MIRA
INFORM REPORT
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Report Date : |
14.06.2013 |
IDENTIFICATION DETAILS
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Name : |
SINOPHARM FORTUNE WAY COMPANY |
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Registered Office : |
No. 4, Huixin Dongjie, Chaoyang District, Beijing 100029 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
16.08.1993 |
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Com. Reg. No.: |
110105005017129 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Subject engaged in international trade textile products include chemical fiber cloth material & inner cloth material, blend cloth material & crossing textile cloth material, medical, medical medium agent. |
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No. of Employees : |
35 |
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 : |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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.
Source
: CIA
Company name and address
SINOPHARM FORTUNE WAY COMPANY
NO. 4, HUIXIN DONGJIE, CHAOYANG DISTRICT,
BEIJING 100029 PR CHINA
TEL: 86 (0)
10-84663822/84663789 FAX:
86 (0) 10-84639160
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 16, 1993
REGISTRATION NO. :
110105005017129
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
STAFF STRENGTH :
35
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 424,538,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 28,527,000 (AS OF DEC. 31, 2010)
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY stable (AS OF DEC. 31, 2010)
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1394 = 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 state-owned enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Aug. 16, 1993.
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 wholesaling (non-kind) prepackaging food and dairy products
(excluding infant formula milk powder); wholesaling toluene, compressed gas and
liquefied gas, flammable liquids, flammable solid, combustible goods,
antioxidants and organic peroxide, drugs, corrosive; supplying various goods to
China oversea institutions; purchasing and selling tax-free goods; purchasing
and selling general merchandise, chemically products, furniture, arts and
crafts, textiles, machinery & equipment, hardware, building materials,
decoration materials, spare parts of cars, groceries, and labor protection
products; photo services; retailing tobaccos; import and export of goods and
technology, excluding the products prohibited by the country; processing with
supplied samples, imported materials, and imported parts, compensation trades;
transit trade and counter trade; economic information consulting; selling
mineral products (excluding coal and petroleum products).
SC is mainly
engaged in international trade.
Mr. Li Can has been legal representative and general
manager of SC since 2001.
SC is known
to have approx. 35 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 300 square meters.
http://www.cnfortuneway.com
The website belongs to China Fortune Way Co., Ltd., and it includes the
information on SC. The design is professional and the content is well organized.
At present it is in Chinese and English versions.
E-mail: Medicine department: pharma@fortune-way.com
Textile
department: tex@fortune-way.com
Changes
of SC’s registered information are as follows:
|
Date |
Item |
Before changed |
After changed |
|
Nov., 2000 |
Registered capital |
CNY 3,000,000 |
CNY 7,000,000 |
|
Mar., 2001 |
Registered capital |
CNY 7,000,000 |
Present amount |
|
Legal rep. |
Gao Xianmin |
Present one |
|
|
Oct., 2009 |
Registered number |
1101051501712 |
Present one |
|
Aug., 2011 |
Company’s Chinese name |
中服嘉远国际贸易公司 |
国药嘉远国际贸易公司 |
|
Unknown |
Company’s English name |
CNSC Fortune Way Company |
Sinopharm Fortune Way Company |
|
Shareholder |
China National Service Corporation for Chinese Personnel Working Abroad（CNSC） |
Present one |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
China Sinopharm International Corporation 100
China Sinopharm International Corporation is
affiliated to China National Pharmaceutical Group (Sinopharm). It was established
on the basis of CNSC, CTPFTC and CMCITC.
Sinopharm is the largest pharmaceutical and
healthcare group in China. Under the guidance of corporate conception of
“Caring for life, attending to health”, it possesses the first-class
manufacturers for medicines, vaccines and blood products, high-level R&D
institutes, a nation-wide distribution network, large-scale TCM plant bases and
the top pharmaceutical exhibition in China. Thanks to the complete industry
chains, powerful industry platform and smooth distribution network system,
Sinopharm Group has also established a trading partnership with more than 100
countries and regions in the world. In 2010, the revenue of Sinopharm Group
reached approximately RMB 100 billion. The goal of Sinopharm Group is to become
one of the TOP 500 enterprises in the world and an internationally competitive
leader in the pharmaceutical industry within the period of “Twelfth Five-Year
Plan” (2011-2015).
Incorporation Date :
Feb. 18, 1989
Registration No. :
100000000009468
Registered Legal Form :
State-Owned Enterprise
Legal Rep. :
Zhou Yuxiang
Registered Capital :
CNY 1,000,000,000
Address: No. 4, Huixin East Street, Chaoyang
District, Beijing
Tel: 86 (0) 10-84618811/84663250
Fax: 86 (0) 10-84639160
Web: http://www.sinopharmintl.com
E-mail: gly@cnsc.com.cn
l Legal
Representative and General Manager:
Mr. Li Can , ID# 370923721121061, born in 1972, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as legal representative
and general manager.
SC is mainly
engaged in international trade.
SC’s textile
products include: chemical fiber cloth material & inner cloth material,
blend cloth material & crossing textile cloth material, medical, medical
medium agent.
Chemical products:
PTA, QTA, PET lumps, PP powder, SAN, 1,5-Pentanediol , Bisphenol-A,MEA, Ethyl
Acetate.
Stone Products:
Galala Beige, Aman Beige, Marron Emperador, Wooden Travertine , Rosso Lavento,
Sahara Beige, India Green, MocaCream, Bianco Perlino, Ariston White.
