MIRA INFORM REPORT

 

 

Report No. :

306045

Report Date :

10.02.2015

 

IDENTIFICATION DETAILS

 

Name :

SINOPHARM INTERNATIONAL HONGKONG LTD.

 

 

Registered Office :

Room 1601, 16/F., Emperor Group Centre, 288 Hennessy Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

11.08.1992

 

 

Com. Reg. No.:

16435849

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of All Kinds of Pharmaceuticals.

 

 

No. of Employees :

10

 

 

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 :

Good

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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

 

SINOPHARM INTERNATIONAL HONGKONG LTD.

 

 

ADDRESS:       Room 1601, 16/F., Emperor Group Centre, 288 Hennessy Road, Wanchai, Hong Kong.

 

PHONE:            852-2574 8628

 

FAX:                 852-2891 4969

 

E-MAIL:            fortune@resolink.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Zu Jing

 

 

SUMMARY

 

Incorporated on:  11th August, 1992.

 

Organization:  Private Limited Company.

 

Issued Share Capital:     HK$1,500,000.00

 

Business Category:       Importer, Exporter and Wholesaler.

 

Employees:  10.

 

Main Dealing Banker:     Bank of China (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:  Satisfactory.

 

 

Name 

 

SINOPHARM  INTERNATIONAL  HONGKONG  LTD.

 

 

ADDRESS

 

Registered Head Office:-

Room 1601, 16/F., Emperor Group Centre, 288 Hennessy Road, Wanchai, Hong Kong.

 

Holding Company:-

China National Service Corporation For Chinese Personnel Working Abroad, China.  [Tel: 86-10-8461 8811;   Fax: 86-10-8464 8145]

 

Ultimate Holding Company:-

China National Pharmaceutical Group Corporation, China.  [Sinopharm]

[Tel: 86-10-8461 8811;   Fax: 86-10-8464 8145]

 

Subsidiaries/Affiliated/Associated Companies:-

Sinopharm Group of Companies

Beijing Tiantan Biological Products Co. Ltd., China.

China National Accord Medicines Corporation Ltd., China.

[Formerly known as Shenzhen Accord Pharmaceutical Co. Ltd.]

China National Group Corporation of Traditional & Herbal Medicine, China.

China National Medical Equipment Industry Corporation, China.

China National Medicines Co. Ltd., China.

China National Medicines Corporation Ltd., China.

China National Pharmaceutical Foreign Trade Corporation, China.

China National Pharmaceutical Industry Corporation Ltd., China.

China Pharmaceutical Advertising Ltd. Co., China.

China Pharmaceutical Exhibition Corporation, China.

China Sinopharm International Corporation, China.

Reed Sinopharm Exhibitions Co. Ltd., China.

Shanghai Shyndec Pharmaceutical Co. Ltd., China.

[Formerly known as Shyndec Pharmaceutical Co. Ltd.]

Sichuan Industrial Institute of Antibiotics, China.

Sinopharm Group Co. Ltd., China.

Sinopharm Group Hongkong Co. Ltd., Hong Kong.

Sinopharm India Pvt. Ltd., India.

Sinopharm Medicine Holding Co. Ltd., China.

Sinopharm United Engineering Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

16435849

 

 

COMPANY FILE NUMBER

 

0373512

 

 

MANAGEMENT

 

Managing Director:  Mr. Zu Jing

ISSUED SHARE CAPITAL

 

HK$1,500,000.00

 

 

SHAREHOLDER

 

(As per registry dated 11-08-2014)

Name

 

No. of shares

China National Service Corporation For Chinese Personnel Working Abroad

No. 4, Hui Xin Dong Jie, Chao Yang District, Beijing.

 

1,500,000

=======

 

 

DIRECTORS

 

(As per registry dated 11-08-2014)

Name

(Nationality)

 

Address

LI Yan

Room 2802, Hui Xin Dong Jie, Chaoyang District, Beijing, China.

 

LI Deyuan

8-404, Century Village, Chao Yang District, Beijing, China.

 

ZU Jing

Flat B, 17/F., Yangville, 8 Tai Yuen Street, Hong Kong.

 

FU Jun

Room 501, 19/F., Block 8, He Ping Street, Chaoyang District, Beijing, China.

 

SHENG Hua

Room 512, Huixinyuan Building 3, 9 Huixinxijie, Chao Yang District, Beijing, China.

 

 

SECRETARY

 

(As per registry dated 11-08-2014)

Name

Address

Co. No.

Hapsource Ltd.

Room 1903, 19/F., United Success Commercial Centre, 508 Jaffe Road, Causeway Bay, Hong Kong.

0249127

 


HISTORY

 

The subject was incorporated on 11th August, 1992 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Winfirst International Ltd., name changed to Fortune Hong Kong Trading Ltd. on 26th January, 1993 and further to the present style on 14th January, 2013.

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

 

 

OPERATIONS

 

Activities:          Importer, Exporter and Wholesaler.

 

Lines:               All kinds of pharmaceuticals.

 

Employees:      10.

 

Commodities Imported: China, Europe, other Asian countries.

 

Markets:            China, Japan, other Asian countries, Europe.

 

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

 

Terms/Buying:  L/C, T/T, D/P.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital: HK$1,500,000.00

 

Mortgage or Charge:  (See attachment)

 

Profit or Loss:   Making a small profit every year.

 

Condition:  Keeping in a satisfactory manner.

 

Facilities:  Making rather active use of general banking facilities.

 

Payment:  Met trade commitments as required.

