MIRA INFORM REPORT

 

 

Report Date :

25.02.2014

 

IDENTIFICATION DETAILS

 

Name :

SCI PHARMTECH, INC.

 

 

Formerly Known As :

SIEGFRIED CHEMICALS, INC.

 

 

Registered Office :

No.186-2, Hai-Hu-Tsun, Lu Chu Hsiang, Taoyuan County 338

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

18.09.1987

 

 

Com. Reg. No.:

22662545

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sale of active pharmaceutical ingredients

 

 

No. of Employees :

200

 

 

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)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

TAIWAN - ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.8%, due primarily to a 13.1% year-on-year decline in exports. In 2010 GDP grew 10.7%, as exports returned to the level of previous years, and in 2011, grew 4.0%. In 2012, however, growth fell to 1.3%, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but except for the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, so far Taiwan has been excluded from this greater economic integration in part because of its diplomatic status. Negotiations continue on such follow-on components of ECFA regarding trade in goods and services. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other key trade partners, which Taiwan subsequently launched with Singapore and New Zealand. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 11.2% of the island's total population as of 2012. The island runs a large trade surplus largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind China, Japan, Saudi Arabia, and Russia. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

 

Source : CIA

 


 

Contact Points

 

Company Name:

SCI PHARMTECH, INC.

Supplied Name:

SCI Pharmtech Inc

Trading Address:

No.186-2, Hai-Hu-Tsun, Lu Chu Hsiang, Taoyuan County 338, Taiwan, R.O.C.

Supplied Address:

186-2 Hai-Hu-Tsun-LU-ChuHsiang, Taoyuan, Taiwan

Telephone Number:

+886-3-354-3133

Fax Number:

+886-3-354-3483

Website:

www.sci-pharmtech.com.tw

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

SCI Pharmtech, Inc.

Registered Address:

No.186-2, Hai-Hu-Tsun, Lu Chu Hsiang, Taoyuan County 338, Taiwan, R.O.C.

Date of Foundation:

1987-9-18

Registration Number:

22662545

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 900,000,000 (USD 30,600,000)

(As of 2014.02, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 657,001,070 (USD 22,338,036)

Legal Representatives:

Yonglian Wu

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sale of active pharmaceutical ingredients

Staff:

About 200 Employees

Listed at Stock Exchange:

Yes; Stock Code: 4119

Date of Last Annual Return:

2013-9-25

 

 

History

 

Subject was incorporated on 1987-9-18 with registered number 22662545 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Stock Exchange on 2004-1-7.

 

Change of Name

Former Chinese Name

旭富化學股份有限公司

Current Chinese Name

旭富製藥科技股份有限公司

 

Former English Name

Siegfried Chemicals, Inc.

Current English Name

SCI Pharmtech, Inc.

 

 

Shareholders

 

Name

Subscription Shares

Mercuries & Associates, Ltd.

24,034,412       

 

 

The information above is that of subject’s major shareholders.

 

Shareholder Information:

Registered Name:

Mercuries & Associates, Ltd.

Registered Address:

No.145, Sec.2, Chien Kuo N. Road, Jhongshan Dist., Taipei 104, Taiwan, R.O.C.

Date of Foundation:

1965-2-19

Registration Number:

11052709

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 7,000,000,000 (USD 238,000,000)

(As of 2014.02, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 6,813,829,020 (USD 231,670,187)

Legal Representatives:

Xiangli Chen

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

Yes; Stock Code: 2905

Date of Listed:

1988-9-19

Date of Last Annual Return:

2014-1-22

 

 

Subsidiaries & Branches

 

Factory

Name:

Taoyuan Factory

Address:

No.186-2, Hai-Hu-Tsun, Lu Chu Hsiang, Taoyuan County 338, Taiwan, R.O.C.

Date of Foundation:

1988-10-6

Date of Registration:

1990-11-21

Factory Registration Number:

99623565

Factory Manager:

Yonglian Wu

Status:

In Production

Date of Last Annual Return:

2010-3-3

Major Products:

199 other chemical products

200 medicine and medical chemical products

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Yonglian Wu

Position

Board Director

2

Name

Xiangli Chen

Position

Director

3

Name

Weijun Weng

Position

Director/ Manager

Date of Appointment

2004-6-16

4

Name

Yanru Chen

Position

Director

5

Name

Decheng Du

Position

Independent Director

6

Name

Xianzhi Zheng

Position

Independent Director

7

Name

Hongzhi Wu

Position

Independent Director

 


Personnel Structure

 

Total Employees

About 200 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.186-2, Hai-Hu-Tsun, Lu Chu Hsiang, Taoyuan County 338, Taiwan, R.O.C.