From Oct. of 2004,
SC began to supply Pakistan heckling yarn and regular yarn, mainly including
16S, 20S, and 26S. At present, it sets warehouses in Guangzhou, Beijing and
Tianjin. Its annual importing can reach 15,000 tons.
SC imports marble
and its board materials from Turkey and Egypt; PET and its materials, PTA from
Europe; chromium ore and stone materials from Turkey and Pakistan.
SC sources its
materials 40% from domestic market, and 60% from international market mainly
Korea, Asia and Europe. SC sells 60% of its products in domestic market, and
40% to international market, mainly Asian countries, Middle East and Europe.
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.
Major Suppliers
============
Korea Samnam Petrochem Co., Ltd.
Korea Polymirae Co., Ltd.
Korea LG Chemical Co., Ltd.
Note:
SC declined to release its major clients.
China Fortune Way Co., Ltd.
=========================
Incorporation Date :
Mar. 19, 2008
Registration No. :
110105010923507
Registered Legal Form :
Limited liabilities co.
Legal Rep. :
Li Shuhai
Registered Capital :
CNY 20,000,000
According to the
website: http://www.sinopharmintl.com
China National Pharmaceutical Foreign Trade Corporation
=========================================
Incorporation Date :
May 20, 1981
Registration No. :
100000000000313
Registered Legal Form :
State-owned enterprise
Legal Rep. :
Yan Bing
Registered Capital :
CNY 280,500,000
Web: http://www.sino-pharm.com
E-mail: office@sinopharm.com
Tel: 010-62026699
Fax: 010-62032345
Address: No. 20 Zhichun Road, Haidian District, Beijing
China Sinopharm International (Shanghai) Co., Ltd.
====================================
Incorporation Date :
Mar. 21, 2012
Registration No. :
310106000238302
Registered Legal Form :
One-person Limited Liability Company
Legal Rep. :
Wang Qi
Registered Capital :
CNY 30,000,000
Web: http://www.sinopharmintlsh.com
E-mail: csicsh@sinopharmintl.com
Add: No. 293, Jiangning Road, Jing’an District, Shanghai
Tel: 021-62711301
China Sinopharm Fortune International Trade Corporation
===========================================
Incorporation Date :
Sep. 6, 1993
Registration No. :
110105005017467
Registered Legal Form :
State-owned enterprise
Legal Rep. :
Li Shuhai
Registered Capital :
CNY 20,000,000
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’s suppliers
declined to make any comments.
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 Huixin Sub-branch
AC#：664012015014063
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
14,822 |
15,123 |
|
Inventory |
32,841 |
191,122 |
|
Bills receivable
|
0 |
0 |
|
Accounts
receivable |
0 |
0 |
|
Advances to
suppliers |
5,417 |
80,529 |
|
Other
receivables |
18,321 |
73,908 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
71,401 |
360,682 |
|
Fixed assets net
value |
118 |
69 |
|
Long term
investment |
910 |
910 |
|
Other assets |
18 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
72,447 |
361,661 |
|
|
============= |
============= |
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Short loans |
0 |
0 |
|
Bills payable |
0 |
0 |
|
Accounts payable |
14,341 |
22,158 |
|
Advances from
clients |
32,108 |
239,572 |
|
Taxes payable |
-7,427 |
-4,426 |
|
Other payable |
2,018 |
67,323 |
|
Other current
liabilities |
4,734 |
8,507 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
45,774 |
333,134 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
45,774 |
333,134 |
|
Equities |
26,673 |
28,527 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
72,447 |
361,661 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Turnover |
271,593 |
424,538 |
|
Cost of goods
sold |
253,984 |
399,138 |
|
Sales expense |
10,498 |
14,076 |
|
Management expense |
1,182 |
890 |
|
Finance expense |
1,688 |
-999 |
|
Investment
income |
11 |
0 |
|
Profit before
tax |
6,334 |
12,469 |
|
Less: profit tax |
1,633 |
3,200 |
|
Profits |
4,701 |
9,269 |
Note: SC’s
management declined to release the latest financial information.
Important Ratios
=============
|
|
2009 |
2010 |
|
*Current ratio |
1.56 |
1.08 |
|
*Quick ratio |
0.84 |
0.51 |
|
*Liabilities
to assets |
0.63 |
0.92 |
|
*Net profit
margin (%) |
1.73 |
2.18 |
|
*Return on
total assets (%) |
6.49 |
2.56 |
|
*Inventory
/Turnover ×365 |
44 days |
164 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total
assets |
3.75 |
1.17 |
|
* Cost of
goods sold/Turnover |
0.94 |
0.94 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good and it increased in 2010.
l SC’s net profit
margin is average.
l SC’s return on
total assets is fairly good in 2009 and average in 2010.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level in
2009 but in a fair level in 2010.
l
SC has no accounts receivable in both years.
l
The inventory of SC is average in 2009 but fairly
large in 2010.
l
SC has no short loan in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is average in 2009 but high in
2010.
l
The risk for SC to go bankrupt is low.
Overall financial condition
of the SC: Fairly stable. (As of Dec. 31, 2010)
SC is considered medium-sized in its line with a development history of
20 years.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.41 |
|
|
1 |
Rs.91.62 |
|
Euro |
1 |
Rs.78.12 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.