MIRA
INFORM REPORT
|
Report Date : |
14.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
HUAWEI TECHNOLOGIES CO., LTD. |
|
|
|
|
Registered Office : |
Administration Building Of Huawei Headquarters, Bantian
Longgang District, Shenzhen, Guangdong Province 518129 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
15.09.1987 |
|
|
|
|
Com. Reg. No.: |
440301103097413 |
|
|
|
|
Legal Form : |
One-Person Limited Liabilities Company |
|
|
|
|
Line of Business : |
Researching, developing, manufacturing and selling telecommunication equipment. |
|
|
|
|
No. of Employees : |
27,000 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Excellent |
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.
Source
: CIA
Company name and address
HUAWEI TECHNOLOGIES CO., LTD.
ADMINISTRATION BUILDING OF HUAWEI HEADQUARTERS, BANTIAN
LONGGANG DISTRICT, SHENZHEN, GUANGDONG PROVINCE 518129 PR CHINA
TEL: 86 (0) 755-28780808/28780570
FAX: 86 (0) 755-28566190
EXECUTIVE SUMMARY
Date of Registration : SEPTEMBER 15, 1987
REGISTRATION NO. : 440301103097413
LEGAL FORM : ONE-PERSON Limited liabilities company
REGISTERED CAPITAL : CNY 39,608,131,820
staff :
27,000
BUSINESS CATEGORY : R&D,
MANUFACTURE
Revenue :
CNY 185,176,000,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 55,251,000,000 (AS OF DEC. 31, 2010)
WEBSITE : www.huawei.com
E-MAIL :
support@huawei.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STRONG
OPERATIONAL TREND : Upward
GENERAL REPUTATION :
Excellent
EXCHANGE RATE :
CNY 6.23 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
***Note: According to the and contact ways, we
locate SC. Huawei International Pte. Ltd. (the given name) is SC’s subsidiary
registered in Singapore.
SC was established
as a limited liabilities company of PRC on September 15, 1987. However, SC changed to present legal form, and was
registered as one-person limited liabilities company of PRC with State
Administration for Industry & Commerce (SAIC) under registration No.:
440301103097413 on May 6, 2008.
SC’s Organization Code Certificate No.:
19220382-1
SC’s registered capital: CNY 39,608,131,820
SC’s paid-in capital: CNY 39,608,131,820
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered Capital |
CNY 15,810,000 |
CNY 35,470,000 |
|
|
Registered Capital |
CNY 35,470,000 |
CNY 70,050,000 |
|
|
Registered Capital |
CNY 70,050,000 |
CNY 276,060,000 |
|
|
Registration No. |
19235218-1 |
4403011022600 |
|
|
Registered Capital |
CNY 276,060,000 |
CNY 656,060,000 |
|
|
Legal Representative |
Ren Zhengfei |
Sun Yafang |
|
Registered Capital |
CNY 656,060,000 |
CNY 1,060,600,000 |
|
|
|
Company Name |
Shenzhen Huawei
Technologies Co., Ltd. |
Huawei Technologies Co.,
Ltd. |
|
|
Registered Capital |
CNY 1,060,600,000 |
CNY 3,200,000,000 |
|
|
Registered Capital |
CNY 3,200,000,000 |
CNY 3,268,396,585 |
|
|
Registered Capital |
CNY 3,268,396,585 |
CNY 3,268,723,585 |
|
|
Registered Capital |
CNY 3,268,723,585 |
CNY 4,311,511,820 |
|
|
Registration No. |
4403011022600 |
440301103097413 |
|
Registered Capital |
CNY 4,311,511,820 |
CNY 5,311,511,820 |
|
|
|
Legal Form |
Limited Liabilities Company |
One-person Limited Liabilities Company |
|
|
Registered Capital |
CNY 5,311,511,820 |
CNY 7,311,511,820 |
|
|
Registered Capital |
CNY 7,311,511,820 |
CNY 14,111,511,820 |
|
|
Registered Capital |
CNY 14,111,511,820 |
CNY 21,611,511,820 |
|
|
Registered Capital |
CNY 21,611,511,820 |
CNY 27,971,511,820 |
|
|
Registered Capital |
CNY 27,971,511,820 |
CNY 39,308,131,820 |
|
|
Registered Capital |
CNY 39,308,131,820 |
CNY 39,608,131,820 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Huawei Holding Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Sun Yafang |
|
Vice Chairman |
Guo Ping |
|
Xu Zhijun |
|
|
Ren Zhengfei |
|
|
Hu Houkun |
|
|
General Manager |
Ren Zhengfei |
|
Director |
Wan Biao |
|
Yu Chengdong |
|
|
Zhang Pingan |
|
|
Li Jie |
|
|
Chen Lifang |
|
|
Xu Wenwei |
|
|
Meng Wanzhou |
|
|
Ding Yun |
|
|
Supervisor |
Liang Hua |
|
Ren Shulu |
|
|
Peng Zhiping |
|
|
Deng Biao |
|
|
Tian Feng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Huawei Holding Co., Ltd. 100
------------------------------
Registration No.: 440301103097405
Legal Representative: Sun Yafang
Registered Capital: CNY 10,989,665,841
MANAGEMENT
Sun
Yafang , Legal Representative and
Chairman
---------------------------------------------------------------------------
Ø
Gender: F
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC
as legal representative and chairman
Also working in Huawei Holding Co., Ltd. as legal
representative
Ren
Zhengfei , Vice Chairman and General Manager
--------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as
vice chairman and general manager
Vice Chairman
--------------------
Guo Ping
Xu Zhijun
Hu Houkun
Director
-----------
Wan Biao
Yu Chengdong
Zhang Pingan
Li Jie
Chen Lifang
Xu Wenwei
Meng Wanzhou
Ding Yun
Supervisor
--------------
Liang Hua
Ren Shulu
Peng Zhiping
Deng Biao
Tian Feng
BUSINESS OPERATION
SC’s registered business scope includes developing, manufacturing and
selling programmed-controlled exchangers, communication equipment, data
communicating equipment, broad network multimedia equipment, electrical power
& wireless communication equipment, micro-electronics products, system
integration, computer and relevant appliance, and terminal equipment; providing
related maintaining service; technology consulting; importing and exporting
business; domestic commercial trade, and material supply (excluding the
products state-controlled); foreign economic and technological cooperation
business; housing rental (with permit if needed).