 

Production Information

 

·         Subject is engaged in manufacturing of active pharmaceutical ingredients and drug intermediates

·         Subject has a factory in Taoyuan County, Taiwan for production.

·         Subject obtained the certifications of ISO 9001, ISO 14001 and OHSAS 18001

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

--

Manufacturing, processing and sale of bulk pharmaceutical chemicals, intermediates and fine chemical

--

An agent assists in developing quoting, bidding and distributing about your above mentioned products.

--

As an agent of assist in researching and developing of above mentioned products

ZZ99999

Besides licensed business, all other business items those are not banned or restricted.

 

The raw materials for production are purchased from both home and abroad.

It is introduced that subject imports some technology from Switzerland.

 

Sales Information

 

·         Subject is engaged in sale of active pharmaceutical ingredients and drug intermediates

·         The major active pharmaceutical ingredients sold by subject include allopurinol, amobarbital, probucol, pentobarbital sodium, thiopental, valproic acid, sodium valproate, divalproex sodium, bisoprolol hemifumarate and propafenone

·         The products sold by subject are applied to manufacturing

·         Subject’s sales regions include domestic market, Japan, Europe and USA

·         One of subject’s major customers is Mylan Inc.

 

Major Products

Type

Product

Active Pharmaceutical Ingredients

Allopurinol

Amobarbital

Probucol

Pentobarbital Sodium

Thiopental

Valproic Acid

Sodium Valproate

Divalproex Sodium

Bisoprolol Hemifumarate

Propafenone

Drug Intermediates

Diethyl dipropylmalonate

Diethyl ethyl (1-methylbutyl) malonate

Benzylmalonic acid diethyl ester

Diethyl isobutylmalonate

Diethyl isopropylmalonate

Diethyl n-butylmalonate

Ethyl 2-allyl-2-cyano-3-methylhexanoate

Ethyl ethylphenylcyanoacetate

Ethylphenylmalonic acid diamine

Propiophenone

Diethyl ketone

Aminazole

3-Azetidinol hydrochloride

Benzhydrylamine

1-Benzhydrylazetidin-3-ol

1-Benzosuberone

Cyanoethylthiomethyl-2-thiazolylguanidine

Dibenzosuberone

(R)-Ethylnipecotate-L-tartaric acid

1-(2-Hydroxyphenyl)-3-phenylpropan-1- one

1-(2-((oxiran-2-yl)methoxy)phenyl)-3-phenylpropan-1-one

N-Methyl-4-chloropiperidine

N-Methyl-4-piperidinol

4-Chloropiperidine hydrochloride

α-Phenyl-2-piperidineacetamide

α-Phenyl-2-piperidineacetic acid

(+)-α-Phenyl-2-piperidineacetic acid hydrochloride

Pyrogallolaldehyde

(S)-3-(Methylamino)-1-(2-thienyl)propan-1-ol

5-Hydroxymethyl Thiazole

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Raw materials

Cash, T/T

100%

 

Foreign Purchase

Product

Terms

Proportion

Raw materials

L/C, T/T

100%

 

Sales

 

Domestic Markets

Product

Terms

Proportion

Pharmaceutical ingredients

Cash, T/T, Credit Sale

100%

 

Export

Product

Terms

Proportion

Pharmaceutical ingredients

L/C, T/T

100%

 

 

Balance Sheet

 

Unit: NTD/000

 

2012-12-31

2011-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

19,665.00

28,202.00

Notes receivable - net

8,243.00

9,407.00

Accounts receivable - net

207,471.00

193,915.00

Other receivables

3,194.00

2,379.00

Inventories

293,215.00

310,800.00

Prepaid expenses

5,197.00

4,666.00

Other prepayments

5,474.00

8.00

Other current assets

16,058.00

16,197.00

Current assets

558,517.00

565,574.00

Funds and Investments

 

 

Financial assets carried at cost - non current

0.00

34,920.00

Equity investments under equity method

68,172.00

30,206.00

Investments

68,172.00

30,206.00

Funds and long-term investments

68,172.00

65,126.00

Fixed Assets

 

