MIRA INFORM REPORT

 

 

Report Date :

07.01.2013

 

IDENTIFICATION DETAILS

 

Name :

CARRIER  ASIA  LTD.

 

 

Registered Office :

5/F., Manhattan Place, 23 Wang Tai Road, Kowloon Bay, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

27.12.1985

 

 

Com. Reg. No.:

10065179-000

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Engineer, Contractor and Importer/Distributor of full range of “Carrier” commercial and industrial air conditioning system, central air-conditioners, refrigerating machinery and equipment; Maintenance Services to repair all kinds of air-conditioning equipment and system.

 

 

No. of Employees :

500

 

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

 

CARRIER  ASIA  LTD.

 

 

ADDRESS:       5/F., Manhattan Place, 23 Wang Tai Road, Kowloon Bay, Kowloon, Hong Kong.

 

PHONE:            2694 5333,  2694 3111

 

FAX:                 2691 2642

 

E-MAIL:                        eva.hui@carrier.utc.com

michelle.lam@carrier.utc.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Yu Man Yee, Titus

 

 

SUMMARY

 

Incorporated on:             27th December, 1985.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$77,473,000.00

Issued:              HK$77,473,000.00

 

Business Category:        Air-conditioning Equipment Distributor, Engineer and Contractor.

 

Annual Turnover:            HK$350~400 million.

 

Employees:                    500.

 

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

 

Banking Relation:           Good.


aDDRESS

 

Registered Head Office:-

5/F., Manhattan Place, 23 Wang Tai Road, Kowloon Bay, Kowloon, Hong Kong.

 

Division:-

Toshiba Air Conditioning Group

19/F., Tower 1, Enterprise Square, 9 Sheung Yuet Road, Kowloon Bay, Kowloon, Hong Kong.

[Tel: 2707 0688    Fax: 2684 2828

E-mail: ccc@toshiba-aircon.com.hk

BR No.: 10065179-001]

 

Immediate Holding Company:-

United Technologies Far East Ltd., Hong Kong.

 

Intermediate Holding Company:-

Carrier Corporation

One Carrier Place, Farmington, CT 06034-4015, USA.

[Tel: 1-860-674-3000;    Fax: 1-860-674-3139]

 

Ultimate Holding Company:-

United Technologies Corporation

United Technologies Building, Hartford, CT 06101, USA.

[Tel: 1-860-728-7000]

 

Associated Companies:-

Carrier Group of Companies

Caricor Ltd., USA.

Carrier (Malaysia) Sdn. Bhd., Malaysia.

Carrier (Thailand) Ltd., Thailand.

Carrier Air Conditioning (N.Z.) Ltd., New Zealand.

Carrier Air Conditioning Pty. Ltd., Australia.

Carrier Aircon Ltd., India.

Carrier Aire Acondicionado de Venezuela S.A., Venezuela.

Carrier ARCD Pte. Ltd., Singapore.

Carrier Argentina, Argentina.

Carrier Asia Pacific Operations, Singapore.

Carrier Canada, Canada.

Carrier Comfort Co. Ltd., Hong Kong.

Carrier EMEA, Italy.

Carrier Espana S.A., Spain.

Carrier Espana Servicio S.A., Spain.

Carrier GmbH & Co. KG, Germany.

Carrier Guam Inc., Guam.

Carrier Hellas Airconditioning SA, Greece.

Carrier Hellas SA, Greece.

Carrier Holdings Ltd., UK.

Carrier Hong Kong Ltd., Hong Kong.

Carrier InterAmerica Corporation, USA.

Carrier Kft, Hungary.

Carrier Middle East Ltd., UAE.

Carrier Oy, Finland.

Carrier Polska Spzoo, Poland.

Carrier Portugal - Ar Condicionado Lda., Portugal.

Carrier S.A., France.

Carrier S.A./N.V., Belgium.

Carrier Saudi Arabia, Saudi Arabia.

Carrier Singapore Pte. Ltd., Singapore.

Carrier South Africa, South Africa.

Carrier Transicold Ceska Republika spol. s.r.o., Czech Republic.

Carrier Transicold GmbH, Austria.

Carrier Transicold Pte. Ltd., Singapore.

Carrier Transicold Slovakia Spol. S.r.o., Slovak Republic.

Carrier Vietnam Air Conditioning Co. Ltd., Vietnam.

Carrier-Equiprac S.A., Colombia.

