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Report Date : |
05.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
TRICHEER TELECOMMUNICATION LTD. |
|
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Registered Office : |
Room 301, 3/F., Fanling Distribution Centre, 23 Yip Cheong Street, On Lok Tsuen, Fanling, New Territories |
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Country : |
Hong Kong |
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Date of Incorporation : |
20.07.2009. |
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Com. Reg. No.: |
50908195 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of all kinds of mobile phones and accessories. |
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No. of Employees : |
4,000. (Group Employee) |
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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
TRICHEER TELECOMMUNICATION LTD.
Address: Room 301, 3/F.,
Fanling Distribution Centre,
23 Yip
Cheong Street,
On Lok
Tsuen, Fanling,
New
Territories, Hong Kong.
Note: The former name of Fanling
Distribution Centre was Lung Fung Group Centre.
PHONE: 852-2480 0989, 2421 2998
FAX: 852-2480 0996
E-MAIL: wuyanling@longcheer.net
Executive Director & Chairman:
Dr. Du Junhong
Chief Executive Officer: Mr. Deng
Hua
Incorporated on: 20th
July, 2009.
Organization: Private
Limited Company.
Capital: Nominal: US$10,000,000.00
Issued: US$6,000,000.00
Business Category: Mobile phone trader.
Group Revenue: RMB2,329,385,000 (Year ended 30-06-2012)
Group Employees: 4,000.
Main Dealing Banker: DBS Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 301, 3/F., Fanling Distribution Centre, 23 Yip Cheong Street, On
Lok Tsuen, Fanling, New Territories, Hong Kong.
Warehouse:-
Well Fung Industrial Centre, 68 Ta Chuen Ping Street, Kwai Chung,
New Territories, Hong Kong.
[Tel.: 852-2480 0989; Fax:
852-2480 0996]
Holding Company:-
Shanghai Longcheer 3G Technology Co. Ltd.
1/F., Block 5, 299 Lane, Bisheng Road, Zhangjiang Hi-Tech Industrial
Park, Shanghai, China.
Ultimate Holding Company:-
Longcheer Holdings Ltd.
Registered Office and Incorporated in Bermuda
Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
Place of Business and Listed in Singapore
36 Robinson Road, #17-01, City House, Singapore 068877.
Place of Business in China
3/F., Building 1, 401 Caobao Road, Xuhui District, Shanghai 200233,
China.
Tel.: 86-21-6408 8898
Fax: 86-21-5497
0876
E-mail: service@longcheertel.com
Wholly-owned subsidiary:-
Threecheer Telecommunication Ltd., British Virgin Islands.
Associated Companies:-
Longcheer Group of Companies
Beijing DV Information Technology Co. Ltd., China.
DBG (BVI) Holdings Ltd., British Virgin Islands.
DBG Holdings Ltd., Hong Kong.
Huizhou Daya Bay Guang Hong Electronics Co. Ltd., China.
Huizhou Longhe Industries Co. Ltd., China.
Huizhou Zhonglian Electronics Co. Ltd., China.
Longcheer Electronics (Huizhou) Co. Ltd., China.
Longcheer Technology (India) Pvt. Ltd., India.
Longcheer Technology (shanghai) Co. Ltd., China.
Longcheer Telecommunication (H.K.) Ltd., Hong Kong.
Longcheer Telecommunication Ltd., Malaysia.
Mentech Investment Ltd., Hong Kong.
Mobell Technology Pte. Ltd., Singapore.
Shanghai Mobell Technology Co. Ltd., China.
Shanghai QL Telecommunications Co. Ltd., China.
Sinolong Technology (Shanghai) Co. Ltd., China.
Top Keen Technology (Huizhou) Co. Ltd., China.
Top Keen Technology Ltd., Hong Kong.
Xi’an Longfei Software Co. Ltd., China.
etc.
50908195
1354060
Executive Director & Chairman:
Dr. Du Junhong
Nominal Share Capital: US$10,000,000.00 (Divided into10,000,000 shares
of US$1.00 each)
Issued Share Capital: US$6,000,000.00
(As per registry dated 20-07-2013)
|
Name |
Occupation |
No. of shares |
|
Shanghai Longcheer 3G Technology Co. Ltd. 1/F., Building 5, Lane 299, Bisheng Road, Zhangjiang High Technology
Park, Shanghai, China. |
Corporation |
6,000,000 ======= |
(As per registry dated 20-07-2013)
|
Name (Nationality) |
Address |
|
DU Jun Hong |
No. 322 Shui Qing Road, Minhang District, Shanghai, Hong Kong. |
|
DENG Hua |
Room 602, 46 Lane 588, Shui Qing Road, Minhang District, Shanghai,
China. |
|
TU Bi Qin |
Room 202, No. 22, Lane 77, Caobao Road, Xuhui District, Shanghai,
China. |
(As per registry dated 20-07-2013)
|
Name |
Address |
Co. No. |
|
OCR Company Secretary Services Ltd. |
Room 1508, 15/F., Hing Yip Commercial Centre, 272-284 Des Voeux Road
Central, Hong Kong. |
1403947 |
The subject was incorporated on 20th July, 2009 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Unit A, 25/F., Ryoden Industrial
Centre, 26-38 Ta Chuen Ping Street, Kwai Chung, New Territories,
Hong Kong. In June 2010, the
subject moved to the present address.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Mobile
phone trader.
