|
|
|
MIRA INFORM REPORT
|
Report No. : |
484531 |
|
Report Date : |
08.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
CHINA SINOPHARM INTERNATIONAL CORPORATION |
|
|
|
|
Registered Office : |
Fortune
Tower 1, No. 4 Huixin East Street, Chaoyang District, Beijing, 100029 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
18.02.1989 |
|
|
|
|
Legal Form : |
State-Owned Enterprise |
|
|
|
|
Line of Business : |
Subject is mainly engaged in
the following four businesses: International trade, Investment abroad,
Medical services, Healthcare. |
|
|
|
|
No. of Employees : |
200 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state-support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, 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 liberalization. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi (RMB) after the currency was accepted as part of the IMF’s special drawing rights basket. After engaging in one-way, large-scale intervention to resist appreciation of the RMB for a decade, China’s 2016 intervention in foreign exchange markets has sought to prevent a rapid RMB depreciation that would have negative consequences for the United States, China, and the global economy.
China’s economic growth has slowed since 2011. The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) servicing its high corporate debt burdens to maintain financial stability; (c) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (d) dampening speculative investment in the real estate sector; (e) reducing industrial overcapacity; and (f) raising productivity growth rates through the more efficient allocation of capital. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. Under President XI Jinping, Beijing has signaled its understanding that China's long-term economic health depends on giving the market a more decisive role in allocating resources, but has moved slowly on market-oriented reforms because of potential negative consequences for stability and short-term economic growth. He has also increased state-control over key sectors and Party control over state-owned enterprises. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time.
|
Source
: CIA |
Company
name and address
CHINA
SINOPHARM INTERNATIONAL CORPORATION
FORTUNE
TOWER 1, NO. 4 HUIXIN EAST STREET, CHAOYANG DISTRICT,
BEIJING,
100029 PR CHINA
TEL: 86 (0) 10-84618811/84663784/ 84663789
FAX: n/a
EXECUTIVE
SUMMARY
INCORPORATION DATE :
FEB. 18, 1989
Credibility code :
91110000100009467D
REGISTERED LEGAL FORM : STATE-OWNED
ENTERPRISE
STAFF STRENGTH :
200
REGISTERED CAPITAL :
CNY 2,108,380,000
BUSINESS LINE :
trading, investing, medical
TURNOVER :
CNY 1,255,203,000 (AS OF DEC. 31, 2016)
EQUITIES :
CNY 2,392,060,000 (AS OF DEC. 31, 2016)
PAYMENT :
REGULAR
MARKET CONDITION :
competitive
FINANCIAL CONDITION :
FAIRLY stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
well-known
.
Adopted
abbreviations:
ANS - Amount not
stated
NS - Not stated
SC - Subject
company (The company inquired by you)
NA - Not available
CNY - China Yuan Ren Min Bi
SC was registered as a
state-owned enterprise at local Administration for Industry & Commerce (AIC
- The official body of issuing and renewing business license) on Feb. 18, 1989.
Company Status: State-owned
enterprise This form of
business in PR China is defined as a commodity production or operational
units of a socialist character which in accordance with the law, has
autonomy in management, takes full responsibility for its profits and
losses and practices independent business accounting. It is a legal person
established directly by central / local government or enterprise owned by
central or local government. In theory, the liabilities of this form of
enterprise are ultimately borne by the government, since the adoption of
company law in mid-1994, the Chinese government has planned to separate the
ownership from management and liabilities bearing.
SC’s
registered business scope includes Ⅲ, Ⅱ categories: Ophthalmic surgical
instruments, puncture injection equipment, medical electronic equipment,
medical optical equipment, instruments and endoscopic equipment (excluding
cornea contact lenses ), medical ultrasound equipment and related equipment ,
medical laser equipment, medical high frequency equipment, physical therapy and
rehabilitation equipment, medical MRI equipment, medical X -ray equipment,
medical X-ray ancillary equipment and components, medical high-energy rays
equipment, medical radionuclide equipment, clinical laboratory analytical
instruments, and extracorporeal blood processing equipment, planting into
materials and artificial organs (except hearing aids), operating rooms,
emergency rooms, clinics room equipment and apparatus, medical treatment of
cold, low temperature, cold storage equipment and apparatus, medical sanitary
materials and dressings, medical suture materials and adhesives, medical
polymer materials and products, interventional equipment; Ⅱ categories: basic surgical
instruments, ENT surgical instruments, thoracic cardiovascular surgery surgical
instruments, orthopedic surgery (orthopedic) surgical instruments, general
examination equipment, Chinese medicine equipment, medical laboratory equipment
and infrastructure tools, dental equipment and apparatus, ward care equipment
and appliances, disinfection and sterilization equipment and apparatus,
software (valid until
SC is mainly engaged in the
following four businesses: International trade, Investment abroad, Medical
services, Healthcare.
