MIRA INFORM REPORT

 

 

Report Date :

04.03.2013

 

IDENTIFICATION DETAILS

 

Name :

CITIC  TELECOM  INTERNATIONAL  LTD.

 

 

Registered Office :

25/F., CITIC Telecom Tower, 93 Kwai Fuk Road, Kwai Chung, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

05.12.1996.

 

 

Com. Reg. No.:

21615094

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Provision of licensed telecommunications services

 

 

No. of Employees :

468

 

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 :

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

 

CITIC  TELECOM  INTERNATIONAL  LTD.

 

 

Address:           25/F., CITIC Telecom Tower,

                        93 Kwai Fuk Road,

                        Kwai Chung, New Territories,

                        Hong Kong.

 

 

PHONE:            2820 2111,  2104 5511

 

FAX:                 2877 2771

 

 

MANAGEMENT

 

Group Chief Executive Officer:  Mr. Yuen Kee Tong, Norman

 

 

SUMMARY

 

Incorporated on:             5th December, 1996.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:              HK$2.00

 

Business Category:        Provision of licensed telecommunications services.

 

Group Turnover:              HK$3,609,810,000  (Year ended 31-12-2012)

 

Group Employees:         900.  (As at 31-12-2012)

 

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

 

Banking Relation:           Good.


ADDRESS

 

Registered Head Office:-

25/F., CITIC Telecom Tower, 93 Kwai Fuk Road, Kwai Chung, New Territories, Hong Kong.

 

China Factory:  Shenzhen Special Economic Zone, China.

 

Holding Company:-

CITIC Telecom International Holdings Ltd. [CTIH], Hong Kong.
[Formerly known as CITIC 1616 Holdings Ltd.]

 

Intermediate Holding Company:-

CITIC Pacific Ltd., Hong Kong.

 

Ultimate Holding Company:-

Beijing CITIC Group, China.

 

Sister/Associated Companies:-

CTIH Group of Companies

Amazing Gains Finance Ltd., British Virgin Islands.

Asia Pacific Internet Exchange Ltd., Hong Kong.

CITIC 1616 Holdings Ltd., Hong Kong.
[Formerly known as Data Communication Services Ltd.]

CITIC Consultancy 1616 Ltd., Hong Kong.

CITIC Media 1616 Ltd., Hong Kong.

CITIC Telecom 1616 (UK) Ltd., UK.
[Formerly known as China Motion (UK) Ltd.]

CITIC Telecom International (Concept) Ltd., Hong Kong.
[Formerly known as CITIC Concept 1616 Ltd.]

CITIC Telecom International (Data) Ltd., Hong Kong.
[Formerly known as CITIC Data 1616 Ltd.]

CITIC Telecom International CPC Ltd., Hong Kong.
[Formerly known as CPCNet Hong Kong Ltd.]

CITIC TeleSoft 1616 Ltd., Hong Kong.

ComNet (Japan) K.K., Japan.
[Formerly known as China Motion (Japan) Ltd.]

ComNet (USA) LLC, USA.
[Formerly known as CM Tel (USA) LLC]

ComNet Communications (Singapore) Pte. Ltd., Singapore.
[Formerly known as Macquarie Telecom Pte. Ltd.]

ComNet Investment Ltd., Hong Kong.
[Formerly known as Hen Fai Engineering Networks Co. Ltd.]

ComNet Telecom (Canada) Ltd., Canada.
[Formerly known as ChinaMotion NetCom (Canada) Ltd.]

ComNet Telecom (HK) Ltd., Hong Kong.
[Formerly known as CM Tel (HK) Ltd.]

ComNet Telecom (Singapore) Pte. Ltd., Singapore.
[Formerly known as China Motion (Singapore) Pte. Ltd.]

ComNet Telecom International Ltd., Hong Kong.
{Formerly known as Communication Network International Ltd.
 [Formerly known as ChinaMotion NetCom (Asia) Ltd.]}

Companhia de Telecomunicações de Macau S.A.R.L., Macau.

CPCNet Japan Ltd., Japan.

CPCNet Singapore Private Ltd., Singapore.

Crown Yield (HK) Ltd., Hong Kong.

Grand Pacific Networks Private Ltd., Singapore.

Nebular Telecom Japan K.K., Japan.

etc.

