MIRA
INFORM REPORT
|
Report No. : |
306840 |
|
Report Date : |
10.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG XINHUA
PHARMACEUTICAL CO., LTD. |
|
|
|
|
Registered Office : |
No. 1 Lutai Road, High-Tech District, Zibo
City, Shandong Province, 255086 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2014 (Consolidated) |
|
|
|
|
Date of Incorporation : |
30.09.1993 |
|
|
|
|
Com. Reg. No.: |
370300400000376 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Developing, Manufacturing and Selling of Chemical Raw Materials,
Preparation, Chemical and Other Pharmaceutical Products. |
|
|
|
|
No. of Employees : |
6,093 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
|
WITH FINANCIALS |
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
China |
A1 |
A1 |
|
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
SHANDONG XINHUA
PHARMACEUTICAL CO., LTD.
NO. 1 LUTAI ROAD, HIGH-TECH DISTRICT, ZIBO
CITY,
SHANDONG PROVINCE, 255086 PR CHINA
TEL: 86 (0)
533-2196024/2185102 FAX: 86 (0)
533-2287508
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 30, 1993
REGISTRATION NO. : 370300400000376
REGISTERED LEGAL
FORM : SHARES limited COMPANY
STAFF STRENGTH : 6,093
REGISTERED CAPITAL : CNY 457,312,830
BUSINESS LINE : DEVELOPING,
MANUFACTURING & TRADING
TURNOVER : CNY 2,578,603,000
(Consolidated, jan. 1 to sep. 30, 2014)
EQUITIES :
CNY 1,845,726,000 (Consolidated, as of sep. 30, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION
: FAIRLY GOOD
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE : CNY 6.2442= 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: The (14 Dongyi Road Zibo China)
was SC’s former one, while SC is currently operating in the heading address.
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 Sep. 30, 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 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 western medicine, chemical raw materials, manufacturing and selling healthcare food “meilining table” and “Xinhua Shark Capsule”(with permit if needed); self researching and developing technology transfer, services, technical consulting, technical training of pharmaceutical equipment, pharmaceutical glass, medical inspection instruments & meters; manufacturing food additives “caffeine”, wholesale and retailing own products. (with permit if needed).
SC is mainly engaged in developing, manufacturing and selling chemical raw materials, preparation, chemical and other pharmaceutical products.
Mr. Zhang Daiming is legal representative and chairman of SC at present.
SC is known to have approx. 6,093 employees at present, including 3,473 production staff, 659 engineering technical staff, 568 administrative staff, 95 financial staff, 157 R&D staff, 47 purchase staff, 878 sales staff and 216 quality supervision and inspection personnel.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the Hi-Tech zone of Zibo. Detailed premise information is not available at present.
Note: SC is
also known to have another operation address: (No. 19, Dongyi Road, Zhangdian
District, Zibo City, Shandong Province, 255005 PR China
http://www.xhzy.com The design is
professional and the content is well organized. At present the web is in
Chinese and English versions.
E-mail: xhzy@xhzy.com
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration
number |
001489 |
Present one |
|
Legal
representative |
Guo Qin |
Present one |
Tax
Registration Certificate No.: 370303164103727
Organization
Code: 16410372-7
SC
listed in Hong Kong Stock Exchange Market in 1996 with the stock code 0719.HK,
and listed in Shenzhen Stock Exchange in 1997 with the stock code 000756.
SC is the earliest
established Chinese pharmaceutical company, and has been granted the
certifications of GMP, ISO 14001, ISO9001, ISO 10012, ISO 22000 and MHRA
(England). The main products of SC have been granted the COS Certificate from
EDQM and passed the site inspection from USA FDA. “XINHUA” brand was honored
with the title of "Chinese Famous Brand" in China.
See below for SC as executive party
(defendant).
|
Executed Party |
Shandong
Xinhua Pharmaceutical Co., Ltd. |
|
Court |
Zibo
Zhangdian District People's Court |
|
Date of
Case |
June 28, 2011 |
|
Case Number |
(2011)
00055 |
|
Claim
Amount |
RMB 30,000 |
|
Case Status |
Completed |
|
Executed Party |
Shandong
Xinhua Pharmaceutical Co., Ltd. |
|
Court |
Zibo
Intermediate People's Court |
|
Date of
Case |
March 22, 2011 |
|
Case Number |
(2011)
00027 |
|
Claim
Amount |
RMB 611,185.1 |
|
Case Status |
Completed |
|
Executed Party |
Shandong
Xinhua Pharmaceutical Co., Ltd. |
|
Court |
Zibo
Zhangdian District People's Court |
|
Date of
Case |
May 1, 2009 |
|
Case Number |
(2009) 00035 |
|
Claim
Amount |
RMB 200,000 |
|
Case Status |
Completed |
|
Executed Party |
Shandong
Xinhua Pharmaceutical Co., Ltd., Shandong Xinhua Pharmaceutical Co., Ltd. New
Medicine Sales Branch |
|
Court |
Hohhot
Saihan District People's Court |
|
Date of Case |
March 10, 2008 |
|
Case Number |
(2008)
00198 |
|
Claim
Amount |
RMB 130,000 |
|
Case Status |
In process |
|
Executed Party |
Shandong
Xinhua Pharmaceutical Co., Ltd. |
|
Court |
Zibo
Zhangdian District People's Court |
|
Date of
Case |
December 17, 2007 |
|
Case Number |
(2007)
03108 |
|
Claim
Amount |
RMB 411,280 |
|
Case Status |
In process |
|
Executed Party |
Shandong
Xinhua Pharmaceutical Co., Ltd. |
|
Court |
People's
Court of Zibo High-tech Industry Development Zone |
|
Date of
Case |
January 22, 2007 |
|
Case Number |
(2007)
00101 |
|
Claim
Amount |
RMB 169,675.48 |
|
Case Status |
Completed |
Remark: Due to the lack
of information, we are unable to provide the cause of action, judgment or other
information.
