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Report Date : |
03.02.2014 |
IDENTIFICATION DETAILS
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Name : |
ZXG
INTERNATIONAL (HK) LTD. |
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Registered Office : |
5/F., Wilson Logistics Centre, 24-28 Kung Yip Street, Kwai Chung, New Territories |
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Country : |
Hong Kong |
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Date of Incorporation : |
16.08.2011 |
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Com. Reg. No.: |
58931679 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
· design, development, production, distribution and installation of a broad range of advanced telecommunications systems and equipment, including carriers networks, terminals and telecommunications software systems, services. Subject is a telecommunications service providers such as
China Mobile, China Telecom and China Unicom. |
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No. of Employees : |
25 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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 – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source : CIA |
ZXG INTERNATIONAL (HK) LTD.
5/F., Wilson Logistics Centre, 24-28 Kung Yip Street, Kwai Chung, New Territories, Hong Kong.
PHONE: 852-3425 4759
FAX: 852-3425 4760
Managing Director: Mr. Tang Hong Shun
Incorporated on: 16th August, 2011.
Organization: Private Limited Company.
Capital: Nominal: HK$100,000.00
Issued: HK$100,000.00
Business Category: Telecommunication Product Trader and Logistic Service Provider.
Group Revenue: RMB84,219.4 million (Year ended 31-12-2012)
Employees: 25.
Main Dealing Banker: China CITIC Bank International Ltd., Hong Kong.
Banking Relation: atisfactory.
Registered Head
Office:-
5/F., Wilson Logistics Centre, 24-28 Kung Yip Street, Kwai Chung, New Territories, Hong Kong.
Holding Company:-
Shenzhen ZTE Supply Chain Co. Ltd., China.
Ultimate Holding
Company:-
ZTE Corporation, China.
Associated
Companies:-
Bestel Communications Ltd., Republic of Cyprus.
Puxing Mobile Tech Co. Ltd., China.
Shanghai Zhongxing Telecom Equipment Technology & Service Co. Ltd., China.
Shenzhen Zhongxing Hetai Hotel Investment & Mangement Co. Ltd., China.
Shenzhen Zhongxing ICT Co. Ltd., China.
Sizhuo Zhongxing Hangzhou Technology Co. Ltd., China.
Wuxi Hongtu Micro-electronic Technology Co. Ltd., China.
Wuxi Kaier Technology Co. Ltd., China.
Wuxi Zhongzing Optoelectronics Technologies Co. Ltd., China.
Xi’an Zhongxing New Software Co. Ltd., China.
Xingtian Communication Technology (Tianjin) Co. Ltd., China.
Zhongxing Software Co. Ltd., China.
ZTE (H.K.) Ltd., Hong Kong.
ZTE (Hangzhou) Co. Ltd., China.
ZTE (Malaysia) Corporation SDN.BHD., Malaysia.
ZTE (Thailand) Co. Ltd., Thailand.
ZTE (USA) Inc., US.
ZTE- Communication Technologies Ltd., Russia.
ZTE Do Brasil Ltda., Brazil.
ZTE Energy Co. Ltd., China.
ZTE Group Finance Co. Ltd., China.
ZTE Kangxun Telecom Co. Ltd., China.
ZTE Mobile Tech Co. Ltd., China.
ZTE Romania S.R.L., Romania.
ZTE Technology & Service Co. Ltd., China.
ZTE Telecom India Private Ltd., India.
ZTEsoft Technology Co. Ltd., China.
etc.
