MIRA INFORM REPORT

 

 

Report Date :

14.05.2014

 

IDENTIFICATION DETAILS

 

Name :

CHANGHONG (HONGKONG) TRADING LTD.

 

 

Registered Office :

Room 1412, 14/F., West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

24.05.2005

 

 

Com. Reg. No.:

35656159

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of Air-conditioners, electronic products, other electric appliances

 

 

No. of Employees :

16.  (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 – 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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately 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 and address

 

CHANGHONG (HONGKONG) TRADING LTD.

 

ADDRESS:       Room 1412, 14/F., West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan, Hong Kong.

 

PHONE:            852-3690 2366

 

FAX:                 852-3690 2108

 

E-MAIL:            eileen.yang@changhong.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Tang Yun

 

 

SUMMARY

 

Incorporated on:            24th May, 2005.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$200,000,000.00

 

Issued:                         HK$200,000,000.00

 

Business Category:       Electric Product Trader.

 

Group Turnover:            RMB58,875,274,661.52 Yuan  (Year ended 31-12-2013)

 

Company Employees:  16.  (Including associates)

           

Group Employees :        61,942  (As at 13-12-2013)

 

Main Dealing Banker:     Bank of China (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:          Good.


Company name

 

CHANGHONG  (HONGKONG)  TRADING  LTD.

 

 

ADDRESS

 

Registered Head Office:-

Room 1412, 14/F., West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan, Hong Kong.

 

Holding Company:-

Sichuan Changhong Electric Co. Ltd. [Changhong], China.

 

Ultimate Holding Company:-

Sichuan Changhong Electronic Holdings Co. Ltd., China.

 

Affiliated/Associated Companies:-

Changhong Group of Companies

Apex Digital Inc., British Virgin Islands.

Apex Honour Resources Ltd., British Virgin Islands.

BVCH Optronics (Sichuan) Co. Ltd., China.

Changchun Changhong Electric Technologies Co. Ltd., China.

Changhong (Hong Kong) Enterprises Ltd., Hong Kong.

Changhong Deutschland Ltd., Germany.

Changhong Electric (Australia) Pty. Ltd., Australia.

Changhong Electric India Pvt. Ltd., India.

Changhong Electric Middle East FZE, UAE.

Changhong Europe Electric s.r.o., Czech Republic.

Changhong IT (Hong Kong) Information Products Co. Ltd., Hong Kong.

Changhong IT Information Products Co. Ltd., China.

Changhong Jiahua Holdings Ltd., Hong Kong.

Changhong Overseas Development Ltd., Hong Kong.  (Same address)

Changhong Ruba Trading Co. (Pvt) Ltd., Pakistan.

Changhong Russia Electric Co. Ltd., Russia.

Electra Investments B.V., the Netherlands.

Fit Generation Holding Ltd., British Virgin Islands.

Guangdong Changhong Digital Technology Co. Ltd., China.

Guangdong Changhong Electronics Co. Ltd., China.

Guohong Communications Digital Group Co. Ltd., China.

Hefei Changhong Industry Co. Ltd., China.

Hefei Meiling Co. Ltd., China.

Huayi Compressor Co. Ltd., China.

Jiangsu Changhong TV Co. Ltd., China.

Mianyang Guohong Communication Digital Group Co. Ltd., China.


Orion OLED Co. Ltd., South Korea.

Orion PDP Co. Ltd., South Korea.

P.T. Changhong Electric Indonesia, Indonesia.

Sichuan CCO Display Technology Co. Ltd., China.

Sichuan Changhong Electric Power Co. Ltd., China.

Sichuan Changhong Network Technologies Co. Ltd., China.

Sichuan Changhong New Energy Technology Co. Ltd., China.

Sichuan Changhong Precision Electronics Technology Co. Ltd., China.

Sichuan Changhong-Sinew Technologies Co. Ltd., China.

Sichuan COC Display Devices Co. Ltd., China.

Sichuan TECO Changhong Precision Co. Ltd., China.

Sterope Investments B.V., the Netherlands.

Sufficient Value Group Ltd., British Virgin Islands.

