ratios
=============
|
|
As of Sep. 30, 2015 |
As of Dec. 31, 2014 |
|
*Current ratio |
0.84 |
0.69 |
|
*Quick ratio |
0.64 |
0.47 |
|
*Liabilities to assets |
0.70 |
0.68 |
|
*Net profit margin (%) |
-6.31 |
-47.25 |
|
*Return on total assets (%) |
-1.49 |
-14.51 |
|
*Inventory /Turnover ×365 |
/ |
114 days |
|
*Accounts receivable/Turnover ×365 |
/ |
22 days |
|
*Turnover/Total assets |
0.24 |
0.31 |
|
* Cost of goods sold/Turnover |
0.74 |
0.91 |
PROFITABILITY: FAIR
The
turnover of SC appears fairly good in its line.
SC’s
net profit margin is poor in 2014 and fair in the first three quarters of 2015.
SC’s
return on total assets is poor in 2014 and fair in the first three quarters of
2015.
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The
current ratio of SC is maintained in a fair level.
SC’s
quick ratio is maintained in a fair level.
The
inventory of SC is average.
The
accounts receivable of SC is average.
The
short-term loan of SC appears average.
SC’s
turnover is in a poor 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: Fair
SC
is considered medium-sized in its line with fair financial conditions. Taking
into consideration of SC’s general performance and operation size
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
CNY |
1 |
Rs.10.20 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
TRU |
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.