MIRA
INFORM REPORT
|
Report Date : |
05.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
TCL DIGITAL TECHNOLOGY (SHENZHEN) CO., LTD. |
|
|
|
|
Registered Office : |
2F, Block E, TCL Base, South of Nanhai Street, Nanshan District Shenzhen, Guangdong Province 518067 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
25.10.2005 |
|
|
|
|
Com. Reg. No.: |
440301503372716 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
Subject is engaged in the researching, developing, manufacturing and
selling electronics and parts, hardware and software, such as televisions, communication
equipment, computers, digital video, digital cameras and webcam, network and
information system integration, providing technical advisory and service
(excluding confined items); importing and exporting commodities and
technologies |
|
|
|
|
No. of Employees : |
297 |
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 : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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) |
|
China |
A2 |
A2 |
|
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 |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has
moved from a closed, centrally planned system to a more market-oriented one
that plays a major global role - in 2010 China became the world's largest
exporter. Reforms began with the phasing out of collectivized agriculture, and
expanded to include the gradual liberalization of prices, fiscal
decentralization, increased autonomy for state enterprises, creation of a
diversified banking system, development of stock markets, rapid growth of the
private sector, and opening to foreign trade and investment. China has
implemented reforms in a gradualist fashion. In recent years, China has renewed
its support for state-owned enterprises in sectors it considers important to
"economic security," explicitly looking to foster globally
competitive national champions. After keeping its currency tightly linked to
the US dollar for years, in July 2005 China revalued its currency by 2.1%
against the US dollar and moved to an exchange rate system that references a
basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the
renminbi against the US dollar was more than 20%, but the exchange rate
remained virtually pegged to the dollar from the onset of the global financial
crisis until June 2010, when Beijing allowed resumption of a gradual
appreciation. The restructuring of the economy and resulting efficiency gains
have contributed to a more than tenfold increase in GDP since 1978. Measured on
a purchasing power parity (PPP) basis that adjusts for price differences, China
in 2013 stood as the second-largest economy in the world after the US, having
surpassed Japan in 2001. The dollar values of China's agricultural and
industrial output each exceed those of the US; China is second to the US in the
value of services it produces. Still, per capita income is below the world
average. The Chinese government faces numerous economic challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (c) reducing corruption and other economic crimes; and (d)
containing environmental damage and social strife related to the economy's
rapid transformation. Economic development has progressed further in coastal
provinces than in the interior, and by 2011 more than 250 million migrant
workers and their dependents had relocated to urban areas to find work. One
consequence of population control policy is that China is now one of the most
rapidly aging countries in the world. Deterioration in the environment -
notably air pollution, soil erosion, and the steady fall of the water table,
especially in the North - is another long-term problem. China continues to lose
arable land because of erosion and economic development. The Chinese government
is seeking to add energy production capacity from sources other than coal and
oil, focusing on nuclear and alternative energy development. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. The
government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued
economic reforms and the need to increase domestic consumption in order to make
the economy less dependent on fixed investments and exports in the future.
However, China has made only marginal progress toward these rebalancing goals.
The new government of President XI Jinping has signaled a greater willingness
to undertake reforms that focus on China's long-term economic health, including
giving the market a more decisive role in allocating resources.
|
Source
: CIA |
Company name and address
TCL DIGITAL TECHNOLOGY (SHENZHEN) CO., LTD.
2F, BLOCK E,
TCL BASE, SOUTH OF NANHAI STREET, NANSHAN DISTRICT
SHENZHEN,
GUANGDONG PROVINCE 518067 PR CHINA
TEL: 86 (0)
755-86158339
FAX: 86 (0)
755-86158933
***Note: SC’s name
should be the above stated one, TCL Overseas Marketing (Macao Commercial Offshore)
Limited (the given name) is SC’s related company registered in MACAO, and
however, SC always uses this name as its trade name.
EXECUTIVE SUMMARY
Date of Registration : OCTober 25, 2005
REGISTRATION NO. : 440301503372716
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE :
SHI WANWEN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : HKD 48,000,000
staff :
297
BUSINESS CATEGORY : R & D & MANUFACTURING
& TRADING
Revenue :
CNY 107,970,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 20,625,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS
& HISTORY
SC was established as a wholly foreign-owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 440301503372716 on October 25, 2005.
