|
Report Date : |
18.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
SMART CHOICE STORE CO. LTD. |
|
|
|
|
Registered Office : |
Room 1601-1604, 16/F., Westlands Centre, 20 Westlands Road, Quarry Bay |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
06.05.2008. |
|
|
|
|
Com. Reg. No.: |
39364409 |
|
|
|
|
Legal Form : |
Private Limited Company. |
|
|
|
|
Line of Business : |
Importer, Exporter, Wholesaler and Manufacturer of all kinds of consumer electronic products especially colour TVs, VCD players, DVD players, DVB players, home theatre system and digital products |
|
|
|
|
No. of Employees : |
Over 33,000. (As at 31-03-2013) (Group) |
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 – 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
SMART CHOICE
STORE CO. LTD.
ADDRESS: Room 1601-1604, 16/F., Westlands
Centre, 20 Westlands Road, Quarry Bay, Hong Kong.
PHONE: 852-2290 4682
FAX: 852-2856 3590
E-MAIL: sales@skyworth.com.hk
Group Executive Director & Chief Financial Officer: Mr. Leung Chi Ching, Frederick
Incorporated on: 6th
May, 2008.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Importer, Exporter, Wholesaler and Manufacturer
Group Turnover: HK$37,824
million (Year ended 31-03-2013)
Group Employees: Over
33,000. (As at 31-03-2013)
Main Dealing Banker: Bank of China (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
Registered Head Office:-
Room 1601-1604, 16/F., Westlands Centre, 20 Westlands Road, Quarry Bay,
Hong Kong.
Holding Company:-
Shenzhen Skyworth Digital Technology Co. Ltd.
13-16/F., Skyworth Mansion, Hi-tech Industrial Park, Nanshan District,
518057 Shenzhen, China
[Tel: 86-755-2601 0007, Fax:
86-755-2601 0070]
Intermediate Holding Company:-
Skyworth Investment (Holdings) Ltd., British
Virgin Islands.
[Formerly known as Skyworth Digital Group Ltd.]
Penultimate Holding Company:-
Skyworth Holdings Ltd., Samoa.
Ultimate Holding Company:-
Skyworth Digital Holdings Ltd., Bermuda/Hong Kong.
Sister/Subsidiary/Affiliated Companies:-
Skyworth Group of Companies
Shenzhen Changwei-RGB Electronics Co. Ltd., China.
Skyworth Display Technology Holdings Ltd., Bermuda.
Shenzhen Skyworth Lighting Electric Co. Ltd., China.
Shenzhen Skyworth Precision Technology Co. Ltd., China.
Shenzhen skyworth Qunxin An Fang Technology Co. Ltd., China.
Skyworth Automobile Electronics (Shenzhen) Co. Ltd., China.
Skyworth Electrical Appliances (Shenzhen) Co. Ltd., China.
Skyworth Electronics (Inner Mongolia) Co. Ltd., China.
Skyworth Enterprises Ltd., Samoa.
Skyworth Flat Panel Display Technology (Shenzhen) Co. Ltd., China.
Skyworth Group Co. Ltd., China.
Skyworth Intellectual Property Holdings Ltd., British Virgin Islands.
Skyworth LCD Modules (Shenzhen) Co. Ltd., China.
Skyworth Macao Commercial Offshore Co. Ltd., Macau.
Skyworth Moulds Industrial Co. Ltd., British Virgin Islands.
Skyworth Multimedia (Shenzhen) Co. Ltd., China.
Skyworth Multimedia International Ltd., Hong Kong.
Skyworth Overseas Development Ltd., Hong Kong.
Skyworth Overseas Ltd., Hong Kong.
Skyworth TV Holdings Ltd., Hong Kong.
Winform Inc., British Virgin Islands/Hong Kong.
etc.
