MIRA INFORM REPORT
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Report Date : |
29.06.2013 |
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 : |
Subject is engaged in manufacturing and selling capsules. |
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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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 and 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 6.14 = 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.
http://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 |
|
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.) |
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-general
manager:
Mr. Li Zhengda, ID# 320504440820303, born in 1944 with high school education.
He is currently responsible for the daily management of SC.
Working Experience(s):
From 1995 to present Working
in SC as vice-general manager
*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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|
------------------ |
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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 |
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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 |
|
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 |
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*Quick ratio |
0.69 |
|
*Liabilities to assets |
0.43 |
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*Net profit margin (%) |
10.04 |
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*Return on total assets (%) |
6.16 |
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*Inventory /Turnover ×365 |
46 days |
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*Accounts receivable/Turnover ×365 |
106 days |
|
*Turnover/Total assets |
0.61 |
|
* Cost of goods sold/Turnover |
0.62 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is low, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appears fairly large.
SC’s short-term loan appears LARGE in 2010.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
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.59.70 |
|
|
1 |
Rs.91.14 |
|
Euro |
1 |
Rs.77.97 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
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 |
|
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NB |
New Business |
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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.