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MIRA
INFORM REPORT
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Report No. : |
512004 |
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Report Date : |
30.05.2018 |
IDENTIFICATION DETAILS
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Name : |
CHINA SINOPHARM INTERNATIONAL CORPORATION |
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Registered Office : |
No. 4 Huixin East Street, Chaoyang District,
Beijing 100029 PR |
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Country : |
China |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
18.02.1989 |
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Unified
Social Credit Code : |
91110000100009467D |
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Legal Form : |
One-Person Limited Liabilities
Company |
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Line of Business : |
Subject registered business scope includes selling
ophthalmic surgical instruments, puncture injection equipment, medical
electronic equipment, medical optical equipment, instruments and endoscopic
equipment, 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, 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, basic surgical instruments, ENT
surgical instruments, thoracic cardiovascular surgery surgical instruments,
orthopedic surgery 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, and software;
contracting foreign projects corresponds to its strength, size and
performance, dispatching the labor abroad which required by the above
overseas projects; medicine, chemical medicine preparation, chemical raw
materials, antibiotics, biochemical drugs, biological products, the second
category of psychotropic drugs, protein anabolic agents and peptide hormones,
traditional Chinese medicinal materials, pieces of Chinese medicine.
Wholesaling prepackaged food; operation of health food; Import and export
business; machinery and electronics products; chemical products; minerals;
sales of textiles, hardware, general merchandise and cosmetics; assume
medical health items of China's foreign economic assistance projects;
technical consulting services which related to the main business; medical,
pharmaceutical consulting; sales of machinery and electronic products. |
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No. of Employees : |
125 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
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. 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 announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. 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 more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. 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. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
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Source
: CIA |
COMPANY NAME and ADDRESS
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COMPANY NAME |
China Sinopharm International Corporation |
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CURRENT ADDRESS/ REGISTERED ADDRESS |
No. 4 Huixin East Street, Chaoyang
District, Beijing 100029 PR China |
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TEL. NO. |
86 (0) 10-84618811/84663138/ 84663789 |
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FAX NO. |
86 (0) 10-84663776 |
EXECUTIVE SUMMARY
Date of Registration :
FEBruary 18, 1989
Unified social credit code : 91110000100009467D
LEGAL FORM : One-person limited liabilities Company
CHIEF EXECUTIVE :
li can (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 2,200,000,000
staff :
125
BUSINESS CATEGORY :
trading
REVENUE :
CNY 467,861,000 (CONSOLIDATED,
JAN. 1, 2017 TO MAR. 31, 2017)
EQUITIES :
CNY 4,343,996,000 (CONSOLIDATED, AS OF MAR. 31, 2017)
WEBSITE : www.sinopharmintl.com
E-MAIL :
gly@sinopharmintl.com
PAYMENT :
REGULAR
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
fairly good
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 one-person limited
liabilities company of PRC with State Administration of Industry &
Commerce (SAIC) under Unified Social Credit Code: 91110000100009467D.
SC’s Import and Export Enterprise Code:
1100100009467
SC’s registered capital: CNY 2,200,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2004-1-13 |
Legal Representative |
Yang Zunrun杨尊润 |
Hua Jimin华济民 |
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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 Representative |
Hua Jimin华济民 |
Ma Rang马让 |
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2010-11-18 |
Company Name |
China Medical Corporation for International Technical
Cooperation |
China Sinopharm International
Corporation |
|
2011-2-15 |
Legal Representative |
Ma Rang马让 |
Zhou Yuxiang |
|
2011-10-28 |
Registered Capital |
CNY 5,001,000 |
CNY 1,000,000,000 |
|
-- |
Registered No. |
1000001000946 |
100000000009468 |
|
Registered Capital |
CNY 1,000,000,000 |
CNY 2,108,380,000 |
|
|
Legal Representative |
Zhou Yuxiang |
Li Can |
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|
Registration No./ Unified Social Credit Code |
100000000009468 |
91110000100009467D |
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|
2017-11-24 |
Legal Form |
State-Owned Enterprise |
One-Person Limited Liabilities Company |
|
Registered Capital |
CNY 2,108,380,000 |
CNY 2,200,000,000 |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
China National Pharmaceutical Group
Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and General Manager |
Li Can |
|
Chairman |
Shi Shengyi |
|
Director |
Jin Bin |
|
Wang Songlin |
|
|
Jiang Xin |
|
|
Yang Yongge |
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|
Li Chunsheng |
|
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Supervisor |
Ding Haiyun |
|
Lin Guang |
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|
Fan Weizheng |
RECENT DEVELOPMENT
No
recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
China
National Pharmaceutical Group Co., Ltd. 100
------------------------------
Date
of Registration: March 26, 1987
Unified
Social Credit Code: 91110000100005888C
Chief
Executive : She Lulin
Registered
Capital: CNY 20,000,000,000
MANAGEMENT
Li Can, Legal Representative and General Manager
--------------------------------------------------------------------------
Gender:
M
Nationality:
China
Age:
46
Qualification:
University
Working
experience (s):
At
present, working in SC as legal representative and general manager, also
working in Sinopharm Health Care Corporation and Sinopharm Midland Hospital
Management Co., Ltd. as legal representative
Shi Shengyi, Chairman
------------------------------------------
Gender:
M
Nationality:
China
Qualification:
University
Working
experience (s):
At
present, working in SC as chairman
Director
-----------
Jin
Bin
Wang
Songlin
Jiang
Xin
Yang
Yongge
Li
Chunsheng
Supervisor
--------------
Ding
Haiyun
Lin
Guang
Fan
Weizheng
BUSINESS OPERATION
SC’s registered business scope includes selling ophthalmic
surgical instruments, puncture injection equipment, medical electronic equipment,
medical optical equipment, instruments and endoscopic equipment, 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, 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, basic surgical instruments, ENT surgical instruments, thoracic
cardiovascular surgery surgical instruments, orthopedic surgery 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, and software; contracting foreign projects corresponds to its
strength, size and performance, dispatching the labor abroad which required by
the above overseas projects; medicine, chemical medicine preparation, chemical
raw materials, antibiotics, biochemical drugs, biological products, the second
category of psychotropic drugs, protein anabolic agents and peptide hormones,
traditional Chinese medicinal materials, pieces of Chinese medicine.
