MIRA INFORM REPORT

 

 

Report Date :

16.04.2014

 

IDENTIFICATION DETAILS

 

Name :

TECHWISE (MACAO COMMERCIAL OFFSHORE) CIRCUITS LIMITED

 

 

Registered Office :

Em Macau, Avenida Da Praia Grande No. 599, Commercial Rodrigues A3

 

 

Country :

Macau

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

29.07.2002

 

 

Com. Reg. No.:

SO 15844

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trading of printed circuit board

 

 

No. of Employees :

10

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Macau

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

MACAU - ECONOMIC OVERVIEW

 

Since opening up its locally-controlled casino industry to foreign competition in 2001, Macau has attracted tens of billions of dollars in foreign investment, transforming the territory into one of the world's largest gaming centers. Macau's gaming and tourism businesses were fueled by China's decision to relax travel restrictions on Chinese citizens wishing to visit Macau. By 2006, Macau's gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for more than 70% of total government revenue. Macau's economy slowed dramatically in 2009 as a result of the global economic slowdown, but strong growth resumed in 2010-11, largely on the back of tourism from mainland China and the gaming sectors. In 2013, this city of 598,000 hosted more than 28 million visitors. Almost two-thirds came from mainland China. Macau's traditional manufacturing industry has slowed greatly since the termination of the Multi-Fiber Agreement in 2005. China is Macau's second largest goods export market, behind Hong Kong, and followed by the United States. In 2013, exports increased about 9% over 2012. Macau's economy expanded by more than 10% in 2013. Macau continues to face the challenges of managing its growing casino industry, risks from money-laundering activities, and the need to diversify the economy away from heavy dependence on gaming revenues. Macau's currency, the pataca, is closely tied to the Hong Kong dollar, which is also freely accepted in the territory. In 2013, Macau signed a supplementary agreement to its Comprehensive Economic Partnership Agreement with mainland China. The agreement, which took effect in January 2014, facilitates trade in services, including finance, health, social services, sports, and tourism.

Source : CIA


Company Details

 

Company Name (in Chinese):

科惠(澳門離岸商業服務)線路有限公司

Company Name (in English):

TECHWISE (MACAO COMMERCIAL OFFSHORE) CIRCUITS LIMITED

Company Name (in Portuguese):

Techwise (Commercial Offshore De Macau) Circuitos Limitada

Supplied Name:

Techwise (Macao Commercial Offshore) Circuits Limited

Trading Address:

Em Macau, Avenida Da Praia Grande No. 599, Commercial Rodrigues A3

Supplied Address:

Av.Da Praia N599, Edificio Commercial Rodrigues 3 Andar A Macau

Telephone Number:

+853-2835-5780

Fax Number:

+853-2835-5786

The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Techwise (Macao Commercial Offshore) Circuits Limited

Registered Address:

Em Macau, Avenida Da Praia Grande No. 599, Commercial Rodrigues A3

Date of Registration:

2002-7-29

Business Registered Number:

SO 15844

Legal Form:

Private Limited Liability Company

Registered Capital:

MOP 100,000 (USD 12,320)

(As of 2014.04, 1 MOP = 0.1232 USD)

Principal Activities:

Trading of printed circuit board

Staff:

About 10 Employees

Listed at Stock Exchange:

No

Information Ended at:

2014-4-1

 

 

History

 

Subject was incorporated on 2002-7-29 with registered number SO 15844 as Private Limited Liability Company in Macau.

 

Shareholders

Unit: MOP

Name

Subscription Amount

Proportion of Investment (%)

Kingboard Investment Limited

100,000

100%

Total

100,000

100%

 

Major Shareholder Information:

Name:

Kingboard Investments Limited

Address:

2/F., Harbor View 1, No.12 Science Park East Avenue, Phase 2 Hong Kong Science Park, Shatin, New Territories, Hong Kong

 

 

Corporate Structure

 

Parent Company

Name:

Kingboard Investments Limited

Address:

2/F., Harbor View 1, No.12 Science Park East Avenue, Phase 2 Hong Kong Science Park, Shatin, New Territories, Hong Kong

Date of Registration:

1987-10-20

Registered Number:

201249

Legal Form:

Private Limited Liability Company

 

Ultimate Parent Company

Name:

Kingboard Chemical Holdings Ltd.

