MIRA INFORM REPORT

 

 

Report Date :

05.04.2014  

 

IDENTIFICATION DETAILS

 

Name :

ALMA LASERS LTD.

 

 

Formerly Known as :

M S Q LTD

 

 

Registered Office :

P.O. Box 3021 14 Halamish Street Northern Industrial Zone Caesarea 3088009

 

 

Country :

Israel

 

 

Date of Incorporation :

05.10.1999

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Developers, manufacturers, exporters and marketers of laser, light-based and radiofrequency devices for aesthetic and cosmetic applications.

 

 

No. of Employees :

130

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No complaints

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 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

ISRAEL - ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. Its major imports include crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Natural gasfields discovered off Israel's coast since 2011 have brightened Israel's energy security outlook. The Leviathan field was one of the world's largest offshore natural gas finds this past decade, and production from the Tamar field started meeting all of Israel's natural gas demand in 2013. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government’s fiscal position.

 

Source : CIA

 

 

 

 


Company name and address

 

ALMA LASERS LTD.

 

Telephone         972 4 627 53 57

Fax                   972 4 627 53 68

Email:               marketing@almalasers.com

 

P.O. Box 3021

14 Halamish Street

Northern Industrial Zone

CAESAREA      3088009            ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-283617-2 on the 05.10.1999.

 

Originally registered under the name M S Q LTD., which changed to the present name on the 16.10.2005, after U.S. company ORION LASERS merged into subject.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 14,000,000.00, divided into -

1,022,828,000 ordinary shares (239,615,196 shares issued),

377,172,000 preference A1 shares (issued), all of NIS 0.01 each,

of which shares amounting to NIS 5,568,005.42 were issued.

 

 

SHAREHOLDERS

 

Although no notice of transaction is in the Registrar of companies subject is ownned by:

1.         SHANGHAI FOSUN PHARMACEUTICAL (GROUP) CO. LTD., 95.6%, a public limited company traded on the Shanghai Stock Exchange (SHA:600196).

2.         Remaining shares are held by subject's executives and employees.

 

In May 2013 SHANGHAI FOSUN acquired is shares from former shareholders (mainly from (1) TA ASSOCIATES International Investment Fund, of the USA - 65%, which in March 2006 of acquired 65% of shares from its other shareholders, in consideration of US$ 90 million, according to a company value of US$ 140 million; and (2) Dr. Ziv Karni, subject's founder) for the sum of

US$ 221.6 million.

 

 

 

 

DIRECTORS

 

1.         Dr. Ziv Karni, General Manager,

2.         Yau Fang,

3.         Ding Xiajun,

4.         Lei Zhong,

5.         Elyse Beth Silverberg,

6.         Nichols Charles Barton,

7.         Li Cun.

 

 

BUSINESS

 

Developers, manufacturers, exporters and marketers of laser, light-based and radiofrequency devices for aesthetic and cosmetic applications.

 

Almost 100% of sales are for export, worldwide (USA, China, India, Brazil, Argentina, Russia and more).

 

Operating from rented premises, on an area of 3,500 sq. meters, in 14 Halamish Street, Northern Industrial Zone, Caesarea, and from an additional rented premises, on an area of 500 sq. meters, in Souhtern Industrial Zone, Caesarea. Also operating from subsidiary’s premises in Buffalo Grove, Illinois, USA, and subsidiary in Germany.

 

Had 130 employees in Israel, additional 40 employees in US subsidiary and further 25 employees in German subsidiary as of mid 2012.

 

 

MEANS

 

Subject was valued at US$ 232 million for the acuisition by SHANGHAI FOSUN in May 2013.

 

SHANGHAI FOSUN B/S indicators (CNY millions):

 

                        30.09.2013        31.12.2012

Total assets      27,589.58          25,507.14

Equity               16,482.70          15,304.65

 

SHANGHAI FOSUN current Market value CNY 37.19 billion.

 

Subject is an “Approved Enterprise” and as such enjoys tax benefits and State incentives.

In July 2004, the Israeli Investment Center (IIC) approved a US$ 85,000 investment plan for the expansion of subject’s plant.

According to a report from January 2008 subject received to that date from the IIC the total sum of US$ 511,000.

 

 

 

 

According to a report from June 2009, subject raised to that date US$ 150 million.

 

There are no charges registered on the company's assets.

 

 

REVENUES

 

According to a report from May 2012, subject's 2011 sales were US$ 90 million – US$ 100 million. Subject is reported to have a 30% profit before tax.

Subject is reported to be profitable almost since establishment.

 

According to a report from April 2013, subject's annual sales were US$ 100 million, with a pre-tax profit of 25%.

 

 

OTHER COMPANIES

 

ALMA LASERS INC., a US marketing and distribution subsidiary.

