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Report Date : |
21.12.2013 |
IDENTIFICATION DETAILS
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Name : |
CHIGO (HONG KONG) TRADING CO. LTD. |
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Registered Office : |
Unit 8, 19/F., Greenfield Tower, Concordia Plaza, 1 Museum Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
14.06.2011 |
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Com. Reg. No.: |
58506428 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, exporter and manufacturer of all kinds of air-conditioning products. |
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No. of Employees : |
15,049. (As at
30-06-2013) |
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 – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Hong Kong |
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 |
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.
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Source : CIA |
CHIGO (HONG
KONG) TRADING CO.
LTD.
Unit 8, 19/F., Greenfield Tower, Concordia Plaza, 1 Museum Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: Not available
Managing Director: Mr. Li Xinghao
Incorporated on: 14th June, 2011.
Organization: Private Limited Company.
Capital: Nominal: HK$100,000.00
Issued: HK$100,000.00
Business Category: Importer, exporter and manufacturer.
Group Turnover: RMB8,801,814,000 Yuan (Year ended 31-12-2012)
Group Employees: 15,049. (As at 30-06-2013)
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office:-
Unit 8, 19/F., Greenfield Tower, Concordia Plaza, 1 Museum Road, Tsimshatsui, Kowloon, Hong Kong.
Holding Company:-
Chigo Development Holding Ltd., British Virgin Islands.
Intermediate
Holding Company:-
Chigo Holding Ltd., Cayman Islands.
Ultimate Holding
Company:-
Chigo Group Holding Ltd., British Virgin Islands.
Associated
Companies:-
Chigo Air-Conditioning (Jiu Jiang) Co. Ltd., China.
Guangdong Chigo Air-Conditioning Co. Ltd., China.
Guangdong Chigo Heating and Ventilation Equipment Co. Ltd., China.
Guangdong Chigo Kechuang Copper Co. Ltd., China.
Guangdong Chigo Precision Machinery Co. Ltd., China.
etc.
58506428
1615724
Managing Director: Mr. Li Xinghao
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share Capital: HK$100,000.00
(As per registry
dated 14-06-2013)
|
Name |
|
No.
of shares |
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Chigo Development Holding
Ltd. P. O. Box 957, Offshore Incorporation Centre, Road Town,
Tortola, British Virgin Islands. |
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100,000 ====== |
(As per registry
dated 14-06-2013)
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Name (Nationality) |
Address |
|
LI Xinghao |
Shengli Industrial Zone, Lishui
Town, Nanhai Area, Foshan City, Guangdong, China. |
(As per registry
dated 14-06-2013)
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Name |
Address |
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LEUNG Hon Man |
Flat A, 15/F., Block 1, Cascades, 93 Chung Hau Street,
Homantin, Kowloon, Hong Kong. |
The subject was incorporated on 14th June, 2011 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.
Activities: Importer, exporter and manufacturer.
Lines: All kinds of air-conditioning products.
Brand Name: “Chigo”.
Employees: 15,049. (As at 30-06-2013)
Commodities Imported: China, other Asian countries, etc.
Markets: China, other Asian countries, etc.
Group Turnover: RMB5,920,583,000 Yuan (Year ended 31-12-2008)
RMB6,005,495,000 Yuan (Year ended 31-12-2009)
RMB8,467,723,000 Yuan (Year ended 31-12-2010)
RMB9,342,025,000 Yuan (Year ended 31-12-2011)
RMB8,801,814,000 Yuan (Year ended 31-12-2012)
RMB5,463,372,000 Yuan (6 months ended 30-06-2013)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share Capital: HK$100,000.00
Group Profit
(Loss) for the Year:
RMB 97,288,000 Yuan (Year ended 31-12-2008)
RMB314,779,000 Yuan (Year ended 31-12-2009)
RMB309,853,000 Yuan (Year ended 31-12-2010)
(RMB144,023,000) Yuan (Year ended 31-12-2011)
RMB 98,454,000 Yuan (Year ended 31-12-2012)
RMB 29,111,000 Yuan (6 months ended 30-06-2013)
Profit or Loss: Made a small profit in 2012.
