MIRA INFORM REPORT

 

 

Report Date :

09.06.2014

 

IDENTIFICATION DETAILS

 

Name :

TEAM CROWN TRADING LTD.

 

 

Registered Office :

6 Fuk Wang Street, Yuen Long Industrial Estate, Yuen Long, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

30.05.1995

 

 

Com. Reg. No.:

19891438

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Engaged in trading all kinds of pharmaceutical product

 

 

No. of Employees :

Approximately 12,000  (As at 30-06-2013) (Group Employees)

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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 & address

 

TEAM CROWN TRADING LTD.

 

ADDRESS:       6 Fuk Wang Street, Yuen Long Industrial Estate, Yuen Long, New Territories, Hong Kong.

 

PHONE:            852-2687 1033

 

FAX:                 852-2687 1031

 

E-MAIL:            sales@tul.com.hk

tul03@tul.com.hk

 

 

MANAGEMENT

 

Group Chairman & Managing Director:  Mr. Tsoi Hoi Shan

 

 

SUMMARY

 

Incorporated on:            30th May, 1995.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000.00

 

Issued:                         HK$10,000.00

 

Business Category:       Pharmaceutical product Trader.

 

Group Turnover:            HK$7,021,624,000  (Year ended 31-12-2012)

 

Group Employees:        Approx. 12,000.  (As at 30-06-2013)

 

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

 

Banking Relation:          Satisfactory.


Company ADDRESS

 

Registered Head Office:-

6 Fuk Wang Street, Yuen Long Industrial Estate, Yuen Long, New Territories, Hong Kong.

 

Immediate Holding Company:-

The United Laboratories (Hong Kong) Group Ltd., British Virgin Islands.

 

Penultimate Holding Company:-

The United Laboratories (Hong Kong) Holding Ltd., British Virgin Islands.

 

Ultimate Holding Company:-

The United Laboratories International Holdings Ltd., Cayman Islands/Hong Kong.

 

Associated/Affiliated Companies:-

United Laboratories Group of Companies

Bear World Ltd., Hong Kong.

Bowden Trading Ltd., Samoa.

Lynbond International Ltd., Hong Kong.  [Inactive]

Team Profit Management Ltd., Hong Kong.

The United Laboratories Ltd., Hong Kong.

United Laboratories (Chengdu) Co. Ltd., China.

United Laboratories (Inner Mongolia) Co. Ltd., China.

United Laboratories Kingly Capsule Co. Ltd., China.

Zhuhai United Laboratories (Zhongshan) Co. Ltd., China.

Zhuhai United Laboratories Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

19891438

 

 

COMPANY FILE NUMBER

 

0516233

 

 

MANAGEMENT

 

Group Chairman & Managing Director:  Mr. Tsoi Hoi Shan

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00

 

(Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000.00

 

 

SHAREHOLDER

 

(As per registry dated 30-05-2013)

Name

 

No. of shares

The United Laboratories (Hong Kong) Group Ltd.

P.O. Box 71, Craigmuir Chambers, Road Town, Tortola, British Virgin Islands.

 

10,000

=====

 

 

DIRECTORS  

 

(As per registry dated 30-05-2013)

Name

(Nationality)

 

Address

CHOY Siu Chit

Flat B, 29/F., Block 7, Royal Ascot, 1 Tsun King Road, Fotan, Shatin, New Territories, Hong Kong.

 

NING Kwai Chun

Flat F, 32/F., Block 7, Royal Ascot, 1 Tsun King Road, Fotan, Shatin, New Territories, Hong Kong.

 

TSOI Hoi Shan

Flat E, 32/F., Block 7, Royal Ascot, 1 Tsun King Road, Fotan, Shatin, New Territories, Hong Kong.

 

 

SECRETARY

 

(As per registry dated 30-05-2013)

Name

Address

LEUNG Wing Hon

Flat D, 26/F., Tower 1, Central Park, 18 Hoi Ting Road, Tai Kok Tsui, Kowloon, Hong Kong.