 

 

BUSINESS REGISTRATION NUMBER 

 

21615094

 

 

COMPANY FILE NUMBER

 

0578370

 

 

MANAGEMENT

 

Group Chairman:  Mr. Xin Yue Jiang

 

Group Chief Executive Officer:  Mr. Yuen Kee Tong, Norman

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$2.00

 

 

SHAREHOLDER

(As per registry dated 05-12-2012)

 

Name

 

No. of shares

CITIC Telecom International Holdings Ltd., Hong Kong.

 

2

=

 

DIRECTORS

(As per registry dated 05-12-2012)

 

Name

(Nationality)

 

Address

YUEN Kee Tong, Norman

House 101, Palm Drive, The Redhill Peninsula, 18 Pak Pat Shan Road, Tai Tam, Hong Kong.

 

CHAN Tin Wai, David

Flat 2, 4/F., Block K, Beverly Hill, 6 Broadwood Road, Hong Kong.

 

XIN Yue Jiang

Flat B, 28/F., Regal Crest, 9 Robinson Road, Hong Kong.

 

FEI Yiping

Flat H, 10/F., Tower 1, Grand Promenade, 38 Tai Hong Street, Hong Kong.

 

LIU Jifu

76 Headland Drive, Discovery Bay, Hong Kong.

 

 

SECRETARY

(As per registry dated 05-12-2012)

 

Name

Address

Co. No.

CITIC Secretaries Ltd.

32/F., CITIC Tower, 1 Tim Mei Avenue, Central, Hong Kong.

0208916

 

 

HISTORY

 

The subject was incorporated on 5th December, 1996 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Natural Resources Ltd., name changed to Telecom 1616 Ltd. on 15th January, 1999, to CITIC Telecom 1616 Ltd. on 20th October, 2000, and further to the present style on 26th November, 2010.

Formerly the subject was located at 8/F., CITIC Tower, 1 Tim Mei Avenue, Central, Hong Kong, moved to 25/F., Broadway Centre, 93 Kwai Fuk Road, Kwai Chung, New Territories, Hong Kong with effect from 4th October, 2010.  The name of the building was changed from Broadway Centre to CITIC Telecom Tower on 28th November, 2010.

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

 

 

OPERATIONS

 

Activities & Lines:                      Provision of licensed telecommunications services.

 

Group Employees:-                    (As at 31-12-2012)

468   (Hong Kong)

432    Mainland China & overseas

 

Business Territories:                  China, North America, Europe and other countries.

 

Group Turnover:-

HK$2,486,362,000  (Year ended 31-12-2008)

HK$2,716,559,000  (Year ended 31-12-2009)

HK$2,966,469,000  (Year ended 31-12-2010)

HK$3,196,753,000  (Year ended 31-12-2011)

HK$3,609,810,000  (Year ended 31-12-2012)

 

Terms/Services:                         Cash or as per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:               HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:                 HK$2.00

 

Group Profit Attributable to Shareholders:-

HK$332,128,000  (Year ended 31-12-2008)

HK$371,527,000  (Year ended 31-12-2009)

HK$401,288,000  (Year ended 31-12-2010)

HK$458,246,000  (Year ended 31-12-2011)

HK$461,283,000  (Year ended 31-12-2012)

 

Profit or Loss:                            Traded at a profitable angle.

 

Condition:                                  Business is active and normal.

 

Facilities:                                  Making active use of general banking facilities.

 

Payment:                                  Regularly met.

 

Commercial Morality:                 Good.

 

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

 

Standing:                                  Good.

 

 

GENERAL

 

CITIC Telecom International Ltd. is an international telecommunication service provider.  It is a wholly-owned subsidiary of CITIC Telecom International Holdings Ltd. [CTIH] which is a public listed firm in Hong Kong.  CTIH now is the holding company of the CTIH Group.

Established in 1999, CTIH’s shares have been listed on the Main Board of The Stock Exchange of Hong Kong Ltd. with stock code 1883 since 3rd April, 2007.  CTIH is one of the leading telecommunications hubs to provide telecom services in the Asia Pacific including voice service, mobile SMS and other value added services (signaling transit, prepaid roaming and VAS applications), data service and telecom solutions to telecom carriers, mobile operators and ISP.

With carrier-grade platforms, intelligent network management, high-quality customer services and advanced technology, CTIH is committed to best‑in‑class levels of communication services for telecom carriers and mobile operators around the globe.  It has already established its worldwide connectivity with around 527 telecom operators in 68 countries or regions globally carrying voice, mobile signaling, SMS, data and IP traffics with absolute reliability and service quality on its network.

