MIRA INFORM REPORT
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Report Date : |
08.04.2013 |
IDENTIFICATION DETAILS
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Name : |
China Sinopharm International corporation |
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Registered Office : |
No.4, Huixin East Street, Chaoyang District, Beijing, 100029 |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
18.02.1989 |
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Com. Reg. No.: |
100000000009468 |
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Legal Form : |
State-Owned Enterprises |
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Line of Business : |
Subject is mainly engaged in labor training, Labor Cooperation,
engineering contracting, engineering design, import and export, medical
aid. |
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No. of Employees : |
30 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, 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 it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and 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. 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 2010 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 demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (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. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.
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Source : CIA |
Company Name and Address
CHINA
SINOPHARM INTERNATIONAL CORPORATION
NO. 4 HUIXIN EAST STREET,
CHAOYANG DISTRICT,
BEIJING, 100029 PR CHINA
TEL: 86 (0)
10-84618811/84663250
FAX: 86 (0) 10-84639160
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB. 18, 1989
REGISTRATION NO. : 100000000009468
REGISTERED LEGAL FORM : STATE-OWNED
ENTERPRISE
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 1,000,000,000
BUSINESS LINE :
labor training, cooperation, engineering contracting
TURNOVER :
cny 20,376,000 (AS OF DEC. 31,
2010)
EQUITIES :
cny 1,552,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.22= 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
Note: SC’s correct phone number should be the
heading ones.
SC was registered as a state-owned enterprise
at State Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Feb. 18, 1989.
Company
Status: State-owned enterprise This form of business in PR China is defined as a
commodity production or operational units of a socialist character which in
accordance with the law, has autonomy in management, takes full
responsibility for its profits and losses and practices independent
business accounting. It is a legal person established directly by central /
local government or enterprise owned by central or local government. In
theory, the liabilities of this form of enterprise are ultimately borne by
the government, since the adoption of company law in mid-1994, the Chinese
government has planned to separate the ownership from management and
liabilities bearing.
SC’s registered
business scope includes medical and
health industry contracted overseas projects and projects of the international
tender; the offshore engineering equipment required, the material outlet; the
implementation of the dispatch of foreign works outside the workers; undertake
China's foreign economic aid in health project ( include to provide the
necessary equipment, materials ); to carry out foreign labor service
cooperation, to overseas dispatch of engineering, production and service
industry workers ( excluding seamen ); self-and proxy unified national
organizations in addition to joint operation of the export countries and
companies approved the import of goods other than goods and technology import
and export business; to carry out the 'three to one up, feed processing
business; operating counter trade and entrepot trade; for overseas enterprises.
SC is mainly engaged in labor training, labor cooperation, engineering contracting, engineering design, import & export, medical aid.
Mr. Zhou Yuxiang has been legal representative and general manager of SC since Feb., 2011.
SC is known to have approx. 30 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. Our checks reveal that SC owns the total premise about 2,000 square meters.
http://sinopharmintl.net The design is
professional and the content is well organized. At present it is in Chinese
version.
E-Mail: gly@sinopharmintl.com
Changes of SC’s registered information:
|
Date |
Item |
Before
changed |
After
changed |
|
|
Legal rep. |
Yang Zunrun |
Hua Jimin |
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Registered capital |
CNY 2,200,000 |
CNY 2,341,000 |
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Registered capital |
CNY 2,341,000 |
CNY 5,001,000 |
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Legal rep. |
Hua Jimin |
Ma Rang |
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Company name |
China Medical Corporation for
International Technical Cooperation |
Present one |
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|
Legal rep. |
Ma Rang |
Present one |
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Registered capital |
CNY 5,001,000 |
Present amount |
|
Unknown |
Registered no. |
1000001000946 |
Present one |
MAIN SHAREHOLDERS:
Name
%
of Shareholding
China National Pharmaceutical Group
Corporation 100
Address: No. 20 Zhichun Road, Haidian District, Beijing, China
Fax: 86-10-62033332
Website: http://www.sinopharm.com
l
Legal Representative and General Manager:
Mr. Zhou Yuxiang, ID# 110105195203060835, born in 1952, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From Feb., 2011 to present Working in SC as legal rep. and general
manager.