 


HISTORY

 

The subject was incorporated on 30th May, 1995 as a private limited liability company under the Hong Kong Companies Ordinance.

 

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

 

 

OPERATIONS

 

Activities:                      Pharmaceutical product Trader.

 

Lines:                           All kinds of pharmaceuticals

 

Group Employees:        Approx. 12,000.  (As at 30-06-2013)

 

Materials/Commodities: Imports raw materials from European countries, some Asian countries and finished products from China.

 

Markets:                        Hong Kong, China, Europe, Middle East, North America, Central & South America

 

Group Turnover:            HK$3,755,856,000  (Year ended 31-12-2008)

HK$4,643,177,000  (Year ended 31-12-2009)

HK$6,502,817,000  (Year ended 31-12-2010)

HK$6,405,039,000  (Year ended 31-12-2011)

HK$7,021,624,000  (Year ended 31-12-2012)

HK$3,745,899,000  (6 months ended 30-06-2013)

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$10,000.00

 

(Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000.00

 

Group Profit Attributable to Shareholders:-

HK$430,169,000  (Year ended 31-12-2008)

HK$541,443,000  (Year ended 31-12-2009)

HK$974,157,000  (Year ended 31-12-2010)

HK$104,273,000  (Year ended 31-12-2011)

HK$161,977,000  (Year ended 31-12-2012)

HK$  42,992,000  (6 months ended 30-06-2013)

 

Profit or Loss:               Business is profitable.

 

Condition:                     Keeping in an active manner.

 

Facilities:                      Making very active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

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

Hang Seng Bank Ltd., Hong Kong.

Wing Lung Bank Ltd., Hong Kong.

 

Standing:                      Very Good.

 

 

GENERAL

 

Team Crown Trading Ltd. is a wholly-owned subsidiary of The United Laboratories (Hong Kong) Group Ltd. which is a BVI-registered firm.  The ultimate holding company of the subject is The United Laboratories International Holdings Ltd. [ULIH] which was incorporated in the Cayman Islands.  ULIH’s shares have been listed on The Stock Exchange of Hong Kong Ltd. bearing stock code 3933 since 15th June, 2007.

ULIH is a limited company incorporated in the Cayman Islands.  Its parent company is Heren Far East Limited, a company incorporated in the British Virgin Islands and its ultimate holding company is Gesell Holdings Limited, a company incorporated in the British Virgin Islands.  ULIH’s registered office is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands and its place of business is located at 6 Fuk Wang Street, Yuen Long Industrial Estate, Yuen Long, New Territories, Hong Kong.

The subject is a member of United Laboratories Group.  Its main factory is in Zhuhai Special Economic Zone, China known as Zhuhai United Laboratories Co. Ltd.  Your given phone number 86-756-7787979 belongs to this firm.

The Group is engaged in manufacturing and marketing pharmaceutical products in Hong Kong and foreign countries.

The Group has large production bases to support its front-line sales activities, including the finished products plant in Hong Kong, the finished products plant in Zhongshan, the bulk medicine plant in Zhuhai, Kaiping Kingly Capsules plant, intermediate products plant in Chengdu, and the comprehensive integrated intermediate products plant in Inner Mongolia.  These six bases, in co-operation with each other, fully carry out the comprehensive integrated production model.  All plants have been granted the national GMP certifications and some of them have additionally obtained ISO 9001 and ISO 14001 certifications.  Certain products even have received certifications or acceptance of FDA from the United States, COS from Europe and GMP from Japan, which enable them exporting to the enormous overseas market.

The ULIH was ranked the fourteenth among the 2011 “Top 100 Enterprises in Chinese Pharmaceutical Industry”.