ALMA LASERS GMBH, a German marketing and distribution subsidiary, also assumed part of the activities of QUANTEL DERMA.

 

SHANGHAI FOSUN PHARMACEUTICAL (GROUP) CO. LTD., a China-based company engaged in research, development, production and sale of pharmaceuticals. The Company's products are mainly used in the treatment of metabolism and digestive tract system, cardiovascular system, central nervous system, blood system and anti-infection diseases. Having 14,357 employees, 2012 sales were CNY 7,340.78 million, making a net profit of CNY 1,839.27 million.

 

Dr. Ziv Karni, subject's founder has been also involved in other companies.

 

 

BANKERS

 

The First International Bank of Israel Ltd., Herzliya Pituach Branch (No. 051), Herzliya.

Bank Hapoalim Ltd., Hadera Business Branch (No. 072), Hadera.

Mizrahi Tefahot Bank Ltd., Tel Aviv Central Business Branch (No. 409), Tel Aviv.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learnt.

 

Despite our efforts, we were unable to speak with subject's officials, as they were always unavailable. We left messages which so far remain unanswered.

 

 

 

Subject is certified according to the ISO 9001:2000, ISO 13485:2003, MDD 93/42 Annex II standards, complies with the GMP standards. All medical systems comply with the requirements of the EU Medical Devices Directive. Also having FDA approvals for several of their products.

 

Dr. Ziv Karni is among the pioneers in the laser technology fields.

 

In July 2005, it was reported that subject won the 2004 exceptional exporter award in the Small Exporters category from the Israeli Export Institute.

 

In September 2006, it was reported that the company is a winner in the 2006 Deloitte Technology Fast 50 and was ranked 20th in the EMEA region.

 

In March 2008 LUMENIS LTD. (a competitor) sued subject for NIS 200 million, claiming that subject's 4 founders (Ziv Karni, Yoav Avni, Nadav Bayer and Yivgeni Kodritzky) who worked in LUMENIS prior to establishing subject, stole LUMENIS's core technology and established subject.

In November 2010 it was reported that subject and LUMENIS settled their patent claims and counterclaims in the U.S. District Court in Chicago, where subject to pay LUMENIS US$ 6.5 million for the license. Under the settlement agreement, LUMENIS granted subject a license to its complete patent portfolio for use by subject with respect to all of subject’s products in the aesthetic field.

 

According to a report from June 2009 subject sold over 3,300 systems.

 

IN December 2011 subject won The 2011 Gold Medal Award for Best Aesthetic Treatment in the UK for pain-free hair removal.

 

In July 2012 subject completed the acquisition of the assets of QUANTEL DERMA GMBH (formerly known as Wavelight), a French-German based developer of laser technologies, for several US$ millions. We are informed that these activities were transferred to subject's newly established subsidiary ALMA LASERS GmbH.

 

In April 2012, subject was ranked 10th in "The Most Promissing Startups" of "Calcalist" (a local economic magazine).

 

In October 2012 subject received FDA approval for one of its products.

 

In December 2012, subject, together with its UK partner ABC LASERS, were awarded three medals at the 'Aesthetic Awards Show', an industry event promoting the best of the medical aesthetic industry (best equipment brand, gold – 2nd conscutive year, best aesthetic procedure, gold, and best new product innovation, silver).

 

According to researches, as published by the Israeli Ministry for Industry & Trade in 2009, the global market for equipment and devices for aesthetic skin treatments is estimated at US$ 800 – US$ 900 million per annum, and Israel is considered a major source for this branch, with some 30% share.

 

Israel is considered one of the leading countries in the world in terms of investment in the Life Science and Biotechnology industry. In 2008 Israel was ranked 4th in investments in Biotechnology/GDP, while being among the leaders in the areas of investments and patents in Medical Device and Bio-Pharma fields.

During 2008 total of US$ 87 million were given to local Life Science firms by the Chief Scientist Office.

 

The Central Bureau of Statistics (CBS) published the sales for export by the Communication, Medical & Scientific Equipment for 2012: US$ 7,715 million, almost 3% down from 2011.

 

According to the CBS sales for export from the manufacture of irradiation, electromedical, electrotherapeutic and surgical equipment in 2011, 2012 & first 11 months of 2013 were US$ 919.4 million, US$ 858.5 million & US$ 740.6 million, respectively.

 

 

SUMMARY

 

Notwithstanding the lack of updated data from subject's officials, considered good for trade engagements.

 

Note: Since February 2013 Israel Post has started using a new area code method of 7 digits (the old method of 5 digits is no longer valid).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.32

UK Pound

1

Rs.100.04

Euro

1

Rs.82.65

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.