MIRA INFORM REPORT

 

 

Report Date :

02.04.2013

 

IDENTIFICATION DETAILS

 

Name :

HONG  KONG  GREE  ELECTRIC  APPLIANCES  SALES  LTD.

 

 

Registered Office :

Room 2612, 26/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

21.06.2005.

 

 

Com. Reg. No.:

35757995

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of all kinds of air-conditioners.

 

 

No. of Employees :

20

 

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 :

Good

Payment Behaviour :

Regular

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

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

HONG KONG - ECONOMIC OVERVIEW

 

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Source : CIA


 

Company name and address

 

HONG  KONG  GREE  ELECTRIC  APPLIANCES  SALES  LTD.

 

 

Address:           Room 2612, 26/F., Miramar Tower,

                        132 Nathan Road, Tsimshatsui,

                        Kowloon, Hong Kong.

 

 

PHONE:            3165 8898

 

FAX:                 3165 1029,  3165 1030

 

E-MAIL:                        larry@gree.com.cn

 

 

MANAGEMENT

 

Managing Director:  Mr. Lam Hou Kong, Larry

 

 

SUMMARY

 

Incorporated on:             21st June, 2005.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$100,000.00

Issued:              HK$100,000.00

 

Business Category:        Importer and Exporter.

 

Group Turnover:              RMB100,084,466,175.04 Yuan  (Year ended 31-12-2012)

 

Employees:                   20.

 

Main Dealing Banker:     Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:            Satisfactory.


ADDRESS

 

Registered Head Office:-

Room 2612, 26/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company:-

Gree Electric Appliances Inc. of Zhuhai, China.

 

Ultimate Holding Company:-

Zhuhai Gree Group Co. Ltd., China.

 

Associated/Affiliated Companies:-

Gree Group of Companies

Cong Ty Lien Doanh Gree Electric (Vietnam), Vietnam.

Gree (Zhongshan) Small Home Appliances Co. Ltd., China.

Gree Electric Appliances (Chongqing) Co. Ltd., China.

Gree Electric Appliances (Hefei) Co. Ltd., China.

Gree Electric Appliances (Wuhan) Co. Ltd., China.

Gree Electric Appliances (Zhengzhou) Co. Ltd., China.

Gree Electric Appliances do Brasil Ltda., Brazil.

Gree Electric Enterprises (Maanshan) Ltd., China.

Hefai Landa Compressor Co. Ltd., China.

Shanghai Gree Air Conditioners Sales Co. Ltd., China.

Zhuhai Gree Daikin Device Co. Ltd., China.

Zhuhai Gree Daikin Precision Mold Co. Ltd., China.

Zhuhai Gree Electric Enterprises Ltd., China.

Zhuhai Gree Group Finance Co. Ltd., China.

Zhuhai Gree Xinyuan Electronic Co. Ltd., China.

Zhuhai Kaibang Motor Manufacture Co. Ltd., China.

Zhuhai Meilanda Refrigeration Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

35757995

 

 

COMPANY FILE NUMBER

 

 0978477

 

 

MANAGEMENT

 

Group Vice Chairman & President:  Ms. Dong Ming Zhu

Managing Director:  Mr. Lam Hou Kong, Larry

Manager:  Mr. Yuen Sin Sum, Sam

 

 

CAPITAL

 

Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$100,000.00

 

 

SHAREHOLDER

(As per registry dated 21-06-2012)

 

Name

 

No. of share

Gree Electric Appliances Inc. of Zhuhai

Jinji West Road, Zhuhai 519070, Guangdong, China.

 

100,000

======

 

 

DIRECTORS

(As per registry dated 22-11-2012)

 

Name

(Nationality)

 

Address

XIAO Youyuan

Room 303, Block 20, 38 Gongbei Gang Yi Road, Zhuhai, Guangdong, China.

 

DONG Ming Zhu

Zhuhai Shi, Xiangzhou Qu, Jiu Zhou Da Dao, Zhong 2106, Hao 20, Dong 202, China.

