MIRA INFORM REPORT

 

 

Report Date :

25.05.2012

 

IDENTIFICATION DETAILS

 

Name :

HONG  KONG  KONKA  LTD.

 

 

Registered Office :

11/F., Chinabest International Centre, 8 Kwai On Road, Kwai Chung, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

28.03.1995

 

 

Com. Reg. No.:

18959215

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Wholesaler and Re-exporter of Colour TVs, Monitors, Fax machines, Telephones, Refrigerators, Hi‑Fi systems, Washing machines, Cellular phones, etc.

 

 

No. of Employees :

35

 

 

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

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name

 

HONG  KONG  KONKA  LTD.

 

 

Company ADDRESS

 

11/F., Chinabest International Centre, 8 Kwai On Road, Kwai Chung, New Territories, Hong Kong.

 

PHONE:                  2392 7128

 

FAX:                       2392 7638,  2392 7886

 

E-MAIL:                  sales@konka.com

niuweidong @konka.com

linliping@konka.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Huang Zhongtian

 

 

SUMMARY

 

Incorporated on:             28th March, 1995.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$500,000.00

Issued:                          HK$500,000.00

 

Business Category:        Importer, Wholesaler and Re-exporter.

 

Group Turnover:             RMB16,217.6 million Yuan.  (Year ended 31-12-2010)

 

Group Employees:         About 10,000.

 

Company Employees:  35.  (Hong Kong)

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Good.


Company name

 

HONG  KONG  KONKA  LTD.

 

ADDRESS:

 

Registered Head Office:-

11/F., Chinabest International Centre, 8 Kwai On Road, Kwai Chung, New Territories, Hong Kong.

 

Parent Company:-

Konka Group Co. Ltd.

Overseas Chinese Town, Nanshan District, Shenzhen Special Economic Zone, China.

[    Tel:                    (86-755) 2660 8866

Fax:                        (86-755) 2660 0082;  2690 4133,  2691 2144

E-mail:                    szkonda@konka.com]

 

Associated/Affiliated Companies:-

Konka Group of Companies

Anhui Konka Electric Appliance Co. Ltd., China.

Anhui Konka Electronic Co. Ltd., China.

Beijing Konka Electronics Co. Ltd., China.

Boluo Konka Precision Technology Co. Ltd., China.

Boluo Konka Printed Circuit Board Co. Ltd., China.

Changshu Konka Electronic Co. Ltd., China.

Chongqing Konka Auto Electronic Co. Ltd., China.

Chongqing Konka Electronic Co. Ltd., China.

Chongqing Qingjia Electronic Co. Ltd., China.

Dongguan Konka Electronic Co. Ltd., China.

Dongguan Konka Packaging Co. Ltd., China.

Dongguan Konka Plastic Mould Co. Ltd., China.

Dongguan Xutongda Mould Plastic Co. Ltd., China.

Hongdin International Trading Ltd., Hong Kong.

Hongdin Invest Development Ltd., Hong Kong.

Indonesia Konka Electronics Co. Ltd., Indonesia.

Indonesia Konka Trading Ltd., Indonesia.

Konda Pacific Pty. Ltd., Australia.

Konka (USA) Electronic Co. Ltd., USA.

Konka America Inc., USA.

Konka Electronic (India) Co. Ltd., India.

Kunshan Jielunte Molds & Plastic Co. Ltd., China.

Kunshan Konka Electronic Co. Ltd., China.

Mudanjiang Konka Industrial Co. Ltd., China.

Shanxi Konka Electronic Co. Ltd., China.

Shenzhen Konka Communications Technology Co. Ltd., China.

Shenzhen Konka Electronic Co. Ltd., China.

Shenzhen Konka Electronics Technology Co. Ltd., China.

Shenzhen Konka Information Network Co. Ltd., China.

Shenzhen Konka Injected Plastic Factory, China.

Shenzhen Konka Injected Plastic Manufactory Co. Ltd., China.