 

 

BUSINESS REGISTRATION NUMBER

 

35656159

 

 

COMPANY FILE NUMBER

 

0972481

 

 

MANAGEMENT

 

Director & Vice Chairman:  Mr. Wu Jiang

Managing Director:  Mr. Tang Yun

Marketing Manager:  Ms. Yang Lu, Eileen

Representative:  Mr. Wu Xiangtao

 

 

CAPITAL

 

Nominal Share Capital: HK$200,000,000.00

 

(Divided into 200,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$200,000,000.00

 


SHAREHOLDER  

 

(As per registry dated 24-05-2013)

Name

 

No. of shares

Sichuan Changhong Electric Co. Ltd.

35 East Mian Xing Road, High-Tech Park, Mian Yang, Sichuan, China.

 

200,000,000

=========

 

 

DIRECTORS

 

(As per registry dated 24-05-2013)

Name

(Nationality)

 

Address

HU Jia

No. 321, Block 76, No. 5 Yue Jin Lu, Fu Cheng Qu, Mian Yang Shi, Si Chuan Sheng, China.

 

WU Xiangtao

No. 161, Block 13, 5 Sheng Huo Qu, No. 5 Yue Jin Lu, Fu Cheng Qu, Mian Yang Shi, Si Chuan Sheng, China.

 

WU Jiang

1 Hao, North Xingye Road, Nantou Zhen, Zhongshan, Guangdong, China.

 

TANG Yun

Unit 3701, 37/F., West Tower, Shun Tak Centre, 168‑200 Connaught Road Central, Hong Kong.

 

CHEN Hua

Purchase Department, 35# East Main Xing Road, Hi-Tech Park, Mian Yang, Si chuan, China.

 

 

SECRETARY

 

(As per registry dated 24-05-2013)

Name

Address

Co. No.

SBC Corporate Services Ltd.

Room B, 10/F., Tower A, Billion Centre, 1 Wang Kwong Road, Kowloon Bay, Kowloon, Hong Kong.

0618863

 

 

HISTORY

 

The subject was incorporated on 24th May, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject was formerly located at Room 3701, 37/F., West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan, Hong Kong, moved to the present address in 29th May, 2012.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           Air-conditioners, electronic products, other electric appliances

 

Employees:                  16.  (Including associates)

 

Group Employees :       61,942  (As at 13-12-2013)

 

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

 

Markets:                        Europe, Australia, North America, etc.

 

Group Turnover:-           RMB31,457,999,219.13 Yuan  (Year ended 31-12-2009)

RMB41,711,808,864.18 Yuan  (Year ended 31-12-2010)

RMB52,003,328,326.13 Yuan  (Year ended 31-12-2011)

RMB52,334,149,134.26 Yuan  (Year ended 31-12-2012)

RMB58,875,274,661.52 Yuan  (Year ended 31-12-2013)

 

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

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$200,000,000.00

 

(Divided into 200,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$200,000,000.00

 

Increase of Nominal Capital:-

From

HK$10,000,000.00

to

HK$200,000,000.00

on

05-03-2012

 

Mortgage or Charge:     (See attachment)

 

Group Net Profit Attributable to Shareholders:-

RMB292,253,972.55 Yuan  (Year ended 31-12-2010)

RMB396,198,844.63 Yuan  (Year ended 31-12-2011)

RMB325,328,360.29 Yuan  (Year ended 31-12-2012)

RMB512,481,605.58 Yuan  (Year ended 31-12-2013)

 

Profit or Loss:               Group business is profitable.

 

Condition:                     Keeping in an active and good condition.

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Good.

 

Bankers:-                      Bank of China (Hong Kong) Ltd., Hong Kong.

RB International Finance (Hong Kong) Ltd., Hong Kong.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

Deutsche Bank AG, Hong Kong Branch.

Société Générale, Hong Kong Branch.

 

Standing:                      Very Good.

 

 

GENERAL

 

Changhong (Hongkong) Trading Ltd. is a wholly-owned subsidiary of Sichuan Changhong Electric Co. Ltd. [Changhong] which is a China-based and listed firm.  The subject is responsible for overseas marketing and re‑exporting the products of Changhong.

The subject is also known as Changhong Hongkong in abbreviation.  It has increased its share capital to HK$200 million in March 2012.

