|
Report Date : |
24.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
LONGCHEER TELECOMMUNICATION LIMITED |
|
|
|
|
Registered Office : |
C/o HANS CORPORATE SERVICES LTD. A020, Level 1, Podium Level Financial Park Complex Jalan
Merdeka, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Year of Establishment : |
2010 |
|
|
|
|
Legal Form : |
Private Company Limited By Shares |
|
|
|
|
Line of Business : |
Investment holding and trading of mobile handsets. |
|
|
|
|
No. of Employees : |
3,000 (Longcheer Group) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 200,000 |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Malaysia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Verified Address
Subject name : LONGCHEER
TELECOMMUNICATION LIMITED
Business address : Building
1, No. 401
Caobao Road
Town : Shanghai
Province : Xuhui
District
Zip/postal code : 200233
Country : China
Tel : +86
21 64088898
Fax : +86
21 54970876
Website : www.longcheertel.com
Registered address : C/o HANS
CORPORATE SERVICES LTD.
A020, Level 1,
Podium Level Financial Park Complex
Jalan Merdeka,
Labua F.T. Malaysia
Town : Labuan
Province : Federal
Territory
Zip/postal code : 87000
Country : Malaysia
Executive Summary
Date founded or registered : 2010
Legal form : Private
Company Limited By Shares
Chief executive : Deng
Hua
Issued & paid up capital : USD
1
Sales turnover : RMB
3,583,570,000 (Group-Consolidated 12 months, 30/06/2011)
Net income : RMB
-67,715,000 (Group-Consolidated 12 months, 30/06/2011)
Total fixed assets : RMB
1,353,853,000 (Group-Consolidated 12 months, 30/06/2011)
Line of business :
Investment holding and trading of mobile handsets.
Staff employed : 3,000
(Longcheer Group)
Company Analysis
Country risk : Country
risk is minimal
Operation trend : Operational
trend is declining
Management experience : Management
is adequately experienced
Financial performance : Financial
performance is good
Organization structure : Organizational
structure is stable
Detrimental : No
detrimental records found
Payment history : No
payment delays noted
Credit amount suggestion : USD
200,000
Credit amount asked : Not
described.
Comments : Larger
credit can still be considered if guaranteed by the Subject's Parent
Company.
Registry Data
Date founded : 2010
Legal form : Private
Company Limited By Shares
Registered authority : Labuan
Financial Services Authority
Registry status : Live/Active
Previous name : None
reported.
Change of legal form : None
reported.
Key Management
Name : Deng Hua
Designation : Managing Director
Appointments
Name : Dr. Du Junhong
Designation : Director
Address : China
Biography : Dr. Du Junhong
is Executive Chairman of the Board of Longcheer
Holdings Limited. He is a founder of the Group.
Dr. Du was appointed
to the Board on 20 August 2004 and
re-elected on 30 October 2009.
He is responsible for the overall
operations, corporate policies,
business development and investment strategy
of Group. Prior to
founding Group in July 2002, Dr. Du was with
ZTE Corporation, one
of the listed telecommunications equipment
providers in China, where
he organised and led various research and
development projects and
project development. After graduating from
Zhejiang University, he
joined ZTE Corporation in June 1999 as a
mobile handset engineer,
and was subsequently promoted through the
ranks to project
manager and to head of department of the
systems division. He
obtained his Bachelors, Masters and Doctoral
degree in Electrical
Engineering from Zhejiang University, China.
Name : Deng Hua
Designation : Director
Address : China
Biography : Mr. Deng Hua is
Chief Executive Officer, Executive Director of
Longcheer Holdings Limited. He is a founder
of Group. Mr. Deng was
appointed to the Board on 1 February 2005
and was re-elected on 31
October 2008. He is responsible for the
day-to-day operations of
Group. Prior to this, Mr. Deng was with
Nanjing CRT Factory as
section head of the production planning
division from August 1992 to
July 1995. Thereafter, he joined San Neng
Electronic Instruments
Co., Ltd as head of the manufacturing
division, before leaving in
March1997 to join
the quality assurance division of Nanjing Huapu
Electronics Co., Ltd. (which manufactures
cathode-ray-tubes used in
television sets and computers), where he was
responsible for quality
management and after-sales support. In March
1999, he was
appointed head of the planning division,
mobile phone department, of
ZTE Corporation. Mr. Deng has a Bachelor of
Engineering from the
Technology and Physics Faculty of Xi Dian
University, China. He
completed his Executive MBA programme from
China-Europe
International Business School.
