MIRA
INFORM REPORT
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Report Date : |
16.12.2013 |
IDENTIFICATION DETAILS
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Name : |
SUZHOU CAPSUGEL CO., LTD. |
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Registered Office : |
No. 369, Suhong Middle Road, Suzhou Industrial Zone, Jiangsu Province, 215021 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
22.04.1986 |
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Com. Reg. No.: |
320594400008814 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling of capsules including coni-snap, supro,
licaps, pearlcaps, NPcaps |
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No. of Employees : |
270 |
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 – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to China's,
and is expected to further drag Chinese growth in 2013. 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 & address
SUZHOU CAPSUGEL
CO., LTD.
NO. 369, SUHONG MIDDLE ROAD, SUZHOU
INDUSTRIAL ZONE,
JIANGSU PROVINCE, 215021 PR CHINA
TEL: 86 (0) 512-62585188 FAX:
86 (0) 512-62589188
EXECUTIVE SUMMARY
INCORPORATION DATE : APRIL 22, 1986
REGISTRATION NO. : 320594400008814
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE : MR. CHARLES ROBERT DANJAUT (CHAIRMAN)
STAFF STRENGTH :
270
REGISTERED CAPITAL : USD 29,700,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 263,337,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 245,154,000 (AS OF
DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable (AS
OF DEC. 31, 2010)
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.10 = 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 Renminbi
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on April 22, 1986.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing empty capsule, according
to “drug production license”, selling self-made products; wholesaling, import
& export of related equipment and components with manufactured capsule and
filled capsule, commission agency (excluding auction) and related supporting
business.
SC is mainly
engaged in manufacturing and selling capsules.
Mr. Charles Robert
Danjaut has been legal representative and chairman of SC since 2005.
SC is
known to have approx. 270 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 Suzhou. Our checks
reveal that SC owns the total premise about 30,000 square meters.
www.capsugel.com.cn/ The
design is professional and the content is well organized. At present, the web
is in Chinese and Japanese versions.
Email: sclsales@pfizer.com
SC’s total investment amount is USD 39,200,000.
SC has got the certificate of ISO9001 and ISO14001.
Changes of its
registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2005-8-16 |
Legal representative |
Mr. Lindong |
Mr. Charles Robert Danjaut |
|
Unspecified |
Registration No. |
007554 |
021506 |
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Registration No. |
021506 |
320594400008814 |
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|
2009-9 |
Registered capital |
USD 28,200,000 |
present amount |
|
2011 |
Shareholders |
China National Pharmaceutical Foreign
Trade Corporation 25% Warner-Lambert Inc. (U.S.A.) - 75% |
Present ones |
MAIN SHAREHOLDERS:
Name
%
of Shareholding
China National Pharmaceutical Group Assets Management Center (literal translation) 25
Capsugel Holdings (Hong Kong) Limited 75
China National Pharmaceutical Group Assets Management Center (literal
translation)
------------------------------------------------
Registration no.: 100000000042887
Legal representative: Deng Jindong
Registered capital: CNY 10,000,000
Capsugel Holdings (Hong Kong) Limited
--------------------------------------------------------
Registration no.: 1600991
Legal form: private
Legal
representative and chairman:
Mr. Charles Robert Danjaut, American, born in 1943, with university education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2005 to present Working in SC as chairman and legal representative
General manager:
Mr. Domenico Angelini, Italian, ID# 153697, born in 1953 with university education. He is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager
Vice-Chairman:
Mr. Zeng Bing, ID# 11010819700101xxxx, born in 1970 with high school education is currently responsible for the daily management of SC.
Working
Experience(s):
at present Working in SC as vice-chairman
*Officials:
=========
Name Title
Guido Driesen Director
Siriporn Sridech Director
Li Zhixin Vice-president
Cheng Zhong Director
Shen You Director
Etc.
SC is mainly engaged
in manufacturing and selling capsules.
SC’s products
mainly include coni-snap, supro, licaps, pearlcaps, NPcaps
SC sources its materials 95%
from domestic market, and 5% from overseas market, mainly France. SC sells 98% of
its products in domestic market, and 2% to overseas market, mainly Thailand.
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, Check and Credit of 30-60 days.
Major Client:
===========
China National Pharmaceutical Foreign Trade Corporation
Note:
SC refused to release its major suppliers.
According to SC’s
website:
=========================
Hong Kong Office
Tel: (852)28119711/25625567
Fax: (852)22141737
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.
China Construction Bank Suzhou Chengzhong Sub-branch
AC#：32201989036050085817
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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As of Dec. 31, 2010 |
|
Cash & bank |
12,501 |
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Inventory |
32,902 |
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Bills receivable |
35,259 |
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Accounts
receivable |
76,134 |
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Other Accounts
receivable |
704 |
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Advances to
suppliers |
2,344 |
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To be
apportioned expense |
0 |
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Other current
assets |
0 |
|
|
------------------ |
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Current assets |
159,844 |
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Fixed assets net
value |
242,260 |
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Projects under
construction |
3,401 |
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Long-term
investment |
0 |
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Intangible and
other assets |
23,692 |
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------------------ |
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Total assets |
429,197 |
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============= |
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Short loans |
130,000 |
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Accounts payable |
27,183 |
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Advance from
customers |
836 |
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Salaries payable |
6,668 |
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Welfare payable |
2,105 |
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Other Accounts
payable |
349 |
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Notes payable |
0 |
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Taxes payable |
5,734 |
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Surcharge
payable |
90 |
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Withdraw the
expenses in advance |
11,078 |
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Other current
liabilities |
0 |
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------------------ |
|
184,043 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
184,043 |
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Equities |
245,154 |
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------------------ |
|
429,197 |
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============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2010 |
|
Turnover |
263,337 |
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Cost of goods sold |
163,662 |
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Taxes and additional of main
operation |
419 |
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Profit
from other business |
241 |
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Sales expense |
27,676 |
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Management expense |
30,775 |
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Finance expense |
7,583 |
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Non-operating
income |
554 |
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Non-operating expense |
48 |
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Profit before
tax |
33,969 |
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Less: profit tax |
7,526 |
|
Profits |
26,443 |
Note: SC’s management declined to release the latest financial
information.
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
|
*Current ratio |
0.87 |
|
*Quick ratio |
0.69 |
|
*Liabilities
to assets |
0.43 |
|
*Net profit
margin (%) |
10.04 |
|
*Return on
total assets (%) |
6.16 |
|
*Inventory
/Turnover ×365 |
46 days |
|
*Accounts
receivable/Turnover ×365 |
106 days |
|
*Turnover/Total
assets |
0.61 |
|
* Cost of
goods sold/Turnover |
0.62 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly
good.
l
SC’s cost of goods sold is low,
comparing with its turnover.
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 is maintained in an average
level.
l
The accounts receivable of SC appears fairly large.
l
SC’s short-term loan appears LARGE in 2010.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Fairly stable.
SC is considered an old-established business in medium size with fairly
stable financial conditions. The large amount of
accounts receivable and short loans could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.13 |
|
UK Pound |
1 |
Rs.101.53 |
|
Euro |
1 |
Rs.85.41 |
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 |
|
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.