Condition: Business is normal.
Facilities: Adequate for current running.
Payment: Met as required.
Commercial Morality:
Bankers:-
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
DBS Bank (Hong Kong) Ltd., Hong Kong.
Standing: Normal.
Chigo (Hong Kong) Trading Co., Ltd. is a wholly-owned subsidiary of Chigo Development Holding Ltd. which is a BVI-registered company. Its intermediate holding company Chigo Holding Ltd. [the Company/together with the Company “Chigo” or the “Group”] is a Cayman Islands-registered company. It is also a listed company in Hong Kong.
Founded in 1994, the Company’s products have become one of the top air-conditioner brands in China. The Group is principally engaged in the design, development, manufacture and sale of air-conditioning products.
The subject is trading in the Group’s products.
For the year ended 31st December, 2012, the sales of the Group amounted to RMB8,801.8 million Yuan, decreased by 5.6% as compared with RMB9,342.0 million in Yuan FY 2011; profit for the year was RMB98.5 million Yuan as compared with a loss of RMB144.0 million Yuan in FY 2011.
During the year ended 31st December 2012, the turnover of the Group was mainly derived from the sales of air conditioners and air-conditioner parts and components. The Group’s products were sold both in the PRC and overseas markets.
After rapid growth in the past few years, the Chinese air-conditioning industry entered into a period of adjustment in 2012. Overall performance of the air-conditioning market was not satisfactory and retail sales of air-conditioning products recorded a year-on-year negative growth.
As for exports, the air-conditioning manufacturers also faced many severe trials and struggled for better business environment. Air-conditioning industry as a whole recorded a decline in exports during 2012, which was primarily due to the impact of the economic crisis within the member countries of the Euro zone after another on the major European market.
During the year 2012, the sales and volume of commercial air-conditioning products increased year-on-year and accounted for a higher portion of the Group’s sales. Besides, the average price of commercial air-conditioning products was maintained in the year so that the commercial air-conditioning subsidiary commenced to make operating profit for the year 2012.
During 2012, the Group established a wholly-owned subsidiary, Guangdong Chigo Precision Machinery Co., Ltd., which specialises in the compressor business with an aim to providing further integration of production, and enhancing the competitiveness of the Group in the future.
During the six months ended 30th June, 2013, the Group recorded a total turnover of approximately RMB5,436.4 million Yuan (30th June, 2012: approximately RMB5,424.6 million Yuan), representing a slight increase of RMB11.8 million Yuan, or 0.2% as compared to the corresponding period in 2012. The increase was primarily due to the growth in overseas markets outweighing the drop in domestic sales.
As a result of the foregoing, the Group recorded a profit of RMB29.1 million Yuan for the six months ended 30th June, 2013 (30th June, 2012: RMB17.5 million Yuan), representing an increase of RMB11.6 million Yuan or 66.3% as compared to the corresponding period in 2012. Since the Group had increased its net profit in the reporting period, the Group improved its net margin to 0.54% for the six months ended 30th June, 2013 (30th June, 2012: 0.32%) accordingly.
Copper is one of the major raw materials required by the Group for the production of the Group’s air-conditioners which accounted for about 28.1% of the cost of goods sold of the Group for the year ended 31st December, 2012.
As at 30th June, 2013, the Group employed 15,049 employees (30th June, 2012: 15,417 employees).
The subject is fully supported by the Group. However, the history of the subject in Hong Kong is just over two years and six months.
On the whole, since the history of the subject is short, consider it good for normal business engagements on L/C basis for the time being.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.24 |
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UK Pound |
1 |
Rs.101.81 |
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Euro |
1 |
Rs.84.88 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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 |
-- |
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.