Parent company of CTIH, CITIC Pacific Ltd. [CITIC Pacific], is also a publicly quoted Hong Kong company with a diversified portfolio and unrivalled expertise in operating businesses in Hong Kong and Mainland China.  CITIC Pacific’s core international business includes special steel manufacturing, civil infrastructure, aviation, property development, power generation, marketing and distribution as well as communications.  CITIC Pacific also enjoys strong support from its substantial shareholder, Beijing‑based conglomerate CITIC Group.

For the year ended 31 December, 2012, the Group’s profit attributable to equity shareholders increased to HK$461.3 million (2011: HK$458.2 million) while turnover rose to HK$3,609.8 million (2011: 3,196.8 million).

The followings are the financial highlights of the Group in FY 2012:-

·         1.8 billion SMS carried.

·         Turnover from Data Services increased by 29.7% to HK$952.0 million;

·         Turnover from Mobile VAS increased by 15.0% to HK$202.7 million;

·         Voice traffic handled over 8.6 billion minutes.

The Group recorded revenue of HK$2,079.6 million from voice services in 2012 (2011: HK$1,939.1 million), a year-on-year increase of 7.2%.

There was however a drop of 4.9% in total traffic volume, which was mainly due to our decision to focus on areas with high margin traffic.

On 13th January 2013, the Group entered into two sale and purchase agreements with Sable Holding Limited (a wholly-owned subsidiary of Cable & Wireless Communications Plc) and Portugal Telecom, SGPS, S.A., PT Participacoes SGPS, S.A. and PT Comunicacoes, S.A. respectively to acquire their entire interests in CTM (being a total of 79% interest), for a total cash consideration of US$1,161,300,000 (approximately HK$9,058,100,000), subject to adjustments as set out in the relevant sale and purchase agreements (together referred to as the “Acquisitions”).  Upon completion of the Acquisitions, the Group will hold a 99% interest in CTM, which will then become a subsidiary of the Group.  The completion of the Acquisitions will be subject to the terms and conditions as set out in the relevant sale and purchase agreements.

As at the end of December 2012, the Group employed a total of 900 employees (2011: 554) for its headquarter in Hong Kong and its principal subsidiaries.  Employees overseas and in mainland China totalled 432.  The increase in number of employees was mainly due to acquisition projects completed during the year.

The subject is fully supported by the CTIH Group.

On the whole, consider it good for normal business engagements.

 

 

REMARKS

 

            Personal profile of the principal directors:-

Mr. XIN Yue Jiang, aged 64, has been appointed as the Chairman of CTIH from 19th March, 2009.  He joined CTIH in January 2008 as Executive Director and Vice Chairman of the Board.  Mr. Xin graduated from China Naval Aeronautic Engineering Institute and Central University of Finance and Economics and obtained a Master degree in Economics and Management from the Graduate School of Chinese Academy of Social Sciences.  After serving a substantial period of time in the PRC government in which Mr. Xin was involved in the administration of science, technology information and economics, Mr. Xin joined in succession various major conglomerates as senior management, researcher or chief engineer.  When Mr. Xin was with China Netcom (Hong Kong) Operations Ltd., he held the position of senior vice president and senior consultant.  Mr. Xin had also participated in the planning, implementation and management of many different important state projects.  Mr. Xin thus possesses extensive knowledge and experience in science and technology information, business operation and management, and capital market operation.  Since 1985, Mr. Xin has joined many different overseas studies and visits, and gained many valuable experiences in promoting co-operation with overseas enterprises, technology exchange, product research and development, and product marketing.  Mr. Xin has long been interested in the study and research of corporate governance and corporate culture, in particular the characteristics of Western economy and the corporate governance practices adopted by overseas enterprises, and has made significant achievement in that regard.

Mr. YUEN Kee Tong, J.P., aged 64, is the Chief Executive Officer of CTIH.  Mr. Yuen is a member of the Association of Chartered Certified Accountants of the United Kingdom and also a member of the Hong Kong Institute of Certified Public Accountants.  He joined CITIC Pacific, the controlling shareholder of CTIH, in 2001 as the Deputy Managing Director.  Mr. Yuen resigned from the Board of CITIC Pacific on 8th January, 2007 and assumed the position of director and Chief Executive Officer of CTIH on the same day.  Mr. Yuen has more than 20 years extensive experience in all aspects of telecoms industry.  Mr. Yuen was the Deputy Chief Executive of Hong Kong Telecommunications Ltd. and later, Pacific Century CyberWorks Ltd.  Mr. Yuen served many public bodies and advisory committees.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.48

UK Pound

1

Rs.82.72

Euro

1

Rs.71.27

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.