MIRA
INFORM REPORT
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Report Date : |
20.11.2012 |
IDENTIFICATION DETAILS
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Name : |
SHENZHEN KONKA TELECOMMUNICATIONS TECHNOLOGY CO., LTD. |
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Registered Office : |
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Country : |
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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 |
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Line of Business : |
Manufacturing and Selling of Communication Products. |
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No. of Employees : |
2,000 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.
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Source : CIA |
Company Name and 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
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE (AS OF DEC. 31, 2009)
OPERATIONAL TREND : FAIRLY STEADY (AS OF DEC. 31, 2009)
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.23 = 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. Li Hongtao has
been legal representative, chairman and general manager of SC since 2012.
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:
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Date |
Item |
Before
the change |
After
the change |
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2001-11 |
Legal rep. |
Chen Weirong |
Liang Rong |
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2002-8 |
Liang Rong |
Hou Songrong |
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2006-3 |
Hou Songrong |
Huang
Zhongtian |
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2008-8 |
Registered
number |
108672 |
Present
one |
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2012-4 |
Legal rep. |
Huang
Zhongtian |
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 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, Chairman and General Manager:
Mr. Li Hongtao, in his
Working Experience(s):
From 2012 to present Working in SC as chairman, legal
representative and general manager
Also working in Shenzhen Konka Telecommunications Technology
Co., Ltd. Shenzhen Branch as principal
l
Vice Chairman:
Xu Youshan & Niu Weidong are currently responsible for the daily
management of SC.
Working Experience(s):
Now Working in SC as vice chairman.
l
Directors:
Xiao Qing
Yan Guantong
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.
Shenzhen Konka Telecommunications Technology Co., Ltd. Shenzhen Branch
========================================================
Registered no.: 440301506055540
Principal: Li Hongtao
Date of incorporation: Dec. 19, 2001
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
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as
of Dec. 31, 2009 |
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Cash & bank |
32,510 |
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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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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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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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Total
liabilities & equities |
998,240 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2009 |
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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 |
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Profits |
12,610 |
Note: SC’s management declined to release its financial information of
Yr2011.
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 (As of Dec. 31, 2009).
SC is considered medium-sized in its line with a development history of 13
years.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.97 |
|
|
1 |
Rs.87.50 |
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Euro |
1 |
Rs.70.16 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
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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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.