MIRA
INFORM REPORT
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Report Date : |
02.05.2007 |
IDENTIFICATION
DETAILS
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Name : |
HUAWEI TECHNOLOGIES CO., LTD. |
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Registered Office : |
Huawei Base, Bantian, Longgang District, Shenzhen, 518129
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
September 15, 1987 |
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Com. Reg. No.: |
4403011022600 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Developing, manufacturing and selling telecommunication equipment. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 10,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
HUAWEI TECHNOLOGIES CO., LTD.
HUAWEI BASE, BANTIAN, LONGGANG DISTRICT,
SHENZHEN, 518129 PR CHINA
TEL : 86 (0) 755-28780808
FAX : 86
(0)755-28780808
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER
15, 1987
REGISTRATION NO. :
4403011022600
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 16,000
REGISTERED CAPITAL : CNY
4,311,511,820
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 40,534,245,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 16,043,845,000 (AS OF DEC. 31, 2005)
PAYMENT :
NORMAL
RECOMM. CREDIT RANGE : UP TO
USD 10,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STRONG
OPERATIONAL TREND : GOOD
GENERAL REPUTATION : WELL
KNOWN
EXCHANGE RATE : CNY10.55 = EUR1 AS OF 2007-4-30
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on September 15, 1987.
Company Status: Limited liabilities company This form of business in PR
China is defined as a legal person. Shareholders bear limited liability to
the extent of shareholding, and the co. is liable for its debts only to
extent of its total assets. The characteristics of this form of co. are as
follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is listed as follows: -manufacturing co. : CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service
co. : CNY 100,000.00 Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 50% of the registered capital while
contribution by intangible assets must not exceed 20% of the registered
capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes developing, manufacturing and
selling programmed-controlled exchangers, communication equipment, data
communicating equipment, broad network multimedia equipment, electrical power
& wireless communication equipment, micro-electronics products, system
integration, computer and relevant appliance, and terminal equipment; providing
related maintaining service; technology consulting; importing and exporting
business; domestic commercial trade, and material supply (excluding the
products state-controlled).
SC is mainly engaged in developing, manufacturing and selling
telecommunication equipment.
Ms. Sun
Yafang has been legal representative of SC since 1996. SC owns about 16,000
staff at present.
SC is currently operating at the above stated address. This address houses its operating office and
factory in the industrial zone of Shenzhen. Our checks reveal that SC owns the
premise about 1,422,000 square meters. The conditions inside are normal and
standard during our visit.
http://www.huawei.com.cn. The
design is professional and the content is well organized. At present, the web
is both in Chinese and English versions.
E-mail： support@huawei.com.
SC’s initial registered capital was CNY 3,200,000,000 (Huawei
Technologies Co., Ltd. Workers Union 98.9%, Ren Zhengfei 1.1%);
In Feb. 2003, the capital was changed to CNY 3,268,396,585 (Huawei
Technologies Co., Ltd. Workers Union with subscription of CNY 3,233,396,585 and
Ren Zhengfei with subscription of CNY35,000,000);
In March 2003, the capital was increased to CNY 3,268,723,585 (Shenzhen
Huawei Holding Co., Ltd. with subscription of CNY 3,268,396,585 and Ji Ping
with subscription of CNY 325,000);
In Dec. of 2004, the capital was changed to
the present one and the shareholders were changed as Committee of Labor Union of
Huawei Technologies Co., Ltd 98.9% and Ren ZhengFei 1.1%.
In Nov. 2006, SC’s shareholders were changed to the present one.
SC has
got the certificate of ISO9000.
Huawei’s Global Sales hits US$5.58 Billion in 2004.
Huawei ranked Top Ten Best Employer in China on July 22, 2005.
Huawei Technologies’ 1H 2005 International Sales hit USD 2.47 Billion.
Huawei
achieves 140 Million Global Subscribers in Wireless Applications on October
17, 2005.
Huawei
Becomes an Approved Supplier for Vodafone's Global Supply Chain on November
23, 2005.
Huawei’s Indian R&D Center achieves SEI CMMi Level 5 on December 13,
2005.
Huawei
wins China Telecom's 1.2 million ADSL2+ Lines contract on January 5, 2006.
The Important News in 2006:
1. Press Releases
11 Jul. 2006 Magyar
Telekom Selects Comverse and SC to Supply IMS Network Infrastructure and
Applications for T-Mobile and T-Com in Hungary.
