MIRA INFORM REPORT

 

 

Report Date :

18.08.2014

 

IDENTIFICATION DETAILS

 

Name :

MIDEA INTERNATIONAL TRADING CO. LTD.

 

 

Registered Office :

Room 3905-3911, 39/F., Tower 6, Gateway II, Harbour City, 9 Canton Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

31.10.2007

 

 

Com. Reg. No.:

38564949

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of Household electric appliances.

 

 

No. of Employees

40  (Including associated company)

 

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hong Kong

A1

A1

 

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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 

 

 


Company name and address

 

MIDEA INTERNATIONAL TRADING CO. LTD.

 

ADDRESS:      

 

Room 3905-3911, 39/F., Tower 6, Gateway II, Harbour City, 9 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            852-2376 1229,  3669 4888

 

FAX:                 852-2376 1297,  2175 0019

 

 

MANAGEMENT

 

Managing Director:  Ms. Yuan Liqun

 

 

SUMMARY

 

Incorporated on:             31st October, 2007.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           US$10,000.00

Issued:                          US$10,000.00

 

Business Category:        Importer and Exporter.

 

Group Turnover:             RMB120,975,003,140.00 Yuan  (Year ended 31-12-2013)

 

Employees:                   40  (Including associated company)

 

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

 

Banking Relation:           Satisfactory.


Company name and address

 

MIDEA INTERNATIONAL TRADING CO. LTD.

 

ADDRESS

 

Registered Head Office:-

Room 3905-3911, 39/F., Tower 6, Gateway II, Harbour City, 9 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company:-  (Same address)

Midea International Corporation Co. Ltd., Hong Kong.

 

Ultimate Holding Company:-

Midea Group Co. Ltd., China.

 

Associated Companies:-

Midea Group of Companies

Anhui Meizhi Compressor Co. Ltd., China.

Anhui Meizhi Precision Manufacturing Co. Ltd., China.

Foshan Midea Carrier Air Conditioning Equipment Co. Ltd., China.

Foshan Shunde Midea Electrical Heating Appliances Manufacturing Co. Ltd., China.

GD Midea Commercial Air-Conditioning Equipment Co. Ltd., China.

GD Midea Heating & Ventilating Equipment Co. Ltd., China.

GD Midea Holding Co. Ltd., China.

GD Midea Refrigeration Equipment Co. Ltd., China.

Guangdong Meizhi Compressor Co. Ltd., China.

Guangdong Meizhi Precision Manufacturing Co. Ltd., China.

Guangdong Midea Group Wuhu Refrigeration Equipment Co. Ltd., China.

Hefei Midea heating & Ventilating Equipment Co. Ltd., China.

Linkgo - HK Ltd., Hong Kong.

Midea Air Con Middle East FZE, UAE.

Midea America (Canada) Corporation, Canada.

Midea America Corporation, US.

Midea Deutschland GmbH, Germany.

Midea Development (Hong Kong) Co. Ltd., Hong Kong.

Midea do Brasil Ltda., Brazil.

Midea Electric (Hong Kong) Ltd., Hong Kong.

Midea Electric Trading (Singapore) Co. Pte. Ltd., Singapore.

Midea Group Finance Co. Ltd., China.

Midea Group Wuhan Refrigerating Equipment Co. Ltd., China.

Midea Holding (International) Ltd., Hong Kong.

Midea Home Appliances (HK) Ltd., Hong Kong.

Midea Home Appliances Investments (Hong Kong) Co. Ltd., Hong Kong.

Midea Italia SRL, Italy.

Midea Refrigeration (Hong Kong) Ltd., Hong Kong.  (Same address)

Midea Scott & English Electronics Sdn. Bhd., Malaysia.

Midea USA Inc., US.

Van Phong Daidien Tru Media, Vietnam.

Welling Holding Ltd., Hong Kong.

Wuhu Meizhi Air-conditioner Co. Ltd., China.

Wuxi Little Swan Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

38564949

 

 

COMPANY FILE NUMBER

 

1180486

 

 

MANAGEMENT

 

Managing Director:         Ms. Yuan Liqun

 

 

CAPITAL

 

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

 

Issued Share Capital:     US$10,000.00

 

 

SHAREHOLDER

 

(As per registry dated 31-10-2013)

Name

 

No. of shares

Midea International Corporation Co. Ltd., Hong Kong.

 

10,000

=====

 

 

DIRECTORS  

 

(As per registry dated 30-01-2014)

Name

(Nationality)

 

Address

YANG Yanwu

Room 603, Tower 9, Ding Xiang Ge, Yin Xing Ya Yuan, No.18 Heguixi Street, Daliang, Shunde District, Foshan, Guangdong, China.

 

YUAN Liqun

Flat G, 12/F., Block 8, Site 2, Whampoa Garden, Hunghom, Kowloon, Hong Kong.

 

 

SECRETARY

 

(As per registry dated 30-01-2014)

Name

Address

LI Siu Ling, Prudence

Flat G, 12/F., Block 8, Site 2, Whampoa Garden, Hunghom, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 31st October, 2007 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 and Exporter.

 

Lines:                           Household electric appliances.

 

Employees:                   40  (Including associated company)

 

Materials/Commodities:  Imports raw materials from European countries, some of the Asian countries and finished products from China.

 

Markets:                       China and worldwide countries.

