MIRA INFORM REPORT
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Report Date : |
29.04.2011 |
IDENTIFICATION DETAILS
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Name : |
SHENZHEN KONKA TELECOMMUNICATIONS TECHNOLOGY
CO., LTD. |
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Registered Office : |
East Industrial Zone, No. 9008 Shennan Road, Overseas Chinese Town, Shenzhen, Guangdong Province, 518053 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
18.03.1999 |
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Com. Reg. No.: |
440301501131359 |
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Legal Form : |
Chinese
Foreign Equity Joint Venture Enterprise |
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Line of Business : |
manufacturing and selling communication products |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD
200,000 |
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Status : |
Moderate |
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Payment
Behaviour : |
No Complaints |
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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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
China |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
SHENZHEN KONKA
TELECOMMUNICATIONS TECHNOLOGY CO., LTD.
EAST INDUSTRIAL
ZONE, NO. 9008 SHENNAN ROAD, Overseas Chinese Town, SHENZHEN, GUANGDONG
PROVINCE, 518053 PR CHINA
TEL: 86 (0)
755-26608866 FAX: 86 (0)
755-26919020
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 18,
1999
REGISTRATION
NO. : 440301501131359
REGISTERED
LEGAL FORM : CHINESE FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
2,000
REGISTERED CAPITAL :
CNY 120,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,666,970,000 (AS OF DEC.
31, 2009)
EQUITIES :
CNY 33,480,000 (AS
OF DEC. 31, 2009)
PAYMENT : AVERAGE
RECOMM.
CREDIT RANGE : UP TO USD 200,000
(PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.54 = USD 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 Chinese foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Mar. 18, 1999.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR China is defined as a legal
person. It is a limited co. jointly invested by one or more foreign
companies and one or more PR China controlled companies within the
territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The investing parties are free
to agree on method of profit distribution and liabilities bearing according
to the proportion of capital investment. Each investing parties contributes
funds, tangible assets, technology & etc. The board of directors
excises the high authority. The joint venture usually has a limited
duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes
developing, manufacturing and selling communication products, digital products,
computer and related products; selling its software; related technology
consulting and service; wholesaling, retailing, importing and exporting the
above products and related business.
SC is mainly engaged in manufacturing and
selling communication products.
Mr. Huang Zhongtian has
been legal representative and chairman of SC since 2006.
SC is known to
have approx. 2,000 employees at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Shenzhen. Our checks reveal that SC owns the total premise about 10,000 square
meters.
http://www.konka-mobile.com The design is professional and the content is
well organized. At present it is in English version.
Changes of its registered information are as
follows:
|
Date |
Item |
Before the change |
After the change |
|
2001-11 |
Legal rep. |
Chen Weirong |
Liang Rong |
|
2002-8 |
Liang Rong |
Hou Songrong |
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|
2006-3 |
Hou Songrong |
Present one |
|
|
2008-8 |
Registered number |
108672 |
Present one |
MAIN SHAREHOLDERS:
Name % of Shareholding
Hongdin Invest Development Limited (Hong Kong) 25
Konka Group Co., Ltd. 75
Hongdin Invest Development Limited (Hong Kong)
=====================================
Registered number: 0619692
Incorporated date: Aug. 6, 1997
Legal form: Private
Konka Group Co., Ltd.
===================
It listed in Shenzhen Stock Exchange and Shanghai Stock
Exchange, with the stock numbers of Shenkangjia A (000016) and Shenkangjia B
(200016).
Registered number: 440301501121863
Registered capital: CNY 1,203,970,000
Legal rep.: Hou Songrong
Incorporated date:
Legal form: shares limited company
Tel: 86 0755-26608866
Fax: 86 0755-26601139
Add: Overseas Chinese Town, Nanshan District, Shenzhen
Web: http://www.konka.com
l
Legal
Representative and Chairman:
Mr. Huang Zhongtian, born in 1961, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as chairman and legal representative.
l
General
Manager:
Mr. Li Hongtao , in his
Working Experience(s):
Now Working in SC as general manager.
SC is mainly engaged in manufacturing and
selling communication products.
SC’s products mainly include
People's Phone
Mobile Cinema
Youth Fasion
Big City
Pocket Media
SC sources its materials 70% from domestic market and 30%
from the overseas market, mainly Europe. SC sells 80% of its products in
domestic market and 20% to overseas market, mainly Southeast Asia and Europe.
The
buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note:
SC’s management declined to release its main clients and suppliers.
SC is known to have
branches in Beijing, Guangzhou, Jinan, Zhengzhou and Dongguan.
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.
SC’s management declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2009 |
|
Cash & bank |
32,510 |
|
Inventory |
256,330 |
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Accounts receivable |
316,580 |
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Advances to suppliers |
98,990 |
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Other receivables |
105,870 |
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Other current assets |
67,420 |
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------------------ |
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Current assets |
877,700 |
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Fixed assets net value |
95,780 |
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Long term investment |
5,810 |
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Project under construction |
0 |
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Other assets |
18,950 |
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------------------ |
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Total assets |
998,240 |
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============= |
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Short loans |
58,500 |
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Accounts payable |
456,800 |
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Taxes payable |
1,540 |
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Salaries payable |
10,470 |
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Advances from clients |
231,870 |
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Other payable |
187,540 |
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Other current liabilities |
18,040 |
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------------------ |
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Current liabilities |
964,760 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
964,760 |
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Equities |
33,480 |
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------------------ |
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Total liabilities & equities |
998,240 |
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|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2009 |
|
Turnover |
1,666,970 |
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Cost of goods sold |
1,448,510 |
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Sales expense |
42,510 |
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Management expense |
105,780 |
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Finance expense |
6,250 |
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Profit before tax |
15,870 |
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Less: profit tax |
3,260 |
|
Profits |
12,610 |
Important Ratios
=============
|
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as of Dec. 31, 2009 |
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*Current ratio |
0.91 |
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*Quick ratio |
0.64 |
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*Liabilities to assets |
0.97 |
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*Net profit margin (%) |
0.76 |
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*Return on total assets (%) |
1.26 |
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*Inventory /Turnover ×365 |
56 days |
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*Accounts receivable/Turnover ×365 |
69 days |
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*Turnover/Total assets |
1.67 |
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* Cost of goods sold/Turnover |
0.87 |
PROFITABILITY: AVERAGE
l
The turnover
of SC appears good in 2009.
l
SC’s net
profit margin is average in 2009.
l
SC’s
return on total assets is average in 2009.
l
SC’s
cost of goods sold is average in 2009, comparing with its turnover.
LIQUIDITY: FAIR
l
The current
ratio of SC is maintained in a fair level in 2009.
l
SC’s
quick ratio is maintained in a fair level in 2009.
l
The
inventory of SC appears average in 2009.
l
The
short loans of SC appear average in 2009.
l
The
short-term loan of SC is average in 2009.
l
SC’s
turnover is in an average level in 2009, comparing with the size of its total
assets.
LEVERAGE: FAIR
l
The debt
ratio of SC is high in 2009.
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. A credit line
up to USD 200,000 appears to be within SC’s capacities upon a periodical review
basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.33 |
|
UK Pound |
1 |
Rs.74.14 |
|
Euro |
1 |
Rs.65.78 |
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 |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.