Mr. Li Can is legal representative and general manager
of SC at present.
SC is known to have approx. 200
employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. Our checks reveal that SC owns the total premise about 2,000 square meters.
http://sinopharmintl.net The design is professional and
the content is well organized. At present it is in Chinese and English
versions.
E-Mail:
gly@sinopharmintl.com
Licenses & Certificates:
=====================
Record
Registration Form for a Foreign Trade Operator
Drug
Supply Certificate. (including Biological products and psychotropic drugs
category II&III. )
Medical
Device Distributing Enterprise License.
The
food circulation permit
Qualifications
for foreign aids projects
Certificate
for Drug Good Supply Practice
Food
distribution license
Food
hygiene licence
ISO
9001:2000 Quality Management System Certificate issued by SGS
2015
China Top Ten Member Importers of Medicines & Health Products
Qualification
Certificate of Overseas Project Contracting
of the People's Republic of China
Changes of SC’s registered
information:
|
Date
|
Item
|
Before
changed |
After
changed |
|
2004-1-13 |
Legal rep. |
Yang Zunrun |
Hua Jimin |
|
Registered capital |
CNY 2,200,000 |
CNY 2,341,000 |
|
|
2005-8-23 |
Registered capital |
CNY 2,341,000 |
CNY 5,001,000 |
|
2006-10-9 |
Legal rep. |
Hua Jimin |
Ma Rang |
|
2010-11-18 |
Company name |
China Medical Corporation for International Technical
Cooperation |
Present one |
|
2011-2-15 |
Legal rep. |
Ma Rang |
Zhou Yuxiang |
|
2011-10-28 |
Registered capital |
CNY 5,001,000 |
CNY 1,000,000,000 |
|
Unknown |
Registered no. |
1000001000946 |
100000000009468 |
|
Registered capital |
CNY 1,000,000,000 |
Present amount |
|
|
Legal rep. |
Zhou Yuxiang |
Present one |
|
|
Registered no. |
100000000009468 |
91110000100009467D |
Import/
Export License Number: 1100100009467
HS
Code: 1102919044
For the
past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
China National Pharmaceutical
Group Corporation 100
China National Pharmaceutical Group Corporation (Sinopharm)
is the largest medical and healthcare group under the direct leadership of the
State-owned Assets Supervision and Administration Commission of the State
Council. It is famous for its most comprehensive competitiveness and complete
chain of the whole pharmaceutical industry in China.
Credibility code: 91110000100005888C
Legal representative: She Lulin
Incorporation date: 1987-03-26
Web: http://www.sinopharm.com/
E-mail: webmaster@sinopharm.com
Add.: 9
Tel.: 86-10-82287727
Fax: 86-10-62033332
l Legal Representative and General
Manager:
Mr. Li
Can , born in 1972, he is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC
as legal rep. and general manager.
Also working
in Sinopharm Health Care Corporation and Sinopharm Midland Hospital Management
Co., Ltd. as legal representative.
SC is mainly engaged in the following
four businesses: International trade, Investment abroad, Medical services,
Healthcare.
SC’s businesses mainly include:
International trade:
Medical Export
Medical Import
Other Import and Export
International Logistic Business
With SC’s overseas distribution
channel, financial strength and experience in the business, SC focuses on
import & export of pharmaceutical products and aspire to be the largest and
No.1 international pharmaceutical trading brand in China.
Investment abroad
SC invests abroad and aspires to
be China’s largest “go global” company in pharmaceutical industry. SC’s
overseas factories comply with GMP procedures and provide the local market with
cost-effective products and services.
Medical services:
Hospital Management
International Human Resource
Development and Cooperation
Overseas Project Cooperation
Hospital medical and technical
cooperation
Comprehensive services
Hospital medical equipment and
process design
Hospital Medical Equipments
Supply
Equipments Supply for Malaria
Prevention and Treatment Center
SC is actively involved in the
reform of public hospitals in China, while also concentrating on international
medical cooperation. SC is establishing a medical service management platform
which meets international standards for State-owned key enterprises in China.
Healthcare:
MEC (Medical Examination Center)
E-commerce Platform on
Healthcare Products
To meet the needs of People’s
healthcare at all levels, SC offers products ranging from health food to home
medical equipment and others. SC strives towards the goal to become a leader in
the industry.
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 and Credit of 30-60 days.
Note: SC’s
management declined to release its main suppliers.
Main Client:
===============
Sinopharm Fortune International Trading Corp.
|
TRADEMARKS & PATENTS |
|
Registration No. |
11448739 |
10959016 |
11448797 |
|
Registration Date |
July 7, 2014 |
Sep. 21, 2013 |
Feb. 7, 2014 |
|
Trademark Design |
|
|
|
Industry code: 5100
Industry name: wholesale industry
The
gross domestic product of China in 2015 which is 676,708 billion that is
increased 6.9% than previous year.