SC is mainly
engaged in researching, developing, manufacturing and selling telecommunication
equipment.
In the past years, SC has successfully finished a lot of great telecom
engineering projects, and the following are three of them:
Haikou Broad Net Comprehensive Joint Network
Sichuan Data Special Wire Joint
Network
Shenzhen Telecom Voice Network
SC
is also known to have provided technology support to most famous telecom
companies, such as China Telecom and China Netcom. SC is also known to carry
out its business in some foreign countries and areas, such as Hong Kong,
Russia, Brazil, Thailand, etc.
SC
sources its materials 80% from domestic market, and 20% from the overseas
market. SC sells 60% of its products in domestic market, and 40% to the
overseas market.
The buying terms of SC include: Check, T/T, L/C and credit of 30-90
days. The payment terms include: Check, T/T, L/C and credit of 30-90 days.
*Major Clients:
============
TI
Motorola
Intel
AT&T
ALTERA
SUN
Staff & Office:
--------------------------
SC is known
to have approx. 27,000 staff
at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have 6 branches in Shanghai, Chengdu,
Nanjing, Beijing, Xi’an and Hangzhou respectively and 4 foreign offices in USA,
Russia and Sweden.
Beijing Branch
Tel: 010-63761808
Fax: 010-63761809
Nanjing Office
Tel: 025-84730808
Fax: 025-84706505/84713108
Xi’an Branch
Tel：029-87660808
Fax：029-87660718
Shanghai Branch
Tel: 021-50941818/021-50991818
Fax: 021-50992502
Hangzhou Branch
Tel: 0571-85816666
Fax: 0571-87950808
SC
is also known to have representative offices in the major cities around China
as below.
Anhui Office
Tel: 0551-2287288/2287299
Fax: 0551-2287227
Fujian Office
Tel: 0591-83050808
Fax: 0591-83050841
Lanzhou Office
Tel: 0931-8441616
Fax: 0931-8441200
Guangzhou Office
Tel: 020-83652008/83860680
Fax: 020-83871168
Nanning Office
Tel: 0771-2108888
Fax: 0771-2108800
Guiyang Office
Tel: 0851-5370808
Fax: 0851-5370999
Haikou Office
Tel: 0898-68530809
Fax: 0898-68548818
Shijiazhuang Office
Tel: 0311-85990088
Zhengzhou Office
Tel：0371-65612000
Fax：0371-65618561
Harbin Office
Tel: 0451-82394808
Fax: 0451-82393808
Wuhan Office
Tel: 027-85486808
Fax: 027-85486533
Changsha Office
Tel: 0731-4191808
Fax: 0731-4191862
Changchun Office
Tel: 0431-88480808
Fax: 0431-88964972
Nanchang Office
Tel: 0791-8890616
Fax: 0791-8863563
Shenyang Office
Tel: 024-23960808
Fax: 024-23963068
Huhehaote Office
Tel: 0471- 4165000
Fax: 0471- 4165002
Yinchuan Office
Tel: 0951-5170978
Fax: 0951-5671818
Xining Office
Tel: 0971-6138087
Fax: 0971-6164808
Jinan Office
Tel: 0531-86010808/86163685
Fax: 0531-6011822
Taiyuan Office
Tel: 0351-4618201
Fax: 0351-4618234
Chengdu Office
Tel: 028-85335200
Fax: 028-85335210
Tianjin Office
Tel: 022-83866408
Fax: 022-83866486
Lasa Office
Tel: 0891-6840808
Fax: 0891-6840623
Wulumuqi Office
Tel: 0991-5881288
Fax: 0755-28560818
Kunming Office
Tel: 0871-3566808
Fax: 0871-3547050
Chongqing Office
Tel: 023-67390808
Fax: 023-67889555/67889520
SC is known to
invest in the following companies:
Shenzhen Huawei Technology Service Co., Ltd.
Juxin Technology Co., Ltd.