 

Commercial Morality:  Satisfactory.

 

Banker:  Bank of China (Hong Kong) Ltd., Hong Kong.

 

Standing:  Very Good.

 

GENERAL

 

Sinopharm International Hongkong Ltd. is a wholly-owned subsidiary of China National Service Corporation for Chinese Personnel Working Abroad [CNSC] which is a China Government-owned, large-scale comprehensive enterprise engaged in international trade and economic cooperation.

 

The subject had two minor shareholders, each had held a single share, who transferred their shares to CNSC on 5th June, 2013.

 

The managing director of the subject Mr. Zu Jing is a China merchant.  He is a Hong Kong ID holder and has got the right to reside in Hong Kong permanently.  Now he is residing in Hong Kong administering the business of the subject.

 

The subject is trading in all kinds of pharmaceuticals especially those manufactured in China.  It is also responsible for importing raw materials from abroad for its associated factories in China.  Pharmaceuticals sourced from China suppliers are exported to Japan, the other Asian countries, Europe, North America, etc.  Business is satisfactory.

 

CNSC was established in 1983 with the approval of the State Council of China.  Once subordinated to the Ministry of Foreign Trade and Economic Cooperation (re-named as the Ministry of Commerce, the PRC), CNSC is now under the direct leadership of the China National Pharmaceutical Group Corporation [Sinopharm].

Your given phone and fax number belong to Beijing Sinopharm.  CNSC also bears the same phone and fax number.

 

Over the past years, CNSC has been ranked for many times as one of the Top 500 of Chinese international trading enterprises.

 

CNSC’s major business scope covers: sales in foreign exchange of Duty-free imported goods for Chinese personnel working abroad; supplying life necessities for Chinese institutions in overseas; operation and agency of import and export; material supply of Chinese government aids for foreign countries and labour service cooperation; international logistics and industrial investment.

 

CNSC takes an active part in the internationalised market competition.  It always keeps the long -term good cooperative relationships not only with hundreds of companies in America, Europe, Japan, India, Hong Kong and Southeast Asian countries, but also with more than 100 large domestic companies throughout China as well.  Its business network covers the whole territory of China and reaches many countries in Europe, America, Asia and Africa.  CNSC today keeps on expanding in business volumes.

 

CNSC consists of 17 subsidiaries and shareholding companies (including 1 manufacturing enterprises) in China and 5 companies in overseas with a total staff of over 2,000 people.

 

The President of CNSC Mr. Zhou Yuxiang was also the former minor shareholder of the subject.

 

Now, the Sinopharm Group is engaged in researches and develops, manufactures, distributes, and markets medicine and other healthcare products.  Sinopharm Group manages factories, research laboratories, traditional Chinese medicine plantations, and marketing and distribution networks that extend throughout China.  It also has 10 subsidiaries and a number of major joint ventures.  The company also runs about a dozen retail pharmacy chains.  Sinopharm Group, which has operations in Africa, France, Germany, Hong Kong, the US, and Vietnam.

Sinopharm is the largest medical and healthcare group in China which is directly managed by State-owned Assets Supervision and Administration Commission of the State Council (SASAC) of the PRC.

 

So far, Sinopharm owns 10 wholly owned or shareholding subsidiaries, and 5 listed companies including Sinopharm Group Co. Ltd. (01099. HK); China National Medicines Co. Ltd. (600511. SH); Beijing Tiantan Biological Products Co. Ltd. (600161. SH); Shanghai Shyndec Pharmaceutical Co. Ltd. (600420. SH) and China National Accord Medicines Corporation. Ltd. (200028. SZ).

 

The annual sales revenue of Sinopharm ranges from RMB140 to 150 billion Yuan.  It is the only Chinese pharmaceutical company which sales revenue exceeds RMB100 billion Yuan.

 

In 11th January 2013, Sinopharm set up Sinopharm India Pvt., Ltd. in New Delhi, India.  Sinopharm India Pvt. Ltd. was established in the end of 2012 and registered in New Delhi.  With the establishment of Sinopharm India Pvt. Ltd., Sinopharm will fully integrate its business in India, form a working team, enhance publicity, furthermore, not only purchase pharmaceutical preparations and APIs from India, but also export a series of products, including pharmaceutical APIs, intermediates, preparations, vaccines and medical equipment, into Indian market.

 

Sinopharm has been one of the companies listed on The Fortune magazine for a number of years.

 

In 2013, Sinopharm has made successful acquisition of Hong Kong listed company known as “China Traditional Chinese Medicine Co. Ltd.” (CTCM Group/formerly known as “Winteam Pharmaceutical Group Ltd.”).  After completion of the acquisition, Sinopharm TCM holds a 56.97% stake of Winteam Group through its wholly owned subsidiary in Hong Kong.

 

The successful acquisition of CTCM Group is an important measures to speed up the development of modern Chinese traditional medicine business in Sinopharm.

 

The subject is fully supported by CNSC.  Business is profitable.

 

As the history of the subject is over 22 years and five months in Hong Kong, on the whole, consider it good for normal business engagements.

 

 

MORTGAGE OR CHARGE

 

Date

Description of Instrument

Mortgagee

19-05-2008

Deed of Indemnity, Charge over deposit and set-off

Bank of China (Hong Kong) Ltd., Hong Kong.

13-10-2014

Deed of Indemnity, Charge over deposit and set-off

Bank of China (Hong Kong) Ltd., Hong Kong.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.94.79

Euro

1

Rs.70.38

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               


 

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.