 

OUYANG Jun

Room 504, Unit 2, Building 11, 50 Jingshan Road, Zhuhai, Guangdong, China.

 

 

SECRETARY

(As per registry dated 21-06-2012)

 

Name

Address

YUEN Sin Sum

Flat 9, 3/F., Shing Chung House, Mei Chung Court, Tai Wai, Shatin, New Territories, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 21st June, 2005 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 and Exporter.

 

Lines:                           All kinds of air-conditioners.

 

Employees:                   20.

 

Commodities Imported:   China (main), etc.

 

Markets:                       China, other Asian countries, Europe, Australia, Middle East, Central & South America, North America, etc.

 

Group Turnover: RMB  42,199,715,679.53 Yuan  (Year ended 31-12-2008)

RMB  42,637,291,053.26 Yuan  (Year ended 31-12-2009)

RMB  60,807,242,452.83 Yuan  (Year ended 31-12-2010)

RMB  83,517,252,467.96 Yuan  (Year ended 31-12-2011)

RMB100,084,466,175.04 Yuan  (Year ended 31-12-2012)

 

Group Profit Attributable to Shareholders:-

RMB1,966,518,865.23 Yuan  (Year ended 31-12-2008)

RMB2,913,450,350.15 Yuan  (Year ended 31-12-2009)

RMB4,275,721,624.27 Yuan  (Year ended 31-12-2010)

RMB5,236,938,608.43 Yuan  (Year ended 31-12-2011)

RMB7,378,006,191.61 Yuan  (Year ended 31-12-2012)

 

Terms/Sales:                 L/C or as per contracted.

 

Terms/Buying:               L/C, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$100,000.00

 

Mortgage or Charge:       (See attachment)

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in a very active condition.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitment as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Sumitomo Mitsui Banking Corporation, Hong Kong Branch.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

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

Deutsche Bank AG, Hong Kong Branch.

Citibank N.A., Hong Kong Branch.

 

Standing:                      Very Good.

 

 

GENERAL

 

Having issued 100,000 ordinary shares of HK$1.00 each, Hong Kong Gree Electric Appliances Sales Ltd. is wholly owned by Gree Electric Appliances Inc. of Zhuhai [Gree] which is a China-based firm.  The ultimate holding company is Zhuhai Gree Group Co. Ltd., also a China-based firm.

The subject is engaged in marketing Gree’s products.  Gree’s products are air‑conditioners and dehumidifiers bearing the brand name of “Gree”.

Gree, founded in 1991, has become the world’s largest specialized air conditioner company integrating R&D, manufacture, sales and service.

 Gree” brand air conditioners produced by Gree are the air conditioning brand that ranked “World Brand” by General Administration of Quality Supervision, Inspection and Quarantine in China.  Today, “Gree” brand products are distributed to more than 100 countries and regions in the world.  Since 2005, its sales volume of residential air conditioner has occupied global No. 1 for consecutive six years.

As a specialized air conditioner manufacturer, Gree is presenting advanced and high quality air conditioning products to global consumers.

It had worked out both residential air conditioners and commercial air conditioners of 20 varieties, 400 series, and 7,000 models to satisfy different demands by different consumers.  It is possessing nearly 3,000 technical patents.  The GMV digital VRF system, centrifugal type water chiller and sine wave D.C. inverter driven air conditioner filled the absence in production of high-tech products among Chinese enterprises.  Being the model that develops from “made-in-China” enterprise to “created-in-China” one, Gree had gained wide reputation in the international industry.

Now, Gree is a listed firm in China with shares traded in the Shenzhen Stock Exchange.  Its stock code is 000651.

Gree has 9 production bases in Zhuhai, Chongqing, Hefei, Zhengzhou, Wuhan, Shijiazhuang, Brazil, Pakistan and Vietnam with an annual production capacity of 60 million residential air conditioners (RAC) and 4.5 million commercial air conditioners (CAC).