Shandong Huawei Communication Technology Co., Ltd.
Shanghai Yumeng Communication Technology Co., Ltd.
China Netcom Group Broadband service Applications Ltd. Corp. for
National Engineering laboratory
Huawei Digital Technology Co., Ltd.
Guizhou Imart Information Super Market Item Developing Co., Ltd.
Shanghai Huawei Technology Co., Ltd.
Zhejiang Huawei Communication Technology Co., Ltd.
Huawei Technology Service Co., Ltd.
Shenzhen Huawei Technology Software Co., Ltd.
Huawei International Pte. Ltd. (Singapore)
Etc.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment and our debt collection record concerning
SC.
Trade payment experience: SC did not
provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
Delinquent payment record: None in our
database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
BANKING
Basic Bank:
Bank of China Shenzhen Branch
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Property, factory, and equipment |
8,317,000 |
9,323,000 |
|
Intangible
assets |
553,000 |
647,000 |
|
Accounts
receivable and other receivable |
-- |
116,000 |
|
Associated
company & joint ventures investment |
311,000 |
305,000 |
|
Other
non-current financial assets |
108,000 |
64,000 |
|
Deferred tax
asset |
5,147,000 |
7,102,000 |
|
Other non-current
assets |
611,000 |
517,000 |
|
|
----------------- |
----------------- |
|
Non-current assets |
15,047,000 |
18,074,000 |
|
|
----------------- |
----------------- |
|
Inventory |
24,947,000 |
27,566,000 |
|
Accounts receivable
and other receivable |
63,282,000 |
68,809,000 |
|
Other financial
assets |
7,145,000 |
8,330,000 |
|
Cash and cash
equivalents |
29,232,000 |
38,062,000 |
|
|
----------------- |
----------------- |
|
Current assets |
124,606,000 |
142,767,000 |
|
|
----------------- |
----------------- |
|
Total assets |
139,653,000 |
160,841,000 |
|
|
========== |
========== |
|
Equities |
||
|
Owners equity
attributable |
43,253,000 |
55,222,000 |
|
Non controlling
interest |
63,000 |
29,000 |
|
|
----------------- |
----------------- |
|
Equities |
43,316,000 |
55,251,000 |
|
|
----------------- |
----------------- |
|
Liabilities |
||
|
Loans |
8,490,000 |
8,955,000 |
|
Defined benefit
plan |
3,512,000 |
5,950,000 |
|
Deferred
government grants |
933,000 |
1,319,000 |
|
Deferred income
tax liabilities |
631,000 |
590,000 |
|
|
----------------- |
----------------- |
|
Non current liabilities |
13,566,000 |
16,814,000 |
|
|
----------------- |
----------------- |
|
Loans |
7,887,000 |
2,685,000 |
|
Taxes payable |
3,696,000 |
4,184,000 |
|
Accounts payable
and other payable |
70,013,000 |
80,351,000 |
|
Product quality
assurance |
1,175,000 |
1,556,000 |
|
|
----------------- |
----------------- |
|
Current liabilities |
82,771,000 |
88,776,000 |
|
|
----------------- |
----------------- |
|
Total liabilities |
96,337,000 |
105,590,000 |
|
|
========== |
========== |
|
Total liabilities & equities |
139,653,000 |
160,841,000 |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2009 |
As of Dec. 31,
2010 |
|
Revenue |
149,059,000 |
185,176,000 |
|
Cost of sales |
90,090,000 |
107,666,000 |
|
Gross profit |
58,969,000 |
77,510,000 |
|
R & D expense |
13,340,000 |
16,556,000 |
|
Sales & management expense |
24,169,000 |
30,996,000 |
|
Other business expense |
408,000 |
687,000 |
|
Operating Profit |
21,052,000 |
29,271,000 |
|
Net financial expense |
(-1,255,000) |
1,833,000 |
|
163,000 |
9,000 |
|
|
Profit before
tax |
22,144,000 |
27,429,000 |
|
Profit tax |
3,870,000 |
3,672,000 |
|
Profits |
18,274,000 |
23,757,000 |
***Note: SC’s Y2011 financials are not available in local SAIC.
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.51 |
1.61 |
|
*Quick ratio |
1.20 |
1.30 |
|
*Liabilities
to assets |
0.69 |
0.66 |
|
*Net profit
margin (%) |
12.26 |
12.83 |
|
*Return on
total assets (%) |
13.09 |
14.77 |
|
*Inventory /
Revenue ×365 |
62 days |
55 days |
|
*Accounts receivable/
Revenue ×365 |
-- |
-- |
|
*
Revenue/Total assets |
1.07 |
1.15 |
|
* Cost of
sales / Revenue |
0.60 |
0.58 |
FINANCIAL COMMENTS
PROFITABILITY:
GOOD
l
The revenue of SC appears good in its line.
l
SC’s net profit margin is fairly good
l
SC’s return on total assets is fairly good.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears average.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is minimal.
Overall financial
condition of the SC: Strong.
CONCLUSIONS
SC is considered large-sized in its line with strong financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.54 |
|
|
1 |
Rs.88.05 |
|
Euro |
1 |
Rs.72.29 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.