MIRA INFORM REPORT
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Report No. : |
325875 |
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Report Date : |
04.06.2015 |
IDENTIFICATION DETAILS
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Name : |
HEBEI HUARONG PHARMACEUTICAL CO., LTD. |
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Registered Office : |
East Road, North Second Circle, Shijiazhuang, Hebei Province 050041
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
09.02.1999 |
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Com. Reg. No.: |
130100400004504 |
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Legal Form : |
Chinese Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing Vitamin B12 active pharmaceutical ingredients, liquid
glucose and Vitamin B12 feed additives; selling self-made products. |
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No. of Employees : |
540 |
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 : |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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. 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.
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Source
: CIA |
Company
Name & address
HEBEI HUARONG PHARMACEUTICAL CO.,
LTD.
EAST ROAD, NORTH SECOND CIRCLE, SHIJIAZHUANG
HEBEI PROVINCE 050041 PR CHINA
TEL: 86 (0) 311-86823488/86814829/85966061/85966063/85966055
FAX: 86 (0) 311-86820942
EXECUTIVE
SUMMARY
Date of Registration : FEBruary 9, 1999
REGISTRATION NO. : 130100400004504
LEGAL FORM : CHINESE FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
GU GUIQUN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 20,500,000
staff :
540
BUSINESS CATEGORY : manufacturing & trading
Revenue :
CNY 290,980,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 85,640,000 (AS OF DEC. 31, 2014)
WEBSITE : www.huarongpc.com
E-MAIL :
hrpc@huarongpc.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = 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 Chinese foreign equity joint venture enterprise of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 130100400004504
on February 9, 1999.
SC’s Organization Code Certificate No.:
70095275-8
SC’s Tax No.: 130103700952758
SC’s Customs Registration No.: 1301930721
SC’s registered capital: CNY 20,500,000
SC’s paid-in capital: CNY 20,500,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Tin Lon Investment Limited (Hong Kong) |
50 |
|
Shijiazhuang Taoyuan Group Co., Ltd. |
50 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Gu Guiqun |
|
General Manager |
Feng Zhenying |
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Vice Chairman |
Cai Dongchen |
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Director |
Wang Jinxiu |
|
Wang Huaiyu |
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|
Pan Weidong |
|
|
Liu Fengchun |
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|
Zhang Xinqiao |
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|
Wang Zhenguo |
RECENT DEVELOPMENT
SC has obtained Environment control system authentication certificate,
Quality control system authentication certificate, VitaminsB12COS
authentication certificate,.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Tin Lon Investment Limited (Hong Kong) 50
Shijiazhuang Taoyuan Enterprise Group Corp. 50
Tin Lon Investment Limited (Hong Kong)
---------------------------------------------------------
CR No.: 0538383
Date of Registration: Feb. 6, 1996
Legal Form: Private
Status: Live
Shijiazhuang Taoyuan Group Co., Ltd.
----------------------------------------------------
Date of Registration: April 16, 1991
Registration No.: 130100100006822
Legal Form: Limited Liabilities
Company
Chief Executive: Gu Guiqun
Registered Capital: CNY 50,000,000
Address: East Road, North Second Circle, Shijiazhuang, Hebei Province
Tel: 86 (0) 311-85527000/85527001/85527006
Fax: 86 (0) 311-86820942
Website: www.tygc.com.cn
MANAGEMENT
Gu Guiqun, Legal
Representative and Chairman
--------------------------------------------------------------------------
Gender: M
Nationality: China
Qualification: University
Working experience (s):
From 1999 to present, working in SC as legal representative and chairman
Also working in Shijiazhuang Taoyuan Group Co., Ltd. as legal
representative
Feng Zhenying,
General Manager
-------------------------------------------------------
Gender: M
Nationality: China
Qualification: University
Working experience (s):
At present, working in SC as general manager
Cai Dongchen, Vice
Chairman
--------------------------------------------------
Gender: M
Nationality: China
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Director
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Wang Jinxiu
Wang Huaiyu
Pan Weidong
Liu Fengchun
Zhang Xinqiao
Wang Zhenguo
BUSINESS OPERATION
SC’s registered business scope includes manufacturing Vitamin B12 active
pharmaceutical ingredients, liquid glucose and Vitamin B12 feed additives;
selling self-made products.
SC is mainly engaged in manufacturing and selling Vitamin B12 active
pharmaceutical ingredients.
SC’s products mainly include:
Mecobalamin-Vitamin B12
Cyanocobalamin-Vitamin B12
Vitamin B12 Water-soluble Feed Additive
Cobamamide- Vitamin B12
Hydroxocobalamin- Vitamin B12
Vitamin B12 Food Additive
Vitamin B12 Feed Additive
SC sources its materials 90% from domestic market, and 10% from the
overseas market, mainly European countries. SC sells 33% of its products in domestic
market, and 67% to the overseas market, mainly 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 T/T, L/C and Credit of 30-60 days.
*Major Customers:
---------------------
Interquim SA De Cv
Provimi North America Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 540
staff at present.
SC owns an area as its operating office & factory of approx. 110,000
sq. meters at the heading address.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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 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.
BANKING
Basic Bank:
China Construction Bank Shijiazhuang Branch
AC#: N/a
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31,
2014 |
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Cash |
4,440 |
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Notes receivable |
0 |
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Accounts receivable |
50,350 |
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Other receivable |
20,740 |
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Inventory |
49,750 |
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Non-current assets within one year |
0 |
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Other current assets |
1,700 |
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|
------------------ |
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Current assets |
126,980 |
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Fixed assets |
116,670 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
940 |
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------------------ |
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Total assets |
244,590 |
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============= |
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Short-term loans |
60,500 |
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Notes payable |
0 |
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Accounts payable |
63,200 |
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Advances from clients |
0 |
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Other payable |
30,220 |
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Other current liabilities |
3,920 |
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|
------------------ |
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Current liabilities |
157,840 |
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Non-current liabilities |
1,110 |
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------------------ |
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Total liabilities |
158,950 |
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Equities |
85,640 |
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------------------ |
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Total liabilities & equities |
244,590 |
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============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
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Revenue |
290,980 |
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Cost of sales |
258,280 |
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Sales expense |
3,880 |
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Management expense |
18,870 |
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Finance expense |
3,060 |
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Profit before tax |
5,100 |
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Less: profit tax |
0 |
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Profits |
5,100 |
Important Ratios
=============
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As of Dec. 31,
2014 |
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*Current ratio |
0.80 |
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*Quick ratio |
0.49 |
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*Liabilities to assets |
0.65 |
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*Net profit margin (%) |
1.75 |
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*Return on total assets (%) |
2.09 |
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*Inventory / Revenue ×365 |
63 days |
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*Accounts receivable/ Revenue ×365 |
64 days |
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* Revenue/Total assets |
1.19 |
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* Cost of sales / Revenue |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
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 maintained in an average level.
The accounts receivable of SC is maintained in an average level.
The short-term loans of SC appear large.
SC’s revenue is in an average 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: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.85 |
|
|
1 |
Rs.98.12 |
|
Euro |
1 |
Rs.71.28 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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|
-- |
NB |
New Business |
-- |
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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.