MIRA INFORM REPORT
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Report Date : |
11.06.2014 |
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) : |
31.12.2013 |
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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 empty capsule, (according to “drug production license”). General business items: wholesaling, import & export of related equipment, components and gelatin materials with manufactured capsule and filled capsule, commission agency (excluding auction) and related supporting business. |
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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 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources
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Source
: CIA |
COMPANY
NAME & 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
STAFF STRENGTH :
270
REGISTERED CAPITAL : USD 29,700,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 464,827,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 432,813,000 (AS OF
DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2402 = 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 permit business items: manufacturing empty capsule,
(according to “drug production license”). General business items: wholesaling,
import & export of related equipment, components and gelatin materials 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, English, German and other versions.
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 |
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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.) 75% |
Present ones |
Organization code: 608197112
For the past two years there is no record of litigation.
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
Legal form: State-owned enterprise
Capsugel Holdings (Hong Kong) Limited
--------------------------------------------------------
Registration no.: 1600991
Legal form: Private company limited by
shares
Status: Live
l 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
l Vice Chairman:
Zeng Bing is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice chairman
l 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
l Directors:
Guido Driesen
Siriporn Sridech
Robert Madsen Whitelaw
Cheng Zhong
Shen You
John Loras Shroyer
John Byrne De Grandpre
Lee Chang
Yang Jun
l Supervisor:
Jin Chunqing
SC is mainly
engaged in manufacturing and selling capsules.
SC’s products
mainly include coni-snap, supro, licaps, pearlcaps, NPcaps, etc.
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.
Note:
SC refused to release its major customers and suppliers.
SC is not known to have any subsidiary at present.
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
|
|
as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
|
Cash & bank |
61,635 |
51,883 |
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Notes receivable |
51,323 |
43,012 |
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Inventory |
42,742 |
90,078 |
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Accounts
receivable |
60,739 |
75,576 |
|
Advances to
suppliers |
1,179 |
1,033 |
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Other
receivables |
3,229 |
1,573 |
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Other current
assets |
158 |
141 |
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------------------ |
------------------ |
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Current assets |
221,005 |
263,296 |
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Long-term
investments |
0 |
0 |
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Fixed assets net
value |
221,920 |
357,588 |
|
Projects under
construction |
98,685 |
11,276 |
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Intangible
assets |
16,724 |
16,328 |
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Deferred income
tax assets |
5,357 |
4,920 |
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Other assets |
344 |
158 |
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------------------ |
------------------ |
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Total assets |
564,035 |
653,566 |
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============= |
============= |
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Short loans |
100,000 |
45,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
28,058 |
35,708 |
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Advances from
customers |
7,328 |
5,349 |
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Employee pay
payable |
10,208 |
12,291 |
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Taxes payable |
4,685 |
7,373 |
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Other accounts
payable |
52,730 |
48,696 |
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Non-current liabilities
due within one year |
0 |
9,000 |
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Other current
liabilities |
9,452 |
11,336 |
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----------------- |
----------------- |
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Current
liabilities |
212,461 |
174,753 |
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Long term
liabilities |
0 |
46,000 |
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|
------------------ |
------------------ |
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Total
liabilities |
212,461 |
220,753 |
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Shareholders
equities |
351,574 |
432,813 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
564,035 |
653,566 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
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Turnover |
355,547 |
464,827 |
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Cost of goods
sold |
205,477 |
277,860 |
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Taxes and additional
of main operation |
2,193 |
1,931 |
|
Sales expense |
31,009 |
34,894 |
|
Management expense |
26,678 |
32,424 |
|
Finance expense |
7,335 |
6,212 |
|
Non-operating
income |
1,646 |
481 |
|
Non-operating expense |
0 |
667 |
|
Profit before
tax |
629,885 |
819,296 |
|
Less: profit tax |
21,448 |
28,423 |
|
Net profit |
63,053 |
82,897 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.04 |
1.51 |
|
*Quick ratio |
0.84 |
0.99 |
|
*Liabilities
to assets |
0.38 |
0.34 |
|
*Net profit
margin (%) |
17.73 |
17.83 |
|
*Return on
total assets (%) |
11.18 |
12.68 |
|
*Inventory
/Turnover ×365 |
44 days |
71 days |
|
*Accounts
receivable/Turnover ×365 |
63 days |
60 days |
|
*Turnover/Total
assets |
0.63 |
0.71 |
|
* Cost of goods
sold/Turnover |
0.58 |
0.60 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line
in both years, and it increased in 2013.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is good in both years.
l
SC’s cost of goods sold is low in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC is maintained in an average
level in both years.
l
The accounts receivable of SC appears average in
both years.
l
SC’s short-term loan appears average in 2012 and
2013.
l
SC’s turnover is in a fair level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
SC is considered an old-established business in medium size with fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 59.26 |
|
|
1 |
Rs. 99.62 |
|
Euro |
1 |
Rs. 80.59 |
INFORMATION DETAILS
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Analysis Done by
: |
KRN |
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Report Prepared
by : |
DPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.