MIRA
INFORM REPORT
|
Report Date : |
22.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
HUAWEI TECHNOLOGIES CO., LTD. |
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Registered Office : |
Huawei Base, Bantian, Longgang District, Shenzhen, 518129
Pr |
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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 : |
Engaged in developing, manufacturing and selling
telecommunication equipment. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Status : |
Excellent |
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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)755-28789251
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEPTEMBER 15, 1987
REGISTRATION NO. :
4403011022600
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 61,000 (GLOBAL)
REGISTERED CAPITAL : CNY
4,311,511,820
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 36,351,333,000 (AS OF DEC.
31, 2005)
EQUITIES :
CNY 18,389,796,000 (AS OF DEC. 31, 2005)
PAYMENT :
GOOD
RECOMM. CREDIT RANGE :
FAVORABLE TERMS
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STRONG
OPERATIONAL TREND : GOOD
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE : CNY 7.42=US$1
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); operating the business of
trade economic technology cooperation; house leasing(with permit if needed).
SC is mainly engaged in developing, manufacturing and
selling telecommunication equipment.
Ms. Sun
Yafang has been legal representative of SC since 1999. SC owns about 61,000
staff at present worldwide.
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 in Chinese, French, Portuguese and English versions.
E-mail： support@huawei.com.
|
Date of change |
Item |
Before the change |
After the change |
|
1995-06-20 |
Registered capital |
CNY 15,810,000 |
CNY 35,470,000 |
|
1996-04-09 |
Registered capital |
CNY 35,470,000 |
CNY 70,050,000 |
|
1997-12-04 |
Registered capital |
CNY 70,050,000 |
CNY 276,060,000 |
|
Registered legal form |
Collective-owned enterprise |
Limited liabilities co. |
|
|
1999-05-14 |
Registered no. |
19235218-1 |
4403011022600 |
|
1999-06-29 |
Registered capital |
CNY 276,060,000 |
CNY 656,060,000 |
|
1999-09-30 |
Registered capital |
CNY 656,060,000 |
CNY 1,060,600,000 |
|
Shareholders (Shareholding) |
Shenzhen Huawei Technologies
Co., Ltd. Workers Union (61.87%) Shenzhen Huawei New
Technologies Shares Co., Ltd. (5.04%) Shenzhen Huawei New
Technologies Shares Co., Ltd. Workers Union (33.09%) |
Shenzhen Huawei Technologies
Co., Ltd. Workers Union (88.15%) Shenzhen Huawei New
Technologies Shares Co., Ltd. Workers Union (11.85%) |
|
|
Legal representative |
Mr. Ren Zhengfei |
Ms. Sun Yafang |
|
|
2000-11-10 |
Registered name |
Shenzhen Huawei Technologies
Co., Ltd. |
Huawei Technologies Co., Ltd |
|
2001-09-25 |
Registered capital |
CNY 1,060,600,000 |
CNY 3,200,000,000 |
|
Shareholders (Shareholding) |
Shenzhen Huawei Technologies Co., Ltd.
Workers Union (88.15%) Shenzhen Huawei New Technologies Shares
Co., Ltd. Workers Union (11.85%) |
Huawei Technologies Co., Ltd Workers Union
(98.9%) Mr. Ren Zhengfei (1.1%) |
|
|
2002-12-11 |
Paid-in capital |
CNY 0 |
CNY 3,200,000,000 |
|
2003-02-24 |
Registered capital |
CNY 3,200,000,000 |
CNY 3,268,396,600 |
|
Paid-in capital |
CNY 3,200,000,000 |
CNY 3,268,396,600 |
|
|
2003-03-14 |
Registered capital |
CNY 3,268,396,600 |
CNY 3,268,723,600 |
|
Shareholders (Shareholding) |
Huawei Technologies Co., Ltd Workers Union
(98.9%) Mr. Ren Zhengfei (1.1%) |
Shenzhen Huawei Holding Co., Ltd.(99.99%) Mr. Ji Ping (0.01%) |
|
|
2004-12-29 |
Registered capital |
CNY 3,268,723,600 |
CNY 4,311,511,820 |
|
Shareholders (Shareholding) |
Shenzhen Huawei Holding Co., Ltd.(99.99%) Mr. Ji Ping (0.01%) |
Shenzhen Huawei Holding Co., Ltd.(98.9%) Mr. Ren Zhengfei (1.1%) |
|
|
Paid-in capital |
CNY 3,268,723,600 |
CNY 4,311,511,820 |
Ray
network products ranking: No.2 of the global market (Ovum-RHK.2006Q2), and the
long-distance wave is the No.1 of the global market (Ovum-RHK.2006)
Broadband
products ranking: No.1 of the global market (Infonetics. 2006Q2)
Router
market operator ranking: No.3 of the global market (Gartner.2005Q2)
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.
