MIRA INFORM REPORT

 

 

Report Date :

12.12.2013

 

IDENTIFICATION DETAILS

 

Name :

COOLPAD OVERSEAS LTD

 

 

Registered Office :

c/o Carson Services Ltd.

18/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

11.09.2008

 

 

Com. Reg. No.:

39783295

 

 

Legal Form :

Private Limited Company

 

 

LINE OF BUSINESS :

TRADER OF ALL KINDS OF MOBILE PHONES

 

 

No. of Employees :

No employees in Hong Kong

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 


 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No operating office in Hong Kong

 

 

Payment Behaviour :

Unknown

 

 

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 & address

 

COOLPAD OVERSEAS LTD

 

ADDRESS:       c/o Carson Services Ltd.

18/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central, Hong Kong.

 

PHONE:            852-2103 0808

 

FAX:                 852-2810 1345

 

 

MANAGEMENT

 

Managing Director:  Mr. Jiang Chao

 

 

SUMMARY

 

Incorporated on:             11th September, 2008.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           US$5,000,000.00

 

Issued:                          US$1,550,000.00

 

Business Category:        Mobile phone trader.

 

Group Turnover:             HK$14,358,830,000  (Year ended 31-12-2012)

 

Employees:                   Nil.

 

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

 

Banking Relation:           Satisfactory.


Company name

 

COOLPAD OVERSEAS LTD

 

 

ADDRESS

 

Registered Office:-

c/o Carson Services Ltd.

18/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central, Hong Kong.

 

Holding Company:-

Julong Computer Telecommunication Scientific (Shenzhen) Co. Ltd., China.

 

Intermediate Holding Company:-

China Wireless Technologies Ltd., Cayman Islands/Hong Kong.

 

Associated Companies:-

China Wireless Group of Companies

Coolpad Software Tech (Shenzhen) Co. Ltd., China.

Coolpad Technologies Inc., US.

Digital Tech Inc., British Virgin Islands/China.

Dongguan Yulong Telecommunication Tech Co. Ltd., China.

Shenzhen Coolpad Technologies Co. Ltd., China.

Shenzhen Handset Antenna Technology Co. Ltd., China.

Shenzhen Penghe Property Investment Co. Ltd., China.

Taiwan Coolpad Technology Ltd., Taiwan.

Xi’an Coolpad Software Tech Co. Ltd., China.

Yulong Computer Telecommunication Scientific (Shenzhen) Co. Ltd., China.

Yulong Infotech Inc., British Virgin Islands/China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

39783295

 

 

COMPANY FILE NUMBER

 

1272513

 

 

MANAGEMENT

 

Managing Director:  Mr. Jiang Chao

CAPITAL

 

Nominal Share Capital: US$5,000,000.00

 

(Divided into 5,000,000 shares of US$1.00 each)

 

Issued Share Capital: US$1,550,000.00

 

 

SHAREHOLDERS

(As per registry dated 11-09-2013)

Name

 

No. of shares

Julong Computer Telecommunication Scientific (Shenzhen) Co. Ltd.

6/F., 1 Building, Cool pad Information Harbour, Hi-Tech Industrial Park (North), Nan Shan District, Shenzhen, China.

 

930,000

A1-Falak Import & Export L.L.C.

P. O. Box 2069, Muscat, PC 112, Sultanate of Oman.

 

620,000

 

 

––––––––

 

Total:

1,550,000

=======

 

 

DIRECTORS  

 

(As per registry dated 11-09-2013)

Name

(Nationality)

 

Address

Same Mohamed Ali AL AWAIT

House Number 1407, Way 1718, Medina Sultan Qaboos, Muscat, Sultanate of Oman.

 

Mohamed Ali Mohamed AL WAHAIBI

House Number 982, Way 2131, Basher, Muscat, Sultanate of Oman.

 

JIANG Chao

Room 601, Block 1, Xinyuan, Long Gang District, Shenzhen, China.

 

 

SECRETARY

           

(As per registry dated 11-09-2013)

Name

Address

Co. No.

Carson Services Ltd.

18/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central, Hong Kong.

0582737

 


HISTORY

 

The subject was incorporated on 11th September, 2008 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:                      Mobile phone trader.

 

Lines:                           All kinds of mobile phones

 

Employees:                   Nil.

 

Commodities Imported:   China.

 

Markets:                       Asian countries, Middle East, Europe

 

Group Turnover:             HK$  1,007,135,000  (Year ended 31-12-2008)

HK$  2,604,865,000  (Year ended 31-12-2009)

HK$  4,592,699,000  (Year ended 31-12-2010)

HK$  7,340,495,000  (Year ended 31-12-2011)

HK$14,358,830,000  (Year ended 31-12-2012)

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: US$5,000,000.00

 

(Divided into 5,000,000 shares of US$1.00 each)

 

Issued Share Capital:     US$1,550,000.00

 

Group Profit/(Loss):        (HK$  76,076,000) (Year ended 31-12-2008)

HK$240,005,000  (Year ended 31-12-2009)

HK$480,265,000  (Year ended 31-12-2010)

HK$271,069,000  (Year ended 31-12-2011)

HK$324,303,000  (Year ended 31-12-2012)

 

Profit or Loss:                Group business was profitable in the past four years.