MAIN SHAREHOLDERS: (As of Sep. 30, 2014)
Name %
of Shareholding
Shandong Xinhua
Pharmaceutical Group Co., Ltd. 35.47
HKSCC Nominees
Limited 32.49
Yang Lin 0.3
Zhou Jichang 0.2
Tian Hailin 0.19
Banque de
lIndochine 0.19
Dacheng Value
Increased Securities Investment Fund 0.15
China Foreign
Economy and Trade Trust Co., Ltd.-
Foreign Trade
Trust•Zhuque Beautiful Aerfa Collective Capital Trust Plan 0.13
Liu Shida 0.13
CICC-CCB-CICC
Hedging Absolutely Gain No. 1 Collective Assets
Management Plan 0.13
Other Shareholders 30.62
Shandong Xinhua Pharmaceutical Group Co., Ltd.
===================================
Shandong Xinhua
Pharmaceutical Group Co., Ltd. (the "Company") is one of the Top 500 king-sized
enterprises and a backbone pharmaceutical enterprise in China, to which 12
subsidiaries are affiliated with several kinds of ownership systems and an
enterprise technical center in state-level is attached. The products of the
Company are manufactured and managed mainly in chemically-synthetic bulk
pharmaceuticals, medical preparations and chemical raw materials,
simultaneously in pharmaceutical intermediates, chemical corrosion-resistant
equipment, etc. The Company has passed the certifications in GMP, ISO9001,
ISO14001, and ISO 10012.
Reg. No.:
370300018506066
Incorporation
date: March 11, 1995
Legal
representative: Zhang Daiming
Email: luoshizhong@xhzy.com
Address: No. 1
Lutai Road, High-Tech District, Zibo City, Shandong, 255086 PR China
Tel: 0086-533-
2196666
Fax: 0086-533-
2282825
HKSCC Nominees Limited
====================
Incorporation
Date: May 14, 1991
Registration No.:
0309729
Registered Legal
Form: Private company limited by shares
l Legal Representative and Chairman:
Mr. Zhang Daiming, born in 1962, senior economist, with master’s degree,
is currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
Also working in
Zibo XinHua-Perrigo Pharmaceutical Co., Ltd., Shandong Xinhua Pharmaceutical
Import and Export Co., Ltd., Shandong Xinhua Pharmaceutical Group Co., Ltd., Xinhua (Zibo) Properties Co., Ltd., Zibo Xinhua-Eastwest
Pharmaceutical Co., Ltd. as legal representative.
l General Manager and Director:
Mr.
Du Deping born in 1969, senior engineer, with master’s degree, is currently
responsible for the daily management of SC.
Working Experience(s):
At
present Working in SC as general manager and director.
Also
working in Xinhua Pharmaceutical (Shouguang) Co., Ltd. and Shandong Xinhua
Pharmaceutical Chemical Design Institute Co., Ltd. as legal representative
l Vice General Managers:
Mr.
Du Deqing, born in 1964, senior engineer, with master’s degree
Mr.
He Tongqing, born in 1969, senior economist
Mr.
Dou Xuejie, born in 1959, senior engineer, with master’s degree
Wang
Xiaolong
l Directors:
Chen
Zhongji
Yu
Xiong
Ren
Fulong
Xu
Lie
Zhao
Bin
l Supervisors:
Li
Tianzhong
Tao
Zhichao
Zhang
Yueshun
SC is mainly engaged in developing, manufacturing and selling chemical
raw materials, preparation, chemical and other pharmaceutical products.
SC’s products mainly include: API, bulk
pharmaceuticals, chemical products, finished dosages, etc.
Trademarks & Patents
|
Registration No. |
10952002 |
10951825 |
10960267 |
|
Registration Date |
|
|
|
|
Trademark Design |
|
|
|
SC sources its materials 70% from domestic
market, and 30% from overseas market, mainly European countries. SC sells 60%
of its products in domestic market, and 40% to the overseas market, mainly
Japan, American and European countries.
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
Customers:
==============
Mitsubishi Corporation
Perrigo Company (U.S.A.)
Bayer Healthcare Pharmaceuticals Co., Ltd.
China Shandong Group Limited
Huarun Weifang Far East Pharmaceuticals Co.,
Ltd. (literal translation)
*Major
Suppliers:
=============
Vinati Organics Limited
Shandong, Shanxi Coal Chemical Co., Ltd.