During the year 2012, the Group’s turnover amounted to approximately HK$7,021.6 million, an increase of approximately 9.6% over that of 2011.  EBITDA and profit before taxation were approximately HK$1,003.2 million and HK$248.3 million respectively, representing an increase of approximately 26.2% and 35.6% over the same period in the previous year, respectively.

The profit attributable to owners of the ULIH was approximately HK$162.0 million, representing an increase of 55.3% over the same period in the previous year.

For the six months ended 30th June 2013, the Group’s revenue was slightly increased by 2.7% to HK$3,745.9 million as compared with the same period in the preceding year of HK$3,646.5 million.  The Group’s profit for the period attributable to shareholders was approximately HK$43.0 million (2012: HK$169.1 million), representing a decrease of 74.6%, as compared with the same period in the preceding year.  Segmental turnover (including inter-segment sales) of bulk medicine and finished products were increased by 1.7% and 13.6% respectively, and segmental turnover of intermediate products was decreased by 6.1% for the six months ended 30th June 2013, as compared with the same period in preceding year.  Segmental profit of bulk medicine and finished products increased by 281.7% and 6.1% respectively and segmental profit of intermediate products decreased by 99.0% during the period.

On 15th April 2013, founder and former Chairman of the Group Mr. Choy Kam Lok passed away.  On 16th April 2013, Mr. Tsoi Hoi Shan, the son of Mr. Choy Kam Lok and an executive director of the Company, took over the position of Chairman of the Group.

Looking forward to the second half of the year, the medical reforms in China will continue to evolve.  The PRC government has announced that it will continue to allocate resources to support the pharmaceutical sector, especially the domestic industry leaders.  The Group is confident that, with such policies, it will take a more favourable position in the market, driving its business to the next level.  The number of drugs covered in the latest National Essential Medicine Catalogue has increased to 520 drugs, of which 317 drugs are chemical/biological drugs.

As at 30th June 2013, the Group had approximately 12,000 (31st December 2012: 12,000) members of employees in Hong Kong and Mainland China.

The subject is fully supported by the United Laboratories Group.

On the whole, consider the subject good for normal business engagements.

 

 


REMARKS

 

Brief Personal Profile of the subject’s director:-

 

Mr. Tsoi Hoi Shan, aged 35, is an executive director of ULIH and is responsible for planning and managing the overall production at the Hong Kong Yuen Long Plant.  Mr. Tsoi joined the Group in 2000 as a supervisor of the quality control department and was responsible to supervise the production process at the Plant and ensure that it is in compliance with the Good Manufacturing Practice. Mr. Tsoi graduated from Tongji Medical University with a Bachelor degree in Medicine and a Bachelor degree in Surgery in 1998.  Mr. Tsoi is the son of Mr. Choy Kam Lok, who passed away on 15th April, 2013, and the brother of Ms. Choy Siu Chit, who is a non-executive director of the Company.  Mr. Tsoi is one of the discretionary objects of a discretionary trust established by the settlement deed dated 7th February 2007 made between Mr. Choy Kam Lok (as settler) and DBS Trustee H.K. (Jersey) Limited (as trustee).

 

Ms. Choy Siu Chit, aged 40, Ms. Choy joined the Group in 1990.  She handle the drug master file submission relating to the Group’s amoxicilln bulk medicine with the FDA pursuant to which the Group became the holder of drug master file type II (no. DMF 15377) relating to its amoxicillin bulk medicine in 2001.  Ms. Choy also holds directorship in certain subsidiaries of the company.  She passed the Private Equity investment Fund Advanced Class organized by the Beijing University with distinction in 2010.  Ms. Choy is a director of Mighty Brokerage (Asia) Ltd. which principally provides brokerage & securities trading services in Hong Kong.  She is the daughter of Mr. Choy Kam Lok, an executive director & the Chairman of the company. and the sister of Mr. Tsoi Hoi Shan, an executive director of the company.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.20

UK Pound

1

Rs.99.52

Euro

1

Rs.80.83

 

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

 

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.