MIRA INFORM REPORT

 

 

Report No. :

351531

Report Date :

03.12.2015

 

IDENTIFICATION DETAILS

 

Name :

KANETA ELECTROHEAT TECHNOLOGIES LTD.

 

 

Registered Office :

Unit A, 15/F., Billion Plaza, 8 Cheung Yue Street, Cheung Sha Wan, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

22.12.2005

 

 

Com. Reg. No.:

36349086

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer, Importer and Exporter of Tubular Heating Elements.

 

 

No. of Employees :

10 (Including associates in Hong Kong)

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

HONGKONG - 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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 

Company name and Address

 

KANETA ELECTROHEAT TECHNOLOGIES LTD.

 

ADDRESS:                   Unit A, 15/F., Billion Plaza, 8 Cheung Yue Street, Cheung Sha Wan, Kowloon,

                                    Hong Kong.

 

PHONE:                        852-2889 7863,  2889 7926

 

FAX:                             852-2557 1850

 

E-MAIL:                        info@kaneta.com

sales@kaneta.com

 

 

MANAGEMENT

 

Managing Director:        Mr. Lee Kun Tat

 

 

SUMMARY

 

Incorporated on:            22nd December, 2005.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$20.00

 

Business Category:       Manufacturer, Importer and Exporter.

 

Annual Turnover:           RMB220 to 250 million Yuan.

 

Employees:                  10.  (Including associates in Hong Kong)

 

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

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Head Office:-

Unit A, 15/F., Billion Plaza, 8 Cheung Yue Street, Cheung Sha Wan, Kowloon, Hong Kong.

 

China Factories:-

Kaneta (Gaoyao) Electroheat Products Ltd.

Foreign Industrial Area, Jindu Town, Gaoyao, Zhaoqing, Guangdong Province, China.

[Tel: (86-758) 851 7618;  Fax: (86-758) 851 7608]

Kaneta (Guangdong) Electroheat Products Ltd.

18 Chuang Ye Road, Liangang Industrial Area, Zhuhai Special Economic Zone, China.

[Tel: (86-756) 773 8738;  Fax: (86-756) 773 8733]

 

Associated Companies:-  (Same address)

ALBA Investments Ltd., Hong Kong.

Kaneta (H.K.) Enterprises Ltd., Hong Kong.

Kaneta Electrical Products Ltd., Hong Kong.

Kaneta Investments Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

36349086

 

 

COMPANY FILE NUMBER

 

1015466

 

 

MANAGEMENT

 

Managing Director:        Mr. Lee Kun Tat

Contact Person:            Ms. Ella Ling

 

 

ISSUED SHARE CAPITAL

 

HK$20.00 (Divided into 2 ordinary shares of HK$10.00 each)

 

 

SUBSCRIBERS

(As per registry dated 22-12-2014)

 

Name

 

No. of shares

LEE Kun Tat

 

1

LEE Chun Shing, Jonathan

 

1

 

 

––

 

Total:

2

=

 

 

DIRECTORS

(As per registry dated 22-12-2014)

 

Name

(Nationality)

 

Address

LEE Kun Tat

House No. 98, Constellation Cove, 1 Hung Lam Drive, Tai Po, New Territories, Hong Kong.

 

LEE Chun Shing, Jonathan

Flat A, 17/F., 15 Homantin Hill, 15 Ho Man Tin Hill Road, Kowloon, Hong Kong.

 

 

SECRETARY

(As per registry dated 22-12-2014)

 

Name

Address

Wong Mo Wan, May

Room 1402-1403, 14/F., Connaught Commercial Building, 185 Wanchai Raod, Wanchai, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 22nd December, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject was located at 23/F., Trend Centre, 29-31 Cheung Lee Street, Chai Wan, Hong Kong, moved to Room 1608, 16/F., Block B, Kailey Industrial Centre, 12 Fung Yip Street, Chai Wan, Hong Kong with effect from 15th May, 2006.  The subject moved to the present address in February 2009.

 

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

 

 

OPERATIONS

 

Activities:                      Manufacturer, Importer and Exporter.

 

Lines:                           Tubular heating elements.

 

Employees:                  10.  (Including associates in Hong Kong)

                                    1,300.  (China)

 

Materials/Commodities: Imports raw materials from Japan, Europe and finished products from China.

 

Markets:                        China, other Asian countries, Japan, Europe, etc.

