MIRA
INFORM REPORT
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Report Date : |
21.05.2014 |
IDENTIFICATION DETAILS
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Name : |
SINOPHARM
FORTUNE WAY COMPANY |
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Registered Office : |
No. 4 Huixin Dongjie, Chaoyang District, Beijing 100029 PR |
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Country : |
China |
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Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
16.08.1993 |
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Com. Reg. No.: |
110105005017129 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Engaged in international trade includes supplying various goods to
China oversea institutions; purchasing and selling tax-free goods; purchasing
and selling general merchandise, foodstuff, native goods, chemically
products, furniture, arts and crafts, textiles, machinery & equipment,
hardware, building materials, decoration materials, spare parts of cars,
groceries, and labor protection products; photo services; retailing tobaccos;
import and export of goods and technology, excluding the products prohibited
by the country; processing with supplied samples, imported materials, and
imported parts, compensation trades; transit trade and counter trade;
economic information consulting (excluding agency services and specially
regulated items). |
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No. of Employees |
30 |
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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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately 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 and address
SINOPHARM FORTUNE WAY COMPANY
NO. 4
HUIXIN DONGJIE, CHAOYANG DISTRICT
BEIJING
100029 PR CHINA
TEL: 86
(0) 10-84663108/84663822
FAX: 86 (0)
10-84663106/84639160
EXECUTIVE SUMMARY
Date of Registration : august 16, 1993
REGISTRATION NO. : 110105005017129
LEGAL FORM : STATE-OWNED ENTERPRISE
REGISTERED CAPITAL :
cny 20,000,000
staff : 30
BUSINESS CATEGORY :
trading
REVENUE :
CNY 384,189,000 (JAN. 1, 2013 TO JUN. 30, 2013)
EQUITIES :
CNY 33,045,000 (AS OF JUN. 30, 2013)
E-MAIL :
pharma@fortune-way.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.24 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a state-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 110105005017129
on August
16, 1993.
SC’s Organization Code Certificate
No.: 10169330-1
SC’s registered capital: cny 20,000,000
SC’s paid-in capital: cny 20,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2000-11 |
Registered Capital |
CNY 3,000,000 |
CNY 7,000,000 |
|
2001-03 |
Registered Capital |
CNY 7,000,000 |
cny 20,000,000 |
|
Legal Representative |
Gao Xianmin |
Li Can |
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|
-- |
Registration No. |
1101051501712 |
110105005017129 |
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-- |
Company Chinese Name |
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Shareholder |
China National Service Corporation for Chinese Personnel Working Abroad 100% |
China National Pharmaceutical
Group Corp. 100% |
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Legal Representative |
Li Can |
Liu Lili |
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-- |
Shareholder |
China National Pharmaceutical
Group Corp. 100% |
China Sinopharm International Corporation |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
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China Sinopharm International Corporation |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Liu Lili |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
China Sinopharm International Corporation
100
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Registration No.: 100000000009468
Date of Registration: February 18, 1989
Legal Form: State-Owned Enterprise
Registered Capital: CNY 2,108,380,000
Legal Representative: Li Can
Address: No. 4, Huixin East Street, Chaoyang
District, Beijing
Tel: 86 (0) 10-84618811/84663250
Fax: 86 (0) 10-84639160
Web: www.sinopharm.com
E-mail: gly@cnsc.com.cn
MANAGEMENT
Liu
Lili, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------
Ø
Gender: F
Ø
Working
experience (s):
Before, worked in SC as deputy general manager
At present, working in SC as legal representative, chairman
and general manager
BUSINESS OPERATION
SC’s registered business
scope includes supplying various goods to China oversea institutions;
purchasing and selling tax-free goods; purchasing and selling general
merchandise, foodstuff, native goods, chemically products, furniture, arts and
crafts, textiles, machinery & equipment, hardware, building materials,
decoration materials, spare parts of cars, groceries, and labor protection
products; photo services; retailing tobaccos; import and export of goods and
technology, excluding the products prohibited by the country; processing with
supplied samples, imported materials, and imported parts, compensation trades;
transit trade and counter trade; economic information consulting (excluding
agency services and specially regulated items).
SC is
mainly engaged in international trade.
SC’s products
mainly include: chemical fiber cloth material & inner cloth material, blend
cloth material & crossing textile cloth material, medical, medical medium
agent.
Chemical products:
PTA, QTA, PET lumps, PP powder, SAN, 1,5-Pentanediol , Bisphenol-A,MEA, Ethyl
Acetate.
Stone Products:
Galala Beige, Aman Beige, Marron Emperador, Wooden Travertine , Rosso Lavento,
Sahara Beige, India Green, MocaCream, Bianco Perlino, Ariston White.
From Oct. 2004, SC
began to supply Pakistan heckling yarn and regular yarn, mainly including 16S,
20S, and 26S. At present, it sets warehouses in Guangzhou, Beijing and Tianjin.
Its annual importing can reach 15,000 tons.
SC imports marble
and its board materials from Turkey and Egypt; PET and its materials, PTA from
Europe; chromium ore and stone materials from Turkey and Pakistan.
SC
sources its products 40% from domestic market, and 60% from international
market mainly Korea, Asia and Europe. SC sells 60% of its products in domestic
market, and 40% to international market, mainly Asian countries, Middle East
and Europe.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Suppliers*
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Korea Samnam Petrochem Co., Ltd.
Korea Polymirae Co., Ltd.
Korea LG Chemical Co., Ltd.
Promotora
De Cafe Colombia SA
Ticofrut
S.A.
Staff & Office:
--------------------------
SC is
known to have approx. 30 staff
at present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
China Fortune Way Co., Ltd.
According to the website: http://www.sinopharmintl.com
China National Pharmaceutical Foreign Trade Corporation
China Sinopharm International (Shanghai) Co., Ltd.
China Sinopharm Fortune International Trade Corporation
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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’s suppliers
refused to make any comments.
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.
BANKING
Basic Bank
Bank of Communications Huixin Branch
AC#: 664012015014063
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As
of Jun. 30, 2013 |
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Total assets |
574,615 |
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Total liabilities |
541,570 |
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Equities |
33,045 |
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Unit: CNY’000 |
Jan. 1, 2013 to Jun. 30, 2013 |
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Revenue |
384,189 |
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Profits |
7,062 |
Important Ratios
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As
of Jun. 30, 2013 |
|
*Liabilities
to assets |
0.94 |
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*Net profit
margin (%) |
1.84 |
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*Return on
total assets (%) |
1.23 |
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*Revenue /
Total assets |
0.67 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
LIQUIDITY:
AVERAGE
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.74 |
|
|
1 |
Rs.98.77 |
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Euro |
1 |
Rs.80.52 |
INFORMATION DETAILS
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Analysis Done by
: |
SUM |
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Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.