MIRA INFORM REPORT

 

 

Report Date :

20.08.2014              

 

IDENTIFICATION DETAILS

 

Name :

GRIFOLS (HK) LTD.

 

 

Registered Office :

Room 1506, 15/F., DCH Commercial Centre, 25 Westlands Road, Quarry Bay

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

11.08.1994

 

 

Com. Reg. No.:

18484531

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Chemical & Pharmaceutical Trader

 

 

No. of Employees :

15

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 


 

HONG KONG - ECONOMIC OVERVIEW

 

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 12% of total system deposits in Hong Kong by the end of 2013. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's total trade by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies

Source : CIA

 

 

 


Company name and address

           

GRIFOLS  (HK)  LTD.

 

ADDRESS:            

Room 1506, 15/F., DCH Commercial Centre, 25 Westlands Road, Quarry Bay, Hong Kong.

 

PHONE:                  852-2161 3100

 

FAX:                       Not available.

 

 

MANAGEMENT

 

Managing Director:  Mr. Ramon Riera Roca

 

 

SUMMARY

 

Incorporated on:             11th August, 1994.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$400,000,000.00

Issued:                          HK$400,000,000.00

 

Business Category:        Chemical & Pharmaceutical Trader.

 

Group Net Revenue:       EUR 2,741.7 million  (Year ended 31-12-2013)

 

Employees:                   15.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Good.


Company name and address

 

GRIFOLS  (HK)  LTD.

 

ADDRESS:

 

Registered Head Office:-

Room 1506, 15/F., DCH Commercial Centre, 25 Westlands Road, Quarry Bay, Hong Kong.

 

Holding Company:-

Novartis Pharma AG, Switzerland.

 

Intermedicate Holding Company:-

G-C Diagnostics Corp., US.

 

Ultimate Holding Company:-

Grifols S. A., Spain.

 

 

BUSINESS REGISTRATION NUMBER

 

18484531

 

 

COMPANY FILE NUMBER

 

0488737

 

 

MANAGEMENT

 

Managing Director:  Mr. Ramon Riera Roca

 

 

CAPITAL

 

Nominal Share Capital: HK$400,000,000.00 (Divided into 400,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$400,000,000.00

 


SHAREHOLDER  

 

(As per registry dated 13-12-2013)

Name

 

No. of shares

Novartis Pharma AG

Lichtstrasse 35, CH-4056, Basel, Switzerland.

 

400,000,000

=========

 

 

DIRECTORS  

(As per registry dated 09-01-2014)

Name

(Nationality)

 

Address

Ramon RIERA ROCA

Calle Angel Guimera 24-26, Atico 1a 08170, Barcelona, Spain.

 

Alfredo ARROYO GUERRA

2 Grafton 31-33, Merrion Road, Dublin 4, Ireland.

 

Montserrat LLOVERAS CALVO

Calle Cavallers 71, 4o 1a, 08034 Barcelona, Spain.

 

 

SECRETARY

(As per registry dated 03-09-2013)

Name

Address

Co. No.

Tricor Strath Ltd.

Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong.

0004873

 

 

HISTORY

 

The subject was incorporated on 11th August, 1994 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Opossum Ltd., name changed to Chiron Diagnostics Ltd. on 16th May, 1996; changed to Chiron Ltd. on 12th April, 1999; to Novartis Vaccines and Diagnostics (HK) Ltd. on 29th September, 2009; to G-C Diagnostics (HK) Ltd. on 30th January, 2014; to Grifols-Chiron Diagnostics (H.K.) Ltd. on 7th February, 2014, and changed to the present style on 20th March, 2014.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

OPERATIONS

 

Activities:                      Chemical & Pharmaceutical Trader.

 

Lines:                           All kinds of chemicals and pharmaceuticals.

 

Employees:                   15.

 

Commodities Imported:   India, Europe, etc.

 

Markets:                       Asian countries, Europe, North America, etc.

 

Group Net Revenue:       EUR    913.2 million  (Year ended 31-12-2009)

EUR    909.7 million  (Year ended 31-12-2010)

EUR 1,795.6 million  (Year ended 31-12-2011)

EUR 2,620.9 million  (Year ended 31-12-2012)

EUR 2,741.7 million  (Year ended 31-12-2013)

 

Terms/Sales:                 L/C or as per contracted.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$400,000,000.00 (Divided into 400,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$400,000,000.00

 

Mortgage or Charge:-

Date:                            27-06-2014

Description of Instrument:Assignment of Receivables and Charge Over Proceeds - Specific Arrangement

Mortgagee:                    The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Group Profit Attributable to Shareholders:-

EUR 148.0 million  (Year ended 31-12-2009)

EUR 115.5 million  (Year ended 31-12-2010)

EUR   50.0 million  (Year ended 31-12-2011)

EUR 256.7 million  (Year ended 31-12-2012)

EUR 345.6 million  (Year ended 31-12-2013)

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in a satisfactory manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Good.

