MIRA INFORM REPORT

 

 

Report Date :

19.06.2014

 

IDENTIFICATION DETAILS

 

Name :

COOLPAD OVERSEAS LTD.

 

 

Registered Office :

c/o Carson Services Ltd.

18/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

11.09.2008

 

 

Com. Reg. No.:

39783295

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trader of Mobile Phone

 

 

No of Employees :

No employees in Hong Kong

 

[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 :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company

 

 

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)

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 & ADDRESS:

 

COOLPAD  OVERSEAS  LTD

 

 

ADDRESS:       c/o Carson Services Ltd.

18/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central, Hong Kong.

 

PHONE:            852-2103 0808

 

FAX:                 852-2810 1345

 

 

MANAGEMENT:

 

Managing Director:  Mr. Jiang Chao

 

 

SUMMARY:

 

Incorporated on:            11th September, 2008.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           US$5,000,000.00

            Issued:             US$1,550,000.00

 

Business Category:       Mobile Phone Trader.

 

Group Turnover:            HK$19,623,652,000  (Year ended 31-12-2013)

 

Employees:                  Nil.

 

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

 

Banking Relation:          Satisfactory.

 


Company name:

 

COOLPAD  OVERSEAS  LTD

 

 

ADDRESS:

 

Registered Office:-

c/o Carson Services Ltd.

18/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central, Hong Kong.

 

Holding Company:-

Julong Computer Telecommunication Scientific (Shenzhen) Co. Ltd., China.

 

Intermediate Holding Company:-

Coolpad Group Ltd., Cayman Islands/Hong Kong.

 

Associated Companies:-

Coolpad Group of Companies

China Wireless Technologies Ltd., Cayman Islands.

China Wireless Technologies Ltd., Hong Kong.

Coolpad France, France.

Coolpad Software Tech (Shenzhen) Co. Ltd., China.

Coolpad Technologies Inc., US.

Digital Tech Inc., British Virgin Islands/China.

Dongguan Yulong Telecommunication Tech Co. Ltd., China.

Shenzhen Coolpad Technologies Co. Ltd., China.

Shenzhen Handset Antenna Technology Co. Ltd., China.

Shenzhen Penghe Property Investment Co. Ltd., China.

Taiwan Coolpad Technology Ltd., Taiwan.

Xi’an Coolpad Software Tech Co. Ltd., China.

Xi’an Coolpad Telecommunications Equipment Co. Ltd., China.

Yulong Infotech Inc., British Virgin Islands/China.

Yulong Technologies (Hong Kong) Co. Ltd., Hong Kong.

etc.

 

 

BUSINESS REGISTRATION NUMBER: 

 

39783295

 

 

COMPANY FILE NUMBER: 

 

1272513

 

MANAGEMENT:

 

Managing Director:  Mr. Jiang Chao

 

 

CAPITAL:

 

Nominal Share Capital: US$5,000,000.00 (Divided into 5,000,000 shares of US$1.00 each)

 

Issued Share Capital: US$1,550,000.00

 

 

SHAREHOLDERS:    

 

(As per registry dated 11-09-2013)

Name

 

No. of shares

Julong Computer Telecommunication Scientific (Shenzhen) Co. Ltd.

6/F., 1 Building, Cool pad Information Harbour, Hi-Tech Industrial Park (North), Nan Shan District, Shenzhen, China.

 

930,000

A1-Falak Import & Export L.L.C.

P. O. Box 2069, Muscat, PC 112, Sultanate of Oman.

 

620,000

 

 

––––––––

 

Total:

1,550,000

=======

 

 

DIRECTORS: 

 

(As per registry dated 11-09-2013)

Name

(Nationality)

 

Address

Same Mohamed Ali AL AWAIT

House Number 1407, Way 1718, Medina Sultan Qaboos, Muscat, Sultanate of Oman.

 

Mohamed Ali Mohamed AL WAHAIBI

House Number 982, Way 2131, Basher, Muscat, Sultanate of Oman.

 

JIANG Chao

Room 601, Block 1, Xinyuan, Long Gang District, Shenzhen, China.

 

 

SECRETARY:

 

(As per registry dated 11-09-2013)

Name

Address

Co. No.

Carson Services Ltd.

18/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central, Hong Kong.

0582737

 

 

HISTORY:

 

The subject was incorporated on 11th 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:                      Mobile phone trader.

 

Lines:                           All kinds of mobile phones, etc.

 

Employees:                  Nil.

 

Commodities Imported: China.

 

Markets:                        Asian countries, Middle East, Europe, etc.

 

Group Turnover:            HK$  2,604,865,000  (Year ended 31-12-2009)

HK$  4,592,699,000  (Year ended 31-12-2010)

HK$  7,340,495,000  (Year ended 31-12-2011)

HK$14,390,166,000  (Year ended 31-12-2012)  [Re-stated]

HK$19,623,652,000  (Year ended 31-12-2013)

 

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

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION:

 

Nominal Share Capital: US$5,000,000.00 (Divided into 5,000,000 shares of US$1.00 each)

 

Issued Share Capital:     US$1,550,000.00

 

Group Profit/(Loss):      HK$240,005,000  (Year ended 31-12-2009)

HK$480,265,000  (Year ended 31-12-2010)

HK$271,069,000  (Year ended 31-12-2011)

HK$324,303,000  (Year ended 31-12-2012)

HK$348,252,000  (Year ended 31-12-2013)

 

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

 

Condition:                     Business is not active in Hong Kong.

