MIRA INFORM REPORT

 

 

Report No. :

302744

Report Date :

12.01.2015

           

IDENTIFICATION DETAILS

 

Name :

HONG KONG  GREE ELECTRIC APPLIANCES SALES LTD.

 

 

Registered Office :

Room 2612, 26/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon,

 

 

Country :

Hong Kong.

 

 

Date of Incorporation :

21.06.2005

 

 

Com. Reg. No.:

35757995

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of all kinds of air-conditioners

 

 

No. of Employees

20

 

 

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 :

Good

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Hong Kong.

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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

 

HONG KONG  GREE  ELECTRIC  APPLIANCES  SALES  LTD.

 

 

ADDRESS:       Room 2612, 26/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            852-3165 8898,  3697 8315

 

FAX:                 852-3165 1029,  3165 1030

 

E-MAIL:            larry@gree.com.cn

 

 

MANAGEMENT

 

Managing Director:  Mr. Chen Shaolin

 

 

SUMMARY

 

Incorporated on:            21st June, 2005.

 

Organization:                 Private Limited Company.

 

Issued Capital:               HK$100,000.00

 

Business Category:       Importer and Exporter.

 

Group Turnover:            RMB118,627,948,208.59 Yuan  (Year ended 31-12-2013)

 

Employees:                  20.

 

Main Dealing Banker:     Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

           

Banking Relation:          Satisfactory.


 

ADDRESS

 

Registered Head Office:-

Room 2612, 26/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company:-

Gree Electric Appliances Inc. of Zhuhai, China.

 

Ultimate Holding Company:-

Zhuhai Gree Group Co. Ltd., China.

 

Associated/Affiliated Companies:-

Gree Group of Companies

Cong Ty Lien Doanh Gree Electric (Vietnam), Vietnam.

Gree (Zhongshan) Small Home Appliances Co. Ltd., China.

Gree Electric Appliance (Wuhan) Co. Ltd., China.

Gree Electric Appliances (Chongqing) Co. Ltd., China.

Gree Electric Appliances (Hefei) Co. Ltd., China.

Gree Electric Appliances (Shijiazhuang) Co. Ltd., China.

Gree Electric Appliances (Wuhan) Co. Ltd., China.

Gree Electric Appliances (Zhengzhou) Co. Ltd., China.

Gree Electric Appliances do Brasil Ltda., Brazil.

Gree Electric Enterprises (Maanshan) Ltd., China.

Hefai Landa Compressor Co. Ltd., China.

Shanghai Gree Air Conditioners Sales Co. Ltd., China.

Zhuhai Gree Daikin Device Co. Ltd., China.

Zhuhai Gree Daikin Precision Mold Co. Ltd., China.

Zhuhai Gree Electric Enterprises Ltd., China.

Zhuhai Gree Group Finance Co. Ltd., China.

Zhuhai Gree Xinyuan Electronic Co. Ltd., China.

Zhuhai Kaibang Motor Manufacture Co. Ltd., China.

Zhuhai Meilanda Refrigeration Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

35757995

 

 

COMPANY FILE NUMBER

 

0978477

 


MANAGEMENT

 

Group Chairman & President:  Ms. Dong Ming Zhu

Managing Director:  Mr. Chen Shaolin

Contact Person and Manager:  Mr. Yuen Sin Sum, Sam

 

ISSUED CAPITAL:  HK$100,000.00

 

SHAREHOLDER:          (As per registry dated 21-06-2014)

Name

 

No. of shares

Gree Electric Appliances Inc. of Zhuhai

Jinji West Road, Zhuhai 519070, Guangdong, China.

 

100,000

======

 

DIRECTORS:    (As per registry dated 21-06-2014)

Name

(Nationality)

 

Address

CHEN Shaolin

Gree Electric Appliances Inc. of Zhuhai, Dormitory, Xiang Zhou, Zhuhai, Guangdong, China.

 

OUYANG Jun

Room 504, Unit 2, Building 11, 50 Jingshan Road, Zhuhai, Guangdong, China.

 

ZHANG Zhenghu

Room 4-2-402, Jindi Yidunshan Apartment, Meihua West Road, Zhuhai, Guangdong, China.

 

DONG Ming Zhu

Zhuhai Shi, Xiangzhou Qu, Jiu Zhou Da Dao, Zhong 2106, Hao 20, Dong 202, China.

 

SECRETARY:   (As per registry dated 21-06-2014)

Name

Address

YUEN Sin Sum

Flat 9, 3/F., Shing Chung House, Mei Chung Court, Tai Wai, Shatin, New Territories, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 21st June, 2005 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:          Importer and Exporter.

 

Lines:               All kinds of air-conditioners.

 

Brand Name:     Gree.

 

Employees:      20.

 

Commodities Imported: China (main), etc.

 

Markets:            China, other Asian countries, Europe, Australia, Middle East, Central & South America, North America, etc.

 

Group Turnover:-

RMB  60,431,626,050.46 Yuan  (Year ended 31-12-2010)

RMB  83,155,474,504.59 Yuan  (Year ended 31-12-2011)

RMB  99,316,196,265.19 Yuan  (Year ended 31-12-2012)

RMB118,627,948,208.59 Yuan  (Year ended 31-12-2013)

 

Group Profit Attributable to Shareholders:-

RMB  4,275,721,624.27 Yuan  (Year ended 31-12-2010)

RMB  5,236,938,608.43 Yuan  (Year ended 31-12-2011)

RMB  7,379,666,345.09 Yuan  (Year ended 31-12-2012)

RMB10,870,672,842.47 Yuan  (Year ended 31-12-2013)

 

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

 

Terms/Buying:  L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Issued Capital:              HK$100,000.00

 

Mortgage or Charge:      (See attachment)

 

Profit or Loss:               Making a small profit every year.