 

 

GENERAL

 

Grifols (HK) Ltd. is a wholly-owned subsidiary of G-C Diagnostics Corp., a US-based company.  The ultimate holding company Grifols S. A. [Grifols], is a Spain-based company.  It is also a listed company in Spain.

The subject is engaged in the same lines of business as Grifols.

Grifols was founded in 1940 in Barcelona, Spain by Dr. José Antonio Grifols i Roig, a specialist and pioneer in blood transfusions and clinical analysis and the grandfather of its current Chairman of the Board.  It has been making and selling plasma derivative products for more than 70 years.  Over the last 25 years, it has grown from a predominantly domestic Spanish company into a global company by expanding both organically and through acquisitions throughout Europe, the United States, Latin America and Asia.

It was incorporated in Spain as a limited liability company on 22nd June, 1987 under the name Grupo Grifols, S.A., and it changed its name to Grifols, S.A. in 2005.  It conducts business under the commercial name “Grifols.”  Its principal executive office is located at Avinguda de la Generalitat, 152 Parque Empresarial Can Sant Joan, 08174 Sant Cugat del Vallès, Barcelona, Spain and its telephone number is +34 93 571 0500.  Its registered office is located at c/Jesús y María, 6, Barcelona, Spain.

It is a vertically integrated global producer of plasma derivatives.  Its activities include sourcing raw material, manufacturing various plasma derivative products and selling and distributing final products to healthcare providers.  It has 150 FDA-licensed plasma collection centers located across the United States.

Its Class A shares have been listed on the Spanish Stock Exchanges since it completed its initial public offering on 17th May, 2006 and are quoted on the Spanish Automated Quotation System under the ticker symbol “GRF.”  In January 2008, it became part of the IBEX-35 Index, which comprises the top 35 listed Spanish companies by liquidity and market capitalization.  Its Class B shares were issued as part of the consideration for the Talecris acquisition and were listed on the Spanish Stock Exchanges on 2nd June, 2011 and quoted on the Spanish Automated Quotation System under the ticker symbol “GRF.P.”  Its Class B shares are also traded in the U.S. on the NASDAQ Global Select Market in the form of ADSs, evidenced by ADRs, under the symbol “GRFS.”  Each ADS represents one of its Class B shares.  Its ADSs are currently traded in U.S. dollars.  In November 2011, its ADSs were added to the NASDAQ Biotechnology Index.

On 10th November, 2013, Grifols entered into a share and asset agreement to acquire Novartis’ diagnostic business.  The Novartis Diagnostic Business (as defined herein) was part of Novartis’s Vaccines & Diagnostics Division, which was established following Novartis’s 2006 acquisition of Chiron Corporation.

Grifols acquired from Novartis Vaccines and Diagnostics, Inc., or NVD, a complete line of products and systems to perform blood donor screening molecular tests aimed at detecting the pathogenic agents of transfusion‑related infectious diseases such as HIV, hepatitis B, hepatitis C, and West Nile Virus.  Under the Novartis Agreement (as defined herein), it acquired (and, with respect to certain intellectual property rights, it acquired co-ownership) from NVD and its affiliates substantially all of the assets and certain specified liabilities that were exclusively or primarily used in connection with the following businesses, collectively, the Novartis Diagnostic Business:

·         the research, development, manufacture and commercialization of nucleic acid tests, or NAT, (instruments, assays and services) to screen human donated blood and blood products, including blood intended for autologous use, for blood-borne pathogens such as HIV, HBV, HCV and West Nile Virus, or the NAT Business;

·         the business of generating royalty revenue from licenses in connection with the NAT Business;

·         the research, development, manufacture and commercialization of immunoassay antigens and antibodies to screen human donated blood and blood products, including blood intended for autologous use (but not for immunotherapeutic purposes), for use in the detection of hepatitis, retroviruses and peptides for the purpose of clinical diagnostics, or the Immunoassay Business; &

·         the business of commercializing automatic and semi-automatic analyzers for processing blood-typing cards using gel agglutination technology manufactured by Grifols, or the Immunohematology Business.

In addition, it acquired all of the issued and outstanding equity interests of Novartis Vaccines and Diagnostics (HK) Limited, a subsidiary of Novartis organized under the laws of Hong Kong that is engaged in the Novartis Diagnostic Business.

For the year ended 31st December, 2013, the net revenue of the Group amounted to EUR 2,741.7 million (2012: EUR 2,620.9 million); Group profit attributable to shareholders was EUR 345.6 million (2012: EUR 256.7 million).

The subject is fully supported by Grifols.

On the whole, in view of the background of the subject, consider it good for normal business engagements.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.73

UK Pound

1

Rs.101.48

Euro

1

Rs.81.04

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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.