18 Jul. 2006 SC announced as sole winner of bid to build OTE
IP DSLAM broadband access and Metro Ethernet network project
25 Jul. 2006 Motorola and SC Create New UMTS Venture for
Customers Worldwide.
08 Aug. 2006 SC was selected by Vodafone to build the radio access part
of its WCDMA/HSDPA Network in Spain.
2. Product launch
31 May 2006 SC's iManager N2000 BMS V200R008 Product Is Now
Available
24 Jun 2006 Starting Batch Supply of TELLIN FIN UC V200R002
13 Jul 2006 SC's Quidway® ME60 Multi-service Control Gateway
V100R002 Is Now Available
14 Jul 2006 SC's U-SYS UMG8900 Product V100R005 Is Now
Available
17 Jul 2006 Optix OSN 7500 V1R1C02&3500/2500/1500
V1R3C02 Is Now Available
3. Picture News
"2006
Global CDMA Operation & Development Forum" is successfully held in
Thailand (7 Aug 2006)
SC to deploy Japan's first IP-based HSDPA Radio Access Network
(19 Jul 2006)
MAIN SHAREHOLDERS:
Name % of shareholding
Shenzhen Huawei Holding Co., Ltd. 98.9
Ren ZhengFei 1.1
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Chairman:
Mr. Ren
Zhengfei, 61 years old with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
Before 1987 Served as a captain in Chinese People’s Army.
From 1987 to present Working in SC as chairman.
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Vice-chairman and legal representative:
Ms. Sun Yafang,
about 50 years old with university education. She is currently responsible for
the daily management of SC.
Working Experience(s):
From 1996 to present Working in SC as vice-chairman and legal representative.
*Officials:
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Name Title
Fei Min Director
Hong Tianfeng Director
Xu Zhijun Director
Liang Hua Supervisor
Wang Cheng Supervisor
SC is
mainly engaged in developing, manufacturing and selling telecommunication
equipment.
In the past years, SC has successfully finished a lot of great telecom
engineering projects, and the following are three of them:
Haikou Broad Net Comprehensive Joint Network
Sichuan Data Special Wire Joint Network
Shenzhen Telecom Voice Network
SC is
also known to have provided technology support to most famous telecom
companies, such as China Telecom and China Netcom. SC is also known to carry
out its business in some foreign countries and areas, such as Hong Kong,
Russia, Brazil, Thailand, etc.
SC sources its products and materials 80% from domestic market, and 20% from
international market. SC sells 60% of its products in domestic market, and 40%
to international market.
The buying terms of SC include: COD, Check, T/T, L/C and credit of 30-60
days. The payment terms include: Check, T/T, L/C and credit of 30-60 days.
*Major Clients:
=============
TI
Motorola
Intel
AT&T
ALTERA
SUN
SC is known to have 6 branch institutes in Shanghai,
Chengdu, Nanjing, Beijing, Xi’an and Hangzhou respectively and 4 foreign
institutes in USA, Russia and Sweden.
SC is
also known to have 33 representative offices in the major cities around China.
Overall payment appraisal :
( ) Excellent (X) Good ( ) 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 Shenzhen Branch
AC#: N/A.
Relation: Normal
*Finance summary :( CNY’000)
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2002 2003 2004 2005
Accounts receivable:
2,371,783 2,459,884
10,007,264 18,919,123
Current assets: 14,796,523 19,969,914 24,005,225
33,996,424
Fixed Assets: 6,244,696 8,105,983 9,622,314 6,912,274
Net Fixed assets: 2,207,013 4,445,163 5,805,907 -
Total assets: 23,828,057 28,901,031 38,064,080
49,044,008
Current liabilities: 8,978,217 12,764,055 - -
Long term liabilities: 2,565,000 1,841,991 - -
Total liabilities: 11,543,217 14,606,025 23,751,480
33,000,163
Equities: 12,284,840 14,295,006 14,312,600
16,043,845
Turnover: 17,214,203 21,317,203 28,441,392 40,534,245
Cost of goods sold: 9,075,005 10,481,029 15,102,396
24,818,743
Sales expense
- - 3,866,885 6,146,881
Management expense - -
5,078,518 7,032,265
Finance expense
- - 408,939 457,852
Profit before tax: 2,836,162 5,765,100 -- 4,067,433
Profits: 1,246,145 3,810,309 4,236,317 -
Overall financial
condition of the SC: Strong.
SC is
well-known in its line with strong financial conditions. Credit dealings with
SC in favorable terms can be considered.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)