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MIRA INFORM REPORT
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Report No. : |
492614 |
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Report Date : |
24.02.2018 |
IDENTIFICATION DETAILS
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Name : |
NORTH CHINA
PHARMACEUTICAL HUASHENG CO., LTD. |
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Registered Office : |
No. 8 Yangzi Road,
Economic & Technical Development Zone, Shijiazhuang, Hebei Province,
052160 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
04.05.1995 |
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Com. Reg. No.: |
91130182601702614Y |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject includes manufacturing sterile APIs, APIs (with permit if
needed); selling pharmaceutical intermediates and API; medical consulting services;
drug research and development services, technical advisory services; import
and export of goods and technologies (excluding the goods forbidden by the
government). |
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No. of Employees : |
948 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source
: CIA |
COMPANY
NAME AND ADDRESS
NORTH CHINA PHARMACEUTICAL HUASHENG CO., LTD.
NO. 8 Yangzi Road, Economic & Technical
Development Zone, Shijiazhuang, Hebei PROVINCE, 052160 PR CHINA
TEL: 86 (0) 311-83090277/67167054 FAX: 86 (0) 311-83090280
EXECUTIVE
SUMMARY
INCORPORATION DATE :
MAY 4, 1995
CREDIBILITY CODE :
91130182601702614Y
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
948
REGISTERED CAPITAL :
CNY 124,107,200
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 75,499,000 (JAN. 1 TO MAR. 31, 2017)
EQUITIES :
CNY 164,051,000 (AS OF MAR. 31, 2017)
PAYMENT :
NO COMPLAINTS
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
Adopted
abbreviations:
ANS - amount not
stated
NS - not stated
SC - subject
company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a one-person limited
liability company at local Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license).
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered
business scope includes manufacturing sterile APIs, APIs (with permit if needed);
selling pharmaceutical intermediates and API; medical consulting services; drug
research and development services, technical advisory services; import and
export of goods and technologies (excluding the goods forbidden by the
government) (with permit if needed).
SC is mainly
engaged in manufacturing and selling sterile APIs and APIs.
Mr. Zhang Tianbing
is legal representative, executive director and general manager of SC at
present.
SC is known to have approx. 948 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the Economic & Technical Development Zone
of Shijiazhuang. Our checks reveal that SC owns the total premise but SC’s
accountant refused to release the gross area.
http://www.ncpchs.com/
SC’s website is unable to be landed at present.
Email: mail@ncpchs.com ncpchs@ncpchs.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
|
Unspecified |
130000400000589 |
91130182601702614Y |
SC’s former Legal Representative was Liu Shouwen
Former Shareholders were USA Wincent Int’l Inc. 10%
North China Pharmaceutical Co., Ltd.
51%
North China Pharmaceutical Group Corp. 39%;
Former Legal Form was Chinese-foreign equity joint venture enterprise;
Former Registered Capital was USD 13,284,000.
Note: the change
details are not available at present.
Import/ Export License No: 1300601702614
HS Code: 1301910320, 1301930521
There is no record of litigation till now.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
North China Pharmaceutical Co., Ltd
100
North China Pharmaceutical Co., Ltd. is
listed in Shanghai Stock Exchange Market with the code 600812.
Credibility Code: 91130100104397700P
Legal representative: Guo Zhouke
Registered Legal Form: Shares Limited
Company
Date of incorporation: 1992-12-20
Add: No. 388, Heping East Road,
Shijiazhuang, Hebei Province, 050015
Tel: 86 (0) 0311-85993999
E-mail: changzhishan@ncpc.com
Web: http://www.ncpc.cn/
l
Legal representative, executive director and general
manager:
Mr. Zhang Tianbing is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, executive director and general manager
l
Supervisor:
Meng Ruilin
SC is mainly
engaged in manufacturing and selling sterile APIs and APIs.
