MIRA INFORM REPORT

 

 

Report Date :

24.07.2014

 

IDENTIFICATION DETAILS

 

Name :

TONGFANG  GLOBAL  LTD

 

 

Registered Office :

c/o Norcola Co. Ltd.

Room 3312, 33/F., Shui On Centre, 6-8 Harbour Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

25.09.2008

 

 

Com. Reg. No.:

39939486

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Importer, Exporter and Wholesaler of TVs, PCs, Computers, Notebooks, Electronic Products & Other Multi‑Media Products

 

 

No of Employees :

Not Available 

 

(It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No Operating Office in Hong Kong 

 

 

Payment Behaviour :

Unknown 

 

 

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)

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

 

TONGFANG  GLOBAL  LTD.

 

 

Company ADDRESS

 

c/o Norcola Co. Ltd.

Room 3312, 33/F., Shui On Centre, 6-8 Harbour Road, Wanchai, Hong Kong.

 

PHONE:            852-2159 5000

FAX:                 852-2541 5324

 

 

MANAGEMENT

 

Group Chairman & President:  Mr. Lu Zhicheng

 

 

SUMMARY

 

Incorporated on:             25th September, 2008.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           US$10,000,000.00

Issued:              US$10,000,000.00

 

Business Category:        Manufacturer, Importer, Exporter and Wholesaler.

 

Group Turnover:             RMB22,650,144,108.08 Yuan  (Year ended 31-12-2013)

 

Company Employees:  Nil.

 

Group Employees:         17,850.  (Year ended 31-12-2013)

 

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

 

Banking Relation:           Satisfactory.


Company ADDRESS

 

Registered Head Office:-

c/o Norcola Co. Ltd.

Room 3312, 33/F., Shui On Centre, 6-8 Harbour Road, Wanchai, Hong Kong.

 

Holding Company:-

Tsinghua Tongfang Co. Ltd. [THTF]

30/F., Block A, Tsinghua Tongfang Scientific Technology Building, Haidian District, 100083 Beijing, China.

[Tel: (86-010) 8239 9888,   Fax: (86-010) 8239 9765

E-mail: 600100@thtf.com.cn ]

 

Sister/Associated Companies:-

THTF Group of Companies

Beijing Tongfang Lansen Lighting Technology Co. Ltd., China.

Beijing Tongfang Microelectronics Co. Ltd., China.

Distech Controls Inc., Canada.

Guangdong Tongfang Lighting Co. Ltd., China.

Hongkong THTF Co. Ltd., Hong Kong.

Limepc Multimedia Technologies Co. Ltd., Hong Kong.

Nantong Tongfang Science & Technology Park Co. Ltd., China.

Nuctech Co. Ltd., China.

Nuctech Hong Kong Co. Ltd., Hong Kong.

Resuccess Investments Ltd., British Virgin Islands.

Shandong Tongfang Luying Electronic Co. Ltd., China.

Shenyang Tongfang Multimedia Co. Ltd., China.

Shenyang Tongfang Multimedia Technology Co. Ltd., China.

Shenzhen Tongfang Multi-media Technique Co. Ltd., China.

Tangshan Jingyuan Yufeng Electronics Co. Ltd., China.

Technovator International Ltd., Singapore.

Tellhow Sci-tech Co. Ltd., China.

THTF Energy-Saving Holdings Ltd., Cayman Islands.

THTF U.S.A. Inc., US.

Tinggi Technologies Pte. Ltd., Singapore.

Tongfang Asia Pacific (R&D Center) Pte. Ltd., Singapore.

Tongfang Hongkong Ltd., Hong Kong.  (Same address)

Tongfang Guoxin Electronics Co. Ltd., China.

Tongfang Industry Co. Ltd., China.

Tongfang Optical Disc Co. Ltd., China.

Tongfang Optoelectronic (HK) Ltd., Hong Kong.

Tongfang Opto-electronic Co. Ltd., China.

Tongfang Optoelectronics (Shenyang) Co. Ltd., China.

Tongfang Semiconductor (Hongkong) Co. Ltd., Hong Kong.

Tongfang Zhejiang Lighting Technology Co. Ltd., China.

Tsinghua Tongfang Artificial Environment Co. Ltd., China.