Lines: All
kinds of mobile phones and accessories.
Group Employees: 4,000.
Commodities Imported: Imported from Switzerland and other European countries.
Markets: Hong
Kong, India, East Asia, China, etc.
Group Revenue:-
RMB3,291,631,000 (Year ended 30-06-2008)
RMB2,845,005,000 (Year ended 30-06-2009)
RMB4,282,660,000 (Year ended 30-06-2010)
RMB3,583,570,000 (Year ended 30-06-2011)
RMB2,329,385,000 (Year ended 30-06-2012)
RMB1,573,494,000 (9 months ended 31-03-2012) – Unaudited
RMB2,672,868,000 (9 months ended 31-03-2013) – Unaudited
Terms/Sales:
As per contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: US$10,000,000.00 (Divided into10,000,000 shares
of US$1.00 each)
Issued Share Capital: US$6,000,000.00
Group Net Profit/(Loss) Attributable to
Owners:-
RMB196,207,000 (Year ended 30-06-2008)
RMB145,885,000 (Year ended 30-06-2009)
RMB159,208,000 (Year ended 30-06-2010)
(RMB 72,248,000) (Year ended 30-06-2011)
(RMB 94,793,000) (Year ended 30-06-2012)
(RMB 19,388,000) (9 months ended 31-03-2012) –
Unaudited
RMB 38,940,000
(9 months ended 31-03-2013) – Unaudited
Group Net Worth:-
RMB577,801,000 (As at 30-06-2008)
RMB645,365,000 (As at 30-06-2009)
RMB738,175,000 (As at 30-06-2010)
RMB627,553,000 (As at 30-06-2011)
RMB533,613,000 (As at 30-06-2012)
RMB572,345,000 (9 months ended 31-03-2013) – Unaudited
Profit or Loss: The Group suffered from losses in FY2011 & 2012.
Condition: Business
is normal.
Facilities: Making
rather active use of general banking facilities.
Payment:
Met as
contracted.
Commercial Morality: Satisfactory.
Banker: DBS Bank (Hong Kong) Ltd.,
Hong Kong.
Standing:
Normal.
Tricheer Telecommunication Ltd. is a wholly-owned subsidiary of Shanghai
Longcheer 3G Technology Co. Ltd. which is a Shanghai-based company. The subject is 72.7% owned by Longcheer
Holdings Ltd. [LHL] which is a Bermuda-registered firm. LHL is the ultimate holding company of the
subject.
The subject is engaged in manufacturing and marketing wireless devices,
mobile handset printed circuit and related materials.
The subject has registered with the Office of the Communications
Authority (OFCA), The Government of Hong Kong SAR, the People’s Republic of
China as a Radio Dealer (Unrestricted) Licensee. The subject bears the licence No. of
RU00134419-RU.
LHL was incorporated on 12th August, 2004 as a Chinese mobile handset
designing house. It is a public listed
company with shares quoted on the Main Board of Singapore Exchange Securities
Trading Ltd. (bearing SGX Stock Code: LONGCHEER) on 13th May, 2005. With an authorized capital of US$50 million
and an issued share capital of US$7,933,282.00, LHL is an investment holding
company. It operates as a design house
for mobile telecommunication devices, providing design solutions for various
segments of the handset value chain, from hardware and software to system
testing and exterior design. It focuses
on developing products and services in the follows areas: handsets design,
mobile handsets, wireless communication, data communication products, mobile
broadband technology, and mobile Internet applications. Its products are based on GSM, GPRS, EDGE,
WCDMA, HSDPA, HSUPA, CDMA, TD‑SCDMA,
and Wi-Fi; and include multimedia features, such as MP3, MP4, MDTV, GPS, FM,
and camera, as well as various software application and mobile Internet. In addition, LHL is also engaged in property
holding; manufacturing, trading, and marketing mobile handsets and data
products. It also manufactures and sells
mobile handset printed circuit boards.
LHL was originally founded in 2002 and is headquartered in Shanghai,
China. It has offices in Beijing, Shenzhen,
Xi’an, Hong Kong, Singapore, Japan, India and Vietnam. In 2005 and 2006, LHL was ranked as one of
the fastest growing technology companies in “Technology Fast 50 China Ranking”
and “Technology Fast 500 Asia Pacific Ranking”.
LHL’s customers or business customers include many reputable labels such
as “China Unicom”, “CHINA TELECOM”, “CHINA MOBILE”,
“3”, “fly”, “Haier”, “lenovo”, “ALCATEL”, “GiONEE”,
“InfoSonics”, “MEDIATEK”, “QUALCOMM”, “ANALOG
DEVICES”, “Dtmobile”, “Texas Instruments”, “intel”,
“Microsoft”, “Infineon”, “SAMSUNG”, “KWE”, “FOXCONN”,
“EASTCOM”, etc.
