MIRA INFORM REPORT

 

 

Report Date :

30.08.2014

 

IDENTIFICATION DETAILS

 

Name :

HAIER INTERNATIONAL CO. LTD.

 

 

Registered Office :

Room 2815, 28/F., Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

10.09.2004

 

 

Com. Reg. No.:

34915334

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer and Exporter of all kinds of household electric appliances.

 

 

No of Employees :

20 (Including associates)

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

HAIER INTERNATIONAL CO. LTD.

 

 

ADDRESS

 

Room 2815, 28/F., Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan, Hong Kong.

 

PHONE:            852-2169 3338

 

FAX:                 852-2169 3938

 

E-MAIL:                        service@haierhk.com

 

 

MANAGEMENT

 

Managing Director:  Ms. Zhou Yun Jie

 

 

SUMMARY

 

Incorporated on:             10th September, 2004.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000.00

            Issued:              HK$2.00

 

Business Category:        Household Electric Appliance Trader.

 

Employees:                   20.  (Including associates)

 

Group Revenue:             RMB180.3 billion Yuan  (Year ended 31-12-2013)

 

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

 

Banking Relation:           Good.


COMPANY NAME

 

HAIER INTERNATIONAL CO. LTD.

 

 

ADDRESS

 

Registered Head Office:-

Room 2815, 28/F., Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan, Hong Kong.

 

Holding Company:-

Haier Electrical Appliances Corporation Ltd., China.

 

Ultimate Holding Company:-

Haier Group Corporation, China.

 

Associated/Affiliated Companies:-

Haier Group of Companies

Chongqing Haier Washing Machine Co. Ltd., China.

Chongqing Haier Water Heater Co. Ltd., China.

Foshan Shunde Haier Electric Co. Ltd., China.

Foshan Shunde Haier Intelligent Electronic Co. Ltd., China.

Haier (Hong Kong) Co. Ltd., Hong Kong.

Haier Business Development Ltd., Hong Kong.

Haier Electronics Group Co. Ltd., Bermuda/Hong Kong.

Haier Indesit (Qingdao) Electrical Appliance Co. Ltd., China.

Haier Indesit (Qingdao) Washing Machine Co. Ltd., China.

Haier Int (HK) Co. Ltd., Hong Kong.

Haier International (HK) Ltd., Hong Kong.

Haier Technology Co. Ltd., British Virgin Islands.

Hefei Haier Washing Machine Co. Ltd., China.

Qingdao Economy & Technology Development Zone Haier Water Heater Co. Ltd., China.

Qingdao Haier Co. Ltd., China.

Qingdao Haier Washing Machine Co. Ltd., China.

Qingdao Jiaonan Haier Washing Machine Co. Ltd., China.

Wuhan Haier Water Heater Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

34915334

 

 


COMPANY FILE NUMBER 

 

0921818

 

 

MANAGEMENT

 

Managing Director:  Ms. Zhou Yun Jie

Contact Person:  Ms. Lu Ling

 

 

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 10-09-2013)

Name

 

No. of shares

Haier Electrical Appliances Corporation Ltd.

1 Haier Road, Haier Industrial Park, Hi-Tech Zone, Qingdao 26610, China.

 

2

=

 

 

DIRECTORS

 

(As per registry dated 17-04-2014)

Name

(Nationality)

 

Address

LIANG Haishan

Room 502, Unit 3, No. 47 Taiqing Road, Shi Bei District, The City of Qingdao, Shandong Province, China.

 

LI Pan

Room 602, Unit 4, Block 1, No. 146 Yan Ji Road, Shi Bei District, The City of Qingdao, Shandong Province, China.

 

LI Gang

Room 101, Unit 1, block 10, No. 202 Yan An San Road, Shi Nan District, The City of Qingdao, Shandong Province, China.

 

ZHOU Yun Jie

No. 50 Yan’an Yi Road, Shibei District, Qingdao City, Shandong Province, China.

 

 

SECRETARY

 

(As per registry dated 17-04-2014)

Name

Address

WANG Ningning

Unit A, 12/F., Blodwin Industrial Building, 16-18 Wah Sing Street, Kwai Chung, New Territories, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 10th September, 2004 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:                      Manufacturer and Exporter.