Gree enjoys a sound reputation for its quality products and outstanding performance.  It has more than 200 million users worldwide.

On 22nd December, 2012, Gree has launched a range of new products which have adopted “2-stage enthalpy-adding inverter compressor”:-

·         Crown series:  Inverter type floor standing unit;

·         U-Crown series:  Inverter type wall mounted unit; &

·         H-Crown series:  Air source heat pump water heater (HPWH).

2-stage inverter technology can not only lighten the load of compressor, but also improve its efficiency greatly.

For the year ended 31st December, 2012, the sales of the Gree Group amounted to RMB100,084.5 million Yuan, grew by 19.8% as compared with RMB83,517.3 million Yuan in FY 2011; profit attributable to shareholders amounted to RMB7,378.0 million Yuan, grew by 40.9% as compared with RMB5,236.9 million Yuan in FY 2011.

Under the leadership of Ms. Dong Mingshang (Gree Chairman of Board and President), Gree has become the first Chinese home appliances manufacturer with over 100 billion Yuan sales revenue only from air conditioners.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Italy, Russia, South Africa, Australia, the United States, etc.

As at 31st December, 2012, the Gree Group had 72,700 employees.

The subject is fully supported by the Gree Group.

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

02-06-2008

Instrument:        Assignment of DC Proceeds re export bills restricted to other banks for negotiation/payment

Property:

By way of assignment or agreement to assign in each case as beneficial owner.  All monies in any currency representing proceeds payable or to be paid to the Customer under the Documentary Credits, all the Customer’s right, title and interest in the said Documentary Credits and the benefit of all powers and remedies for enforcing the Documentary Credits

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

All loans or other advances made or to be made by the Bank to the Customer against documents submitted under a Documentary Credit, all monies and liabilities in any currency owing by the Customer to the Bank at any time, whether separately or jointly, actually or contingently, present or future, interest on all loans and advances and such monies and all expenses of the Bank in perfecting or enforcing the Assignment

13-01-2011

Instrument:        Security Agreement

Property:

1)         Pursuant to Clause 2 (Charge) of the Agreement

2)         Pursuant to Clause 3 (Negative Pledge) of the Agreement

3)         Pursuant to Clause 5 (Effectiveness of Security) of the Agreement

4)         Pursuant to Clause 8 (Right of Set-off and Application of Monies) of the Agreement

Mortgagee:        Deutsche Bank AG, Hong Kong Branch.

All the Chargor’s present and future obligations, indebtedness and liabilities

13-01-2011

Instrument:        An Agreement of Cash Pledge

Property:

1)         Pursuant to Clause 2 (Pledge) of the Agreement

2)         Pursuant to Clause 3 (Pledge Account and Perfection of Pledge) of the Agreement

3)         Pursuant to Clause 4 (General Undertakings) of the Agreement

4)         Pursuant to Clause 6.2(i) (Enforcement) of the Agreement

5)         Pursuant to Clause 6.4 (Enforcement) of the Agreement

6)         Pursuant to Clause 11 (Savings) of the Agreement

Mortgagee:        Deutsche Bank (China) Co. Ltd., Guangzhou Branch on behalf of Deutsche Bank AG, Hong Kong Branch.

All present and future moneys, debts, obligations and liabilities

18-01-2011

Instrument:        Security Agreement over Bank Account

Property:

By way of a first fixed charge all of the Chargor’s rights in respect of any amount standing to the credit of the Account from time to time and the debt represented by it

Mortgagee:        Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

To secure the payment and satisfaction of all present and future obligations and liabilities

15-03-2011

Instrument:        Deposit Deed

Property:

By way of a first fixed charge and as a continuing security for the Obligations, the Company charges and assigns absolutely all its rights, title to and interest in the Accounts and all Deposits

Mortgagee:        Citibank N.A., Hong Kong Branch.

All moneys

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.