Name : Arthur Tan Meng
Teck
Designation : Director
Address : Singapore
Biography : Mr. Arthur Tan
Meng Teck is Chief Financial Officer of Longcheer
Holdings Limited. He oversees all the financial activities of Longcheer
Holdings Ltd. and be responsible for the
Group's financial control and
planning, treasury, tax and investments to
ensure that accurate
books and records are maintained and
appropriate systems,
processes, policies and overall corporate
governance practices are in
place. Mr. Tan is a member of the
Association of Chartered Certified
Accountants with more than 10 years
post-qualifying experience.
Name : Tang Jiping
Designation : Director
Address : China
Biography : Mr. Tang Jiping
is Vice-President of Longcheer Holdings Limited. He
also served as Executive Director of the
company. He was appointed
to the Board on 1 February 2005. Mr. Tang is
also a founder of the
Group. Prior to joining thecompany in August
2002, Mr. Tang was a
radio frequency engineer involved in the
research and development
of microwave circuits with Hebei
Semiconductor Research Institute
from August 1988 to April 1999. Thereafter,
he joined ZTE
Corporation, fi rst as a radio frequency
engineer before being
promoted to division head in May 1999. Mr
Tang has a total of 15
years experience in research and development
of which 11 years
involved microwave circuits and the
remaining 4 years involved radio
frequency circuits. Mr. Tang has a Bachelors
degree in Information
Engineering from Xi Dian University, PRC.
Staff employed : 3,000 (Longcheer Group)
Composition
Authorized Capital : USD 1
No of shares : 1
Ordinary Share
Share par value : USD 1
Issued capital : USD
1
Paid up capital : USD 1
How listed : Full
List
Composition
Shareholder name : LONGCHEER
HOLDINGS LIMITED
Address : Building
1, No. 401
Caobao Road
Shanghai 200233
Xuhui District
China
No. of shares : 1
Ordinary Share
% of shares : 100%
Structure
Name : LONGCHEER
HOLDINGS LIMITED
Affiliation type : Parent
Company
Address : Building
1, No. 401
Caobao Road
Shanghai 200233
Xuhui District
China
Comments : Longcheer
Holdings Limited, an investment holding company, operates as a
design house for mobile telecommunication
devices, providing design solutions
for various segments of the handset value
chain, from hardware and software to
system testing and exterior design. It
focuses on developing products and
services in the follows areas: handsets
design, mobile handsets, wireless
communication, data communication products,
mobile broadband technology, and
mobile Internet applications. Its products
are based on the SM, GPRS, EDGE,
WCDMA, HSDPA, HSUPA, CDMA, TD-SCDMA, and
WIFI technology platforms
and include multimedia features, such as
MP3, MP4, MDTV, GPS, FM, and
Camera, as well as various software
application and mobile Internet services. The
company offers its products and services in
China, India, Japan, South East Asia,
Europe, and the Americas. It has a strategic
partnership with VODone LIMITED
and C-Media Electronics Inc. to develop
mobile lottery business and multimedia
value-added service in the People's Republic
of China. Longcheer Holdings
Limited was founded in 2002 and is
headquartered in Shanghai, China.
Name : LONGCHEER
TELECOMMUNICATION (H.K.) LIMITED
Affiliation type : Sister
Company
Address : Building
1, No. 401
Caobao Road
Shanghai 200233
Xuhui District
China
Comments :
Investment holding, manufacturing and sales of mobile handset printed circuit
and
related materials.
Name : TRICHEER
TELECOMMUNICATION LIMITED
Affiliation type : Sister
Company
Address : Building
1, No. 401
Caobao Road
Shanghai 200233
Xuhui District
China
Comments : Manufacturing
and sales of mobile handset printed circuit and related materials.