 

Lines:                           All kinds of household electric appliances.

 

Employees:                   20.  (Including associates)

 

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

 

Markets:                       Worldwide countries.

 

Group Revenue: RMB163.1 billion Yuan  (Year ended 31-12-2012)

RMB180.3 billion Yuan  (Year ended 31-12-2013)

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

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:                  RMB  9.0 billion Yuan  (Year ended 31-12-2012)

RMB10.8 billion Yuan  (Year ended 31-12-2013)

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in a good and active manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

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

Bank of China (Hong Kong) Ltd., Hong Kong.

 

Standing:                      Very Good.

 

 

GENERAL

 

Haier International Co. Ltd. is a wholly-owned subsidiary of Haier Electrical Appliances Corporation Ltd. which is a China-based firm.  The ultimate holding company of the subject Haier Group Corporation [Haier] is also a China-based firm.  Haier is in Qingdao City, Shandong Province, China.

The subject is responsible for marketing the Group’s products.

Haier is primarily a producer of household appliances (white goods), including air conditioners, washing machines, refrigerators, etc.  Its headquarters are in Qingdao, Shandong, the People’s Republic of China.  Haier is the fourth-largest white goods manufacturer in the world.

Haier was founded as Qingdao Refrigerator Co. in 1984.  With China opening up to world markets, foreign corporations began searching for partnerships in China.  One of these, Germany’s Liebherr Group, entered into an agreement with Qingdao Refrigerator Co., offering technology and equipment to its Chinese counterpart.  Refrigerators were to be manufactured under the name of Qingdao-Liebherr.

Having diversified its product line beyond refrigerators, the company adopted a new name in 1991.  Qingdao Haier Group was further simplified in 1992 to Haier Group, the company’s current name.

In 1995, Haier bought out its chief rival in Qingdao, Red Star Electric Appliance Factory.  In 1997, the company moved into television manufacturing with the acquisition of Huangshan Electronics Group.  By the end of the 1990s, Haier was the most recognized brand in the country with products ranging from mobile phones to computers; it had also captured a dominant market share in its core white goods division.

Its place in the domestic market secure, Haier moved onto the international stage with the goal of building a global brand name.  The company opened a production facility in Indonesia in 1996, and the Philippines and Malaysia in 1997.

Haier looked to make further inroads in the North American market by moving into the full-sized refrigerator category.

Haier continued its expansion into other international markets as well.  Production facilities were constructed in Pakistan in 2002 and Jordan in 2003, greatly strengthening its position in the Middle East market.  In Africa, Haier has plants in five countries: Tunisia, Nigeria, Egypt, Algeria and South Africa.  The company also purchased a factory in Italy, as part of its continued drive into the European market.  Haier has been successful in placing its products in most major European retail chains, either under its own brand or under OEM agreements with foreign partners.  Currently Haier is about to enter into a joint venture agreement with the government of Venezuela.

As of 2008, Haier has surpassed rival Whirlpool as the world’s top refrigerator producer in terms of sales, according to Euromonitor, the world’s leading independent business intelligence provider.

Haier has had a subsidiary company Haier Electronics Group Co. Ltd. [Haier EG] which is a listed firm in Hong Kong.  Haier EG is listed on the Main Board of The Stock Exchange of Hong Kong Ltd.  It and its subsidiaries are principally engaged in the research, development, production and sale of washing machines and water heaters under the brand name of “Haier”.  Haier EG developed integrated channel service business from the second quarter of 2010.  Through Goodaymart, it has established channel distribution points in the third and fourth-tier nationwide markets and has become the leading integrated channel services provider in the China market.  Haier EG’s immediate holding company, Qingdao Haier Co. Ltd. (SHA: 600690), is listed on the Shanghai Stock Exchange, China.

In recent years, the Group has developed a truly wireless large-screen TV.  Despite its rather uninspired “completely wireless TV moniker, the huge 55‑inch prototype is a sight to behold in use without any cables dangling behind the panel.”

The Group now has 24 manufacturing bases and 21 industrial parks in Europe, North America, Asia, the Middle East and Africa.