With the rapid growth of economy and population aging,
Chinese pharmaceutical industry has maintained rapid growth in recent years.
The business income of pharmaceutical manufacturing industry was increased from
159.433 billion Yuan in 2000 to 2,553.71 billion Yuan in 2015; compound annual
growth rate was 20.31%. The total profit was 262.73 billion Yuan in 2015,
increased by 12.09 year-on-year. The business income and profits are maintained
two - digit growth, but in recent years, the growth rate has become a downward
trend. At present, Chinese pharmaceutical industry is still in the growth
stage, it still has a larger growth in the future.
SC is known to invest in the following companies:
China National Pharmaceutical Foreign Trade Corporation
Sinopharm Health Care Corporation
Sinopharm Fortune Way Company
China Sinopharm International (Shanghai) Co., Ltd.
Sinopharm Fortune International Trading Corp.
Sinopharm Midland Hospital Management Co., Ltd.
Sinopharm Holding Xinxiang Co., Ltd.
Etc.
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.
Bank
of China General Office
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2016 |
As of Dec. 31, 2015 |
|
Cash
& bank |
716,821 |
168,596 |
|
Bills
receivable |
39,463 |
5,150 |
|
612,626 |
399,391 |
|
|
Accounts receivable |
79,429 |
127,592 |
|
Other
Accounts receivable |
226,639 |
62,771 |
|
Advances
to suppliers |
610,516 |
687,546 |
|
Dividend
receivable |
155,298 |
158,090 |
|
To
be apportioned expense |
0 |
0 |
|
Other
current assets |
124,959 |
115,127 |
|
|
------------------ |
------------------ |
|
2,565,751 |
1,724,263 |
|
|
Financial
assets available for sale |
14,425 |
14,425 |
|
Fixed
assets net value |
1,464 |
1,479 |
|
Long-term
investment |
2,573,458 |
2,580,736 |
|
Intangible
assets |
4,529 |
5,710 |
|
Deferred
tax assets |
498 |
522 |
|
2,756 |
430 |
|
|
|
------------------ |
------------------ |
|
Total
assets |
5,162,881 |
4,327,565 |
|
|
============= |
============= |
|
Short
loans |
0 |
160,434 |
|
Accounts
payable |
64,944 |
58,173 |
|
Advance
from customers |
466,193 |
372,656 |
|
Accrued
payroll |
19,185 |
14,622 |
|
Other
Accounts payable |
1,215,764 |
954,081 |
|
Notes
payable |
243,014 |
0 |
|
Taxes
payable |
1,952 |
1,966 |
|
Interest
payable |
9,769 |
188 |
|
Other
current liabilities |
400,000 |
0 |
|
|
------------------ |
------------------ |
|
2,420,821 |
1,562,120 |
|
|
Long
term loans |
350,000 |
350,000 |
|
Other
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
2,770,821 |
1,912,120 |
|
|
Equities |
||
|
|
------------------ |
------------------ |
|
5,162,881 |
4,327,565 |
|
|
|
============= |
============= |
Income Statement
Unit: CNY’000
Important Ratios
=============
|
|
As of Dec. 31, 2016 |
As of Dec. 31, 2015 |
|
*Current ratio |
1.06 |
1.10 |
|
*Quick ratio |
0.81 |
0.85 |
|
*Liabilities to assets |
0.54 |
0.44 |
|
*Net profit margin (%) |
2.10 |
1.53 |
|
*Return on total assets (%) |
0.51 |
0.60 |
|
*Inventory /Turnover ×365 |
179 days |
87 days |
|
*Accounts receivable/Turnover ×365 |
24 days |
28 days |
|
*Turnover/Total assets |
0.24 |
0.39 |
|
* Cost of goods sold/Turnover |
0.91 |
0.94 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good in its line, but it
decreased in 2016.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l The current ratio of SC is
maintained in a normal level.
l SC’s quick ratio is maintained
in a normal level.
l The inventory of SC is average
in 2015 but fairly large in 2016.
l The accounts receivable of SC is
maintained in an average level.
l SC’s short-term loan in average
in 2015, and SC has no short-term loan in 2016.
l SC’s turnover is in a fair
level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l The debt ratio of SC is fairly
low in 2015 but average in 2016.
l The risk for SC to go bankrupt
is average.
Overall financial condition of
the SC: Fairly stable.
SC is
considered medium-sized in its line with fairly stable financial conditions.
The large amount of inventory could be a threat to SC’s financial condition.
Taking into consideration of SC’s favorable background and operation history we
would rate SC as a low credit risk company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.38 |
|
|
1 |
INR 86.02 |
|
Euro |
1 |
INR 76.50 |
|
CNY |
1 |
INR 9.73 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.