Name : MOBELL TECHNOLOGY PTE. LIMITED
Affiliation type : Sister
Company
Address : Singapore
Comments : Investment
holding and trading of mobile handsets.
Name : CMD
LIMITED
Affiliation type : Sister
Company
Address : Labuan
Malaysia
Comments : Investment
holding and trading of mobile handsets.
Name : LONGCONN
ELECTRONICS (SHENZHEN) CO., LIMITED
Affiliation type : Sister
Company
Address :
Building 1, No. 401
Caobao Road
Shanghai 200233
Xuhui District
China
Comments : Manufacturing
of mobile handsets.
Name : SINOLONG
TECHNOLOGY (SHANGHAI) CO., LIMITED
Affiliation type : Sister
Company
Address : Building
1, No. 401
Caobao Road
Shanghai 200233
Xuhui District
China
Comments : Trading
of mobile handsets and related materials.
Name : LONGCHEER
TECHNOLOGY (SHANGHAI) CO., LIMITED
Affiliation type : Sister
Company
Address : Building
1, No. 401
Caobao Road
Shanghai 200233
Xuhui District
China
Comments : Mobile
handset design solutions.
Name : SHANGHAI
LONGCHEER 3G TECHNOLOGY CO., LIMITED
Affiliation type : Sister
Company
Address : Building
1, No. 401
Caobao Road
Shanghai 200233
Xuhui District
China
Comments : Mobile
handset design solutions.
Related companies and corporate
affiliations comments : Other
companies of the Longcheer Group should be considered affiliates of the
Subject.
Bank Details
Name of bank : HSBC
Bank (China) Company Limited
Address : China
Account details : Current
Account
Name of bank : China Merchants
Bank
Address : China
Account details : Current
Account
Comments : It is
generally not the policy of local banks to provide credit status information to
non related parties, however interested
parties would be advised to consult first
with the Subject if banker's references are
required.
Mortgages : None reported.
Legal Fillings
Bankruptcy fillings : None
reported.
Court judgements : None
reported.
Tax liens : None
reported.
Others : None
reported.
Description
Source of financial statement : Commercial
Registry Filings
Financial statement date : 30/06/11
Type of accounts :
Full audited
Currency : China,
Yuan Renminbi (RMB)
Exchange rate : 1
USD = RMB 6.30 as of 22-03-2012
Summarized
Financial Information
Consolidation type : Group
Consolidated Group Consolidated Group Consolidated
Currency : China,
Yuan Renminbi China, Yuan
Renminbi China, Yuan Renminbi
(RMB) (RMB) (RMB)
Denomination : (x1)
One (x1)
One (x1) One
Date of financial year end : 31/12/11
30/06/11
30/06/10
Length of accounts : 6
months 12
months 12 months
Gross profit : 101,038,000
203,124,000 432,748,000
Operating profit : -19,110,000
-112,200,000
203,563,000
Profit before tax :
-11,313,000 -74,129,000
200,105,000
Net income : -10,747,000 -67,715,000 183,219,000
Non current assets :
479,533,000 521,188,000
219,574,000
Current assets :
744,475,000
832,665,000 1,231,671,000
Inventories :
117,728,000 128,393,000
314,543,000
Total assets : 1,224,008,000
1,353,853,000 1,451,245,000
Current liabilities : 501,289,000
606,538,000 650,159,000
Non current liabilities : 40,000,000
50,000,000 0
Total liabilities : 541,289,000
656,538,000 650,159,000
Share equity : 682,719,000
697,315,000 801,086,000
Reserve : 644,316,000
651,430,000 734,995,000
Comments : The
group’s consolidated financial information above relates to the Subject’s
Parent / Ultimate Holding Company Longcheer Holdings Limited and all its
subsidiaries which include the Subject.
Main activities : The
Subject is engaged in investment holding and trading of mobile
handsets.