58931679
1658099
Managing Director: Mr. Tang Hong Shun
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share Capital: HK$100,000.00
(As per registry
dated 16-08-2013)
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Name |
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No.
of shares |
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Shenzhen ZTE Supply Chain Co., Ltd. 6/F., South Tower, Wandelai Building, Block 29#, Hi-tech Road South
6#, Nanshan, Shenzhen, China. |
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100,000 ====== |
(As per registry
dated 16-08-2013)
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Name (Nationality) |
Address |
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LI Wei |
5/F., Wilson Logistics Centre,
24-28 Kung Yip Street, Kwai Chung, New Territories, Hong Kong. |
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LI Ying |
5/F., Wilson Logistics Centre,
24-28 Kung Yip Street, Kwai Chung, New Territories, Hong Kong. |
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TIAN Wen Guo |
5/F., Wilson Logistics Centre,
24-28 Kung Yip Street, Kwai Chung, New Territories, Hong Kong. |
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DENG Ke Chao |
5/F., Wilson Logistics Centre,
24-28 Kung Yip Street, Kwai Chung, New Territories, Hong Kong. |
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TANG Hong Shun |
5/F., Wilson Logistics Centre,
24-28 Kung Yip Street, Kwai Chung, New Territories, Hong Kong. |
(As per registry dated
16-08-2013)
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Name |
Address |
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CHEN Ning |
5/F., Wilson Logistics Centre, 24-28 Kung Yip Street, Kwai
Chung, New Territories, Hong Kong. |
The subject was incorporated on 16th August, 2011 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Unit D-F, 6/F., Wing Shan Industrial Building, 428 Cha Kwo Ling Road, Yau Tong, Kowloon, Hong Kong, moved to the present address in July 2013.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Telecommunication Product Trader and Logistic Service Provider.
Lines: All kinds of telecommunication equipment.
Employees: 25.
Commodities Imported: China, etc.
Markets: Japan, Asian countries, Europe, North America, Middle East, etc.
Group Revenue: RMB44,293.4 million (Year ended 31-12-2008)
RMB60,272.6 million (Year ended 31-12-2009)
RMB69,906.7 million (Year ended 31-12-2010)
RMB86,254.5 million (Year ended 31-12-2011)
RMB84,219.4 million (Year ended 31-12-2012)
Terms/Sales/Services: As per contracted.
Terms/Buying: Various terms.
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share Capital: HK$100,000.00
Mortgage or Charge: (See attachment)
Group
Profit/(Loss) Attributable to shareholders:-
RMB1,660.2 million (Year ended 31-12-2008)
RMB2,458.1 million (Year ended 31-12-2009)
RMB3,250.2 million (Year ended 31-12-2010)
RMB2,060.2 million (Year ended 31-12-2011)
(RMB2,840.9 million) (Year ended 31-12-2012)
Profit or Loss: Group made a great loss in 2012.
Condition: Business is improving.
Facilities: Making rather active use of general banking facilities.
Payment: Slow but Correct
Commercial Morality: Good.
Banker: China CITIC Bank International Ltd., Hong Kong.
Standing: Normal.
ZXG International (HK) Ltd. is a wholly-owned subsidiary of Shenzhen ZTE Supply Chain Co. Ltd. [Shenzhen ZTE], China. In turn, Shenzhen ZTE is a wholly-owned subsidiary of ZTE Corporation [ZTE], a China-based company.
ZTE is a Hong Kong listed company bearing stock code 763HK. It is also a listed company in Shenzhen Special Economic Zone, China.
The subject in fact was the logistics department of ZTE. In 2011, the department was spun off from the parent and became the subject which is a legal entity.
The subject is not only providing the Group’s associated companies with all kinds of logistic services, but also the other companies. Since ZTE is a significant company in China, the subject is able to take advantage of this and is able to get more and more portfolios.
ZTE is a leading integrated telecommunications equipment manufacturer in the world market and a provider of global telecommunications solutions, with shares listed on the main board of the Shenzhen Stock Exchange and the Main Board of the Hong Kong Stock Exchange.
In November 1997, ZTE conducted an initial public offering of A shares for listing on the main board of the Shenzhen Stock Exchange. The Company is currently the largest telecommunications equipment manufacturer in China’s A share market in terms of operating revenue. In December 2004, ZTE conducted an initial public offering of H shares for listing on the Main Board of the Hong Kong Stock Exchange, becoming the first A-share company to be listed on the Main Board of the Hong Kong Stock Exchange.