Concepcion-Carrier Air Conditioning, Philippines.

Dah Fung Hong (Holdings) Co. Ltd., Hong Kong.

Foshan Midea Carrier, China.

Guangdong Yue An Information Technology Co. Ltd., China.

Maingate Electronics Technology (Beijing) Co. Ltd., China.

NTC Carrier, Lebanon.

Q-Carrier (B) Sdn. Bhd., Brunei Darussalam.

Shanghai Tonghui Carrier Air Conditioning Equipment Co. Ltd., China.

Shanghai Yileng Carrier Air Conditioning Equipment Co. Ltd., China.

Sinotrade Technology Co. Ltd., China.

Toshiba Carrier Corporation, Japan.

Toshiba Carrier UK Ltd., UK.

UTS Carrier, UAE.

etc.

 

 

BUSINESS REGISTRATION NUMBER 

 

10065179-000

 

 

COMPANY FILE NUMBER

 

0163620

 

 

MANAGEMENT

 

Managing Director:  Mr. Yu Man Yee, Titus

Marketing Officer:  Ms. Michelle Lam

 

CAPITAL

 

Nominal Share Capital: HK$77,473,000.00 (Divided into 7,747,300 shares of HK$10.00 each)

 

Issued Share Capital: HK$77,473,000.00

 

 

SHAREHOLDER

(As per registry dated 27-12-2012)

 

Name

 

No. of shares

United Technologies Far East Ltd., Hong Kong.

 

7,747,300

=======

 

 

DIRECTORS

(As per registry dated 27-12-2012)

 

Name

(Nationality)

 

Address

YU Man Yee, Titus

Flat D, 11F., 29 Broadway, Mei Foo Sun Chuen, Kowloon, Hong Kong.

 

Paul Richmond LUNDSTROM

Vizcaya Villa Unit 62 2000 Yunshan Road, Pudong, Shanghai 200135, China.

 

LU Lu

45N Arcadian Cir, Apartment 204, Memphis, TN 38103, USA.

 

Ross SHUSTER

No. 299 Greenhills, Lane 418, Jin Xiu East Road, Shanghai 200135, China.

 

 

SECRETARY

(As per registry dated 27-12-2012)

 

Name

Address

WU Jing Wan

5/F., Manhattan Place, 23 Wang Tai Road, Kowloon Bay, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 27th December, 1985 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Mallia Ltd., name changed to Carrier China Ltd. on 1st August, 1986; and further to the present style on 13th May, 2006.

Formerly, the subject was located at 2/F., Sun King Factory Building, 1‑7 Shing Chuen Road, Tai Wai, Shatin, New Territories, Hong Kong, moved to 19/F., Tower 1, Enterprise Square, 9 Sheung Shuet Road, Kowloon Bay, Kowloon, Hong Kong on 25th November, 2006; and further to the present address in August 2009.

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

 

 

OPERATIONS

 

Activities & Lines:          Engineer, Contractor and Importer/Distributor of full range of “Carrier” commercial and industrial air conditioning system, central air-conditioners, refrigerating machinery and equipment; Maintenance Services to repair all kinds of air-conditioning equipment and system.

 

Employees:                   500.

 

Commodities Imported:   Mainly bought from USA and Japan.

 

Markets:                       Hong Kong, Macau and China.

 

Annual Turnover:            HK$350~400 million.

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

MAIN JAPANESE SUPPLIER

 

Toyo Carrier Engineering Co. Ltd., Tokyo, Japan.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$77,473,000.00 (Divided into 7,747,300 shares of HK$10.00 each)

 

Issued Share Capital:     HK$77,473,000.00

 

Profit or Loss:                Business is profitable.

 

Condition:                      Keeping in an active condition.

 

Facilities:                       Making active use of general banking facilities.

 

Payment:                       So far so good.

 

Commercial Morality:      Good.

 

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

 

Standing:                      Very Good.

 

 

GENERAL

 

Having issued 7,747,300 ordinary shares of HK$10.00 each, Carrier Asia Ltd. is a wholly-owned subsidiary of United Technologies Far East Ltd., a Hong Kong-registered firm which is in turn a subsidiary of Carrier Corporation [Carrier].  Carrier is a US-based firm owned by United Technologies Corporation [UTC], also a US-based firm.

Carrier has got another subsidiary in Hong Kong known as Carrier Hong Kong Ltd. [Carrier HK] which was incorporated on 16th October, 1950.  Carrier HK adopted the present style on 10th May, 1983.  Carrier HK is a member of The Hong Kong Air Conditioning and Refrigeration Association Ltd., Hong Kong.

