MIRA INFORM REPORT

 

 

Report Date :

15.01.2013

 

IDENTIFICATION DETAILS

 

Name :

HK  JING  QUAN  HUA  DEVELOPMENT  LTD.

 

 

Registered Office :

Room 1101, 11/F., Leader Industrial Center, 57-59 Au Pui Wan Street, Fotan, Shatin, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

22.05.2008

 

 

Com. Reg. No.:

39338179

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of electronic components, etc.

 

 

No. of Employees :

8

 

 

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 – 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

 

HK  JING  QUAN  HUA  DEVELOPMENT  LTD.

 

 

ADDRESS:       Room 1101, 11/F., Leader Industrial Center, 57-59 Au Pui Wan Street, Fotan, Shatin, New Territories, Hong Kong.

 

PHONE:                        2947 7355,  9277 5557

 

FAX:                 2947 7356

 

 

MANAGEMENT

 

Managing Director:  Mr. Zhang Lipin

 

 

SUMMARY

 

Incorporated on:             22nd May, 2008.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           US$300,000.00

Issued:              US$300,000.00

 

Business Category:        Importer, Exporter and Wholesaler.

 

Group Annual Turnover:  US$25-30 million.

 

Employees:                    8.

 

Main Dealing Banker:     China Merchants Bank Co., Ltd., Hong Kong Branch.

 

Banking Relation:           Satisfactory.


ADDRESS

 

Registered Head Office:-

Room 1101, 11/F., Leader Industrial Center, 57-59 Au Pui Wan Street, Fotan, Shatin, New Territories, Hong Kong.

 

Holding Company:-

Shenzhen Jingquanhua Electronics Co. Ltd.

Office 2, 3/F.,Workshop 1, Xinxulong Industrial Area, Kukeng, Guanlan Town, Bao’an District, Shenzhen Special Economic Zone,

China.

 

Associated Companies:-

*Ease House Ltd., Hong Kong.

Ease Tech (Shenzhen) Co. Ltd., China.

*Newly Ever Rise Development Ltd., Hong Kong.

Shenzhen Ease House Electronics Co. Ltd., China.

Shenzhen Newly Ever Rise Electronics Co. Ltd., China.

*Taihua Technology Development Ltd., Hong Kong.

* (same address)

 

 

BUSINESS REGISTRATION NUMBER

 

39338179

 

 

COMPANY FILE NUMBER

 

1240333

 

 

MANAGEMENT

 

Managing Director:  Mr. Zhang Lipin

 

 

CAPITAL

 

Nominal Share Capital: US$300,000.00 (Divided into 300,000 shares of US$1.00 each)

 

Issued Share Capital: US$300,000.00

 

SHAREHOLDER

(As per registry dated 22-05-2012)

 

Name

 

No. of shares

Shenzhen Jingquanhua Electronics Co. Ltd., China.

 

300,000

======

 

 

DIRECTORS

(As per registry dated 22-05-2012)

 

Name

(Nationality)

 

Address

DOU Xiaoyue

Room 1101, 11/F., Leader Industrial Centre, 57-59 Au Pui Wan Street, Fotan, Shatin, New Territories, Hong Kong.

 

JU Wanjin

67-12 Daqing Road, Yizheng City, Jiangsu Province, China.

 

LI Zhangong

Single Room, Jianye Industrial District, Futian District, Shenzhen Special Economic Zone, China.

 

WANG Zhaohua

59 Xincheng Town Jiedo, Yizheng City, Jiangsu Province, China.

 

ZHANG Lipin

1-B-205, Great Wall Building, Futian District, Shenzhen Special Economic Zone, China.

 

CHENG Yang

A201, Hua Court, Longhua Jinling Garden, Bao’an District, Shenzhen Special Economic Zone, China.

 

 

SECRETAR

(As per registry dated 22-05-2012)

 

Name

Address

Co. No.

New Choice Accountants Ltd.

Room 2018, 20/F., Shatin Galleria, 18‑24 Shan Mei Street, Fotan, Shatin, New Territories, Hong Kong.

0634471

 

 

HISTORY

 

The subject was incorporated on 22nd May, 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:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of electronic components, etc.

 

Brand Names:               JQH, NER.

 

Employees:                   8.

 

Commodities Imported:   China, etc.

 

Markets:                       China, Japan, other Asian countries, Europe, US, etc.

 

Group Annual Turnover:  US$25-30 million.