Address:

2/F., Harbor View 1, No.12 Science Park East Avenue, Phase 2 Hong Kong Science Park, Shatin, New Territories, Hong Kong

Country of Incorporation:

Cayman Islands

Staff:

About 50,000 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: HKSE:148

Date of Listed:

1993-10-8

Note: We obtained subject’s ultimate parent company information from public files.

 

Related Companies

1

Name:

Techwise Circuits Company Limited

Address:

1/F, Harbour View 1, No.12 Science Park East Avenue, Phase 2 Hong Kong Science Park, Shatin, N.T., H.K.

Telephone Number:

+852-2677-8928

Fax Number:

+852-2677-8385

Email:

sales@techwise-circuits.com

2

Name:

Huiyang Techwise Industrial Technology Co., Ltd.

Address:

Huiyang Economic Development Zone, Huizhou City, Guangdong Province, China

Telephone Number:

+86-752-350-0078

Fax Number:

+86-752-350-0306

Area:

About 34,000 square meters

3

Name:

Techwise (Fogang) Circuits Limited

Address:

Kingboard Industry Park, Shi Jiao Town, Fogang Country, Qing Yuan, Guangdong Province, China

Telephone Number:

+86-763- 429-6800

Fax Number:

+86-763-428-7599

Area:

About 45,000 square meters

4

Name:

Techwise Shirai (Fogang) Circuits Limited

Address:

Town South Industry Park, Shi Jiao Town, Fogang Country, Qing Yuan, Guangdong Province, China

Telephone Number:

+86-763-420-1888

Fax Number:

+86-763-420-1308

Area:

About 38,000 square meters

 

 

Management Information

 

Core Management

 

1

Name:

Cheung Kowk Wing

Address:

Kam On Garden Block B,No.12-20, Ma On Path, Kau To, Shatin, New Territories, Hong Kong

Marital Status:

Married

2

Name:

Chang Wing Yiu

Address:

Home 25, Sixteen St., Hong Lok Yuen, Tai Po, New Territories, Hong Kong

Marital Status:

Married

3

Name:

Mok Cham Hung Chadwick

Address:

Flat A, 4/F, 20 Babing Ton Path, Mid-Levels, Hong Kong

Marital Status:

Married

4

Name:

Cheung Wail In Stephanie

Address:

Flat B. 2/F., Blk 3, Villa Concerto, Symphony Bay, Ma On Shan, N.T., Hong Kong

Marital Status:

Married

 

Personnel Structure

 

Total Employees

About 10 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Office

Address:

Em Macau, Avenida Da Praia Grande No. 599, Commercial Rodrigues A3

Area:

73.60 square meters

 

Premises Information

 

Office address:

Address:

Em Macau, Avenida Da Praia Grande No. 599, Commercial Rodrigues A3

Owners:

F. Rodrigues Sucessores, Limitada

Matriz:

73199

Nature:

Urban

Duration:

--

 

Production Information

 

·         Subject is a trader of printed circuit board without any production activities.

·         It is introduced that subject’s group has factories in mainland China for production and the monthly production capacity is about 2,700,000 square feet.

 

Purchase Information

 

Subject purchases products mainly from their group factories in mainland China.

 

Sales Information

 

·         Subject is engaged in sale of printed circuit board.

·         It is introduced that subject also provide accounting, administrative and logistic services

·         Subject’s sales regions include domestic market, Japan and Europe

·         The products sold by subject obtained the certification of TS16949.

·         The products sold by subject are applied to automobile, communications, and computer

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Printed circuit board

Interior Settlement, T/T, Cash

100%

 

Import

 

Subject has little import.

 

Sales

 

Domestic Markets

Product

Terms

Proportion

Printed circuit board

T/T, Cash,

100%


Export

Product

Terms

Proportion

Printed circuit board

L/C, T/T

100%

 

 

Financial Information

 

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Macao and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff declined to disclose its financials citing the grounds of company’s confidentiality; from other source we cannot obtain the relevant information, either.

 

We found the consolidated financial information of subject’s ultimate parent company (Kingboard Chemical Holdings Ltd.) from public files for reference.