The Subject is ultimately owned by Longcheer
Holdings Limited which is
Chinese mobile handset design house,
established in July 2002 and
publicly listed in the main board of
Singapore Stock Exchange on May 13,
2005. Longcheer Holdings Limited is the
leading original design
manufacturer (ODM) solution for mobile
handsets in China, specializing in
providing design solutions for
telecommunications companies. From
handset hardware, software to exterior
design, Longcheer provides total
and innovative solutions to its customers
with rapid time-to-market designs.
Customers include domestic market leaders
like Micromax in India and
Lenovo and Gionee in China.
Purchases
Local : None
reported.
International : None
reported.
Sales
Local : None
reported.
International : Brazil,
United States
Key events : Longcheer
Holdings Ltd Does Not Declare Dividend
Friday, 10 Feb 2012
Longcheer Holdings Ltd announced that no
dividend has been declared for
the second quarter ended December 31, 2011.
Longcheer Holdings Ltd's Subsidiary To
Dispose Surface Mount
Technology Equipment
Thursday, 13 Oct 2011
Longcheer Holdings Ltd announced that its
wholly owned subsidiary
Longcheer Electronics (Huizhou) Co., Limited
(Longcheer Huizhou or
Vendor) had, on October 1, 2011, entered
into a sale and purchase
agreement (SPA) with HEG Electronics
(Huizhou) Co., Ltd. (HEG or
Purchaser), for the disposal of the Surface
Mount Technology Equipment
(the SMT Equipmentor Assets) used in the
manufacturing of printed circuit
board assembly for mobile handsets (Proposed
Disposal). The Purchaser
is a wholly owned subsidiary of Harbin HEG
Group Co., a company
incorporated in the People’s Republic of
China. The consideration payable
by the Purchaser to the Vendor for the
Proposed Disposal (Consideration)
is RMB43,590,000 (excluding value-added
taxes of 17%). The net
proceeds of approximately RMB43,590,000
(after deducting fees and
expenses) arising from the proposed disposal
will be used to meet working
capital requirements of the group.
Longcheer Holdings Ltd Does Not Recommend
Dividend
Wednesday, 24 Aug 2011
Longcheer Holdings Ltd announced that no
dividend has been
recommended for the year ended June 30,
2011.
Longcheer Holdings Ltd's Subsidiary Updates
On Acquisition Of Property
In Shanghai
Wednesday, 27 Jul 2011
Longcheer Holdings Ltd announced that the
Company refers to its
announcement dated September 29, 2008
(Acquisition Announcement)
where it had announced that its wholly owned
subsidiary, Longcheer
Technology (Shanghai) Co., Ltd. (Longcheer
Shanghai) had entered into a
sale and purchase agreement (SPA) with Yaxin
Electronic Technology
(Shanghai) Co., Ltd. (Yaxin) for the
purchase of a to be constructed
building (Building) at Zhangjiang Hi-Tech
Park, Pudong, Shanghai, the
People’s Republic of China (PRC) to house
its research and development
functions (R&D) and to serve as its
corporate headquarters (HQ)
(Acquisition). When Longcheer Shanghai
entered into the SPA, the Group
was at the stage of growth and expansion.
Pursuant to the SPA, Longcheer
Shanghai has been making progressive
payments. To-date, Longcheer
Shanghai has paid RMB130.0 million to Yaxin.
The construction of the
Building was originally scheduled to be
completed before the end of 2010.
However, due to unexpected delays and no
fault on either parties of the
SPA, the building remains uncompleted
to-date. The transition is however
expected to take some time to materialize,
and the Management will strive
to overcome the current challenges.
Longcheer Holdings Ltd Does Not Recommend
Dividend
Friday, 29 Apr 2011 08:03am EDT
Longcheer Holdings Ltd announced that no
dividend has been
recommended for the third quarter ended
March 31, 2011.
Longcheer Holdings Ltd Not To Declare Dividend;
Announces Investment
In Longcheer 3G Technology (Shanghai) Co.,
Limited
Thursday, 27 Jan 2011
Longcheer Holdings Ltd announced that no
dividend has been declared for
the financial period ending as on December
31, 2010. The Company with
reference to the earlier announcement where
it had announced that its
wholly owned subsidiary, Longcheer
Technology (Shanghai) Co., Limited
(Longcheer Technology), had entered into an
investment agreement
(Investment Agreement) with Jiangsu Pengli
Telecommunication
Equipment Co., Ltd (Pengli), Beijing
Huashang Wintop Investment Co., Ltd
(Huashang), Shenzhen Peninsula Costone
Venture Capital Co., Ltd.
