MIRA
INFORM REPORT
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Report No. : |
302773 |
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Report Date : |
15.01.2015 |
IDENTIFICATION DETAILS
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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) : |
30.09.2014 |
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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 : |
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. |
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No. of Employee : |
3,855 |
RATING & COMMENTS
|
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 |
|
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 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 & 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
CHIEF EXECUTIVE :
CHEN BAOHUA (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY
785,653,271
staff :
3,855
BUSINESS CATEGORY :
manufacturing & trading
REVENUE :
CNY 1,806,201,000 (JAN. 1, 2014 TO SEP. 30, 2014)
EQUITIES :
CNY 3,217,443,000 (AS OF SEP. 30, 2014)
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 6.22 = 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 785,653,271
SC’s paid-in capital: CNY 785,653,271
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 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of September 30, 2014) |
% of Shareholding |
|
Chen Baohua |
26.92 |
|
Zhou Minghua |
19.76 |
|
China Merchants Bank-Everbright Pramerica Equity Securities Investment
Fund |
1.58 |
|
Weng Zhenyu |
1.39 |
|
China People's Insurance Company- Traditional - General Insurance -008C-CT001 |
1.15 |
|
Ma Tuanjie |
1.1 |
|
Bank of China Limited-E Fund Health Care Industry Stock Securities
Investment Fund |
0.79 |
|
National Social Security Fund 114 combinations |
0.78 |
|
ICBC China - GF Jufeng Securities Investment Fund |
0.72 |
|
Su Chunlian |
0.65 |
|
Other Shareholders |
45.16 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and General Manager |
Chen Baohua |
|
Chairman |
Tong Jianxin |
|
Vice Chairman |
Du Jun |
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, 2014)
----------------------------------
Chen Baohua 26.92
Zhou Minghua 19.76
China Merchants Bank-Everbright Pramerica Equity Securities Investment
Fund 1.58
Weng Zhenyu 1.39
China People's Insurance Company- Traditional - General Insurance
Ma Tuanjie 1.1
Bank of China Limited-E Fund Health Care Industry Stock Securities
Investment Fund 0.79
National Social Security Fund 114 combinations 0.78
ICBC China - GF Jufeng Securities Investment Fund 0.72
Su Chunlian 0.65
Other Shareholders 45.16
MANAGEMENT
Chen Baohua, Legal
Representative and General Manager
----------------------------------------------------------------------------------------
Gender: M
Age: 52
Qualification: Senior Engineer
Working experience (s):
At present, working in SC as legal representative, chairman 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
-------------------------------------------
Gender: M
Age: 62
Qualification: University
Working experience (s):
At present, working in SC as chairman
Du Jun, Vice
Chairman
---------------------------------------
Gender: M
Age: 58
Qualification: Master Degree
Working experience (s):
At present, working in SC as vice chairman
Also working in Zhejiang Meiyang International Engineering Design Co.,
Ltd. as legal representative, working in Huahai (USA) International Inc. as general
manager
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.
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. 3,855
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:
Linhai Huanan Chemical Co., Ltd.
Zhejiang Huahai Medical Sale Co., Ltd.
Zhejiang Huahai Import & Export Co., Ltd.
Shanghai Aobo Bio-pharmaceutical Tech. Co., Ltd.
Shanghai Shuanghua Biological Medicine Technology Development Co., Ltd.
Shanghai SynCores Technologies, Inc.
Zhejiang Huahai Yintong Real Estate Co., Ltd.
Linhai Huahai Pharmaceutical Equipment Co., Ltd.
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 Sep. 30,
2014 |
|
533,194 |
616,462 |
|
|
Trading
financial assets |
15,603 |
3,023 |
|
Accounts receivable |
542,275 |
722,523 |
|
Notes receivable |
9,801 |
7,980 |
|
Advances to suppliers |
15,928 |
19,161 |
|
Interest receivable |
482 |
0 |
|
Other receivable |
210,356 |
11,818 |
|
Inventory |
785,914 |
772,133 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
485,361 |
123,010 |
|
|
------------------ |
------------------ |
|
Current assets |
2,598,914 |
2,276,110 |
|
Investment property |
0 |
0 |
|
Fixed assets |
1,053,419 |
1,067,577 |
|
Construction in progress |
444,288 |
588,985 |
|
Project materials |
0 |
0 |
|
Fixed assets in liquidation |
0 |
0 |
|
Intangible assets |
237,361 |
257,046 |
|
Goodwill |
32,835 |
32,835 |
|
Long-term deferred expense |
0 |
8,987 |
|
Deferred income tax assets |
14,611 |
20,611 |
|
Other non-current assets |
84,676 |
116,033 |
|
|
------------------ |
------------------ |
|
Total assets |
4,466,104 |
4,368,184 |
|
|
============= |
============= |
|
Short-term loans |
519,879 |
601,146 |
|
Notes payable |
102,179 |
194,787 |
|
Accounts payable |
255,558 |
185,940 |
|
Payroll payable |
58,939 |
39,933 |
|
Taxes payable |
86,615 |
48,735 |
|
Interest payable |
11,552 |
2,240 |
|
Advances from clients |
14,668 |
14,008 |
|
Other payable |
10,624 |
20,836 |
|
Other current liabilities |
300,112 |
114 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,360,126 |
1,107,739 |
|
Non-current liabilities |
86,692 |
43,002 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,446,818 |
1,150,741 |
|
Equities |
3,019,286 |
3,217,443 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
4,466,104 |
4,368,184 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
Jan. 1, 2014 to
Sep. 30, 2014 |
|
Revenue |
2,296,408 |
1,806,201 |
|
Cost of sales |
1,289,258 |
1,023,882 |
|
Business Taxes and Surcharges |
18,912 |
4,436 |
|
Sales expense |
150,994 |
186,380 |
|
Management expense |
422,207 |
343,041 |
|
Finance expense |
36,912 |
26,834 |
|
Asset impairment loss |
10,019 |
9,277 |
|
Investment income |
21,566 |
26,404 |
|
Non-operating income |
23,561 |
11,006 |
|
Non-operating expense |
11,110 |
7,865 |
|
Profit before tax |
412,299 |
229,316 |
|
Less: profit tax |
48,877 |
22,571 |
|
363,422 |
206,745 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Sep. 30,
2014 |
|
*Current ratio |
1.91 |
2.05 |
|
*Quick ratio |
1.33 |
1.36 |
|
*Liabilities to assets |
0.32 |
0.26 |
|
*Net profit margin (%) |
15.83 |
11.45 |
|
*Return on total assets (%) |
8.14 |
4.73 |
|
*Inventory / Revenue ×365/270 |
125 days |
116 days |
|
*Accounts receivable / Revenue ×365/270 |
87 days |
109 days |
|
*Revenue / Total assets |
0.51 |
0.41 |
|
*Cost of sales / Revenue |
0.56 |
0.57 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is low, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears large.
The accounts receivable of SC appears large.
The short-term loans of SC appear large.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
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. Taking into consideration of SC’s general performance, reputation
as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.15 |
|
|
1 |
Rs.94.24 |
|
Euro |
1 |
Rs.73.30 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.