MIRA INFORM REPORT

 

 

Report Date :

30.04.2013

 

IDENTIFICATION DETAILS

 

Name :

TCT  MOBILE  INTERNATIONAL  LTD.

 

 

Registered Office :

Room 1910-1912A, 19/F., Tower 3, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong.

 

 

Date of Incorporation :

11.05.2005.

 

 

Com. Reg. No.:

35686831

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Manufacturer, Importer and Exporter of all kind of mobile phones, etc.

 

 

No. of Employees :

15.  (Including associates)

 

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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

 

TCT  MOBILE  INTERNATIONAL  LTD.

 

 

ADDRESS:       Room 1910-1912A, 19/F., Tower 3, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            3990 0261

 

 

MANAGEMENT

 

Managing Director:  Mr. Liu Yuk Tung, Thomas

 

 

SUMMARY

 

Incorporated on:            11th May, 2005.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:             HK$1.00

 

Business Category:       Mobile Phone Trader.

 

Group Turnover:            HK$12,031,212,000  (Year ended 31-12-2012)

 

Employees:                  15.  (Including associates)

 

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

 

Banking Relation:           Satisfactory.


ADDRESS

 

Registered Head Office:-

Room 1910-1912A, 19/F., Tower 3, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company:-

TCT Mobile Worldwide Ltd., Hong Kong.

 

Intermediate Holding Company:-

TCL Communication Technology Holdings Ltd., Cayman Islands/Hong Kong

 

Ultimate Holding Company:-

TCL Corporation, China.

 

Associated Companies:-

TCL Communication Technology Holdings Group of Companies

Huizhou TCL Communication Electronic Ltd., China.

Huizhou TCL Mobile, China.

JRD Shanghai, China.

JRD Shenzhen, China.

Ningbo R&D, China.

TCL Communication Technology (Chengdu) Ltd., China.

TCL Mobile Communication (HK) Co. Ltd., Hong Kong.

TCL Mobile-Telefones Ltda., Brazil.

TCT Communication Technology (Suzhou) Ltd., China.

TCT Mobile (US) Inc., US.

TCT Mobile Ltd., Hong Kong.

TCT Mobile Multinational Ltd., Hong Kong.

TCT Mobile SA DE CV, Mexico.

TCT SAS, France.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

35686831

 

 

COMPANY FILE NUMBER

 

 0969687

 

 

MANAGEMENT

 

Managing Director:  Mr. Liu Yuk Tung, Thomas

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$1.00

 

 

SHAREHOLDER

(As per registry dated 11-05-2012)

 

Name

 

No. of share

TCT Mobile Worldwide Ltd., Hong Kong.

 

1

=

 

 

DIRECTORS

(As per registry dated 11-05-2012)

 

Name

(Nationality)

 

Address

LIU Yuk Tung, Thomas

Room A, 34/F., Block 5, Phase, Belvedere Garden, Hong Kong.

 

GUO Ai Ping

19C, Block 11, Phase 2, Sunny Bay, Nanshan District, Shenzhen, Guangdong, China.

 

 

SECRETARY

(As per registry dated 11-05-2012)

 

Name

Address

Co. No.

Cheto (Nominees) Ltd.

Room 501, 5/F., Sun Hung Kai Centre, 30 Harbour Road, Hong Kong.

0098732

 

 

HISTORY

 

The subject was incorporated on 11th May, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of T&A Mobile Phones International Ltd., name changed to the present style on 19th February, 2008.

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

 


OPERATIONS

 

Activities:                      Manufacturer, Importer and Exporter.

 

Lines:                           All kind of mobile phones, etc.

 

Employees:                  15.  (Including associates)

 

Commodities Imported: China, etc.

 

Markets:                        China, Japan, other Asian countries, Europe, North America, etc.

 

Group Turnover:            HK$  4,538,281,000  (Year ended 31-12-2008)

HK$  4,360,886,000  (Year ended 31-12-2009)

HK$  8,700,694,000  (Year ended 31-12-2010)

HK$10,653,020,000  (Year ended 31-12-2011)

HK$12,031,212,000  (Year ended 31-12-2012)

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$1.00

 

Group Profit/(Loss):      HK$  28,491,000  (Year ended 31-12-2008)

HK$  23,005,000  (Year ended 31-12-2009)

HK$701,770,000  (Year ended 31-12-2010)

HK$800,645,000  (Year ended 31-12-2011)

(HK$220,028,000) (Year ended 31-12-2012)

 

Group Profit or Loss:    Group made a great loss in 2012.

 

Condition:                     Keeping in a satisfactory manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

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

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

 

Standing:                      Normal.