 

Annual Turnover:           RMB220 to 250 million Yuan.

 

Terms/Sales:                 As per contracted.

 

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

 

 

MEMBERSHIP

 

 

Hong Kong Electrical Appliance Industries Association

*Hong Kong Electrical Appliances Manufacturers Association, Hong Kong.

*Hong Kong Diecasting Association, Hong Kong.

* Under the name of Kaneta (H.K.) Enterprises Ltd.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$20.00 (Divided into 2 ordinary shares of HK$10.00 each)

 

Mortgage or Charge:-

Date of Assignment of Debts:  25-08-2008

Amount:                        As a continuing security for the due and punctual payment by the secured Indebtedness

Property:          All books and other debts revenues, receivable and claims

Mortgagee:       Nanyang Commercial Bank Ltd., Hong Kong.

 

Profit or Loss:               Making a small profit every year.

 

Condition:                     Business is normal.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met as required.

 

Commercial Morality:     Good.

 

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

 

Standing:                      Normal.

 

 

GENERAL

 

Kaneta Electroheat Technologies Ltd. was incorporated on 22nd December, 2005.  It is equally owned by two Hong Kong merchants, namely, Mr. Lee Kun Tat and Mr. Jonathan Lee Chun Shing.  The subject has just issued two ordinary shares of HK$10.00 each while each of the shareholders holds a single share.  The two shareholders are also directors of the subject.

 

The subject belongs to the Kaneta Group.

 

The subject has got four associated companies located at the same address.  The principal one is Kaneta (H.K.) Enterprises Ltd. [Kaneta HK] which is engaged in the same lines of business as the subject.  The fourth is known as ALBA Investments Ltd. [ALBA Investments], a Hong Kong-registered company.

 

Incorporated on 3rd December, 1991, Kaneta HK is engaged in designing and manufacturing tubular heating elements for the global market.

 

The subject has had two factories in China, one in Zhaoqing, Guangdong Province while the other in Zhuhai Special Economic Zone.

 

The one in Zhaoqing, Guangdong Province, China is known as Kaneta (Gaoyao) Electroheat Products Ltd. [Kaneta (Gaoyao)] which was set up in 1996.  This factory is ISO 9001:2000 and QS 9000:1998 certified.  At present, the factory is employing about 1,000 people and its annual production capacity is over 50 million heating elements.  First phase was built in 1984 and the total area of the factories is about 20,000 sq.m.

 

Kaneta (Gaoyao) is engaged in manufacturing tubular heating elements, components, aluminium die-cast units and semi-heating products.  60% of the products are exported to foreign countries.

 

The second factory was set up in 2006 in Zhuhai Special Economic Zone, China.  The Zhuhai plant covers an area of 40,000 sq.m. and its production began in November 2007.

 

The Zhuhai plant is manufacturing the same products as Kaneta (Gaoyao), more or less.  It also has about 300 employees.

 

The products of the two factories are exported to worldwide countries.  Business is rather active.

 

Kaneta HK has been one of the largest heating element manufacturers in China.  It designs and produces all kinds of heating elements for household electric appliances and industrial equipment.  Its products are widely used in different applications like electric water heaters, bake and broil ovens, washing machines, air heaters, steam irons, coffee makers, kettles, fry pans, stoves, solid and spiral hot-plates, grills, skillets, casseroles, food steamers, bread makers, or any other electric appliances that need to generate heat.

 

In 1997, Kaneta HK built a new manufacturing plant in the same industrial area next to the old plant. After many years of improvements, Kaneta HK has become a supplier of heating elements to the whole world.  It is now regularly exporting heating elements to over 60 customers in over 25 countries.

 

The directors of the Kaneta HK are also Mr. Lee Kun Tat and Mr. Jonathan Lee Chun Shing.

 

The annual sales turnover of the Group ranges from RMB220 to 250 million Yuan.  Business is profitable.

 

The subject’s associated company ALBA Investments was incorporated on 2 June, 2009.  This company is an Italian funded appliance manufacturer of AC coffee makers.  The associated factory of ALBA Investments is also in China.  The products are marketed in Hong Kong, China and exported to Africa, Australia, Central & South America, Europe, South Korea, Japan, the Middle East, other Asian countries, etc.

 

The history of the subject in Hong Kong is about ten years.

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.62

UK Pound

1

Rs.100.34

Euro

1

Rs.70.67

HKD

1

Rs.8.60

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               


 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.