Wuxi Tongfang Innovation Science & Technology Park Co. Ltd., China.

 


BUSINESS REGISTRATION NUMBER

 

39939486

 

 

COMPANY FILE NUMBER

 

1275608

 

 

MANAGEMENT

 

·         Group Chairman & President:  Mr. Lu Zhicheng

Group Vice President:  Mr. Wang Lianghai

 

 

CAPITAL

 

Nominal Share Capital:   US$10,000,000.00 (Divided into 100,000,000 shares of US$0.10 each)

Issued Share Capital:     US$10,000,000.00

 

 

SHAREHOLDER

(As per registry dated 25-09-2013)

 

Name

 

No. of shares

Tsinghua Tongfang Co. Ltd.

30/F., Block A, Tsinghua Tongfang Scientific Technology Building, Haidian District, 100083 Beijing, China.

 

100,000,000

=========

 

 

DIRECTORS

(As per registry dated 25-09-2013)

 

Name

(Nationality)

 

Address

LU Zhicheng

101 3rd Door, 12/F., Lanqiying, Haidian District, Beijing, China.

 

WANG Lianghai

701 1st Door, 12/F., Lanqiying, Haidian District, Beijing, China.

 

SECRETARY

(As per registry dated 25-09-2013)

 

Name

Address

Co. No.

Norcola Co. Ltd.

Room 3312, 33/F., Shui On Centre, 6‑8 Harbour Road, Wanchai, Hong Kong.

0111227

 

HISTORY

 

The subject was incorporated on 25th September, 2008 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, Importer, Exporter and Wholesaler.

 

Lines:                           TVs, PCs, Computers, Notebooks, Electronic Products & Other Multi‑Media Products

 

Company Employees:    Nil.

 

Group Employees:         17,850.  (Year ended 31-12-2013)

 

Raw Materials:               Imported from Europe, Japan and other Asian countries.

 

Markets:                       China, Europe, North America and other Asian countries.

 

Group Turnover: RMB15,387,735,746.25 Yuan  (Year ended 31-12-2009)

RMB18,257,509,421.67 Yuan  (Year ended 31-12-2010)

RMB21,435,287,227.47 Yuan  (Year ended 31-12-2011)

RMB22,866,566,462.53 Yuan  (Year ended 31-12-2012)

RMB22,650,144,108.08 Yuan  (Year ended 31-12-2013)

 

Terms/Sales:                 L/C or as per contracted.

 

Terms/Buying:               On various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: US$10,000,000.00 (Divided into 100,000,000 shares of US$0.10 each)

 

Issued Share Capital:     US$10,000,000.00

 

Group Net Profit:            RMB351,370,202.43 Yuan  (Year ended 31-12-2009)

RMB479,555,528.80 Yuan  (Year ended 31-12-2010)

RMB717,805,136.12 Yuan  (Year ended 31-12-2011)

RMB614,216,893.17 Yuan  (Year ended 31-12-2012)

RMB676,951,178.95 Yuan  (Year ended 31-12-2013)

 

Indebtedness:                  US$ 65,000,000.00 (Total amount outstanding on all mortgages and charges as per last

Annual Return dated 25-09-2013)

 

Profit or Loss:                Group business is profitable.

 

Condition:                      Business in Hong Kong is not active.

           

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met as contracted.

 

Commercial Morality:      Satisfactory.

 

Bankers:-

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

China Construction Bank Hong Kong Ltd., Hong Kong.

Wing Lung Bank Ltd., Hong Kong.

 

Standing:  Small.

 

 

GENERAL

Having issued 100 million ordinary shares of US$0.10 each, Tongfang Global Ltd. is a wholly owned subsidiary of Tsinghua Tongfang Co. Ltd. [THTF] which is a China-based firm.  THTF is the holding company of the THTF Group.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at Room 3312, 33/F., Shui On Centre, 6‑8 Harbour Road, Wanchai, Hong Kong known as Norcola Co. Ltd. which is handling its correspondences and documents.  This firm is also the corporate secretary of the subject.  The subject has no employees in Hong Kong.

THTF is a renowned high-tech corporation listed on Shanghai Stock Exchange (Stock Code: 600100), Shanghai, China.  The largest shareholder of THTF is Tsinghua University of Beijing.  THTF is one of the top three PC manufacturers and top ten brands in “3C range” in China.