Shouguang Fukang Pharmaceutical Co., Ltd.
Connell Chemical Industrial Limited
Liability Company
Zibo Lianhui Chemical Co., Ltd. (literal
translation)
SC is known
to have the following subsidiaries:
Shandong Xinhua
Pharmaceutical Import and Export Co., Ltd.
Shandong Xinhua
Pharmaceutical (Europe) Co., Ltd.
Zibo Xinhua-Eastwest
Pharmaceutical Co., Ltd.
Zibo XinHua-Perrigo
Pharmaceutical Co., Ltd.
Xinhua Pharmaceutical
(Shouguang) Co., Ltd.
Shandong Xinhua
Pharmaceutical Chemical Design Institute Co., Ltd.
Shandong Xinhua
Pharmaceutical Trading Co., Ltd.
Xinhua (Zibo) Properties
Co., Ltd.
Zibo Xinhua Pharmacy Chain
Co., Ltd.
Xinhua Pharmaceutical
(Gaomi) Co., Ltd.
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.
Industrial and Commercial Bank of China Zibo
Branch
Account No.: N/A
Relationship: Normal
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As of Sep. 30, 2014 |
|
Cash & bank |
380,722 |
391,322 |
|
Inventory |
531,992 |
480,860 |
|
Accounts receivable |
297,388 |
433,885 |
|
Notes
receivable |
97,102 |
78,263 |
|
Other Accounts receivable |
43,366 |
77,825 |
|
Advances to suppliers |
38,633 |
48,363 |
|
Other current assets |
3,684 |
1,773 |
|
|
------------------ |
------------------ |
|
Current assets |
1,392,887 |
1,512,291 |
|
Fixed assets |
1,406,348 |
1,729,657 |
|
Available-for-sale financial assets |
127,412 |
135,510 |
|
Long term investment |
26,327 |
28,964 |
|
Investment
Property |
63,926 |
60,486 |
|
Projects
under construction |
540,030 |
333,314 |
|
Intangible
assets |
271,002 |
299,061 |
|
Goodwill
|
2,716 |
0 |
|
Deferred assets |
18,705 |
19,919 |
|
Other non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
3,849,353 |
4,119,202 |
|
|
============= |
============= |
|
Short loans |
330,666 |
457,450 |
|
Notes payable |
118,394 |
64,645 |
|
Accounts payable |
240,466 |
343,234 |
|
Advances from clients |
22,882 |
30,145 |
|
Accrued
payroll |
21,257 |
17,477 |
|
Dividends payable |
5,311 |
5,388 |
|
Taxes payable |
-3,477 |
16,479 |
|
Interest payable |
626 |
33,441 |
|
Other accounts payable |
140,268 |
119,753 |
|
Non-current liabilities
maturing within one year |
145,000 |
150,000 |
|
Other current liabilities |
4,462 |
5,042 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,025,855 |
1,243,054 |
|
Long term liabilities |
1,026,678 |
1,030,422 |
|
|
------------------ |
------------------ |
|
Total liabilities |
2,052,533 |
2,273,476 |
|
Equities |
1,796,820 |
1,845,726 |
|
|
------------------ |
------------------ |
|
Total liabilities &
equities |
3,849,353 |
4,119,202 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
Jan. 1 to Sep. 30, 2014 |
|
Turnover |
3,169,653 |
2,578,603 |
|
Cost of goods sold |
2,656,289 |
2,107,811 |
|
Taxes and additional of main operation |
17,664 |
13,629 |
|
Sales expense |
224,074 |
201,823 |
|
Management expense |
223,238 |
172,621 |
|
Finance expense |
86,540 |
50,665 |
|
Investment
income |
7,120 |
10,003 |
|
Assets impairment loss |
12,830 |
4,716 |
|
Non-operating income |
111,417 |
37,356 |
|
Non-operating expense |
17,039 |
6,516 |
|
Profit before tax |
50,516 |
68,181 |
|
Less: profit tax |
12,207 |
16,956 |
|
Profits |
38,309 |
51,225 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As of Sep. 30, 2014 |
|
*Current ratio |
1.36 |
1.22 |
|
*Quick ratio |
0.84 |
0.83 |
|
*Liabilities to assets |
0.53 |
0.55 |
|
*Net profit margin (%) |
1.21 |
1.99 |
|
*Return on total assets
(%) |
1.00 |
1.24 |
|
*Inventory /Turnover ×365 |
61 days |
/ |
|
*Accounts
receivable/Turnover ×365 |
34 days |
/ |
|
*Turnover/Total assets |
0.82 |
0.63 |
|
* Cost of goods
sold/Turnover |
0.84 |
0.82 |
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:
AVERAGE
l The current ratio
of SC is maintained in a normal level.
l SC’s quick ratio
is maintained in a normal level.
l The inventory of
SC appears average.
l The accounts
receivable of SC appears average.
l The short-term
loan of SC appears average.
l SC’s turnover is
in a fair level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
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 good
SC is considered large-sized in its line
with fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
|
1 |
Rs.94.79 |
|
Euro |
1 |
Rs.70.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
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.