 

Consolidated Balance Sheet

Unit: HKD/000

Date

2012-12-31

2011-12-31

Non-current assets

5,743,663

3,505,610

Properties, plant and equipment

18,726,836

18,357,984

Prepaid lease payments

1,023,789

947,807

Other non-current assets

--

712,707

Goodwill

2,288,149

2,288,149

Interests in associates

649,317

746,359

Held-to-maturity investments

--

972,883

Available-for-sale investments

3,166,084

4,285,141

Non-current deposits

404,510

1,433,910

Deferred tax assets

5,398

14,342

 

32,007,746

33,264,892

Current assets

 

 

Inventories

3,448,609

2,926,128

Properties held for development

10,063,615

9,227,363

Trade and other receivables and prepayments

8,487,915

8,414,105

Bills receivables

2,209,153

2,120,683

Other current assets

712,531

 --

Prepaid lease payments

30,329

26,034

Taxation recoverable

56,643

42,580

Bank balances and cash

3,914,991

4,437,442

 

28,926,786

27,194,335

Current liabilities

 

 

Trade and other payables

4,959,412

5,023,154

Bills payables

874,954

1,001,947

Deposits received from pre-sale of residential units

379,156

1,423,679

Derivative financial instruments

--

13,761

Taxation payable

554,666

660,536

Bank borrowings

5,734,281

6,723,757

 

12,502,469

14,846,834

Net current assets

16,424,317

12,347,501

Total assets less current liabilities

48,432,063

45,612,393

Non-current liabilities

 

 

Deferred tax liabilities

258,118

167,194

Bank borrowings

12,024,799

11,450,813

 

12,282,917

11,618,007

 

36,149,146

33,994,386

Capital and reserves

 

 

Share capital

85,467

85,467

Share premium and reserves

30,560,168

27,959,913

Equity attributable to owners of the Company

30,645,635

28,045,380

N on-controlling interests

5,503,511

5,949,006

Total equity

36,149,146

(USD 4,663,239,834)

33,994,386

(USD 4,385,275,794)

 (As of 2014.04, 1 HKD = 0.1290 USD)

 

Consolidated Profit and Loss Account

Unit: HKD/000

Date

2012

2011

Revenue

37,290,319

(USD 4,810,451,151)

36,559,072

(USD 4,716,120,288)

Cost of sales and services rendered

-32,185,963

-30,736,317

Gross profit

5,104,356

5,822,755

Other income, gains and losses

372,683

829,564

Distribution costs

-915,402

-903,585

Administrative costs

-1,475,352

-1,468,680

Gain (loss) on disposal of available-for-sale investments

2,634

-30,161

Gain on disposal of held-to-maturity investments

83,138

--

Share-based payments

-105,754

-236,099

Impairment loss on properties, plant and equipment

-12,847

-136,738

Impairment loss on available-for-sale investments

-35,002

-83,878

Gain on disposal of a subsidiary

9,822

34,592

Finance costs

-349,451

-361,881

Gain on deemed disposal of an associate

30,377

Share of results of associates

217,791

254,823

Share of results of jointly controlled entities

--

-1,075

Profit before taxation

2,926,993

3,719,637

Income tax expense

-420,028

-513,061

Profit for the year

2,506,965

3,206,576

 

Profit for the year attributable to:

 

 

Owners of the Company

2,097,031

2,594,142

Non-controlling interests

409,934

612,434

 

2,506,965

3,206,576

Earnings per share

 

 

Basic

HKD 2.454

HKD 3.039

Diluted

HKD 2.454

HKD 3.031

(As of 2014.04, 1 HKD = 0.1290 USD)

 

Consolidated Cash Flows

Unit: HKD/000

Date

2012

2011

OPERATING ACTIVITIES

 

 

Profit before taxation

2,926,993

3,719,637

Adjustments for:

 

 

