MIRA
INFORM REPORT
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Report Date : |
19.09.2014 |
IDENTIFICATION DETAILS
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Name : |
SHENZHEN
KONKA TELECOMMUNICATIONS TECHNOLOGY CO., LTD. |
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Registered Office : |
East
Industrial Zone, No. 9008 Shennan Road, Overseas Chinese Town, Nanshan District, Shenzhen, Guangdong
Province 518053 PR |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
18.03.1999 |
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Com. Reg. No.: |
440301501131359 |
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Legal Form : |
Chinese Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject includes developing, manufacturing and selling communication
products, digital products, computer and related products; selling its software;
related technology consulting and service; wholesaling, retailing, importing
and exporting, and related business of the above products (including spare
parts) and television sets and other household audio-visual equipment,
air-conditioning and other household electrical appliances, digital
modulator, new display devices (with permit if needed). |
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No. of Employees : |
890 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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, growth of the private sector,
development of stock markets and a modern banking system, 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 considered important to "economic security,"
explicitly looking to foster globally competitive industries. After keeping its
currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading
band within which the RMB is permitted to fluctuate. 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. Several factors are converging to slow China's growth, including
debt overhang from its credit-fueled stimulus program, industrial overcapacity,
inefficient allocation of capital by state-owned banks, and the slow recovery
of China's trading partners. The government's 12th Five-Year Plan, adopted in
March 2011 and reiterated at the Communist Party's "Third Plenum"
meeting in November 2013, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent in
the future on fixed investments, exports, and heavy industry. 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
SHENZHEN KONKA TELECOMMUNICATIONS TECHNOLOGY
CO., LTD.
EAST
INDUSTRIAL ZONE, NO. 9008 SHENNAN ROAD, OVERSEAS CHINESE TOWN
NANSHAN
DISTRICT, SHENZHEN, GUANGDONG PROVINCE 518053 PR CHINA
TEL: 86
(0) 755-26608866
FAX: 86
(0) 755-26919020
EXECUTIVE SUMMARY
Date of Registration : MARch 18, 1999
REGISTRATION NO. : 440301501131359
LEGAL FORM : CHINESE FOREIGN EQUITY JOINT VENTURE ENTERPRISE
REGISTERED CAPITAL :
CNY 120,000,000
staff : 890
BUSINESS CATEGORY :
MANUFACTURING & trading
Revenue :
CNY 1,583,091,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY -185,757,000 (AS OF DEC. 31, 2013)
WEBSITE : www.konka-mobile.com
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.14 = 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 Chinese foreign equity joint venture enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.:
440301501131359 on March
18, 1999.
SC’s Organization Code Certificate No.:
70848057-2
SC’s Tax No.: 440301708480572
SC’s registered capital: CNY 120,000,000
SC’s paid-in capital: CNY 120,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2001-11 |
Legal Representative |
Chen Weirong |
Liang Rong |
|
2002-8 |
Legal Representative |
Liang Rong |
Hou Songrong |
|
2006-3 |
Legal Representative |
Hou Songrong |
Huang Zhongtian |
|
2008-8 |
Registration No. |
108672 |
440301501131359 |
|
2012-4 |
Legal Representative |
Huang Zhongtian |
Li Hongtao |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hongdin Invest Development
Limited ( |
25 |
|
Konka Group Co., Ltd. |
75 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Li Hongtao |
|
Vice Chairman |
Xu Youshan |
|
Niu Weidong |
|
|
Director |
Zhang
Zhongjun |
|
Yan
Guantong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Hongdin Invest Development
Limited (Hong Kong) 25
Konka Group Co., Ltd. 75
Hongdin Invest Development Limited (Hong
Kong)
========================================
Registered No.: 0619692
Date of Registration: Aug. 6,
1997
Legal form: Private
Konka Group Co., Ltd.
====================
It listed in Shenzhen Stock
Exchange with the stock numbers of Shenkangjia A (000016) and Shenkangjia B
(200016).
Date of Registration: October 1, 1980
Registration No.: 440301501121863
Legal Form: Shares Limited Company
Registered Capital: CNY 1,203,970,000
Add: Overseas Chinese Town, Nanshan
District, Shenzhen
Tel: 86 0755-26608866
Fax: 86 0755-26601139
Web: www.konka.com
MANAGEMENT
Li Hongtao, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 46
Ø
Qualification:
University
Ø
Working
experience (s):
From 2012 to present, working in SC as legal
representative, chairman and general manager
Also working in Shenzhen Konka Telecommunications
Technology Co., Ltd. Shenzhen Branch as principal, and in Konka Group Co., Ltd.
as vice president
Xu Youshan, Vice Chairman
------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Niu Weidong, Vice Chairman
--------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Director
-----------
Zhang Zhongjun
Yan Guantong
BUSINESS OPERATION
SC’s registered
business scope includes developing, manufacturing and selling communication
products, digital products, computer and related products; selling its
software; related technology consulting and service; wholesaling, retailing,
importing and exporting, and related business of the above products (including
spare parts) and television sets and other household audio-visual equipment,
air-conditioning and other household electrical appliances, digital modulator,
new display devices (with permit if needed).
SC is mainly
engaged in manufacturing and selling communication products.
Brand: KONKA
SC’s products mainly include: Cell Phone, Mobile Cinema, etc.
SC sources its materials 70% from domestic market and 30% from the overseas market, mainly Europe. SC sells 40% of its products in domestic market and 60% to overseas market, mainly India, Southeast Asia and Europe.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Customer:
=============
Verykool Usa Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 890 staff
at present.
SC owns an area as
its operating office & factory of approx. 10,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have 4
branches at present,
Shenzhen Konka Telecommunications Technology Co., Ltd. Manufacturing
General Factory
Shenzhen Konka Telecommunications Technology Co., Ltd. Zhongshan Branch
Shenzhen Konka Telecommunications Technology Co., Ltd. Maoming Branch
Shenzhen Konka Telecommunications Technology Co., Ltd. Dongguan Branch
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 Shenzhen Branch Futian Sub-branch
AC#:
0201010024688
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Total assets |
986,125 |
1,074,924 |
648,864 |
|
|
------------- |
------------- |
------------- |
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Total
liabilities |
962,698 |
1,102,512 |
834,621 |
|
Equities |
23,427 |
-27,588 |
-185,757 |
|
|
------------- |
------------- |
------------- |
|
Revenue |
1,298,850 |
2,458,502 |
1,583,091 |
|
Profits |
-45,263 |
-51,015 |
-158,169 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Liabilities
to assets |
0.98 |
1.03 |
1.29 |
|
*Net profit
margin (%) |
-3.48 |
-2.08 |
-9.99 |
|
*Return on
total assets (%) |
-4.59 |
-4.75 |
-24.38 |
|
*
Revenue/Total assets |
1.32 |
2.29 |
2.44 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is poor.
LIQUIDITY:
AVERAGE
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is above 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.61.05 |
|
|
1 |
Rs.99.55 |
|
Euro |
1 |
Rs.78.57 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
PDT |
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 |
|
|
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 |
-- |
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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.