The subject is the Export Department of Carrier in Hong Kong.  Business is chiefly handled by Ms. Eva Hui who is a Hong Kong employee.  The subject is a provider of heating, air‑conditioning and refrigeration solutions.

 

The followings are some of the main products of Carrier:-

·         Air Conditioners and Heat Pumps for Split System;

·         Air Quality Solutions;

·         Control and Thermostats;

·         Ductless Split Systems;

·         Fan and Evaporator Coils;

·         Furnances for Split Systems;

·         Geothermal Heat Pumps; &

·         Packaged Products.

Most of the products bear the following trade marks: Infinity®, PerformanceTM and ComfortTM.

On 13th October, 2009, the subject entered into an agreement with Shougang Concord Technology Holdings Ltd. [Shougang Concord], a Hong Kong-listed firm bearing Stock Code 521, to purchase 19% equity interest in Sinostride Technology Co. Ltd. [Sinostride Technology] which is a China-based firm.  Sinostride Technology is an indirect wholly-owned subsidiary of Shougang Concord.  The consideration involved in was RMB47,500,000 Yuan (equivalent to approximately HK$53,977,000).  Now, the subject is a 19% owner of Sinostride Technology.

Carrier has operations in China and now has had seven factories employing more than 2,500 employees in total.  Carrier has had a network or more than 60 sales and service offices in China.  Besides, Carrier has had a global R&D in Shanghai, China.  At present, the US directors of the subject are stationing at the Shanghai R&D Centre.  Besides, Carrier set up its first joint venture in Shanghai known as Shanghai Tonghui Carrier Air Conditioning Equipment Co. Ltd. in 1987.  Set up the largest joint venture in Shanghai, China known as Shanghai Yileng Carrier Air Conditioning Equipment Co. Ltd. in 1995.  In 2004, Carrier set up its headquarters in Shanghai, China.  Now, some of the directors of the subject are stationing in Shanghai.

Hong Kong is one of the prime markets of Carrier.  Other prime markets are Macau and other Asian countries.  In July 2008, Carrier set up a joint venture with Guangdong Midea Electric Co. which is in Shunde, Guangdong Province, China to manufacture air-conditioners.  Also in 2008, Carrier acquired a majority share of Dah Fung Hong (Holdings) Co. which is a leading independent HVAC service provider in the Hong Kong market.

At present, Carrier HK offers clients with the following services:-

·         Air Conditioning Engineering;

·         Anti-corrosion Coil Treatment.

·         Building Operation Management;

·         Comprehensive Maintenance;

·         Preventive Maintenance;

·         Repairing and Overhauling; &

·         Retrofit System Improvement Plan.

Carrier, a world-renowned air-conditioner maker based in the United States, was established in 1902 by a 26-year-old American, Dr. Willis Carrier.  Since then, it has pioneered the field of air-conditioning.  Carrier was acquired by UTC which has been a listed company in the United States since 1979.  Now, Carrier has grown to become the world’s leading manufacturer of technologically-advanced heating, cooling and ventilation equipment, and a name that is internationally recognized.

Carrier first came to Hong Kong in the 1930’s.  In late October 1981, Carrier reached an agreement to buy 100% stake in the subject from the original owners.  The change of ownership was taken place on 31st December, 1981.  Since 1982, it has witnessed tremendous growth, with sales increasing nearly four-fold in 1987.  Today, Carrier HK is the leading air conditioning equipment supplier in Hong Kong.

The “Carrier” brand includes multi-featured window type and split-type air‑conditioners for domestic use; packages for medium-sized, commercial and industrial offices/plants; and systems for giant-sized spaces.  In Hong Kong, Carrier HK has a network of more than 50 authorized dealers and 500 retail outlets.