Share of results of associates

-217,791

-254,823

Share of results of jointly controlled entities

--

1,075

Depreciation of properties, plant and equipment

2,199,986

2,134,650

Impairment loss recognised in respect of trade and other receivables

26,831

56,315

Impairment loss recognised in respect of inventories

1,552

25,942

Dividends from available-for-sale investments

-109,432

-121,113

Interest expenses and other finance charges

349,451

361,881

(Gain) loss on disposal of available-for-sale investments

-2,634

30,161

Gain on disposal of held-to-maturity investments

-83,138

--

Gain on fair value changes of investment properties

-28,915

-412,361

Gain on deemed disposal of an associate

-30,377

--

Release of prepaid lease payments

30,434

24,146

Interest income

-192,228

-131,070

Impairment loss on available-for-sale investments

35,002

83,878

Loss on disposal and write off of properties, plant and equipment

48,617

14,370

Share-based payments

105,754

236,099

Gain on disposal of a subsidiary

-9,822

-34,592

Gain on disposal of prepaid lease payments

-653

--

Impairment loss recognised in respect of properties, plant and equipment

12,847

136,738

Operating cash flows before movements in

working capital

5,062,477

5,870,933

Increase in properties held for development

-429,808

4,019,171

(Increase) decrease in inventories

-519,348

404,737

Increase in trade and other receivables and

prepayments

-208,169

-376,921

Increase in bills receivables

-88,993

-92,121

(Decrease) increase in trade and other payables

-258,355

-611,471

Decrease in bills payables

-126,746

-219,076

(Decrease) increase in deposits from pre-sale of residential units

-1,044,172

309,461

N et decrease in derivative financial instruments

--

-33,493

Cash generated from operations

2,386,886

2,455,820

Hong Kong Profits Tax paid

-2,772

-5,295

PRC Land Appreciation Tax (“LAT”) paid

-31,936

--

Other income taxes paid

-501,406

-456,295

NET CASH FROM OPERATING ACTIVITIES

1,850,772

1,994,230

INVESTING ACTIVITIES

 

 

Purchase of available-for-sale investments

-2,407,553

-3,565,543

Net cash outflow on acquisition of subsidiaries

-1,504,544

-404,519

Purchase of properties, plant and equipment

-1,295,175

-2,274,228

Purchase of investment properties

-703,808

-4,813

Deposits paid for acquisition of properties,

plant and equipment

-93,911

-1,206,914

Net cash (outflow) inflow on disposal of

subsidiaries

-30,264

165,962

Increase in pledged bank deposits

-29,679

-5,577

Prepaid lease payments made

-14,092

-77,702

Proceeds from disposal of available-for-sale

investments

4,037,734

659,828

Proceeds from disposal of held-to-maturity

investments

1,061,626

--

Dividend received from an associate

216,977

178,971

Interest received

177,598

127,918

Proceeds from disposal of properties, plant and equipment

76,436

374,637

Dividends received from available-for-sale

investments

109,432

121,113

Proceeds from disposal of prepaid lease

payments

15,166

47,776

Considerations paid for additional interest

in an associate

--

-50,988

Purchase of held-to-maturity investments

--

-890,667

N ET CASH USED IN INVESTING ACTIVITIES

-384,057

-6,804,738

FINANCING ACTIVITIES

 

 

Repayment of bank borrowings

-8,397,574

-4,382,738

Consideration paid for acquisition of additional interests in subsidiaries

-605,885

-106,724

Interest and other finance charges paid

-356,967

-370,322

Dividend paid on ordinary shares

-299,134

-854,667

Dividend paid to non-controlling shareholders of subsidiaries

-233,370

-484,793

New bank borrowings raised

7,850,325

10,163,923

Proceeds from exercise of warrants

4

27,824

Capital contribution from non-controlling shareholders of subsidiaries

--

4,437

Proceeds from exercise of share options

--

16,730

NET CASH (USED IN) FROM FINANCING ACTIVITIES

-2,042,601

4,013,670

NET DECREASE IN CASH AND CASH

EQUIVALENTS

-575,886

-796,846

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR

4,304,197

5,022,022

EFFECT OF FOREIGN EXCHANGE RATE

CHANGES

23,789

79,021

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

3,752,100

4,304,197

ANALYSIS OF THE BALANCES OF CASH AND CASH EQUIVALENTS

 

 

Bank balances and cash

3,914,991

4,437,442

Less: Pledged bank deposits

-162,891

-133,245

Balances of cash and cash equivalents

3,752,100

4,304,197

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.

 

 

Interview Details

 

Name:

Mr. Zheng

Department:

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.26

UK Pound

1

Rs.100.71

Euro

1

Rs.83.27

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NNA

 

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.