Main Products:
Vancomycin Hydrochloride, Streptomycin Sulfate Sterile, Streptomycin Sulfate
Oral, Streptomycin Sulfate Crude, Spectinomycin Hydrochloride, Kasugamycin
Hydrochloride, Dihydrostreptomycin sulfate, Capreomycin Sulfate, Bacitracin,
Amphotericin B, etc.
Trademarks &
patents: N/A
SC sources its materials 100% from domestic
market. SC sells 60% of its products in domestic market, and 40% to overseas
market.
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.
Note: SC’s management refused to release its main suppliers and clients.
Industry code:
2710
Industry name:
chemicals API manufacturing
The gross domestic product of China in 2016 which is 74412.72 billion
that is increased 6.7% than previous year.
According to National Bureau of statistics data released, in 2014, main
business income of China pharmaceutical manufacturing industry was 2,332.6
billion Yuan, accumulated an increase of 12.94%; the main business income of
chemicals API was 424 billion Yuan, accumulated an increase of 11.35%; total
profit of China pharmaceutical manufacturing industry was 232.2 billion Yuan,
accumulated an increase of 12.09%. In 2015, main business income of China
pharmaceutical manufacturing industry was 2,553.7 billion Yuan, accumulated an
increase of 9.10%; total profit was 262.7 billion Yuan, accumulated an increase
of 12.90%. China's pharmaceutical manufacturing industry overall still maintain
a growth trend, but the growth rate has slowed down. In the long run, the
characteristics of the rigid demand in pharmaceutical market are remarkable,
under the influence of accelerated aging in China, strengthen of health
conscious and ability to pay, steady growth in the industry will be a high
probability event.
North China Pharmaceutical Group Corporation
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Credibility Code: 9113000010436196XB
Legal representative: Guo Zhouke
Date of incorporation: 1995-12-29
Web: http://www.ncpc.com
North China Pharmaceutical Kangxin Co., Ltd.
=================================
Credibility Code: 911301006017026221
Legal representative: Wang Wentao
Incorporation Date:
Hebei Welcome Pharmaceutical Co., Ltd.
==============================
Credibility Code: 91130100601000356Y
Legal representative: Zhou Xiaobing
Incorporation Date:
North China Pharmaceutical Victor Co., Ltd.
====================
Credibility Code: 911301006010003484
Incorporation Date:
Legal representative: Zhou Xiaobing
Web: http://www.ncpcvictor.com/ (the website is unable to be landed at present for the technical reason.)
North China Pharmaceutical Group Semisyntech Co., Ltd.
==========================================
Credibility Code: 91130182601453929N
Legal representative: Liu Guitong
Incorporation Date:
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 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.
Bank of Communications Shijiazhuang Heping East Road Sub-branch
AC#: 131080060010123604967
Relationship:
Normal.
Financial
Information
Unit: CNY’000
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as of Dec. 31, 2016 |
as of Mar. 31, 2017 |
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Total liabilities |
305,217 |
328,382 |
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Shareholders equities |
155,455 |
164,051 |
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Total Assets |
460,672 |
492,433 |
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as of Dec. 31, 2016 |
Jan. 1 to Mar. 31, 2017 |
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Turnover |
226,095 |
75,499 |
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Net profit |
-27,765 |
8,597 |
Note:
SC’s detailed financial report is not available at present.
Important
Ratios
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as of Dec. 31, 2016 |
as of Mar. 31, 2017 |
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*Liabilities to assets |
0.66 |
0.67 |
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*Net profit margin (%) |
-12.28 |
11.39 |
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*Return on total assets (%) |
-6.03 |
1.75 |
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*Turnover/Total assets |
0.49 |
0.15 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good in its line.
l SC’s net profit
margin is poor in 2016, but fairly good in the 1st quarter of 2017.
l SC’s return on
total assets is fair in 2016, but average in the 1st quarter of
2017.
l SC’s turnover is
in a fair 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.
SC is considered large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.82 |
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1 |
INR 90.40 |
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Euro |
1 |
INR 79.76 |
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CNY |
1 |
INR 10.24 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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.