(Costone) (Pengli, Huashang and Costone are
collectively known as the
“Financial Investors”), Shanghai Zhangqi
Investment Centre LP (Zhangqi)
and Shanghai Qijing Investment Centre LP
(Qijing), Pengli, Huashang and
Costone had invested a total of RMB54
million into Longcheer 3G
Technology (Shanghai) Co., Limited
(Longcheer 3G) and were issued
shares in Longcheer 3G (Longcheer 3G Shares)
resulting in the
shareholding structure as set out in the
Investment Agreement
Announcement. Longcheer Technology agreed to
the purchase of
Longcheer 3G shares as it expects that the
net profits for Longcheer 3G
will fall below RMB80 million for 2010.
Longcheer Technology, will increase
by 5% from 63.7% to 68.7%.
Property &
Assets
Premises : The
Subject operates from group headquarters located at the verified
heading address consisting of administrative office.
Branches : None
reported.
Gross Domestic
Products (GDP) & Economic Overview
Central bank : Central
Bank of Malaysia
Reserve of foreign exchange & gold : US$ 134.08 billion as of 31 January 2012
Gross domestic product - GDP : US$
247.781 billion
GPP (Purchasing power parity) :
US$ 442.01 billion of International dollar
GDP per capita - current prices : US$
8,624
GDP - composition by sector : agriculture:
10.2%
industry: 42.1%
services: 47.8%
Inflation : 2008:
5.4%
2009: 0.6%
2010: 1.7%
2011: 2.8%
Unemployment rate : 2008:
3.3%
2009: 3.6%
2010: 3.3%
2011: 3.2%
Public debt
(General Government gross debt as
a % GDP): 2008:
3.3%
2009: 3.6%
2010: 3.3%
2011: 3.2%
Government bond ratings : Standard
& Poor's: A-/Stable/A-2
Moody's rating: A3
Moody's outlook: STA
Market value of publicly traded
shares: US
$420 billion
Largest companies in the country : CIMB
Group Holdings (Banking), Sime Darby (Conglomerates), Public
Bank Berhad (Banking), Maybank (Banking),
Tenaga Nasional Berhad(Utilities), Petronas Chemicals, Maxis Berhad
Trade &
Competitiveness Overview
Total exports : US$210.3
billion
Exports commodities : electronic
equipment, petroleum and liquefied natural gas, wood and wood
products, palm oil, rubber, textiles, chemicals
Total imports : US$156.2
billion
Imports commodities : electronics,
machinery, petroleum products, plastics, vehicles, iron and
steel products, chemicals
Export - major partners : US
15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, Hong
Kong 4.6%
Import - major partners : Japan
13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan 5.7%,
Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%
FDI Inflows : 2007:
US$8,538 million
2008: US$7,318 million
2009: US$1,381 million
FDI Outflows : 2007:
US$11,280 million
2008: US$14,988 million
2009: US$8,038 million
Best countries for doing business : 21 out of 183 countries
Global competitiveness ranking : 21 (ranking by country on a basis of
142, the first is the best)
Country and
Population Overview
Total population : 28.23
million
Total area : 329,847
km2
Capital : Kuala
Lumpur
Currency :
Malaysia Ringgits (MYR)
Internet users as % of total
Population :
55.3%
Sales Term
International : L/C, Bank transfer, Credit up to 120 days
Trade Reference/
Payment
Behaviour
Comments : As local and
international trade references were not supplied, the Subject's
payment track record history cannot be
appropriately determined but based
on our research, payments are believed to be
met without delay.
Investigation Note
Sources :Interviews and
material provided by the Subject
: Other official
and local business sources
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.90 |
|
UK Pound |
1 |
Rs.80.77 |
|
Euro |
1 |
Rs.67.40 |
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 |
|
-- |
NB |
New Business |
-- |
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.