SC’s Organization Code Certificate No.:
77875011-X
%20CO%20,%20LTD%20%20-%20265909%2005-May-2014_files/image002.jpg)
SC’s Tax No.: 44030177875011X
SC’s Customs Registration No.: 4403148956
SC’s registered capital: HKD 48,000,000
SC’s paid-in capital: HKD 48,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Representative |
Yang Weiqiang |
Bo Lianming |
|
|
Legal Representative |
Bo Lianming |
Shi Wanwen |
|
Registered No. |
316506 |
440301503372716 |
|
|
- |
Shareholder |
TCL International Electronics (BVI) Limited |
T.C.L. Industries Holdings (H.K.) Limited |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
T.C.L. Industries Holdings (H.K.) Limited |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Shi Wanwen |
|
Director |
Li Shubin |
|
Liu Xianliang |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
T.C.L. Industries Holdings (H.K.) Limited 100
==========================
Date of Registration: July 16, 1996
Registration No.: 0558291
Legal Form: Private
MANAGEMENT
Shi Wanwen, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------------
Gender: M
Age: 48
Qualification: University
Working experience
(s):
From 2010 to present, working in SC as legal representative, chairman
and general manager
Director
-----------
Li Shubin
Liu Xianliang
BUSINESS
OPERATION
SC’s registered business scope includes researching, developing,
manufacturing and selling electronics and parts, hardware and software, such as
televisions, communication equipment, computers, digital video, digital cameras
and webcam, network and information system integration, providing technical
advisory and service (excluding confined items); importing and exporting
commodities and technologies.
SC is mainly engaged in researching, developing, manufacturing and
selling digital products.
Brand: TCL
SC’s products mainly include: digital videos, digital cameras
SC sources its materials 100% from domestic market. SC sells 85% in domestic market and 15% to overseas market, mainly Hong Kong and USA.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
S.Bower Inc.
Samsonic Trading Co.
Mustek Inc.
EarHugger Safety Equipment, Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 297
staff at present.
SC rents an area as its operating office & factory of approx. 4,000
sq. meters at the heading address.
RELATED
COMPANY
TCL Multimedia Technology Holdings Limited
---------------------------------------
Date of Registration: November 19, 1999
Registration No.: F0009880
Guangzhou Digital Rowa Technology Co., Ltd.
------------------------------------
Date of Registration: May 28, 2003
Registration No.: 440108400002987
Legal Form: Chinese-Foreign
Equity Joint Venture Enterprise
Chief Executive: Yang Bin
Registered Capital: CNY 120,000,000
TCL Overseas Marketing (Macao Commercial Offshore) Limited
-------------------------------------------------------------------------------------
Address: Almeda Dr. Carlos De Assumpcao, No.263, EDIF, China Civil
Plaza, 5th Floor, Flat K Macao, China
TCL Household Appliance Marketing Co., Ltd.
PAYMENT
Overall payment appraisal: ( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment and our debt collection record concerning
SC.
Trade payment experience: SC did not provide any name of
trade/service suppliers and we have no other sources to conduct the enquiry at
present.
Delinquent payment record: None in our database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
BANKING
Basic Bank:
Bank of China
AC#: 826807860108091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Current assets |
78,424 |
74,114 |
|
Fixed assets |
4,498 |
10,687 |
|
Intangible assets |
20 |
-50 |
|
|
------------------ |
------------------ |
|
Total assets |
82,942 |
84,751 |
|
|
============= |
============= |
|
Current liabilities |
49,225 |
60,690 |
|
Non-current liabilities |
230 |
3,436 |
|
|
------------------ |
------------------ |
|
Total liabilities |
49,455 |
64,126 |
|
Equities |
33,487 |
20,625 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
82,942 |
84,751 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Revenue |
89,896 |
107,970 |
|
Cost of sales |
49,102 |
62,312 |
|
Profit before tax |
-8,307 |
-12,862 |
|
Less: profit tax |
14 |
0 |
|
-8,321 |
-12,862 |
Important Ratios
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.59 |
1.22 |
|
*Liabilities to assets |
0.60 |
0.76 |
|
*Net profit margin (%) |
-9.26 |
-11.91 |
|
*Return on total assets (%) |
-10.03 |
-15.18 |
|
*Revenue/Total assets |
1.08 |
1.27 |
|
*Cost of sales / Revenue |
0.55 |
0.58 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is fair in both years.
·
SC’s return on total assets is fair in both years.
·
SC’s cost of sales is low, comparing with its
revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is average.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.23 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.46 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.