With over 50 years air conditioning experience in Hong Kong, Carrier HK has received numerous qualifications recognized by different public and private sectors:-

·         Hong Kong Building Department Registered Electrical Contractor;

·         Hong Kong EMSD Approved Contractors of Engineering Repairs;

·         Hong Kong Government Registered Electrical Contractor;

·         Hong Kong Government Registered Ventilation Contractor;

·         Hong Kong Government Specialist Contractor in Air Conditioning Installation  [Group II – Contracts/Subcontracts of unlimited value];

·         Hong Kong Housing Authority Approved Specialist Contractors for Maintenance and Improvement Works of all Installations;

·         Hong Kong Housing Society HVAC Contractor for most property developers;

·         Hong Kong Marine Department Approved Air-Conditioning and Ventilation Contractors;

·         ISO 9001: 2000 Certificate — HKQAA Approved Suppliers of Materials and Specialist Contractors for Public Works;

·         Member of The Hong Kong Air Conditioning and Refrigeration Association Ltd., Hong Kong; &

·         Registered with Construction Industry Council as a Registered Subcontractor and its registration number is R000631.

Besides marketing its own branded products, Carrier HK also carries other brands such as “Trane”, “York”, “Johnson Control”, “Honeywell”, “Toshiba”, etc.  It is also the official agent for “Blygold” which is specialised in air‑conditioning and refrigeration systems.

In August 1986, Carrier started to penetrate the China market.  This task has been taken over by Carrier China Ltd., which is now involved in seven manufacturing joint ventures in China — five in Shanghai, one in Tianjin and one in Shenzhen.  It also handles direct sales in China for imported equipment.

Formerly, Carrier HK was directly a wholly-owned subsidiary of Carrier until September 1999.  Since then, Carrier HK has been wholly owned by United Technologies Far East Ltd. which is a joint venture between Carrier and Otis Elevator Co. of the United States.  The latter is also a member of the UTC Group.

Carrier HK’s ultimate holding company, UTC, is a public company listed on the New York Stock Exchange with major business units including “Pratt & Whitney” aircraft engines, “Carrier” heating and air conditioning systems, “Otis” elevators and escalators, “Chubb” electronic security and fire protection products, “Hamilton Sundstrand” aerospace and industrial systems, and “Sikorsky” helicopters.

Carrier is the leading provider of HVAC and refrigeration solutions, including controls for residential, commercial, industrial and transportation applications.  In 2011, Carrier continued to execute the business transformation strategy it began in 2008 by completing divestitures of several non-core businesses and taking non-controlling equity interests in various ventures.  This included taking a non-controlling equity interest in a new South American venture in exchange for the contribution of Carrier’s existing HVAC operations in Brazil, Argentina and Chile to the new venture, which manufactures and distributes HVAC products in those countries. Carrier’s products and services are sold under Carrier and other brand names to building contractors and owners, homeowners, transportation companies, retail stores and food service companies.  Through its venture with Watsco, Inc., Carrier distributes Carrier, Bryant, Payne and Totaline residential and light commercial HVAC products in the United States and selected territories in the Caribbean and Latin America.  Carrier sells directly to end customers and through manufacturers’ representatives, distributors, wholesalers, dealers and retail outlets. Certain of Carrier’s HVAC businesses are seasonal and can be impacted by weather.  Carrier customarily offers its customers incentives to purchase products to ensure an adequate supply of its products in the distribution channels.  The principal incentive program provides reimbursements to distributors for offering promotional pricing on Carrier products.

Sales generated by Carrier’s international operations, including US export sales, were 58 percent and 56 percent of total Carrier segment sales in 2011 and 2010, respectively.  At both 31st December, 2011 and 2010, Carrier’s backlog was US$2.2 billion.  Substantially all of the backlog at 31st December, 2011 is expected to be realized as sales in 2012.

To better serve customers and to drive growth and achieve greater efficiencies through greater integration across certain product lines, Carrier announced a new organizational structure in September 2011, which combines Carrier with UTC Fire & Security into a new segment called UTC Climate, Controls & Security.

At 31st December, 2011, Carrier’s sales amounted to US$11,969 million, grew by 5.1% as compared with US$11,386 million at 31st December, 2010.  Operating profit for the year of Carrier was US$1,520 million, grew by 43.1% as compared with US$1,062 million in 2010.

At 31st December, 2011, the total number of employees of UTC was approximately 199,900, approximately 65 percent of which represents employees based outside the United States

The subject is fully supported by Carrier.  Ms. Michelle Lam is the Marketing Officer.

The director of the subject Mr. Ross Shuster is stationing at the subject’s associated company in Shanghai, China.

The history of the subject in Hong Kong is over twenty-seven years.  Business is steady in Hong Kong.

The subject considers its business will keep on improving in the immediate future.

On the whole, in view of the parentage and background of the subject, consider it good for normal business engagements.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.84

UK Pound

1

Rs.88.16

Euro

1

Rs.71.54

 

 

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.