Shenzhen Konka Plastic Product Co. Ltd., China.

Shenzhen Konka Precision Mould Co. Ltd., China.

Shenzhen Konka Telecommunications Technology Co. Ltd., China.

Shenzhen Konka Visual Information System Engineering Co. Ltd., China.

Shenzhen Shushida Electronic Co. Ltd., China.

Shenzhen Shushida Logistics Service Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

18959215

 

 

COMPANY FILE NUMBER 

 

0509730

 

 

MANAGEMENT

 

Managing Director:  Mr. Huang Zhongtian

 

 

CAPITAL

 

Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$500,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 28-03-2012)

Name

 

No. of shares

Konka Group Co. Ltd.

Overseas Chinese Town, Nanshan District, Shenzhen Special Economic Zone, China.

 

495,000

Shenzhen Konka Injected Plastic Factory

Overseas Chinese Town, Nanshan District, Shenzhen Special Economic Zone, China.

 

5,000

 

 

–––––––

 

Total:

500,000

======


DIRECTORS

 

(As per registry dated 28-03-2012)

Name

(Nationality)

 

Address

LI Hai Tao

Room 604, Block 3, Kangjai Court, Shantou Street, Overseas Chinese City, Nanshan Dirtrict, Shenzhen Special Economic Zone, China.

HUANG Zhongtian

Room 506, 12, Block 4, Shahe Guanghua Street,

Nantou District, Shenzhen Special Economic Zone, China.

 

CHANG Dong

Room 6D, Block 5, Kangjai Court, Shantou Street, Overseas Chinese City, Nanshan Dirtrict, Shenzhen Special Economic Zone, China.

 

 

SECRETARY

 

(As per registry dated 28-03-2012)

Name

Address

Co. No.

T.N. Luu Ho Consultants Ltd.

Room 2702-2703, 27/F., C.C. Wu Building, 302‑308 Hennessy Road, Wanchai, Hong Kong.

0142334

 

 

HISTORY

 

The subject was incorporated on 28th March, 1995 as a private limited liability company under the Hong Kong Companies Ordinance.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Wholesaler and Re-exporter.

 

Lines:                           Colour TVs, Monitors, Fax machines, Telephones, Refrigerators, Hi‑Fi systems, Washing machines, Cellular phones, etc.

 

Brand Name:                 KONKA.

 

Group Employees:         About 10,000.

 

Company Employees:    35.  (Hong Kong)

 

Materials/Commodities:  Imports spare parts and raw materials from Japan.

 

Markets:                       Worldwide countries.

 

Group Turnover:                                     RMB13,259,033,591.95 Yuan (Year ended 31-12-2009)

RMB17,111,454,066.34 Yuan (Year ended 31-12-2010)

RMB16,217,619,883.23 Yuan (Year ended 31-12-2011)

 

Company Turnover:                                RMB2,315,453,138.85 Yuan (Year ended 31-12-2011)

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T and D/P.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$500,000.00

 

Group Net Profit:            RMB151,670,735.64 Yuan (Year ended 31-12-2009)

RMB  83,947,861.32 Yuan (Year ended 31-12-2010)

RMB  24,972,838.12 Yuan (Year ended 31-12-2011)

 

Company Net Profit:       RMB16,852,619.32 Yuan (Year ended 31-12-2011)

 

Profit & Loss:                Business is profitable.

 

Condition:                      Keeping in an active manner.

 

Facilities:                      Actively using general banking facilities.

 

Payment:                      Met on time.

 

Commercial Morality:     Good.

 

Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

The Bank of East Asia Ltd., Hong Kong.

 

Standing:                      Good.

 

 

GENERAL

 

Hong Kong Konka Ltd. is a subsidiary of Konka Group Co. Ltd. [Konka] which is a significant Shenzhen-based enterprise.  Konka has been listed on the Shenzhen Stock Exchange.