The subject has had another associated firm known as Changhong Jiahua Holdings Ltd. [Jiahua/formerly China Data Broadcasting Holdings Ltd.].  Jiahua is a listed firm in Hong Kong bearing the stock code 8016.

At present, Changhong and its subsidiaries are holding 52.53% of Jiahua’s interests.

Since Changhong is the largest shareholder of Jiahua, it has had the right to control the Jiahua Group.  Now, Jiahua has become an arm for overseas development of Changhong.

Established in 1958, Changhong is a listed firm in China.  It became a public traded company with shares listed on the Shanghai Stock Exchange bearing stock code 600839 in March 1994.  Changhong is located at Mianyang City, Sichuan Province, China.  Changhong is now one of the largest Chinese consumer electronics providers specialized in R&D, manufacturing and marketing consumer electronics products.

Today, Changhong has set up branches and joint ventures with 61,942 employees worldwide.  It has established overseas branches and representative offices in the United States, Europe, Australia, Russia, Turkey, Thailand, India, Southeast Asia and the Middle East and is continuing setting up branches and offices in the other markets.  With a world-class manufacturing facility, claimed by Changhong, it has got the  ISO 9001 and ISO 14001 certifications.  Numerous products are in conformity with international standards such as 3C, UL, FCC, FDA, CE, SASO, GS, CB, etc.  Changhong has more than 20,000 Sales and Service outlets throughout the world.  Its products have found ready markets in over 100 countries and regions.

Changhong for 15 consecutive years has been ranked the first in the domestic market as one out of every four TVs in China is manufactured by it.  It has established many joint laboratories with Toshiba, Sanyo, GE, Microsoft, TI, Samsung, LG, Philips, etc.  It also has established R&D centres in Shanghai and Shenzhen Special Economic Zone in China, American Silicon Valley, and Japan.  Changhong’s goal is to actively participate in the development of a global digital industry.

With advantages of four R&D and manufacturing bases located in Mianyang, Zhongshan, Nantong, and Changchun in China, Changhong has become an industry leader and the largest supplier of consumer electronics in Asia.

In 2013, Changhong’s turnover amounted to RMB58,875.3 million Yuan, grew by 12.5% as compared with RMB52,334.1 million Yuan in 2012; net profit attributable to shareholders for the year was RMB512.5 million Yuan, grew by 57.5% as compared with RMB325.3 million Yuan in 2012.

In November 2011, the Group approved the subject issue debentures amounted to RMB300 million Yuan in Hong Kong.  The pooled fund was used as the working capital of the subject.  The terms of the debenture will be a period of three years and with an annual interests rate of 4%.  The Group will act as the guarantor.  The issued of the debentures was completed on 30th November, 2011.

Changhong Group had about 61,942 employees as at end of 2013.  The subject is fully supported by Changhong.

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

 

 

REMARKS

 

            Brief personal profile of the principal directors:-

Mr. TANG Yun, aged 48, is the Managing Director of the subject and China Data.  He is responsible for the formulation of corporate strategy and business direction of the China Data Group.  He obtained a Master degree in Applied Physics from University of Electronic Science and Technology of China in the PRC and has more than 24 years of experience in engineering and marketing.

Mr. WU Xiangtao, aged 40, joined the subject as Executive Director and Deputy Managing Director in May 2008.  Mr. Wu has ceased to hold the senior management position but remains as a Director.  Mr. Wu is responsible for the strategies of the Group’s trading business of consumer electronic products.  He holds a Master Degree in Business Administration from Southwestern University of Finance and Economics and a Bachelor Degree in International Trade and Economics from Shandong University in the PRC and recently obtained a Master Degree in Business Administration from University of Glasgow, United Kingdom.

He has more than 17 years of experience in the consumer electronics industry.

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

21-07-2008

Instrument:        Third Party Charge Over Cash Deposit

Property:

All amounts deposited and all other moneys from time to time standing to credit of or earned on any current, deposit or other account held by the Company

Mortgagee:        RZB Austria Finance (Hong Kong) Ltd.  [Now known as RB International Finance (Hong Kong) Ltd.]