 

Group Turnover: RMB134,045,649,270.00 Yuan  (Year ended 31-12-2011)

RMB102,598,110,490.00 Yuan  (Year ended 31-12-2012)

RMB120,975,003,140.00 Yuan  (Year ended 31-12-2013)

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

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

 

Issued Share Capital:     US$10,000.00

 

Mortgage or Charge:       (See attachment)

 

Group Total Profit:          RMB3,472,650,510.00 Yuan  (Year ended 31-12-2011)

RMB3,259,290,950.00 Yuan  (Year ended 31-12-2012)

RMB5,317,458,060.00 Yuan  (Year ended 31-12-2013)

 

Profit or Loss:                Group business was profitable in the past three years.

 

Condition:                      Keeping in a satisfactory manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

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

 

Standing:                      Good.

 

 

GENERAL

 

Midea International Trading Co. Ltd. is a wholly-owned subsidiary of Midea International Corporation Co. Ltd. which is a Hong Kong-registered firm located at the same address.  The subject’s ultimate holding company is Midea Group Co. Ltd. [Midea], also a China-based firm.

Midea is a listed company in China.  Its shares, bearing code No. 000333, are traded in Shenzhen Stock Exchange.

Founded in 1968, Midea is renowned as a sizeable conglomerate that specializes in the manufacturing of household appliances and sets foot in relevant fields of real estates and logistics.  It is now one of the largest white household appliance production bases and export bases in China.  Midea is the holding company of the Midea Group.

Midea formally entered into the household appliance industry in 1980, and started to use the brand name of Midea in 1981.  Today, Midea Group has up to 110,000 employees and owns over ten famous brands in various industries, namely “Midea”, “Welling”, etc.

Apart from its headquarter in Shunde, the Group has established production bases in Guangzhou, Zhongshan, Wuhu, Wuhan, Huai’an, Kunming, Changsha, Hefei, Chongqing, Suzhou, etc.

The overseas production bases are in Vietnam, Belarus, Egypt, Brazil, Argentina, and India.

Possessing an extensive marketing network spreading all over China, the Group also has established a number of overseas branch subsidiaries in countries and areas such as the United States, England, Germany, Japan, South Korea, Canada, Russia, France, Malaysia and Vietnam, apart from Hong Kong.

Currently, Midea holds the largest and most complete production chains for air-conditioner, refrigerator, microwave oven, small home electric appliance and kitchen utensil in China.  Its core products include residential AC, commercial AC, large-scale central AC, washing machine, electric cooker, refrigerator, water dispenser, microwave oven, dish washer, induction cooker, electric fan, electric warmer, water heater, kitchen range, range hood, sterilizing cabinet, electric chafing dish, electric oven, vacuum cleaner, as well as other supporting products, such as compressor, electric motor, magnetron and transformer.

For the year ended 31st December, 2013, the sales of the Group amounted to RMB120,975.0 million, grew by 17.9% as compared with that of RMB102,598.1 million in FY 2012; total profit was RMB5,317.5 million, grew by 63.1% as compared with RMB3,259.3 million in FY 2012.  Overall business was good in the past three years.

Today, Midea is a brand leader in China.  It continues to globalise its operations with production bases in six countries besides China, to be followed by additional plants.  Midea is also expanding its distribution network in several countries to offer better services to local consumers in those locations.

Looking ahead, Midea persists with its strategy of taking the initiative to continue as a highly dynamic enterprise, with the goal of consistent growth that is characteristic of a world class business.  In parallel with its plans for expansion, Midea is also devoted to its role as a responsible corporate citizen of China and the world.

The subject is fully supported by the Midea Group.  History in Hong Kong is over six years.

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

 

 

REMARKS

 

Brief personal profile of the principal director:-

Ms. Yuan Liqun,  aged 44, was appointed as a Non-executive Director of the Company on 17th November, 2004 and re-designated as an Executive Director of the Company on 4th January, 2007.  Ms. Yuan is a member of the Executive Committee of the Company.  She is also a director of a subsidiary of the Group.  She joined the Midea Group in 1992.  She has held various senior management positions in the Midea Group and has considerable experience in finance, audit and overall management.  Ms. Yuan is a director and senior vice-president of Midea Group Co., Ltd. (a company listed on the Shenzhen Stock Exchange), the chief financial officer of Midea Group and the chairman of Midea Group Finance Co., Ltd. She was a director and the supervisor of GD Midea Holding Co., Ltd. (the shares of which were de-listed on the Shenzhen Stock Exchange on 18th September, 2013 and this company was de-registered on 19th December, 2013).  Ms. Yuan holds a Master of International Management Degree from the Australia National University.

 


MORTGAGE OR CHARGE

 

Date

Particulars

Amount

11-11-2008

Instrument:        Assignment of DC Proceeds

Property:

By way of assignment or agreement to assign in each case as beneficial owner.  All monies in any currency representing proceeds payable or to be paid to the customer under the Documentary Credit, all the customer right, title, benefit and interest in the said Documentary credit, the benefit of all powers and remedies for enforcing the Documentary Credits and any payment made pursuant to the contract for sale of goods in connection with the Documentary Credit is issued

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

All loans or other advances made or to be made by the Bank to the customer against documents submitted under a Documentary Credit, all monies and liabilities in any currency owing by the customer to the Bank at any time, whether separately or jointly, actually or contingently, present or future, interest on all loans and advances and such monies and all expenses of the Bank in perfecting or enforcing the Assignment

18-01-2011

Instrument:        Security Over Deposits with the Bank
(Limited Company - Under Seal)

Property:

A deposit with chargee and whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any other moneys or deposits placed with the chargee from time to time at any of its offices

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

Amount secured, (i) all monies, (ii) interest on such monies, (iii) all expenses of the chargee in perfecting or enforcing the charge


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.06

UK Pound

1

Rs.101.84

Euro

1

Rs.81.56

                

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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.