MIRA INFORM REPORT
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Report No. : |
346284 |
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Report Date : |
24.10.2015 |
IDENTIFICATION DETAILS
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Name : |
HEBEI CHANGSHAN BIOCHEMICAL PHARMACEUTICAL CO., LTD. |
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Registered Office : |
No. 9, Fuqiang Road, Zhengding Town, Shijiazhuang, Hebei Province, 050800 P.R. |
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Country : |
China |
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Financials (as on) : |
30.06.2015 |
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Date of Incorporation : |
28.09.2000 |
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Com. Reg. No.: |
130000000011859 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling pharmaceutical
products. |
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No. of Employee : |
705 |
RATING & COMMENTS
|
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 : |
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 |
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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
HEBEI CHANGSHAN BIOCHEMICAL
PHARMACEUTICAL CO., LTD.
NO. 9, FUQIANG
ROAD, ZHENGDING TOWN, SHIJIAZHUANG,
HEBEI PROVINCE,
050800 P.R. CHINA
TEL: 86 (0)
311-88712901/89190181 FAX: 86
(0) 311-88712907
EXECUTIVE
SUMMARY
INCORPORATION
DATE : Sep. 28,
2000
REGISTRATION
NO. :
130000000011859
REGISTERED
LEGAL FORM : SHARES LIMTIED COMPANY
CHIEF
EXECUTIVE :
MR. GAO SHUHUA (CHAIRMAN)
STAFF
STRENGTH :
705
REGISTERED
CAPITAL : CNY 471,046,750
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 421,147,000 (CONSOLIDATED, JAN. 1- JUNE 30, 2015)
EQUITIES :
CNY 1,475,012,000 (CONSOLIDATED, AS OF JUNE30, 2015)
PAYMENT :
AVERAGE
RECOMM.
CREDIT RANGE : UP TO USD
5,000,000
MARKET
CONDITION :
COMPETITIVE
FINANCIAL
CONDITION : FAIRLY
STABLE
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY
6.35= 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
SC was registered
as a Shares limited co. at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license).
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 export of own products and import of machinery and
equipment, spare parts, and raw and auxiliary materials needed for
manufacturing (excluding goods and technology limited or prohibited by the
country); producing hard capsules, small volume injection, tablets (including
hormones), raw materials ((Heparin, heparin, low molecular weight heparin
(enoxaparin, dalteparin), low molecular weight heparin (nadroparin calcium),
protein-free crude heparin, heparan, heparin lithium, sodium hyaluronate) (Drug
production license is valid until December 31, 2015).
SC is mainly
engaged in manufacturing and selling pharmaceutical products.
Mr. Gao Shuhua has
been legal representative and chairman of SC since 2000.
SC is known to
have approx. 705 employees at present.
SC is currently
operating at the above stated address, and this address houses its operating
office and factory in the industrial zone of Shijiazhuang. SC’s accountant
declined to release the detailed information of the total premise.
Note: SC is also
known to have another operation address:
North End of
Yinchuan Avenue, Zhengding New Area, Shijiazhuang City, Hebei
http://www.heparin.cn The design is professional and the content
is well organized. At present the website is both in Chinese and English
version.
E-mail: zhengquan@heparin.cn
SC listed in Shenzhen
Stock Exchange Market in 2011 with the stock code 300255.
Changes of SC’s registered
information:
|
Date |
Item |
Before the change |
After the change |
|
|
Chinese name |
|
|
|
Legal form |
Limited
liabilities company |
Shares limited co. |
|
|
Registered number |
1301231000057 |
1300001002108 |
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|
2006 |
Chinese name |
|
|
|
Legal form |
Shares limited
co. |
Limited
liabilities company |
|
|
2009 |
Chinese name |
|
|
|
Legal form |
Limited
liabilities company |
Shares limited
co. |
|
|
Registered number |
1300001002108 |
Present one |
|
|
2015-6-23 |
Registered
capital |
CNY 188,418,700 |
Present amount |
Note:
SC changed its Chinese name but remains the same English name.
Tax Registration
Certificate No.: 130123732914772
Organization Code: 732914772
Since the
establishment, SC has been awarded “Excellent Private Hi-tech Enterprise in
Hebei Province”, “Excellent Private Enterprise in Hebei Province”, “Leading
Enterprise in Agricultural Industrialization Operation in Hebei Province”,
“Export Brand Enterprise in Hebei Province”, etc.