Wholesaling prepackaged food; operation of health food; Import and export
business; machinery and electronics products; chemical products; minerals;
sales of textiles, hardware, general merchandise and cosmetics; assume medical
health items of China's foreign economic assistance projects; technical
consulting services which related to the main business; medical, pharmaceutical
consulting; sales of machinery and electronic products.
SC
is mainly engaged in selling pharmaceutical products, medical apparatus and
instruments.
SC’s
products mainly include: API, Intermediates, Pharmaceutical Dosage Forms,
Vaccines and Blood Products, Clinical Reagents, Medical Device.
SC sources the products 80% from domestic market, and 20% from overseas market. SC sells 20% of its products in domestic market, and 80% to overseas market.
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.
*Major
Customers*
==============
Central
De Productos Quimicos Sa De
Internacional
Quimica De Cobre S.A. De C.V.
Sinbiotik
Internacional Sa De Cv
Negociar
Veterinaria S.A.C.
*Major
Suppliers*
==============
Iq
Citrus S.A. De C.V.
Staff & Office:
--------------------------
SC is
known to have approx. 125
staff at present.
SC
owns an area as its operating office & factory of approx. 2,000 sq. meters
at the heading address.
RELATED COMPANY
SC is known to have the
following subsidiaries at present,
Sinopharm
Health Care Corporation
Sinopharm
Zhongyuan Hospital Management Co., Ltd.
Sinopharm
(Shanghai) E-health Co., Ltd.
China
National Service Corp. for Chinese Personnel Working Abroad
China
National Pharmaceutical Foreign 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 records 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.
BANKING
Basic Bank:
Industrial and Commercial Bank of China Gulou Sub-branch
AC#: 0200003209004606041
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2016 |
As of Mar. 31, 2017 |
|
2,635,583 |
1,853,004 |
|
|
Notes receivable |
166,591 |
125,940 |
|
Accounts receivable |
861,311 |
895,958 |
|
Advances to suppliers |
2,383,234 |
2,069,017 |
|
Other receivable |
356,787 |
552,800 |
|
Inventory |
2,413,864 |
2,261,828 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
576,502 |
410,949 |
|
|
------------------ |
------------------ |
|
Current assets |
9,393,872 |
8,169,496 |
|
Long-term investment |
85,373 |
83,009 |
|
Fixed assets |
1,096,206 |
1,075,351 |
|
Construction in progress |
642,719 |
673,976 |
|
Intangible assets |
157,674 |
156,532 |
|
Long-term prepaid expenses |
17,967 |
17,758 |
|
Deferred income tax assets |
24,253 |
24,253 |
|
Other non-current assets |
882,527 |
878,935 |
|
|
------------------ |
------------------ |
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Total assets |
12,300,591 |
11,079,310 |
|
|
============= |
============= |
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Short-term loans |
712,965 |
546,328 |
|
Notes payable |
441,172 |
400,174 |
|
Accounts payable |
1,901,797 |
1,942,324 |
|
Wages payable |
149,512 |
155,804 |
|
Taxes payable |
42,550 |
30,536 |
|
Advances from clients |
2,978,247 |
2,392,624 |
|
Other payable |
468,463 |
371,307 |
|
Other current liabilities |
517,626 |
90,138 |
|
|
------------------ |
------------------ |
|
Current liabilities |
7,212,332 |
5,929,235 |
|
Non-current liabilities |
806,152 |
806,079 |
|
|
------------------ |
------------------ |
|
Total liabilities |
8,018,484 |
6,735,314 |
|
Equities |
4,282,107 |
4,343,996 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
12,300,591 |
11,079,310 |
|
|
============= |
============= |
Consolidated Income
Statement
|
Unit: CNY’000 |
From Jan. 1, 2017 to Mar. 31, 2017 |
|
Revenue |
467,861 |
|
Cost of sales |
447,433 |
|
Sales expense |
9,704 |
|
Management expense |
7,033 |
|
Finance expense |
51 |
|
Profit before tax |
961 |
|
Less: profit tax |
0 |
|
961 |
Important Ratios
=============
|
|
As of Dec. 31, 2016 |
As of Mar. 31, 2017 |
|
*Current ratio |
1.30 |
1.38 |
|
*Quick ratio |
0.97 |
1.00 |
|
*Liabilities to assets |
0.65 |
0.61 |
|
*Net profit margin (%) |
-- |
0.21 |
|
*Return on total assets (%) |
-- |
0.01 |
|
*Inventory / Revenue ×365/90 |
-- |
436 days |
|
*Accounts receivable/ Revenue ×365/90 |
-- |
173 days |
|
*Revenue/Total assets |
-- |
0.04 |
|
*Cost of sales / Revenue |
-- |
0.96 |
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 fairly 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 is maintained in an average level.
SC’s
short-term loans are in an average level.
SC’s
revenue is in a fair level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The
debt ratio of SC is average.
The
risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC
is considered small-sized in its line with stable financial conditions. The
large amount of inventory may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.82 |
|
|
1 |
INR 90.17 |
|
Euro |
1 |
INR 78.70 |
|
CNY |
1 |
INR 10.50 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRA |
|
|
|
|
Report Prepared
by : |
TRU |
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.