Brand:
The Important News in 2007:
1. Press Releases
30 Apr 2007 Huawei Helps Industry Leaders Advance the
Digital Music Market
27 Apr 2007 Leading Global Mobile Carriers and Huawei Shared
Successful Experiences at the Global Conference of GSM Network Evolution
23 Apr 2007 Huawei Opens 2007 Global Analyst Conference
16 Apr 2007 Optus partners with Huawei to deliver
Australia's first UMTS900 network trial
04 Apr 2007 Huawei launches industry-leading CDMA2000 ALL-IP
BTS Series
30 Mar 2007 Huawei Successfully Completes WiMAX Trials in
Japan
01 Mar 2007 Huawei launches its next-generation Convergent
Billing Solution at 3GSM
16 Feb 2007 Huawei Presents Mobile Broadband Life at 3GSM
Congress in Barcelona
10 Feb 2007 Huawei Selected as 3G Strategic Partner by
Singapore's StarHub
29 Jan 2007 Huawei reaffirms position as world's leader in
GSM-R technologies
05 Jan 2007 Huawei Hosts FSAN Group Meeting highlighting the
entry of G-PON products into Asia
2. Product launch
26 Apr 2007 Huawei iSite BTS3006C Is Generally Available Now
15 Apr 2007 Huawei iManager N2000 BMS V200R010 Product Is
Generally Available Now
13 Feb 2007 Huawei Convergent Billing Solution (CBS) Is
Generally Available Now
10 Jan 2007 Huawei OptiX OSN 7500/3500/2500/1500 V1R6 Is
Generally Available Now
05 Jan 2007 Huawei iManager N2000 BMS V200R009 Is Generally
Available Now
3. Picture News
Huawei Opens 2007 Global Analyst
Conference(23 Apr 2007)
Huawei Hosts Workshop on 'CDMA
Network Optimization and Evolution' (01 Mar 2007)
Huawei Addresses Next Generation
Network Challenges at 3GSM World Congress(12 Feb 2007)
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
l
Chairman and legal
representative:
Ms. Sun
Yafang, about 52 years old with university education. She is currently
responsible for the daily management of SC.
Working Experience(s):
From 1982 to 1985 Worked in China Telecom Communication Institute as an engineer
From 1985 to 1999 Worked in SC as a vice-chairman
From 1999 to present Working in SC as a chairman and legal representative.
l
General
manager:
Mr. Ren Zhengfei,
63 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 1999 Worked in SC as chairman.
From 1999 to present Working in SC as a general manager.
*Officials:
=======
Name Title
Fei Min Director
Hong Tianfeng Director
Xu Zhijun Director
Ren Zhengfei Director
Xun Wenwei Director
Guo Ping Director
Hu Houkun Director
Zhang Shunmao Director
Ji Ping Director
Zheng Shusheng Director
Liang Hua Supervisor
Wang Cheng Supervisor
Li Jinge Supervisor
SC is mainly engaged in developing, manufacturing and selling
telecommunication equipment.
Huawei will continue to invest and play a leading role in
provision of ALL IP-based FMC solutions to ensure that end users are able to
experience consistent communication services at anytime, anywhere. Huawei is
committed to enriching people's life through communication.