39364409
1234471
Group Executive Director & Chief Financial Officer: Mr. Leung Chi Ching, Frederick
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated 06-05-2013)
|
Name |
|
No. of shares |
|
Shenzhen Skyworth Digital Technology Co. Ltd. Unit A, 14/F., Skyworth Building, Gaoxin Avenue, I.S. Nanshan
District, Shenzhen, China. |
|
10,000 ===== |
(As per registry dated 06-05-2013)
|
Name (Nationality) |
Address |
|
LIU Xiaorong |
15C, Building, 16 Shi Ji Cun Sha He Dong Lu Nan Shan District,
Shenzhen, China. |
|
LEUNG Chi Ching, Frederick |
Flat H, 8/F., Block 13A, South Horizons, Ap Lei Chau, Hong Kong. |
|
SHI Chi |
05B, Unit 5 Building, 1 Shi Ji Cun Sha He Dong Lu Nan Shan District,
Shenzhen, China. |
LEUNG Chi Ching, Frederick (As
per registry dated 06-05-2013)
The subject was incorporated on 6th 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.
Activities: Importer,
Exporter, Wholesaler and Manufacturer
Lines: All kinds of
consumer electronic products especially colour TVs, VCD players, DVD players,
DVB players, home theatre system and digital products, etc.
Trade Mark: “SKYWORTH”
brand.
Group Employees:Over 30,000. (As at 31-03-2012)
Raw Materials: Sourced materials and components from Japan, Korea,
Hong Kong, China and Europe.
Turnover: HK$37,824
million (Year ended 31-03-2013)
Markets: Hong
Kong, China, Europe, Middle East, North America, etc.
Group Turnover:HK$15,387 million (Year ended 31-03-2009)
HK$22,769
million (Year ended 31-03-2010)
HK$24,339
million (Year ended 31-03-2011)
HK$28,137
million (Year ended 31-03-2012)
HK$37,824
million (Year ended 31-03-2013)
Terms/Sales:
L/C or as per contracted.
Terms/Buying: L/C, T/T, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
Group Net Profit: HK$ 503
million (Year ended 31-03-2009)
HK$1,326
million (Year ended 31-03-2010)
HK$1,281
million (Year ended 31-03-2011)
HK$1,268
million (Year ended 31-03-2012)
HK$1,594
million (Year ended 31-03-2013)
Group Net Worth: HK$4,404 million
(As at 31-03-2009)
HK$5,854
million (As at 31-03-2010)
HK$7,249
million (As at 31-03-2011)
HK$8,469
million (As at 31-03-2012)
HK$9,969
million (As at 31-03-2013)
Profit or Loss: Group business is profitable.
Condition: Keeping in a satisfactory condition.
Facilities:
Making active
use of general banking facilities.
Payment:
So far so good.
Commercial Morality: Satisfactory.
Bankers:-
Bank of China (Hong Kong) Ltd.,
Hong Kong.
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standard Chartered Bank (Hong Kong)
Ltd., Hong Kong.
Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong.
Standing: Good.
Smart
Choice Store Co. Ltd. is a wholly-owned subsidiary of Shenzhen Skyworth Digital
Technology Co. Ltd. [SSDT] which is a China-based company. Your given phone and fax number 86-755-2601
0007 and 86-755-2601 0070 belong to SSDT.
The contact person of SSDT is Mr. Zhang Shang, John.
The
subject is trading in the products of SSDT.
SSDT
has 300 engineers and 800 workers. Its
factory covers an area of 650,000 sq.m.
It has had 13 production lines and its monthly maximum production capacity
ranges from 1 to 2 million units of products.
Its monthly production capacity ranges from 900,000 to 1,000,000 units
of products.
SSDT
is engaged in manufacturing all kinds of consumer electronic products
especially colour TVs, VCD players, DVD players, DVB players, home theatre
system and digital products, etc.
The
ultimate holding company of the subject is Skyworth Digital Holdings Ltd.
[SDHL/referred to Group when includes subsidiaries and associates], a
Bermuda-based firm with shares listed on The Stock Exchange of Hong Kong
Ltd. bearing stock code 751 on 7th April, 2000.
SDHL is the holding company of the Skyworth Group.
The
Skyworth Group, is principally engaged in the manufacture and sales of consumer
electronic products and upstream accessories, and property holding.
The
Group is also engaged in the design, manufacture and distribution of colour TV
sets and digital audio-visual products.
The Group has been the largest television exporter in terms of units
exported from the PRC for years. The
Group will explore the PRC and overseas markets in order to make “SKYWORTH”
as an internationally well-known brand.