The Group is dedicated to the design, development, production, distribution and installation of a broad range of advanced telecommunications systems and equipment, including carriers networks, terminals and telecommunications software systems, services and other products. The Group is one of the major telecommunications equipment suppliers in China’s telecommunications market and has also succeeded in gaining access to the international telecommunications market with respect to each of its major product segments. The Group has achieved a leading market position for its various telecommunications products in China with longstanding business ties with China’s leading telecommunications service providers such as China Mobile, China Telecom and China Unicom. With respect to the global telecommunications market, the Group has provided innovative technology and product solutions to telecommunications service providers in more than 140 countries and regions, making contributions to facilitate communications via multiple means, such as voice, data, multi-media, wireless broadband and cable broadband, for users all over the world.
The Group’s operating revenue for 2012 amounted to RMB84.22 billion, representing a year-on-year decline of 2.4%, while net profit attributable to shareholders of the listed company decreased 237.9% to RMB-2.84 billion.
The Group’s operating revenue from the domestic market and the international market amounted to RMB39.56 billion and RMB44.66 billion, respectively.
The Group registered a decline in its overall operating revenue for 2012 as compared to 2011, which was attributable to the combined effects of, among others, postponed execution of certain systems contracts and decrease in revenue from terminals in the domestic market, and delayed progress of certain international projects.
Meanwhile, the Group also reported a lower overall gross profit margin as compared to that of 2011, reflecting a larger number of low-margin contracts in Africa, South America, Asia and the domestic market recognized for 2012.
Its unfavourable operating results in 2012 was primarily attributable to its adoption of a rather aggressive marketing strategy for fast breakthroughs of some of its key operators and markets, as well as the lack of rapid realignments in enhancing certain aspects, such as management efficiency and risk control, in response to changes in industry competition.
During the first half of 2013, while global carriers tended to adopt a more rational approach in equipment investment, the Group continued to work diligently to cater to the technological preferences and network construction plans of global carriers in persistent implementation of its strategy to focus on major populous nations and leading carriers. Nevertheless, the Group’s overall operating revenue decreased by 11.88% to RMB37.576 billion as compared to the same period of 2012, reflecting the decline in operating revenue from GSM and UMTS products in the domestic market and GSM handsets and data cards in both the domestic and international markets.
The Group’s profit attributable to non-controlling interests for the first six months of 2013 amounted to RMB19.2 million, a decrease by 86.9% as compared to RMB147.1 million for the first half of 2012. Noncontrolling interests decreased from 37.5% for the first six months of 2012 to 5.8% for the first six months of 2013 as a percentage of profit before non-controlling interests, reflecting mainly the deconsolidation of certain subsidiaries with a higher level of non-controlling interests, which were accounted for on a consolidated basis for the same period of 2012, following the disposal of their equity interests in the second half of 2012, as well as the year-on-year reduction of non-controlling interests in certain subsidiaries.
The subject is fully supported by the Group.
On the whole, since the history of the subject is short, consider it good for normal business engagements on L/C basis.
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Date |
Particulars |
Amount |
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19-07-2013 |
Instrument: Trade Finance Security Assignment Property: The Borrower as beneficial owner:- (A) Assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower in and to the following assets:- (i) Export Credits; (ii) Export Collection Bills; (iii) Sales Contracts; (iv) Invoice Receivables; (v) Insurances; (vi) Trade Documents; and (vii) All claims, remedies and proceeds in connection with any of the foregoing; and (B) Charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Goods together with their proceeds; and (ii) the Deposit; and (C) Pledges & agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the Bank’s possession Mortgagee: China CITIC Bank International Ltd., Hong Kong. |
As security for the payment of all secured liabilities |
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19-07-2013 |
Instrument: Charge on Cash Deposit Property: The Chargor, as beneficial owner, charges and agrees to charge to the Bank by way of first fixed charge: A) The Chargor’s entire right, title and interest (both present and future) in and to the deposit; and B) All right and benefits accruing to or arising in connection with the deposit Mortgagee: China CITIC Bank International Ltd., Hong Kong. |
As a continuing security for the secured liabilities |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.48 |
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|
1 |
Rs.102.95 |
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Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.