 

Cost

 

 

Land

70,609.00

70,609.00

Land improvements

3,928.00

4,226.00

Buildings and structures

551,572.00

389,516.00

Machinery and equipment

1,046,213.00

966,887.00

Office equipment

14,376.00

13,238.00

Fixed assets cost

1,686,698.00

1,444,476.00

Accumulated depreciation

-903,989.00

-805,443.00

Construction in process and prepayment for equipments

151,179.00

226,104.00

Fixed assets

933,888.00

865,137.00

Intangible Assets

 

 

Deferred pension cost

133.00

164.00

Intangible assets

133.00

164.00

OtherAssets

 

 

Guarantee deposits paid

0.00

13.00

Deferred charges

846.00

666.00

Deferred income tax assets - non current

21,008.00

18,965.00

Other assets

21,854.00

19,644.00

Assets

1,582,564.00

1,515,645.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

35,024.00

175,918.00

Financial liabilities measured at fair value through profit or loss - current

0.00

66.00

Notes payable

9,855.00

9,495.00

Accounts payable

72,664.00

62,152.00

Income tax payable

22,441.00

14,738.00

Accrued expenses

116,694.00

82,207.00

Other payables

24,037.00

18,435.00

Advance receipts

22,358.00

7,708.00

Other current liabilities

388.00

730.00

Current liabilities

303,461.00

371,449.00

Long term Liabilities

 

 

Reserves

 

 

Other Liabilities

 

 

Pension reserve / accrued pension liability

17,205.00

12,991.00

Other liabilities

17,205.00

12,991.00

Liabilities

320,666.00

384,440.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

493,173.00

491,663.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

154,151.00

152,568.00

Capital surplus - gain on disposal of fixed assets

980.00

980.00

Capital surplus - long-term equity investments

14,299.00

0.00

Capital surplus - other

5,582.00

5,582.00

Capital surplus

175,012.00

159,130.00

Retained Earnings

 

 

Legal reserve

128,142.00

119,140.00

Special reserve

12,879.00

9,659.00

Unappropriated retained earnings

466,793.00

362,287.00

Retained earnings

607,814.00

491,086.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

1,260.00

2,205.00

Net loss not recognized as pension cost

-15,652.00

-12,879.00

Unrealized gains (losses) on financial instruments

291.00

0.00

Equity adjustments

-14,101.00

-10,674.00

Stockholdersˉ equity

1,261,898.00

(USD 42,904,532.00)

1,131,205.00

(USD 38,460,970.00)

Number of treasury stock acquired by the company and subsidiaries (unit: share)

0.00

0.00

 

0.00

0.00

(As of 2014.02, 1 NTD = 0.0340 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2012

2011

Sales

1,278,713.00

(USD 43,476,242.00)

1,073,478.00

(USD 36,498,252.00)

Sales returns

15,778.00

35,625.00

Sales discounts and allowances

363.00

0.00

Sales

1,262,572.00

1,037,853.00

Operating income

1,262,572.00

1,037,853.00

Cost of sales

864,684.00

730,596.00

Operating costs

864,684.00

730,596.00

Gross profit (loss) from operations

397,888.00

307,257.00

Selling expense

49,030.00

32,638.00

General and administrative expenses

58,798.00

45,020.00

Research and development expenses

34,496.00

39,108.00

Operating expenses

142,324.00

116,766.00

Operating income (loss)

255,564.00

190,491.00

Non-Operating Income

 

 

Interest income

23.00

20.00

Gains on disposal of fixed assets

22.00

174.00

Foreign exchange gains

5,490.00

17,894.00

Reversal of provision for bad debts

144.00

228.00

Miscellaneous income

3,563.00

6,428.00

Non-operating revenues and gains

9,242.00

24,744.00

Non-Operating Expenses

 

 

Interest expense

228.00

114.00

Losses from long-term equity investments under the equity method

10,599.00

5,498.00

Investment loss

10,599.00

5,498.00

Loss on disposal of fixed assets

0.00

443.00

Foreign exchange losses

15,222.00

10,233.00

Impairment loss on assets

0.00

92,400.00

Revaluation loss on financial liabilities

0.00

66.00

Miscellaneous disbursements

603.00

117.00

Non-operating expenses and losses

26,652.00

108,871.00

Income from continuing operations before income tax

238,154.00

106,364.00

Income tax expense (benefit)