The
Group now has the following four factories in China:-
Guangzhou
Factory
Inner
Mongolia Factory
Shenzhen
Gongming Factory
Shenzhen
Shiyan Factory
The
Group recorded the following results during the financial year ended
31st March 2013:-
·
Gross profit achieved HK$7,406 million (HK$3,301
million in the first half year), increased by 24.3% year on year; and gross
profit margin was 19.6% (20.1% in the first half year), decreased by 1.6
percentage points compared with that of Previous Year;
·
Profit for the year attributable to the owners of
the Company increased by 19.9%, from HK$1,252 million of the Previous Year to
HK$1,501 million;
·
Profit for the year was HK$1,594 million, surged by
25.7% from that of Previous Year;
·
Sales of TV products and digital set-top boxes
accounted for 79.9% and 10.3% of the Group’s total turnover respectively; &
·
Turnover reached HK$37,824 million (84.7% from the
mainland China market), an increase of 34.4% from that of the financial year
ended 31st March 2012 (the ‘Previous Year’).
For
the FY 2012, the TV sales volume reached 11.43 million sets, 0.93 million sets
more than expectation, of which the mainland China market accounted for 8.71
million sets, exceeding target by 0.61 million sets; whilst the overseas
markets accounted for 2.72 million sets, exceeding target by 0.32 million sets.
For
the Reporting Year FY 2012, sales in the mainland China market accounted for
84.7% of the Group’s total turnover. It
recorded 29.2% growth from HK$24,791 million in the Previous Year to HK$32,039
million. The related gross profit margin
was 21.3% (Year 2012: 22.7%), representing a decrease of 1.4 percentage points
year on year.
The
Group’s sales of TV in mainland China market accounted for 86.6% of the total
domestic turnover. The sales of digital
set-top boxes, white appliances and LCD modules units accounted for 5.9%, 3.4%
and 1.0%, respectively. Other business
units include those engaged in manufacturing of moulds, automobile electronics,
other electronic products and rental collection etc., attributed the remaining
3.1%.
At
31st March 2013, the Group had over 33,000 (Year 2012: 30,000) employees in
China (Hong Kong and Macau inclusive), including sales personnel situated
throughout 41 branches and 204 sales offices.
The
subject is fully supported by the Skyworth Group. History in Hong Kong is over five years.
On
the whole, in view of the parentage and background of the subject, consider it
good for normal business engagements.
Brief
personal profile of the principal directors:-
Mr.
LEUNG Chi Ching, Frederick, aged 55, is an Executive
Director, the Chief Financial Officer and Company Secretary of SDHL. Mr. Leung joined the Group as director of
finance on 20th December, 2004 and has been redesignated as Chief Financial
Officer of SDHL with effect from 8th January, 2007. He is also a director and/or company
secretary of certain subsidiaries of SDHL.
Mr. Leung is mainly responsible for overseeing the finance functions,
corporate governance matters, investor relationship and third party
intellectual property right management of the Group. Mr. Leung is an associate member of the Hong
Kong Institute of Certified Public Accountants, a member of the American
Institute of Certified Public Accountants and the Hong Kong Securities
Institute. Mr. Leung has over 30
year’s experience in corporate finance, banking and accounting.
Mr. Shi Chi, aged 42, is an executive director of the
Company. He joined the Group in 2000 and
is the President and founder of Shenzhen Skyworth Digital Technology Co. Ltd.,
a subsidiary of the Company in which Mr. Shi holds 5% of the shareholding. He is also a director of certain subsidiaries
of the Company.
Mr.
Shi graduated from Huazhong University of Science & Technology with a
Doctorate degree in Communication and Electronic System. Mr. Shi has been participating in numerous
national and provincial projects on technological researches, in charge of
designing several high-end digital television products and publishing over 20
articles in various professional and science journals. He is a Member of The 5th Shenzhen Committee
of Chinese People’s Political Consultative Conference and the Vice President of
China Radio and TV Equipment Industry Association.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.36 |
|
|
1 |
Rs.89.69 |
|
Euro |
1 |
Rs.77.98 |
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.