For the past two
years there is no record of litigation.
MAIN SHAREHOLDERS: (As of June 30, 2015)
Name
%
of Shareholding
Gao Shuhua
31.94
SDIC High-tech
Investment Co., Ltd. 13.85
Hebei Huaxu
Chemical Co., Ltd. 4.44
Chen Xi 4.32
Taikang Life
Insurance Co., Ltd. - Bonus- Individual
Bonus - 019L-FH002
Shen 2.02
Ji Shengli 1.69
Gao Huixia 1.41
Industrial Bank
Co., Ltd. - Aegon-Industrial Trend Investment
Mixed Securities
Investment Fund 1.37
Agricultural Bank
of China- Huitianfu Social Responsibility
Stock Securities
Investment Fund 1.03
Taikang Life
Insurance Co., Ltd. - All-Powerful- Individual All-Powerful 0.64
Other shareholders 37.29
SDIC High-tech
Investment Co., Ltd.
===========================
Registration no.:
100000000023843
Incorporation date:
Sep. 12, 1996
Legal
representative: Hao Jian
Hebei Huaxu Chemical
Co., Ltd.
========================
Registration no.:
130182000006649
Legal
representative: Gong Jiuchun
Web: http://www.hx-c.com/
Email: hbhxhg@163.com
Tel.: 0311-88128055
Fax: 0311-88120079
Legal representative and
Chairman:
Mr. Gao Shuhua,
born in 1947, with junior college education, senior engineer. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as legal
representative and chairman
Also working in
Hebei Changshan Jiukang Bio-Technology Co., Ltd. and Changshan Biochemical
Pharmaceutical (Jiangsu) Co., Ltd. as legal representative, etc.
General Manager:
Mr. Ji Shengli,
born in 1963, with doctor’s degree. He is currently responsible for the daily
management of SC.
Working
Experience(s):
From 2009 to
present Working in SC as
general manager
Vice Chairman:
Mr. Liu Yanbin, born
in 1962, with master’s degree, senior economist. He is currently responsible
for the daily management of SC.
Working Experience(s):
From 2009 to
present Working in SC as
vice chairman
Vice General Managers:
Liu Jian
Zhang Wei
Cai Hao
Huang Guosheng
Zhang Zhiying
Gao Xiaodong
Ding Jianwen
Directors:
Wang Jianfang
Li He
Gao Xiaodong
Du Guanhua
Supervisors:
Lin Shen
Cui Jie
Deng Yanna
SC is mainly engaged
in manufacturing and selling pharmaceutical products.
SC’s products
mainly include: heparin, hyaluronic acid, low molecular weight heparin
injection, clindamycin phosphate injection, puerarin
SC sources its
materials 90% from domestic market, and 10% from overseas market. SC sells 75%
of its products in domestic market, and 25% 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.
|
TRADEMARKS
& PATENTS |
|
Registration No. |
7920323 |
14965402 |
7920339 |
|
Registration Date |
|
2015-09-21 |
2011-01-21 |
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Trademark Design |
|
|
|
*Major Customers:
==============
Tianjin Biochem
Pharmaceutical Co., Ltd.
Shenzhen SCIPROGEN
Bio-pharmaceutical Co., Ltd.
*Major Supplier:
============
Shanghai Suparnin Mechanical
And Electrical Technology Co., Ltd.
Subsidiaries:
Hebei
Changshan Jiukang Bio-Technology Co., Ltd. (literal translation)
=======================================
Incorporation date:
Registration no.:
130000000026029
Legal
representative: Gao Shuhua
Changshan
Biochemical Pharmaceutical (Jiangsu) Co., Ltd.
==========================================
Incorporation date:
Registration no.:
320400400014269
Legal
representative: Gao Shuhua
Changshan
Pharmaceutical (HongKong) Limited
====================
CR No.: 2140971
Company Type: Private Company Limited by Shares
Date of
Incorporation: 04-SEP.-2014
Active Status: Live
Jiukang Medical
Investment Management Hebei Co., Ltd.