Also working in China National Pharmaceutical Group Corporation as vice general manager.
SC is mainly engaged in labor training, labor
cooperation, engineering contracting, engineering design, import & export,
medical aid.
SC’s products mainly include: medical
products.
SC sources its materials 100% from domestic
market. SC sells 100% of its products to the overseas market, mainly Southeast
Asia and European countries.
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
Note: SC’s management declined to release its main clients and
suppliers.
China
National Pharmaceutical Industry Corporation Ltd.
China
National Medicines Corporation Ltd.
China
National Pharmaceutical Foreign Trade Corporation
China
National Group Corporation of Traditional & Herbal Medicine
SINOPHARM
Medicine Holding Co., Ltd.
China
Pharmaceutical Exhibition Corporation
Sichuan
Industrial Institute of Antibiotics
SINOPHARM
United Engineering Company Ltd.
China
Pharmaceutical Advertising Limited Company
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 China General Office
AC#00097908094001
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
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As of Dec.
31, 2009 |
As of Dec.
31, 2010 |
|
21,971 |
34,638 |
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Inventory |
0 |
0 |
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Accounts receivable |
0 |
0 |
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Advances to suppliers |
9,049 |
40,874 |
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Other receivables |
0 |
0 |
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Prepaid expenses |
0 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
31,020 |
75,512 |
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Fixed assets net value |
299 |
468 |
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Long term investment |
0 |
0 |
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Intangible assets and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
31,319 |
75,980 |
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|
============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
0 |
0 |
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Bills payable |
0 |
0 |
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Advances from clients |
29,596 |
73,686 |
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Taxes payable |
75 |
136 |
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Salaries payable |
769 |
498 |
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Other payable |
146 |
108 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
30,586 |
74,428 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
30,586 |
74,428 |
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Equities |
733 |
1,552 |
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|
------------------ |
------------------ |
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Total liabilities &
equities |
31,319 |
75,980 |
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============= |
============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2009 |
As of Dec.
31, 2010 |
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Turnover |
15,046 |
20,376 |
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Cost of goods sold |
12,611 |
17,343 |
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Sales expense |
1,899 |
2,326 |
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Management expense |
0 |
0 |
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Finance expense |
-64 |
-194 |
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Profit before tax |
530 |
819 |
|
Less: profit tax |
0 |
0 |
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Profits |
530 |
819 |
Note: SC’s
management declined to release the latest financial information.
Important Ratios
=============
|
|
2009 |
2010 |
|
*Current
ratio |
1.01 |
1.01 |
|
*Quick
ratio |
1.01 |
1.01 |
|
*Liabilities
to assets |
0.98 |
0.98 |
|
*Net
profit margin (%) |
3.52 |
4.02 |
|
*Return
on total assets (%) |
1.69 |
1.08 |
|
*Inventory
/Turnover ×365 |
0 |
0 |
|
*Accounts
receivable/Turnover ×365 |
0 |
0 |
|
*Turnover/Total
assets |
0.48 |
0.27 |
|
*Cost
of goods sold/Turnover |
0.84 |
0.85 |
PROFITABILITY: AVERAGE
l
The
turnover of SC appears average in 2009 and it increased in 2010.
l
SC’s net
profit margin is fairly good in both years.
l
SC’s
return on total assets is average in both years.
l
SC’s
cost of goods sold is average in both years, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a normal level.
l
SC’s
quick ratio is maintained in a normal level.
l
SC has
no inventory and account receivable in both years.
l
SC has
no short loans in both years.
l
SC’s
turnover is in a fair level in both years, comparing with the size of its total
assets.
LEVERAGE: FAIR
l
The debt
ratio of SC is high in both years.
l
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.88 |
|
|
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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 |
|
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 |
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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 |
-- |
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.