 

Condition:                      Business is not active in Hong Kong.

 

Facilities:                      Adequate for current running.

 

Payment:                      Unknown

 

Commercial Morality:     Good.

 

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

 

Standing:                      Small.

 

 

GENERAL

 

Having issued 1,550,000 ordinary shares of US$1.00 each, Coolpad Overseas Ltd. is jointly owned by Julong Computer Telecommunication Scientific (Shenzhen) Co. Ltd. [Julong], holding 60% interests; A1-Falak Import & Export L.L.C., an Oman-registered firm holding 40%.

Julong is a wholly-owned subsidiary of China Wireless Technologies Ltd. [China Wireless/the Company/Group, when including subsidiaries or associates].

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at “18/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central, Hong Kong” known as “Carson Services Ltd.” which is handling its correspondences and documents.  This company is also the corporate secretary of the subject.

The subject has no employees in Hong Kong.

The subject is a mobile phone trader.  It is trading in all kinds of Cool pad smart phones.

China Wireless was incorporated in the Cayman Islands as an exempted company with limited liability on 11th June 2002.  Its shares were listed on the Stock Exchange of Hong Kong Limited on 9th December 2004 (Stock Code: 2369).

Julong is an indirect wholly owned subsidiary of China Wireless.  It was founded by Mr. Go Dyeing (China Wireless’s chairman, executive director and chief executive officer) in April 1993.  Julong is a leading developer and provider of integrated solutions for Cool pad smart phone sets, mobile data platform system, and value-added business operations in China.  Julong mainly provides its Cool pad products for enterprises, government and mobile operators as well as individual consumers in China.

In the last decade, capitalizing on the development of wireless telecommunications technological know-how in wireless telecommunications across multiple wireless telecommunications network standards including GSM, CDMA1X, TD-SCADA, CDMA1X(EDO) and WADA networks, the Group has developed a large number of proprietary technologies and patents in mobile operating systems, radio frequency, protocols and wireless data decomposed transmission technology, etc.  The Group has developed advanced research and development capabilities in mobile communications and gradually becomes a leader of 3G smartphone in China’s telecommunications market.

In spite of being a leading smartphone developer in Mainland China’s telecommunications market, the Group has succeeded in breaking into the global telecommunications market in respect of Coolpad brand with the overseas telecommunications operators.  The Group has established strong and close strategic cooperation relationships with certain global telecommunications operators and is striving to further develop its business in the global telecommunications markets.

For the year ended 31st December 2012, the Group had a turnover of approximately HK$14,358.8 million, which increased 95.6% from HK$7,340.5 million in 2011.  The fast increase was mostly due to our focus on the mid-end and low-end smartphone market and was largely ascribed to the solid 3G business increase in Mainland China.  The net profit of 2012 was approximately HK$324.3 million, which increased by 19.6% from HK$271.1 million in 2011.  Gross profit margin for the year 2012 was 12.0%, which dropped by 2.7% from 14.7% in 2011.  The drop of gross profit margin was because the competition in the mid-end and low-end smartphone market in Mainland China got intensified in 2012.

The Group’s unaudited revenue for the six months ended 30th June 2013 amounted to HK$9,631.7 million, representing a remarkable growth of 54.9% as compared with HK$6,218.0 million for the six months ended 30th June 2012.  The significant increase in revenue during the reporting period was driven by the strong increase in the sales volume of 3G Coolpad smartphone, as a result of the continuous vibrant development of 3G mobile subscribers, and the increasing market share of Coolpad smartphone in China during the first half of 2013.

The revenue from the sale of 3G Coolpad smartphone increased by 50.5% to HK$9,305.7 million for the six months ended 30th June 2013 as compared with HK$6,184.2 million for the corresponding period in 2012.  Revenue contribution from this segment dropped from 99.5% in the first half of 2012 to 96.6% in the first half of 2013.  The decline in revenue of 3G Coolpad smartphone was primarily attributable to the increase in 4G smartphone business during the reporting period.

The Group’s product lines have covered all range of 3G networks, including TD-SCDMA, CDMA-2000 as well as WCDMA network.  Meanwhile, the 4G smartphones started to be launched in the overseas market in the second half of 2012.  The revenue of 4G Coolpad smartphone was HK$293.1 million for the six months ended 30th June 2013, which accounted for 3.0% of total revenue.

The revenue from other products was primarily generated from the sales of Coolpad smartphone’s accessories.  The revenue from other products decreased by HK$0.9 million, or 2.7%, to HK$32.9 million for the six months ended 30th June 2013 as compared with HK$33.8 million for the corresponding period in 2012.

The subject’s business in Hong Kong is not active.  History in Hong Kong is over five years.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

 

 

NOTE:

 

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.33

UK Pound

1

Rs.100.79

Euro

1

Rs.84.38

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.