LTHK is one of the subsidiaries of LHL.
It is an investment holding company and is also engaged in manufacturing
and sales of mobile handset printed circuit and related materials.
LTHK maintains an assembly factory in China through its 100%-owned
subsidiary, Longconn Electronics (Shenzhen) Co. Ltd. [Longconn]. Longconn was incorporated in 2007 to focus on
the assembly of complete mobile handsets.
Longconn has leased a factory in Shenzhen for this purpose.
LTHK has registered with the Office of the Communications Authority
(OFCA), The Government of Hong Kong SAR, the People’s Republic of China as a
Radio Dealer (Unrestricted) Licensee. It
bears the licence No. of RU00117146-RU.
On 30th December, 2009, LHL acquired the land use rights to two
adjoining plots of land situated at Huizhou Zhongkai Hi-Tech Industrial
Development Zone to be used for the establishment of an assembly plant for
mobile handsets. The first phase of the
Huizhou Factory was anticipated to complete and become operational in 2011,
with an output capacity of approximately 1 million units of mobile handsets per
month. The Huizhou factory has been in
operation for approximately one year and has sufficient capacity to cater to
the Group’s current needs.
On 29th June, 2012, LTHK entered into an equity transfer agreement with
Zechin Technology Co. Ltd., to transfer 100% of its shareholdings in Longconn
for a transfer price of US$1,000,000.00.
The disposal would allow the Group to dispose of its interests in
Longconn to a third party and after that would focus its assembly processes in
the Huizhou factory.
Following the Group’s strategy of focusing on higher value products,
shipments in FY2012 decreased by 49% to 14.2 million units. As a result, revenue for FY2012 decreased by
35% to RMB2.33 billion as compared to FY2011 (RMB3.58 billion).
Consistent with its strategy of focusing on higher value products, 3G
smartphones accounted for 36% of total shipments in FY2012 as compared to 11%
in FY2011. This was the primary driver
of Average Selling Prices [ASP] of handset solutions increasing to RMB 155.9
per unit in FY2012, 21% higher than the RMB 128.9 per unit recorded in FY2011.
Gross profit for FY2012 grew to RMB 219.1 million, up 8% over the prior
year. This was largely due to gross profit margin climbing from 5.7% in FY2011
to 9.4% in FY2012.
The higher gross profit and gross profit margin in FY2012 was primarily
from increased contributions from higher value 3G smartphones, as well as its
focus on increasing the proportion of brands and operators seeking high value
products.
In FY 2012, the Group made a net loss of RMB94.8 million as compared
with a net loss of RMB72.2 million in FY 2011.
However, for the nine months ended 31st March, 2013, the profit of the
Group attributable to owners of the company amounted to RMB38.9 million.
The Group predicts it will make a profit in FY 2013.
The subject is fully supported by the Group.
On the whole, in view of the parentage of the subject, consider it good
for normal business engagements.
Brief personal
profile of the principal directors:-
Dr. DU Junhong, aged 40, is an Executive Director and
Chairman. He is a founder of our Group. Dr. Du was appointed to the Board on
20th August, 2004 and was re-elected on 30th October, 2009. He is responsible for the overall operations,
corporate policies, business development and investment strategy of the
Group. Prior to founding the Group in
July 2002, Dr. Du was with ZTE Corporation, one of the largest listed
telecommunications equipment providers in China, where he organised and led
various research and development projects and project development. After graduating from Zhejiang University, he
joined ZTE Corporation in June 1999 as a mobile handset engineer, and was
subsequently promoted through the ranks to project manager and to head of
department of the systems division. He
obtained his Bachelors, Masters and Doctoral degree in Electrical Engineering
from Zhejiang University, China.
Mr. DENG Hua, aged 42, is a Executive Director and CEO. He is a founder of the Group. Mr. Deng was appointed to the Board on 1st
February, 2005 and was re-elected on 31st October, 2008. He is responsible for the day-to-day
operations of the Group. Prior to this,
Mr. Deng was with Nanjing CRT Factory as section head of the production
planning division from August 1992 to July 1995. Thereafter, he joined San Neng Electronic
Instruments Co. Ltd. as head of the manufacturing division, before leaving in
March 1997 to join the quality assurance division of Nanjing Huapu Electronics
Co. Ltd. (which manufactures cathode-ray-tubes used in television sets and
computers), where he was responsible for quality management and after-sales
support. In March 1999, he was appointed
head of the planning division, mobile phone department, of ZTE
Corporation. Mr. Deng has a Bachelor of
Engineering from the Technology and Physics Faculty of Xi Dian University,
China. He completed his Executive MBA
programme from China-Europe International Business School.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.40 |
|
|
1 |
Rs.99.28 |
|
Euro |
1 |
Rs.83.68 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.