All moneys and liabilities

20-05-2011

Instrument:        Trade Finance Security Assignment

Property:

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

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) the Export Credits; (ii) the Export Collection Bills; (iii) the Sales Contracts; (iv) the Export Invoice Receivables; (v) the Insurances; (vi) the Trade Documents; and (vii) all claims, remedies and proceeds in connection with any of the foregoing;

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; (ii) the Pledged Goods; (iii) the Deposit; and (iv) to the extent any Security Assets is not effectively assigned under sub-clause (a), such Security Asset; and

c)         pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the possession of the Bank

Mortgagee:        Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

All obligations and liabilities

23-08-2011

Instrument:        An Agreement of Cash Pledge

Property:

1)         Pursuant to Clause 2 (Pledge) of the Agreement

2)         Pursuant to Clause 3 (Pledged Account and Perfection of Pledge) of the Agreement

3)         Pursuant to Clause 4 (General Undertakings) of the Agreement

4)         Pursuant to Clause 6.2(i) (Enforcement) of the Agreement

5)         Pursuant to Clause 6.4 (Enforcement) of the Agreement

6)         Pursuant to Clause 11 (Savings) of the Agreement

Mortgagee:        Deutsche Bank (China) Co. Ltd., Guangzhou Branch on behalf of Deutsche Bank AG, Hong Kong Branch.

All present and future moneys, debts, obligations, indebtedness and liabilities

23-08-2011

Instrument:        Security Agreement

Property:

1)         Pursuant to Clause 2 (Charge) of the Agreement

2)         Pursuant to Clause 3 (Negative Pledge) of the Agreement

3)         Pursuant to Clause 5 (Effectiveness of Security) of the Agreement

4)         Pursuant to Clause 8 (Right of Set-off and Application of Monies) of the Agreement

Mortgagee:        Deutsche Bank AG, Hong Kong Branch.

All the Chargor’s present and future moneys, debts, obligations, indebtedness and liabilities to the Bank under any Finance Document

05-03-2012

Instrument:        Security Agreement

Property:

1)         Pursuant to Clause 2 (Charge) of the Agreement

2)         Pursuant to Clause 3 (Negative Pledge) of the Agreement

3)         Pursuant to Clause 5 (Effectiveness of Security) of the Agreement

4)         Pursuant to Clause 7(A) (Further Assurance and Power of Attorney) of the Agreement

5)         Pursuant to Clause 8(B) (Right of Set-off and Application of Monies) of the Agreement

Mortgagee:        Deutsche Bank AG, Singapore Branch.
One Raffles Quay, South Tower, #14-00, Singapore 048593.

All present and future moneys, debts, obligations, indebtedness and liabilities

05-03-2012

Instrument:        An Agreement of Cash Pledge

Property:

1)         Pursuant to Clause 2 (Pledge) of the Agreement

2)         Pursuant to Clause 3 (Pledge Account and Perfection of Pledge) of the Agreement

3)         Pursuant to Clause 4 (General Undertakings) of the Agreement

4)         Pursuant to Clause 6.2(i)(Enforcement) of the Agreement

Mortgagee:        Deutsche Bank (China) Co. Ltd., Guangzhou Branch.
2202-03 Teem Tower, 2008 Tianhe Road, Guangzhou 510620, China.

All present and future moneys, debts, obligations, indebtedness and liabilities

29-08-2013

Instrument:        HK Account Charge dated 29th August 2013 executed by the Chargor, the chargee and Societe Generale, Hong Kong Branch as Account Bank

Property:

All the security created under the Deed:

1)         Is created in favour of the Chargee;

2)         Is created over present and future assets of the Chargor; and

3)         Is security for the payment of all the Secured Liabilities

Mortgagee:        Societe Generale
17, Cours Valmy Paris-La Defense Cedex FR 92987, France.

Security for the payment of all secured liabilities

03-04-2014

Instrument:        Charge Over Securities and Deposits with the Bank

Property:

All the right, title and interest of the Chargor in and to the Securities, the Receivables and the Deposits as a continuing security for the obligations of the chargor in respect of the Securdd Moneys

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

Deposit and all sums of money from time to time standing to the credit of the chargor’s account s or placed by the chargor with the bank at any of its offices or branches and interest thereon


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.88

UK Pound

1

Rs.100.98

Euro

1

Rs.82.40

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NNA

 

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.