43,705.00

16,348.00

Income from continuing operations

194,449.00

90,016.00

Net income (loss)

194,449.00

(USD 6,611,266.00)

90,016.00

(USD 3,060,544.00)

Primary Earnings per Share

 

 

Income (loss) from continuing operations

3.95

1.84

Primary earnings per share

3.95

1.84

Diluted earnings per share

 

 

Income (loss) from continuing operations

3.90

1.82

Diluted earnings per share

3.90

1.82

 (As of 2014.02, 1 NTD = 0.0340 USD)

 

 

Cash Flows

 

Unit: NTD/000

 

2012

2011

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

194,449.00

90,016.00

Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities

 

 

Depreciation Expense

110,425.00

104,892.00

Amortization Expense

407.00

213.00

Provision (Reversal of Provision) for Bad Debts Losses

-144.00

-228.00

Share-based Compensation

0.00

5,582.00

Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories

3,059.00

13,332.00

Investment Loss (Income) Recognized under Equity Method

10,599.00

5,498.00

Loss (Gain) on Disposal of Property, Plant and Equipment

549.00

353.00

Property, Plant and Equipment Transferred to Expenses

295.00

772.00

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

0.00

66.00

Impairment Losses on Financial Asset

0.00

92,400.00

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Notes Receivable

1,165.00

4,632.00

Decrease (Increase) in Accounts Receivable

-13,413.00

-11,325.00

Decrease (Increase) in Accounts Receivable - Related Parties

0.00

4,299.00

Decrease (Increase) in Other Receivables

-815.00

-168.00

Decrease (Increase) in Inventories

14,526.00

-63,919.00

Decrease (Increase) in Prepaid Expenses

-531.00

1,828.00

Decrease (Increase) in Other Prepayments

-4,787.00

-8.00

Decrease (Increase) in Other Current Assets

138.00

-5,021.00

Decrease (Increase) in Deferred Tax Assets

-2,043.00

-16,832.00

Increase (Decrease) in Notes Payable

360.00

-795.00

Increase (Decrease) in Accounts Payable

10,512.00

11,142.00

Increase (Decrease) in Income Tax Payable

7,702.00

5,002.00

Increase (Decrease) in Accrued Expenses

34,488.00

7,748.00

Increase (Decrease) in Other Payables

5,780.00

2,685.00

Increase (Decrease) in Receipts in Advance

14,650.00

-247.00

Increase (Decrease) in Other Current Liabilities

-342.00

172.00

Increase (Decrease) in Accrued Pension Liabilities

1,473.00

1,305.00

Net Cash Provided by (Used in) Operating Activities

388,502.00

253,394.00

Cash Flows from Investing Activities

 

 

Acquisition of Financial Assets as Fair Value through Profit or Loss

0.00

122.00

Purchase of Property, Plant and Equipment

-180,899.00

-147,707.00

Proceeds from Disposal of Property, Plant and Equipment

22.00

424.00

Decrease (Increase) in Refundable Deposits

13.00

0.00

Increase in Deferred Charges

-586.00

-419.00

Net Cash Provided by (Used in) Investing Activities

-181,450.00

-147,580.00

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

-140,894.00

918.00

Increase (Decrease) in Financial Liabilities at Fair Value through Profit Loss

-66.00

0.00

Cash Dividends Paid

-77,722.00

-117,694.00

Exercise of Employee Stock Options

3,093.00

3,094.00

Net Cash Provided by (Used in) Financing Activities

-215,589.00

-113,682.00

Net Increase (Decrease) in Cash and Cash Equivalents

-8,537.00

-7,868.00

Cash and Cash Equivalents, Beginning of year

28,202.00

36,070.00

Cash and Cash Equivalents, End of year

19,665.00

28,202.00

Supplemental Cash Flow Information

 

 

Interest Paid

458.00

1,810.00

Capitalized Interest

-161.00

-1,712.00

Interest Paid- Excluding Capitalized Interest

297.00

98.00

Income Tax Paid

37,912.00

33,567.00

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.

 

 

Public Record

 

Mortgage

 

No chattel mortgage record of subject has been found within the recent 3 months.

 

Lawsuit

 

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

 

Interview Details

 

Name

Ms. Li

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.12

UK Pound

1

Rs.103.38

Euro

1

Rs.85.32

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.