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   US$300,000.00 (Divided into 300,000 shares of US$1.00 each)

 

Issued Share Capital:     US$300,000.00

 

Mortgage or Charge:        (See attachment)

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in a satisfactory manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                       Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Banker:                         China Merchants Bank Co., Ltd., Hong Kong Branch.

 

Standing:                      Normal.

 

 

GENERAL

 

Having issued 300,000 ordinary shares of US$1.00 each, HK Jing Quan Hua Development Ltd. is a wholly-owned subsidiary of Shenzhen Jingquanhua Electronics Co. Ltd. [Shenzhen JQH] which is a China-based firm.

The subject shares its operating office with its associated companies in Hong Kong:-

·         Ease House Ltd.;

·         Newly Ever Rise Development Ltd.; &

·         Taihua Technology Development Ltd.

The subject is trading in the products of Shenzhen JQH and its associated companies in China.

The subject sells and exports the following products:-

3 Phase Transformer, Single Phase Transformer, Switching Power Supply, Open Frame PCB, Power Transformer, Switching Transformer, Toroidal Transformer, Choke, etc.

Most of the products bear the brand name of JQH.  The subject also buys or imports the following products:-

Bobbin, Core, Lamination Sheet, Copper Wire, Insulation Tape, etc.

The subject and Shenzhen JQH belong to JQH Group.

JQH Group is specialized in the design and manufacture of 3 Phase Transformers, Switching Adaptors, Power and Switching Transformers, Switching AC/DC Adaptors, Open Frame PCB, Inverter Transformers, Chokes, Network Transformers and other related Electronic products.  Besides the subject, the following subsidiary companies have been formed under the flagship of JQH Group:-

1.       Jiangsu JingQuanHua Electronics Industry Co., Ltd.;

2.       Newly Ever Rise Development Ltd. (Hong Kong);

3.       Shenzhen JQH; &

4.       Shenzhen Newly Ever Rise Electronics Co., Ltd.

JQH Group obtained ISO9001:2000 and ISO14001 certifications in 2002 and 2004 respectively.  Most of its products are UL, CUL, TUV, CE, VDE, CSA, CEE, FCC, CQC, EK, and PSE safety certified.

The Group’s products made in the last 10 years have been widely used in both Commercial and Personal Electronics as Renewable Energy, Power Conversion Devices or Controllers.  Applications include Telecom facilities, Computers, Network equipment, Electrical Meters, Measurement equipment, Color TV sets, Air Conditioner units, Audio systems, Displays, Energy‑saving Lamps, and Electric Irons.

Strong in house development capabilities allow the Group to design and manufacture products to meet the most stringent requirements of its global customers.  It is aggressively pursuing additional growth opportunities by focusing on stat-of-art technologies, first-class manufacturing equipment and competitive products to satisfy the ever-rising customer demands in both our domestic and international markets.

The Group’s business has been developing significantly since 1996.  In the last five years, sales revenue has been doubled.

The following firms are the main customers of the Group:-

Galanz, SkyWorth, BBK, Midea, Kelon, TCL, Konka, Sony, JVC, De’Longhi, Finemost, etc.

According to the Group, it is preparing for an IPO under the model of A Shares in Shenzhen Special Economic Zone.  The listing is under application.  The annual sales turnover of the Group ranges from US$25-30 million,  Business is active and profitable.

As the history of the subject is over four years in Hong Kong, on the whole, consider it good for normal business engagements.

 


MORTGAGE OR CHARGE

 

Date

Particulars

Amount

29-12-2011

Instrument:        Trade Finance Security Assignment

Property:

The Borrower as beneficial owner:-

(A)        Assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower in and to the following assets:-

(i)         Export Credits;

(ii)         Export Collection Bills;

(iii)        Sales Contracts;

(iv)        Invoice Receivables;

(v)         Insurances; (vi) Trade Documents; and

(vii)       all claims, remedies and proceeds in connection with any of the foregoing; and

(B)        Charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Goods together with their proceeds; and (ii) the Deposit; and

(C)        Pledges & agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the Bank’s possession

Mortgagee:        China Minsheng Banking Co. Ltd., Hong Kong Branch.

All obligations & liabilities of whatever nature of the Borrower owed to the Bank at any time and in any currency and whether present or future, actual or contingent and whether owed solely or jointly or severally with or as surety for another and all costs and expenses incurred by the Bank in connection with the recovery of any of the above or the enforcement of the Assignment basis


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.63

UK Pound

1

Rs.88.17

Euro

1

Rs.73.13

 

 

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.