|
|
|
MIRA INFORM REPORT
|
Report No. : |
493125 |
|
Report Date : |
23.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
HUBEI HONGYUAN PHARMACEUTICAL TECHNOLOGY CO., LTD. |
|
|
|
|
Registered Office : |
No. 428 Yishui North Road, Fengshan Town,
Luotian County, Hubei Province 438600 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.06.2017 |
|
|
|
|
Date of Incorporation : |
21.01.2002 |
|
|
|
|
Unified Social
Credit Code : |
9142110073519634XF |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and
selling of Glyoxalsolution, Glyoxylic acid, Lithium Hexafluorophosphate, APIs,
“Fu Qi Ren” capsule, drinks, formic acid, formic acid, Dimetridazole,
pharmaceutical intermediates, Guanine and intermediate; selling sucralose;
wholesaling and storage of hydrofluoric acid; manufacturing and selling
non-aseptic APIs; selling coals; importing and exporting commodities and
technology; purchasing and selling Chinese medicinal materials, agricultural
and sideline products; and retailing grocery. |
|
|
|
|
No. of Employees : |
1,985 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
|
Source
: CIA |
COMPANY NAME AND ADDRESS
|
COMPANY NAME |
Hubei Hongyuan Pharmaceutical Technology
Co., Ltd. |
|
CURRENT ADDRESS/ REGISTERED ADDRESS |
No. 428 Yishui
North Road, Fengshan Town, Luotian County, Hubei Province 438600 PR China |
|
TEL. NO. |
86 (0)
713-5072428/5072024 |
|
FAX NO. |
86 (0)
713-5072224 |
EXECUTIVE SUMMARY
Date of Registration : january 21, 2002
Unified Social Credit Code : 9142110073519634XF
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 352,749,600
staff :
1,985
BUSINESS CATEGORY : manufacturing & trading
REVENUE : CNY 654,261,000 (Consolidated, Jan. 1,
2017 to Jun. 30, 2017)
EQUITIES :
CNY 613,694,000 (Consolidated, As of Jun. 30, 2017)
WEBSITE : www.hybiochem.com
E-MAIL :
office@hbhypharm.com
& info2@hbhypharm.com
PAYMENT :
REGULAR
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
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 shares limited company of PRC with State
Administration of Industry & Commerce (SAIC) under Unified Social Credit
Code: 9142110073519634XF.
SC’s registered capital: CNY 352,749,600
SC’s paid-in capital: CNY 352,749,600
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2002-5-29 |
Registered Capital |
CNY 500,000 |
CNY 3,148,000 |
|
2007-7-3 |
Registered Capital |
CNY 3,148,000 |
CNY 20,000,000 |
|
2008-3-19 |
Registration No. |
4211231002149 |
310115400027799 |
|
2008-8-4 |
Company Name |
Luotian Hongyuan Biochemical Co., Ltd. |
Hubei Hongyuan Pharmaceutical Co., Ltd. |
|
2013 |
Registered Capital |
CNY 20,000,000 |
CNY 70,000,000 |
|
2014-4-8 |
Company Name |
Hubei Hongyuan Pharmaceutical Co., Ltd. |
Hubei Hongyuan Pharmaceutical Technology
Co., Ltd. |
|
Legal Form |
Limited Liabilities Company |
Shares Limited
Company |
|
|
2015-7-14 |
Registered Capital |
CNY 70,000,000 |
CNY 77,988,000 |
|
2015-12-2 |
Registered Capital |
CNY 77,988,000 |
CNY 155,976,000 |
|
2016-2-25 |
Registered Capital |
CNY 155,976,000 |
CNY 167,976,000 |
|
2016-12-8 |
Registered Capital |
CNY 167,976,000 |
CNY 352,749,600 |
|
Registration No./ Unified Social Credit Code |
421123000005111 |
9142110073519634XF |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of June 30,
2017) |
% of Shareholding |
|
Yan Xiaohui |
29.13 |
|
Yin Guoping |
18.19 |
|
Liao Liping |
7.48 |
|
Xu Shuangxi |
7.47 |
|
Hubei
Hongyuan Charitable Foundation |
3.19 |
|
Duan Xiaoliu |
2.13 |
|
Shanghai Daoji Jinxing Investment Partnership
Enterprise (Limited Partnership) |
2.08 |
|
Liu Zhanliang |
2.04 |