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 40% of its products in domestic market, and 60% 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
IBM
Microsoft
SC is known to
have established 12 R&D centers around the world such as in the
Silicon Valley and Dallas of the United States, Bangalore in India, Stockholm
in Sweden and Moscow in Russia to ensure global R&D with outstanding people
in addition to those in Shanghai,
Chengdu, Nanjing, Beijing, Xi’an and Hangzhou in China.
In addition, SC has 28 training centers worldwide to help
their customers and local people to study advanced management, technologies and
so on.
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.
Industrial
& Commercial Bank of China Nantou Sub-branch
AC#：400002039024500386
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
|
Cash
& bank |
6,333,791 |
3,097,502 |
|
Bills
receivable |
1,587,901 |
1,173,310 |
|
Short-term
investments |
5,000 |
0 |
|
Dividends
receivable |
107,000 |
294,000 |
|
Interest
receivable |
0 |
678 |
|
Accounts
receivable |
4,935,839 |
12,363,326 |
|
Other
receivables |
1,011,939 |
451,354 |
|
Accounts
payable advance |
597,365 |
2,477,013 |
|
Inventory |
8,672,787 |
8,748,360 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
23,251,622 |
28,605,543 |
|
Fixed assets |
6,475,565 |
5,781,767 |
|
Fixed
assets net value |
6,438,198 |
5,726,559 |
|
Projects
under construction |
37,367 |
55,208 |
|
Long
term investment |
2,616,139 |
3,404,891 |
|
Other
assets |
141,404 |
170,195 |
|
|
------------------ |
------------------ |
|
Total
assets |
32,484,730 |
37,962,396 |
|
|
============= |
============= |
|
Short
loans |
1,850,159 |
1,354,914 |
|
Bills
payable |
1,773,926 |
3,775,267 |
|
Accounts
payable |
3,427,717 |
6,211,346 |
|
Welfare
payable |
8,833 |
110,518 |
|
Profits
payable |
257 |
10,857 |
|
Advances
from customers |
1,838,814 |
1,212,699 |
|
Accrued expenses |
2,086,742 |
2,583,455 |
|
Tax
payable |
781,520 |
956,894 |
|
Other
payable |
1,347,910 |
1,961,763 |
|
Surcharge
payable |
5,926 |
13,296 |
|
Estimated
liabilities |
0 |
82,218 |
|
Long-term
liabilities due with in one year |
1,393,894 |
276,000 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
14,515,698 |
18,549,227 |
|
Long
term liabilities |
1,811,371 |
1,023,373 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
16,327,069 |
19,572,600 |
|
Equities |
16,157,661 |
18,389,796 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
32,484,730 |
37,962,396 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
|
Turnover |
25,153,347 |
36,351,333 |
|
Cost of goods
sold |
13,607,139 |
21,508,000 |
|
Sales expense |
2,796,868 |
3,764,753 |
|
Management expense |
4,693,743 |
5,335,741 |
|
Finance expense |
337,334 |
510,786 |
|
Profit before
tax |
5,134,515 |
5,918,093 |
|
Less: profit tax |
480,219 |
726,098 |
|
Profits |
4,654,296 |
5,191,995 |
Important Ratios
=============
|
|
as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
|
*Current ratio |
1.60 |
1.54 |
|
*Quick ratio |
1.00 |
1.07 |
|
*Liabilities
to assets |
0.50 |
0.52 |
|
*Net profit
margin (%) |
18.50 |
14.28 |
|
*Return on
total assets (%) |
14.33 |
13.68 |
|
*Fixed
assets/Total assets |
0.20 |
0.15 |
|
*Inventory
/Turnover ×365 |
126 days |
88 days |
|
*Accounts
receivable/Turnover ×365 |
72 days |
124 days |
|
*Turnover/Total
assets |
0.77 |
0.96 |
|
* Cost of
goods sold/Turnover |
0.54 |
0.59 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line, and it was increased
greatly in 2005
l
SC’s net profit margin remains fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly good level.
l
SC’s quick ratio is maintained in a fairly good level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears fairly large, comparing with its
turnover, which makes accounts receivable conversion period appears a little
long.
l
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Strong
SC is well-known in its line with strong financial conditions. Credit
dealing with SC in favorable terms can be considered.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)