 

 

GENERAL

 

TCT Mobile International Ltd. is a wholly-owned subsidiary of TCT Mobile Worldwide Ltd. which is a Hong Kong-registered firm.  The intermediate holding company TCL Communication Technology Holdings Ltd. [TCL Communication/Company/together with its subsidiaries collectively refer to the Group] is a Hong Kong listed firm.

The subject is trading in all kinds of mobile phones manufactured by the Group.

TCL Communication designs, manufactures and markets an expanding portfolio of mobile and internet products worldwide under two key brands - ALCATEL ONE TOUCH and TCL.  The Group’s portfolio of products is currently sold in China and over 120 countries throughout the Americas, Europe, the Middle East, Africa and Asia.  TCL Communication operates its manufacturing plants and R&D centres in various provinces of China with headquarters in Shenzhen Special Economic Zone, China.  Currently, TCL Corporation [TCL Corp.] is the Group’s largest shareholder.

The followings are the financial highlights of the Group for the year of 2012:

  • Revenue in 2012 increased by 13% Year on Year to HK$12 billion; gross profit margin decreased by 5% to 17%;
  • Sales volume of smartphones and other smart devices in 2012 increased by 375% to 6.5 million units;
  • Overall average selling price [ASP] increased from US$31.3 in 2011 to US$36.2 in 2012; &
  • Net loss of HK$ 220 million was recorded by the Group in 2012.

In 2012, the Group faced many challenges caused by the uncertain global economy, product transition and intensified competition in the handset market.  To cope with this industry trend, the Group continued to focus on developing its smartphone business and stepped up its investment and efforts in research and development [R&D], brand building and marketing.  As a result the group successfully recorded steady and healthy growth in the sales volume of smartphones and other smart devices.

In total sales of smartphones and other smart devices rose by 375% to 6.5 million units in 2012, accounting for 15.3% of the Group’s total shipment, compared to 3.2% in the previous year.  The increase in smartphone shipment had the additional effect of boosting the overall average selling price per unit to US$36.2 during the year under review, up from US$31.3 in the previous year, which increased the Group’s overall revenue in 2012 by 13% to HK$12 billion.

However, as the majority of Group’s smartphone and other smart devices at present consist of entry-level smartphones, a market segment where competition is extremely fierce, selling prices are currently under extraordinary pressure.  In addition, the sales volume of the Group’s smartphones has not yet reached an economy of scale, which has resulted in lower gross profit margins for smartphones.  At the same time, due to the global trend of feature phones being replaced by entry-level smartphones, both the ASP and gross margin for feature phones have also decreased dramatically.  Affected by the above, the Group’s overall gross margin dropped by 5% from 22% to 17%.

The subject is fully supported by the Group.  History in Hong Kong is about eight years.

On the whole, consider the subject good for normal business engagements.

 

 

REMARKS

 

Brief Personal Profile of the Principal Directors:-

Mr. GUO Ai Ping aged 50, is the CEO and Executive Director of the Company, and the Senior Vice President of TCL Corp.  Mr. GUO joined the Group in July 2001 and he was appointed successively as the Chief Operating Officer, Vice President, Senior Vice President and President.  Mr. GUO was also a Vice President of TCL Corp.  He has extensive experience in overall management of multinational company, strategic planning and development, and merger and acquisition in the worldwide wireless industry.  Prior to joining TCL Corp., Mr. GUO held positions as Manager in SB Global, Project Coordinator in IBM, Senior Business Consultant in Arthur Andersen and Chief Technology Officer in Zhaodaola Internet Company.  He graduated from Stanford University with a Doctor’s degree in Management Science and Master’s degree in Engineering Economics and system.

Mr. LIU Yuk Tung, Thomas  aged 50, is a Senior Vice President and Chief Financial Officer of the Company, and a director of TCL Finance Co., Ltd. since 20th February 2013.  Mr. LIU has about 27 years of experience in fields of audit, international finance and trading business.  Prior to joining the Company, he was the Asia Pacific Regional Financial Controller of Stratus Corporation in US, Sales and Marketing Director and General Manager of Neo-Neon Holdings Limited, a company with its shares listed on the Stock Exchange.  He is also a CPA of HKICPA, Chartered Accountant of ICAEW and fellow member of ACCA.  Mr. LIU holds a Bachelor’s degree in Economics from the University of Hong Kong, a MBA from the University of New South Wales, Australia and a Master’s Degree in Accounting from Jinan University, PRC.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.28

UK Pound

1

Rs.84.23

Euro

1

Rs.70.90

 

 

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%)

 

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