MIRA INFORM REPORT
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Report No. : |
315952 |
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Report Date : |
08.04.2015 |
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) : |
31.12.2013 |
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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 : |
Subject is engaged in 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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
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.
|
Source
: CIA |
Company
name & 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
CHIEF EXECUTIVE :
Liu Lili (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 20,000,000
staff :
30
BUSINESS CATEGORY : trading
REVENUE :
CNY 3,286,230,000 (AS OF DEC.
31, 2013)
EQUITIES :
CNY 68,030,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
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 6.20 = 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 Tax No.: 110110510169330
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 |
|
|
-- |
Registration No. |
1101051501712 |
110105005017129 |
|
-- |
Company Chinese Name |
中服嘉远贸易公司 |
国药嘉远国际贸易公司 |
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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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|
2014-3-24 |
Legal Representative |
Li Can |
Liu Lili |
|
-- |
Shareholder |
China National Pharmaceutical Group Corp. 100% |
China Sinopharm International Corporation 100% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
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
-----------------------------
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
-----------------------------------------------------------------------------------------------
Gender: F
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*
---------------------
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
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
|
23,050 |
|
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Notes receivable |
20,270 |
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Accounts receivable |
167,790 |
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Advances to suppliers |
1,133,270 |
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Other receivable |
275,270 |
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Inventory |
425,350 |
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Non-current assets within one year |
0 |
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Other current assets |
183,300 |
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|
------------------ |
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Current assets |
2,228,300 |
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Fixed assets |
70 |
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Construction in progress |
0 |
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Intangible assets |
0 |
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Long-term investment |
500 |
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Deferred income tax assets |
0 |
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Other non-current assets |
0 |
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------------------ |
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Total assets |
2,228,870 |
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============= |
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Short-term loans |
484,270 |
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Notes payable |
0 |
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Accounts payable |
227,570 |
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Payroll payable |
10,930 |
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Taxes payable |
11,720 |
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Advances from clients |
986,930 |
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Other payable |
439,420 |
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Other current liabilities |
0 |
|
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------------------ |
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Current liabilities |
2,160,840 |
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Non-current liabilities |
0 |
|
|
------------------ |
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Total liabilities |
2,160,840 |
|
Equities |
68,030 |
|
|
------------------ |
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Total liabilities & equities |
2,228,870 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
3,286,230 |
|
Cost of sales |
3,213,330 |
|
Sales expense |
49,820 |
|
Management expense |
2,610 |
|
Finance expense |
-13,830 |
|
Investment income |
40 |
|
Non-operating income |
6,100 |
|
Non-operating expense |
70 |
|
Profit before tax |
40,370 |
|
Less: profit tax |
10,250 |
|
30,120 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
|
*Current ratio |
1.03 |
|
*Quick ratio |
0.83 |
|
*Liabilities to assets |
0.97 |
|
*Net profit margin (%) |
0.92 |
|
*Return on total assets (%) |
1.35 |
|
*Inventory / Revenue ×365 |
48 days |
|
*Accounts receivable / Revenue ×365 |
19 days |
|
*Revenue / Total assets |
1.47 |
|
*Cost of sales / Revenue |
0.98 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears large.
The accounts receivable of SC appears large.
The short-term loans of SC appear large.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
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. The large amount of inventory & accounts receivable &
short-term loans may be a threat to SC’s financial condition. Taking into consideration
of SC’s good background.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.33 |
|
|
1 |
Rs.92.83 |
|
Euro |
1 |
Rs.68.08 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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 |
|
|
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 |
|
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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.