The Group’s global presence allows it to localise its production and build high-quality products tailored to local needs.  With 5 Research and Development centres around the world, Haier is equipped to stay on top and meet our goal of providing a large range of durable products.

In 2013, Haier’s global revenue and profit reached RMB180.3 billion Yuan (US$29.5 billion) [2012: RMB163.1 billion Yuan (US$25.8 billion)] and RMB10.8 billion Yuan (US$1.76 billion) [2012: RMB9.0 billion Yuan (US$1.42 billion)] respectively.  Profit growth was 2 times revenue growth.  Based on the statistics of Euromonitor International, a world leader in strategy research for consumer markets, Haier has been the number one global home appliance brand for five years in a row.  On the 2012 World’s 50 Most Innovative Companies list published by the Boston Consulting Group, Haier was the only Chinese company in the top 10, as well as the top-ranked consumer product retailer.

Haier provides leading home appliance solutions to its users. Qingdao Haier (600690.SH), referred to internally to as the 690 Platform, uses disruptive innovation to create smart appliances for its users with the aim of becoming the leader in the home appliance industry. Haier’s five R&D centres around the world have forged strategic partnerships with first-class suppliers, research institutions, and prestigious universities to create an innovative ecosystem composed of over 1.2 million scientists and engineers connected by virtual and physical networks.

By the end of 2013, Haier had filed 15,737 patent applications accumulatively and had been granted 10,167 patents.  Haier Appliances (1169.HK) creates a commercial ecosystem based on an interactive platform and a delivery platform.  By leveraging the synergy of marketing, virtual, logistics and service networks (“quadruple play model”) to build competitiveness, it can provide delivery and installation services to users within 24 hours.

The subject is fully supported by the Haier Group.

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

 

 

REMARKS

 

Brief personal profile of the principal director:-

Mr. ZHOU Yun Jie, aged 47, has been serving as an Executive Director and general manager of the Haier since 12th November, 2009.  He has been appointed as Chief Executive Officer of the Haier since 18th March, 2013 and he has also been appointed at the Chairman of the Haier with effect from 25th June, 2013.  He is also a member of the remuneration committee, nomination committee and strategic committee of the Haier.  Mr. Zhou graduated from the Huazhong University of Science and Technology, the PRC with a Bachelor’s degree in Engineering in 1988.  He has a Master’s degree in corporate management from the Ocean University of China, the PRC and has completed his Doctoral courses with a diploma in Management from the Xian Jiaotong University, the PRC.  He joined the Haier Group in 1988 and has over 20 years of experience in the areas of sales management, enterprise management and international business.  Currently, he is an Alternative President and Deputy Chairman of the board of Haier Group, and also he is a deputy to the 12th national People’s Congress of China.

Mr. Zhou is also a director of the following Group’s subsidiaries: Chongqing Hairi Logistics Co. Ltd., Chongqing New Goodaymart Electronics Sales Co. Ltd., Goodaymart (Shanghai) Investment Co. Ltd., Haier Electronics Sales (Hefei) Co. Ltd., Haier Electronics Sales (HK) Co. Ltd., Hefei Goodaymart Logistics Co. Ltd., Qingdao Goodaymart Supply Chains Co. Ltd., Qingdao Haier Logistics Co. Ltd., Qingdao Lejia Electric Appliances Co. Ltd., SHC International (HK) Ltd., Ocean Vast Enterprises Ltd., Haier Group E-Commerce Co. Ltd., Qingdao Goodaymart Electronics Service Co. Ltd., Qingdao Haier Electronics Sales Service Co. Ltd., Qingdao Goodaymart Lejia Jiaju Trading Co. Ltd., Jiangsu Goodaymart Huadong Logistic Co. Ltd., HH Retail Ltd., Haier International Business Corporation Ltd., Haier Electrical Appliances Fourth Holdings (BVI) Ltd., Haier Washing Machines Holdings (BVI) Ltd., Haier Water Heaters Holdings (BVI) Ltd., Haier Holdings (BVI) Ltd., Sunlit Enterprise International Ltd., Crown Smooth Ltd., Partner Century Holdings Ltd. and Heroic Plan Global Ltd.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.47

UK Pound

1

Rs.100.35

Euro

1

Rs.79.86

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SMN

 

 

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.