 

Facilities:                      Adequate for current running.

 

Payment:                      Met as required.

 

Commercial Morality:     Good.

 

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

 

Standing:                      Small.

 

 

GENERAL:

 

Having issued 1,550,000 ordinary shares of US$1.00 each, Coolpad Overseas Ltd. is jointly owned by Julong Computer Telecommunication Scientific (Shenzhen) Co. Ltd. [Julong], holding 60% interests; A1-Falak Import & Export L.L.C., an Oman-registered firm holding 40%.

 

Julong is a wholly-owned subsidiary of Coolpad Group Ltd. [Formerly China Wireless Technologies Ltd./the Company/Group, when including subsidiaries or associates].

 

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at 18/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central, Hong Kong known as Carson Services Ltd. which is handling its correspondences and documents.  This company is also the corporate secretary of the subject.

 

The subject has no employees in Hong Kong.

 

The subject is a mobile phone trader.  It is trading in all kinds of Cool pad smart phones.

 

Coolpad Group was incorporated in the Cayman Islands as an exempted company with limited liability on 11th June, 2002.  Its shares were listed on the Stock Exchange of Hong Kong Limited on 9th December, 2004 (Stock Code: 2369).

 

Julong is an indirect wholly owned subsidiary of Coolpad Group.  It was founded by Mr. Go Dyeing (Coolpad Group’s chairman, executive director and chief executive officer) in April 1993.  Julong is a leading developer and provider of integrated solutions for Cool pad smart phone sets, mobile data platform system, and value-added business operations in China.  Julong mainly provides its Cool pad products for enterprises, government and mobile operators as well as individual consumers in China.

In the last decade, capitalizing on the development of wireless telecommunications technological know-how in wireless telecommunications across multiple wireless telecommunications network standards including GSM, CDMA1X, TD-SCADA, CDMA1X(EDO) and WADA networks, the Group has developed a large number of proprietary technologies and patents in mobile operating systems, radio frequency, protocols and wireless data decomposed transmission technology, etc.  The Group has developed advanced research and development capabilities in mobile communications and gradually becomes a leader of 3G smartphone in China’s telecommunications market.

 

In spite of being a leading smartphone developer in Mainland China’s telecommunications market, the Group has succeeded in breaking into the global telecommunications market in respect of Coolpad brand with the overseas telecommunications operators.  The Group has established strong and close strategic cooperation relationships with certain global telecommunications operators and is striving to further develop its business in the global telecommunications markets.

 

For the year ended 31st December, 2013, the Group had a turnover of approximately HK$19,623.7 million, which increased 36.4% from HK$14,390.2 million in 2012.  The increase was mostly due to the Group’s focus on the mid- and low-end smartphone market and was largely ascribed to the solid 3G business increase in China.  The Group’s gross profit margin for 2013 was 12.9%, which was 12.2% in 2012, up 0.7 percent points.  The increase of gross profit margin was mainly because of the economies of scale and the better cost control in 2013.  The net profit of 2013 was approximately HK$348.3 million, which increased 7.4% from HK$324.3 million in 2012.

 

In the year of 2013, the Group continued to focus on launching a full range of Coolpad smartphones from high-end to mid- and low-end ones, offering the users a better build quality and better radio performance.

 

Meanwhile, the Group also launched its first waterproof smart watch (cWatchC1), being the accessories for Coolpad smartphone.  Except for the common functions, C1 had the features like telephone, SMS, calendar reminders, sports and health management, and other notifications.  In addition to launch the smart watches, we also introduced other wearable devices which were based on the personal health management, CoolHub.  The CoolHub functioned as a Bluetooth speaker and a micro SD card reader.

 

To expand the sales channel, the Group exported 4G smartphone through partnerships with international carriers to Europe and the United States.  After launching the first 4G FDD-LTE smartphone in the United States in 2012, it continued to roll out the next flagship 4G model in 2014.  It also entered into the Europe market finally in 2013, after a long term of preparation and basic works.  Coolpad became more well-known overseas with affordable smartphones and decent specifications.

 

The subject is fully supported by the Group.

 

The subject’s business in Hong Kong is not active.  History in Hong Kong is over five years and nine months.

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.

 

 

REMARK:

 

Brief personal profile of the director:

 

Mr. JIANG Chao, aged 43, is an executive Director, the chief financial officer, vice president of the Group, and the company secretary of the Company.  Mr. Jiang is responsible primarily for the finance and administrative functions of the Group.  He is an associate member of the Association of Chartered Certified Accountants and a certified public accountant in the PRC.  Mr. Jiang joined the Group in June 2002.  Mr. Jiang has about 20 years of experience in accounting and finance.  Prior to joining the Group, he had worked for the State Audit Bureau.  Mr. Jiang had also worked for Qiaoxing Electronic Company Limited (the shares of which are listed on the NASDAQ Stock Exchange, stock symbol: XING) and ZTE Corporation Limited (the shares of which are listed on the Main Board of the Stock Exchange, Stock Code: 763), where he was responsible for financial and accounting functions.  Mr. Jiang currently is the independent non-executive director of Ming Fung Jewellery Group Limited (the shares of which are listed on the Stock Exchange, Stock Code: 860).  Mr. Jiang is a member of Futian Committee of Chinese People’s Political Consultative Conference.  He obtained a bachelor’s degree in economics from Sun Yat-Sen University in 1991.

 

 

 

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.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 60.12

UK Pound

1

Rs. 102.00

Euro

1

Rs. 81.43

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.