|
Lei Gaoliang |
1.85 |
|
Xiao
Yonghua |
1.71 |
|
Other
Shareholders |
24.73 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
Yin Guoping |
|
Vice
Chairman |
Yan Xiaohui |
|
Director |
Deng Zhihua |
|
Hu Jinfeng |
|
|
Du Shouying |
|
|
Xu Shuangying |
|
|
Duan Xiaoliu |
|
|
Liu Zhanliang |
|
|
Xie Qing |
|
|
Supervisor |
Lei Gaoliang |
|
Wang Lintao |
|
|
Li Guoxin |
|
|
Hu Yunguo |
RECENT DEVELOPMENT
SC was listed on the new three board stock market, and the stock code is
831265.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of June 30, 2017)
Yan Xiaohui 29.13
Yin Guoping 18.19
Liao Liping 7.48
Xu Shuangxi 7.47
Hubei Hongyuan Charitable Foundation 3.19
Duan Xiaoliu 2.13
Shanghai Daoji Jinxing Investment
Partnership Enterprise (Limited Partnership) 2.08
Liu Zhanliang 2.04
Lei Gaoliang 1.85
Xiao Yonghua 1.71
Other Shareholders 24.73
MANAGEMENT
Yin Guoping, Legal
Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 58
Ø
ID# 422125600423001
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Yan Xiaohui, Vice
Chairman
-------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as vice chairman
Director
-----------
Deng Zhihua
Hu Jinfeng
Du Shouying
Xu Shuangying
Duan Xiaoliu
Liu Zhanliang
Xie Qing
Supervisor
--------------
Lei Gaoliang
Wang Lintao
Li Guoxin
Hu Yunguo
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling
Glyoxalsolution, Glyoxylic acid, Lithium Hexafluorophosphate, APIs, “Fu Qi Ren”
capsule, drinks, formic acid, formic acid, Dimetridazole, pharmaceutical
intermediates, Guanine and intermediate; selling sucralose; wholesaling and
storage of hydrofluoric acid; manufacturing and selling non-aseptic APIs;
selling coals; importing and exporting commodities and technology; purchasing
and selling Chinese medicinal materials, agricultural and sideline products;
and retailing grocery.
SC is mainly
engaged in manufacturing and selling APIs and intermediates.
SC’s products mainly include: Metronidazole,
2-Methyl-5-Nitroimidazole, 2-Methylimidazole, Dimetridazole, Imidazole,
4-Nitroimidazole, and Metronidazole Benzoate, etc.
SC’s annual outputs are: Glyoxal 20,000
tons, Formaldehyde 10,000 tons, 2-Methylimidazole 5,000 tons (including 500
tons of 99% and above of 2-Methylimidazole), 2-Methyl-5-Nitroimidazole 5,000
tons, Metronidazole 3800 tons, Melatonin 50 tons, L-Carnitine 100 tons,
L-Carnitine L-Tartrate 100 tons, L-Carnitine Fumarate 100 tons,
Acetyl-L-Carnitine HCl 100 tons, 50% L-Carnitine (feedstuffs grade) 100 tons,
A5 (4-Cyano-3-hydroxybutyrate)12 tons, flavor 1,000 tons, Dimetridazole series 1,200
tons and Benserazide hydrochloride series 5 tons.
SC sources its
materials 100% from domestic market, mainly Hubei province. SC sells 60% to
overseas market, mainly European and American countries, and 40% in domestic
market, mainly Hubei and Jiangsu province.
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.
*Major Customers*
------------------------------
Taixing Yuandong Chemical Co., Ltd.
Isp Technologies
Inc.
Quimica Superior
Unichem SA
Staff & Office:
--------------------------
SC is known
to have approx. 1,985 staff
at present.
SC owns an area as
its operating office & factory of approx. 18,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have
the following subsidiaries at present,
Hubei Wannianfu Pharmaceutical Co., Ltd.
Shanghai Maibu Medical Technology Co., Ltd.
Luotian Hongyuan Chemical Machinery Co., Ltd.
Hubei Sinovitamins Co., Ltd.
Hubei Tongyuan Sweetener Co., Ltd.
Hubei Chutianshu Pharmaceutical Co., Ltd.
Hubei Hongyuan Chemistry Technology Co., Ltd.
Etc.