 

Condition:                     Keeping in a very active condition.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                       Met trade commitment as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Citibank N.A., Hong Kong Branch.

Deutsche Bank AG, Hong Kong Branch.

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

Sumitomo Mitsui Banking Corporation, Hong Kong Branch.

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

 

Standing:  Very Good.

 

 

GENERAL

 

Having issued 100,000 ordinary shares, Hong Kong Gree Electric Appliances Sales Ltd. is wholly owned by Gree Electric Appliances Inc. of Zhuhai [Gree] which is a China-based firm.  The ultimate holding company Zhuhai Gree Group Co. Ltd. is also a China-based firm.

The subject is engaged in marketing Gree’s products.  Gree’s products are air‑conditioners and dehumidifiers bearing the brand name of “Gree”.

Gree, founded in 1991, has become one of the world’s largest and specialized air conditioner companies integrating R&D, manufacturing, marketing and after‑sales service offering.

Gree” air conditioners produced by Gree are the air conditioning brand that ranked “World Brand” by General Administration of Quality Supervision, Inspection and Quarantine in China.  Today, “Gree” brand products are distributed to more than 100 countries and regions in the world.  Since 2005, its sales volume of residential air conditioner has occupied global No. 1 for consecutive six years.

As a specialized air conditioner manufacturer, Gree is presenting advanced and high quality air conditioning products to global consumers.

It had worked out both residential air conditioners and commercial air conditioners of 20 varieties, 400 series, and 7,000 models to satisfy different demands by different consumers.  It is possessing nearly 3,000 technical patents.  The GMV digital VRF system, centrifugal type water chiller and sine wave D.C. inverter driven air conditioner filled the absence in production of high-tech products among Chinese enterprises.  Being the model that develops from “made-in-China” enterprise to “created-in-China” one, Gree had gained wide reputation in the international industry.

Now, Gree is a listed firm in China with shares traded in the Shenzhen Stock Exchange.  Its stock code is 000651.

Gree has 9 production bases which are located in Zhuhai Special Economic Zone, Chongqing, Hefei, Zhengzhou, Wuhan, Shijiazhuang, Brazil, Pakistan and Vietnam with an annual production capacity of about 60 million residential air conditioners [RAC] and 4.5 million commercial air conditioners [CAC].

Gree enjoys a sound reputation for its quality products and outstanding performance.  It has more than 200 million users worldwide.

On 22nd December, 2012, Gree has launched a range of new products which have adopted “2-stage enthalpy-adding inverter compressor”:-

Crown series:  Inverter type floor standing unit;

H-Crown series:  Air source heat pump water heater (HPWH); &

U-Crown series:  Inverter type wall mounted unit.

According to Gree, its 2-stage inverter technology not only can lighten the load of compressor, but also improve its efficiency greatly.

For the year ended 31st December, 2013, the sales of the Gree Group amounted to RMB118,627.9 million Yuan, grew by 19.4% as compared with RMB99,316.2 million Yuan in FY 2012; profit attributable to shareholders amounted to RMB10,870.7 million Yuan, grew by 47.3% as compared with RMB7,379.7 million Yuan in FY 2012.  Overall business was good in the past five years.

The Group predicts the sales turnover will up to RMB140 billion Yuan in FY 2014.

In 2013, the Group’s sales in RAC ranked the first in China.  Its market share in the year in China was 15.7%.

Under the leadership of Ms. Dong Ming Zhu (Gree Chairman of Board and President), Gree has become the first Chinese home electric appliances manufacturer with over RMB100 billion Yuan sales revenue only from air conditioners.

Ms. Dong Ming Zhu is also the legal representative of Gree Electric Appliances Inc. of Zhuhai, China.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Italy, Russia, South Africa, Australia, the United States, etc.

The Gree Group had over 72,150 employees (As at end of 2013).

The subject is fully supported by the Gree Group.  Its history is over nine years in Hong Kong.

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

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

02-06-2008

Instrument:        Assignment of DC Proceeds re export bills restricted to other banks for negotiation/payment

Property:

By way of assignment or agreement to assign in each case as beneficial owner.  All monies in any currency representing proceeds payable or to be paid to the Customer under the Documentary Credits, all the Customer’s right, title and interest in the said Documentary Credits and the benefit of all powers and remedies for enforcing the Documentary Credits

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

All loans or other advances made or to be made by the Bank to the Customer against documents submitted under a Documentary Credit, all monies and liabilities in any currency owing by the Customer to the Bank at any time, whether separately or jointly, actually or contingently, present or future, interest on all loans and advances and such monies and all expenses of the Bank in perfecting or enforcing the Assignment

13-01-2011

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 obligations, indebtedness and liabilities

13-01-2011

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

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 and liabilities

18-01-2011

Instrument:        Security Agreement over Bank Account

Property:

By way of a first fixed charge all of the Chargor’s rights in respect of any amount standing to the credit of the Account from time to time and the debt represented by it

Mortgagee:        Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

To secure the payment and satisfaction of all present and future obligations and liabilities

15-03-2011

Instrument:        Deposit Deed

Property:

By way of a first fixed charge and as a continuing security for the Obligations, the Company charges and assigns absolutely all its rights, title to and interest in the Accounts and all Deposits

Mortgagee:        Citibank N.A., Hong Kong Branch.

All moneys


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.40

UK Pound

1

Rs.94.17

Euro

1

Rs.73.61

 

INFORMATION DETAILS

 

Report Prepared by :

TPT

 

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.