==========================
Reg. no.:
130123000035774
Legal
representative: Gao Shuhua
Date of
Incorporation: 2014-10-13
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’s supplier
declined to make any commends, so the trade reference is not available.
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.
SC refused to
release its banking information.
Consolidated Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
As of June 30, 2015 |
|
Cash & bank |
238,842 |
120,252 |
|
Notes receivable |
3,832 |
10,537 |
|
Inventory |
572,537 |
688,438 |
|
Accounts
receivable |
154,632 |
138,950 |
|
Advances to suppliers |
251,736 |
374,794 |
|
Other receivables |
867 |
465 |
|
Other current
assets |
1,367 |
2,145 |
|
|
------------------ |
------------------ |
|
Current assets |
1,223,813 |
1,335,581 |
|
Fixed assets |
402,653 |
394,321 |
|
Projects under construction |
96,677 |
135,881 |
|
Long term
investment |
0 |
0 |
|
Development
expense |
22,303 |
25,677 |
|
Goodwill |
3,556 |
3,556 |
|
Intangible assets |
109,619 |
105,716 |
|
Deferred tax
assets |
10,245 |
13,349 |
|
Other assets |
175,892 |
165,712 |
|
|
------------------- |
------------------ |
|
Total assets |
2,044,758 |
2,179,793 |
|
|
============ |
============= |
|
Short loans |
500,000 |
578,346 |
|
Note payable |
26,398 |
14,351 |
|
Accounts payable |
8,501 |
12,507 |
|
Advances from
clients |
24,217 |
28,525 |
|
Taxes payable |
17,602 |
13,654 |
|
Employee pay
payable |
6,393 |
7,707 |
|
Interest payable |
877 |
834 |
|
Other payable |
5,831 |
6,405 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
589,819 |
662,329 |
|
Long term
liabilities |
28,050 |
42,452 |
|
|
------------------- |
------------------ |
|
Total liabilities |
617,869 |
704,781 |
|
Equities |
1,426,889 |
1,475,012 |
|
|
-------------------- |
------------------ |
|
Total liabilities
& equities |
2,044,758 |
2,179,793 |
|
|
============= |
============= |
Consolidated Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
Jan. 1 - June 30, 2015 |
|
Turnover |
811,285 |
421,147 |
|
Cost of goods
sold |
335,201 |
160,049 |
|
Taxes and additional
of main operation |
3,976 |
2,528 |
|
Sales expense |
209,081 |
131,180 |
|
Management expense |
91,306 |
47,912 |
|
Finance expense |
25,894 |
15,117 |
|
Assets impairment loss |
-1,662 |
-247 |
|
Non-operating
income |
9,410 |
7,376 |
|
Non-operating
expense |
29 |
80 |
|
Profit before tax |
156,870 |
71,904 |
|
Less: profit tax |
22,553 |
9,592 |
|
Profits |
134,317 |
62,312 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
As of June 30, 2015 |
|
*Current ratio |
2.07 |
2.02 |
|
*Quick ratio |
1.10 |
0.98 |
|
*Liabilities to
assets |
0.30 |
0.32 |
|
*Net profit
margin (%) |
16.56 |
14.80 |
|
*Return on total
assets (%) |
6.57 |
2.86 |
|
*Inventory
/Turnover ×365 |
258 days |
/ |
|
*Accounts
receivable/Turnover ×365 |
70 days |
/ |
|
*Turnover/Total
assets |
0.40 |
0.19 |
|
* Cost of goods
sold/Turnover |
0.41 |
0.38 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC
appears fairly good in its line.
SC’s net profit
margin is good.
SC’s return on
total assets is fairly good in 2014, but average in the 1st half of
2015.
SC’s cost of goods
sold is low, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio
of SC is maintained in a fairly good level.
SC’s quick ratio is
maintained in a normal level.
The inventory of SC
is large in 2014 and 1st half of 2015.
The accounts
receivable of SC appears average in 2014 and 1st half of 2015.
The short loans of
SC appear large in 2014 and 1st half of 2015.
SC’s turnover is in
a poor 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 average.
Overall financial condition of the SC:
Fairly Stable.
SC is considered
medium-sized in its line with fairly stable financial conditions. The large
amount of inventory and short loan could be a threat to SC’s financial
condition. Taking into consideration of SC’s general performance and
development history.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.88 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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.