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:
Bank of China
Luotian Sub-branch
AC#: 06332508093001
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
As of Jun. 30, 2017 |
|
Cash |
177,601 |
53,367 |
123,154 |
|
Notes receivable |
40,788 |
69,909 |
52,720 |
|
Accounts receivable |
103,549 |
105,792 |
145,902 |
|
Advances to suppliers |
14,952 |
4,519 |
10,379 |
|
Other receivable |
11,146 |
7,960 |
9,435 |
|
Inventory |
142,751 |
125,534 |
154,034 |
|
Prepaid expenses |
0 |
0 |
0 |
|
Other current assets |
11,090 |
21,445 |
16,968 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
501,877 |
388,526 |
512,592 |
|
Financial assets available for sale |
1,500 |
1,500 |
1,500 |
|
Long-term accounts receivable |
10,080 |
15,461 |
22,928 |
|
Long-term Investment |
4,948 |
4,913 |
4,728 |
|
Fixed assets |
408,784 |
604,655 |
596,789 |
|
Construction in progress |
94,017 |
41,791 |
90,474 |
|
Intangible assets |
108,065 |
101,273 |
104,560 |
|
Goodwill |
76,119 |
70,569 |
70,569 |
|
Long-term prepaid expenses |
6,205 |
5,978 |
9,068 |
|
Deferred income tax assets |
812 |
468 |
644 |
|
Other non-current assets |
36,850 |
14,529 |
10,780 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
1,249,257 |
1,249,663 |
1,424,632 |
|
|
============= |
============= |
============= |
|
Short-term loans |
181,000 |
172,000 |
189,600 |
|
Notes payable |
100,327 |
23,000 |
87,828 |
|
Accounts payable |
106,822 |
101,380 |
100,562 |
|
Wages payable |
15,988 |
12,408 |
7,347 |
|
Taxes payable |
16,687 |
22,356 |
19,431 |
|
Interest payable |
1,180 |
0 |
0 |
|
Advances from clients |
31,239 |
29,977 |
19,810 |
|
Other payable |
41,098 |
17,436 |
15,312 |
|
Accrued expenses |
0 |
0 |
0 |
|
Other current liabilities |
79,556 |
88,761 |
112,384 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
573,897 |
467,318 |
552,274 |
|
Non-current liabilities |
161,478 |
200,471 |
258,664 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
735,375 |
667,789 |
810,938 |
|
Equities |
513,882 |
581,874 |
613,694 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
1,249,257 |
1,249,663 |
1,424,632 |
|
|
============= |
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
Jan. 1, 2017 to Jun. 30, 2017 |
|
Revenue |
1,003,128 |
1,075,442 |
654,261 |
|
Cost of sales |
768,547 |
776,573 |
514,477 |
|
Taxes and surcharges |
3,970 |
8,204 |
5,334 |
|
Sales expense |
47,287 |
59,759 |
29,572 |
|
Management expense |
74,507 |
100,799 |
47,120 |
|
Finance expense |
33,350 |
28,382 |
17,929 |
|
Investment income |
2,665 |
-35 |
-185 |
|
Non-operating income |
4,560 |
3,256 |
8,796 |
|
Non-operating expense |
1,568 |
13,673 |
5,473 |
|
Profit before tax |
76,259 |
82,010 |
39,701 |
|
Less: profit tax |
11,155 |
14,018 |
7,881 |
|
Profits |
65,104 |
67,992 |
31,820 |
Important Ratios
=============
|
|
As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
As of Jun. 30, 2017 |
|
*Current ratio |
0.87 |
0.83 |
0.93 |
|
*Quick ratio |
0.63 |
0.56 |
0.65 |
|
*Liabilities to assets |
0.59 |
0.53 |
0.57 |
|
*Net profit margin (%) |
6.49 |
6.32 |
4.86 |
|
*Return on total assets (%) |
5.21 |
5.44 |
2.23 |
|
*Inventory / Revenue ×365/180 |
52 days |
43 days |
43 days |
|
*Accounts receivable / Revenue ×365/180 |
38 days |
36 days |
41 days |
|
*Revenue / Total assets |
0.80 |
0.86 |
0.46 |
|
*Cost of sales / Revenue |
0.77 |
0.72 |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly 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 sales is average, comparing with its
revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans appear average.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
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 |
INR 65.05 |
|
|
1 |
INR 90.41 |
|
Euro |
1 |
INR 79.83 |
|
CNY |
1 |
INR 10.23 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
|
|
|
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.