THTF is engaged in the development of IT, artificial environment, nuclear technology for civil use, energy and resources and biological medicine.  Its aim is to establish the first-class high-tech enterprise in the world.  THTF has set up a R&D Centre employing more than 2,000 experienced engineers and designers.  It also has got the technical support from Tsinghua University.  Its main production lines include PC, TV (LCD TV, PDP TV), and digital products (DVB-T).

Now, THTF has diversified into different economies.  It has been constructed into ten core divisions: Computer, Digital City, The Internet of Things Application, Micro-electronics & Radio Frequency Technology, Multi-media, Semi-Conductor & Illuminating, Knowledge Network, Military Application, Digital TV, and Environment Technology Industry Divisions.

THTF has been listed as one of the “100 Top Scientific and Technological Enterprises of China”, “100 Top Chinese Enterprises in Electronic Information”, “500 Top World Brands”.  It has always been considered as a “trustworthy enterprise”.

In recent years, THTF has set up factories in Nantong, Nanjing and Shandong Province, China.

As at end of 2013, THTF’s total assets amounted to RMB42.6 billion Yuan.

For the year ended 31st December, 2013, the sales of the Group amounted to RMB22,650.1 million, decreased by 0.9% as compared with that of RMB22,866.6 million in FY 2012; Group profit attributable to shareholders for the year was RMB677.0 million, grew by 10.2% as compared with that of RMB614.2 million in FY 2012.

The Group has taken measures to decrease its expenses effectively.

As at end of 2013, the Group had 17,850 employees.

The subject is fully supported by THTF.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis or in small credit amounts.

NOTE :

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

 

 

REMARKS:

 

Brief personal profile of the directors:-

 

Mr. LU Zhi Cheng (Group Chairman and President), 63 years old, Master, researcher; graduated from the Department of Heat Energy of Tsinghua University.  He is the vice chairman of the 5th board of directors, chief executive officer and director of Tongfang Co. Ltd.  Since 1989, he has been titled as general manager of Tsinghua Tongfang Artificial Environment Co. Ltd., board member, board vice chairman, and director of Tongfang Co. Ltd.

 

Mr. WANG Liang Hai (Group Vice President), 47 years old, Master; graduated from the Department of Heat Energy of Tsinghua University – Air Conditioning Major.  He is the vice director of Tongfang Co. Ltd.  Since 1997, he has been titled as general manager of Tongfang Control Engineering Company; assistant of Tongfang director; vice general manager of Digital TV Division and general manager of Consumer Electronics Division.

 


MORTGAGE OR CHARGE

 

Date

Particulars

Amount

26-10-2011

Instrument:      Trade Finance Security Assignment

Property:

The Borrower as beneficial owner and as continuing security for the payment of all Secured Liabilities

Mortgagee:      China Merchants Bank Co. Ltd., Hong Kong Branch.

All obligations and liabilities

02-12-2011

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

Property:

A deposit with chargee in the amount of €75,000.00 under Deposit A/C No. 808-880157 whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any further monies in any deposit account with the chargee at any of its offices

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

Amount secured – (i) all monies in any currency owing by the Company to the chargee at any time, actually or contingently, in any capacity, alone or jointly with any other person; (ii) interest on such monies, to the date on which the chargee receives payment, at the rates payable by the Company or which would have been payable but for any circumstance which restricts payment and (iii) all expenses of the chargee in perfecting or enforcing the charge

10-02-2014

Instrument:      Charge on Cash Deposit(s) to secure Liabilities of the Depositor(s)

Property:

(1)    By way of first fixed charge and agreement to charge:

The Deposit and all right, title and interest of the Company whatsoever, present and future, thereto and therein, together with any certificates of deposit or other instruments or securities evidencing title, or otherwise relating, thereto and any account to which the same is credited.

(2)    By way of set-off:

Any sum standing to the credit of any one or more of the accounts of the Company with the Bank whosesoever situate.

Mortgagee:      DBS Bank (Hong Kong) Ltd., Hong Kong.

All sums of money and liabilities

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.18

UK Pound

1

Rs.102.68

Euro

1

Rs.81.03

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

 

 

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.