The subject is responsible for marketing and re-exporting Konka Group’s products.  It also acquires raw materials for the Group.

Established in 1980, Konka is China’ s first Sino-foreign joint consumer electronics enterprise, manufacturing and distributing its own brand of prime quality products.  The Konka Group’s major product lines are Colour TV sets and mobile phones.  Refrigerators, washing machines, air conditioners, component, and packaging material also form part of the Group’s product lines.

In August 1991, Konka was restructured into a Sino-foreign public share-hold company and on 27th March, 1992, its A-share and B-share were listed on the Shenzhen Stock Exchange.

It has got seven major manufacturing plants in the North-East, North-West, South, East and South-West of China, and has established production bases in Indonesia, Mexico and Slovakia.  Almost half a million TVs roll off the Group’s production lines every year, with enough room for up to 6 million units.

In 2003, retail sales of Konka’s colour TV in China’s domestic market increased by 32.32%, making it the number 1 brand domestically.  At the same time, the sales volume of mobile phones exceeded 1.6 million units, an increase of 327% over 2002.  While increasing its market share domestically, Konka is also setting its sight on international expansion.  It was the first China TV producer to obtain both the international and domestic ISO 9001 and ISO 14001 in 1997.  At present, the “Konka” brand is enjoying growing acknowledgement abroad.  In January 2000, at the Las Vegas International Consumer Electronic Fair, Konka won the award for Innovation.  With three world-class R&D centres in China and one in the United States, Konka has developed a series of new generation electronics and telecommunications products with high market adaptability and competitiveness, including large‑screen colour TV, combo TV, digital TV, LCDTV, plasma screen, etc.

Konka is one of four members of the China National High-Definition Digital TV Standardization Specialist Committee, and is also a member of the American Digital TV Alliance.

Specialized in colour TV sets since 1980, Konka now sells its products to over 90 markets outside China, mainly the United States, Canada, Japan and Australia.

Konka has set up a Multimedia Product Development Centre and employs more than 300 engineers and works closely with industry leaders such as Sanyo, Toshiba and STMicroelectronics.

Ever since its establishment in 1979, the Konka has been the second largest TV manufacturer in China.

The Group is expanding its production base to the outskirts of the Shenzhen Special Economic Zone, so as to implement economy of scale and strengthen its production capability.  This has come in the form of the Konka Electronic City [KEC] in Dongguan City, Guangdong Province, China.  Its Phase I factory covers a site area of 220,000 sq.m.  It produces parts and accessories for the Group.  KEC is a major export-oriented production base of the Group.

Today, Konka is one of the 500 largest industrial enterprises in China, as well as the first company in the country’s colour TV sector to obtain both national and international Quality Management System Certificates of ISO 9001 standard and the ISO 14000 certificate for environmental protection.  Besides the ISO 9001 certification, Konka’s products are in conformity of the UL and CSA standards.

The principal operating income of the Group in 2011 was RMB16,217.6 million Yuan (2010: RMB17,111.5 million Yuan), decreased by 5.2% as compared with previous year.  Net profit was RMB25.0 million Yuan (2010: RMB83.9 million Yuan), decreased substantially by 70.2%.

The Group’s business had been severely hit by the financial turmoil occued between 2007 to 2009.  In 2011, the Group’s net profit dropped substantially and this has made the Group to penetrate other foreign markets such as Indonesia, Brazil, Panama and other South America countries.

On the other hand, the Group keeps on the development of intelligent TVs, terminal and intelligent mobile phones, etc.

For the year ended 31st December, 2011, the turnover of the subject amounted to RMB2,315.5 million Yuan, net profit was RMB16.9 million Yuan.  Total net asset was RMB100.9 million Yuan.

The subject has about 35 employees in Hong Kong.  Operates from a rented office.

On the whole, as the subject is fully supported by Konka Group, consider it good for normal business engagements.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.28

UK Pound

1

Rs.88.25

Euro

1

Rs.70.81

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.