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Report No. : |
302747 |
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Report Date : |
17.01.2015 |
IDENTIFICATION DETAILS
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Name : |
CHIGO (HONG KONG) TRADING CO. LTD. |
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Registered Office : |
Unit 8, 19/F., Greenfield Tower, Concordia Plaza, 1 Museum Road, Tsimshatsui, Kowloon, |
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Country : |
Hong Kong |
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Date of Incorporation : |
14.06.2011 |
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Com. Reg. No.: |
58506428 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, exporter and manufacturer of all kinds of
air-conditioning products |
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No. of Employees : |
13,489 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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Source
: CIA |
CHIGO (HONG
KONG) TRADING CO.
LTD.
ADDRESS: Unit 8, 19/F., Greenfield Tower, Concordia Plaza, 1 Museum Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: Not available
Managing Director: Mr. Li Xinghao
Incorporated on: 14th June, 2011.
Organization: Private Limited Company.
Issued Share Capital: HK$100,000.00
Business Category: Importer, exporter and manufacturer.
Group Turnover: RMB9,183,678,000 Yuan (Year ended 31-12-2013)
Group Employees: 13,489. (As at 30-06-2014)
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office:-
Unit 8, 19/F., Greenfield Tower, Concordia Plaza, 1 Museum Road, Tsimshatsui, Kowloon, Hong Kong.
Holding Company:-
Chigo Development Holding Ltd., British Virgin Islands.
Intermediate Holding
Company:-
Chigo Holding Ltd., Cayman Islands.
Ultimate Holding Company:-
Chigo Group Holding Ltd., British Virgin Islands.
Associated
Companies:-
Chigo Air-Conditioning (Jiu Jiang) Co. Ltd., China.
Guangdong Chigo Air-Conditioning Co. Ltd., China.
Guangdong Chigo Heating and Ventilation Equipment Co. Ltd., China.
Guangdong Chigo Kechuang Copper Co. Ltd., China.
Guangdong Chigo Precision Machinery Co. Ltd., China.
etc.
58506428
1615724
Managing Director: Mr. Li Xinghao
Contact Person: Mr. Leung Hon Man
ISSUED SHARE
CAPITAL: HK$100,000.00
SHAREHOLDER: (As per registry dated 14-06-2014)
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Name |
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No. of shares |
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Chigo Development Holding Ltd. P. O. Box 957, Offshore Incorporation Centre, Road Town, Tortola, British Virgin Islands. |
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100,000 ====== |
DIRECTOR: (As per registry dated 14-06-2014)
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Name (Nationality) |
Address |
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LI Xinghao |
Shengli Industrial Zone, Lishui Town, Nanhai Area, Foshan City, Guangdong, China. |
SECRETARY: (As per registry dated 14-06-2014)
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Name |
Address |
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LEUNG Hon Man |
Unit 8, 19/F., Greenfield Tower, Concordia Plaza, 1 Museum Road, Tsimshatsui, Kowloon, Hong Kong. |
The subject was incorporated on 14th June, 2011 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.
Activities: Importer, exporter and manufacturer.
Lines: All kinds of air-conditioning products.
Brand Name: “Chigo”.
Employees: 13,489. (As at 30-06-2014)
Commodities Imported: China, other Asian countries, etc.
Markets: China, other Asian countries, etc.
Group Turnover: RMB6,005,495,000 Yuan (Year ended 31-12-2009)
RMB8,467,723,000 Yuan (Year ended 31-12-2010)
RMB9,342,025,000 Yuan (Year ended 31-12-2011)
RMB8,801,814,000 Yuan (Year ended 31-12-2012)
RMB9,183,678,000 Yuan (Year ended 31-12-2013)
RMB5,440,369,000 Yuan (6 months ended 30-06-2014)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Issued Share Capital: HK$100,000.00
Group Profit (Loss) for the Year:
RMB314,779,000 Yuan (Year ended 31-12-2009)
RMB309,853,000 Yuan (Year ended 31-12-2010)
(RMB144,023,000) Yuan (Year ended 31-12-2011)
RMB 98,454,000 Yuan (Year ended 31-12-2012)
RMB214,419,000 Yuan (Year ended 31-12-2013)
RMB 48,566,000 Yuan (6 months ended 30-06-2014)
Profit or Loss: Made small profits in 2012 & 2013.
Condition: Business is normal.
Facilities: Adequate for current running.
Payment: Met as required.
Commercial Morality: Good.
Bankers:-
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
DBS Bank (Hong Kong) Ltd., Hong Kong.
Standing: Normal.
Chigo (Hong Kong) Trading Co., Ltd. is a wholly-owned subsidiary of Chigo Development Holding Ltd. which is a BVI-registered company. Its intermediate holding company Chigo Holding Ltd. [the Company/together with the Company’s associates are referred to “Chigo” or the “Group”] is a Cayman Islands-registered company. It is also a listed company in Hong Kong bearing stock code 449.
Founded in 1994, the Company’s products have become one of the top air-conditioner brands in China. The Group is principally engaged in the design, development, manufacture and sale of air-conditioning products.
The subject is trading in the Group’s products.
During the year ended 31st December, 2013, the Group’s total turnover was approximately RMB9,183.7 million Yuan (2012: RMB8,801.8 million Yuan) and increased by RMB381.9 million Yuan, or 4.3% as compared to the corresponding period in 2012. The increase was principally due to the increase in sales volume of air-conditioning products together with strong sales growth in parts and components during the year.
Due to the domestic economic slowdown and the unfavourable weather factor, the results of PRC sales in the first half of 2013 were far from satisfactory. However, the Group’s sales team responded quickly and domestic sales rebounded substantially in the second half of 2013. For the year ended 31st December, 2013, the Group’s PRC sales increased by RMB241.8 million Yuan or 5.0% to RMB5,067.7 million Yuan (2012: RMB4,825.9 million Yuan). During the year ended 31st December, 2013, domestic sales remained the main source of revenue of the Group and amounted to 55.2% of the total turnover (2012: 54.8%).
As a result of the foregoing, the Group recorded a profit of RMB214.4 million Yuan for the year ended 31st December, 2013 (2012: RMB98.5 million Yuan), representing an increase of RMB115.9 million Yuan or 117.7% as compared to the corresponding period in 2012. Since net profit of the Group had increased in the reporting period, the Group’s net margin improved to 2.3% (2012: 1.1%) for the year ended 31st December, 2013.
In 2013, the Group completed the construction of production facilities for producing compressors at the production headquarters in Foshan, Guangdong Province, the PRC so as to further enhance the future competitiveness of the Group and ensure a stable supply of core components, and meanwhile completed an acquisition of production facilities for manufacturing copper products in Sihui City, Guangdong Province. It is expected that the two production facilities for compressors and copper products will be gradually put into operation in 2014, and thus the Group can further its production integration and improve its overall operational efficiency and profitability.
During the six months ended 30th June, 2014, the Group recorded a total turnover of approximately RMB5,440.4 million Yuan (30th June, 2013: approximately RMB5,436.4 million Yuan), representing a slight increase of RMB4.0 million Yuan, or 0.1% as compared to the corresponding period in 2013. The increase was primarily due to the growth in domestic sales slightly outweighing the drop in sales of overseas markets.
As a result of the foregoing, the Group recorded a profit of RMB48.6 million Yuan for the six months ended 30th June, 2014 (30th June, 2013: RMB29.1 million Yuan), representing an increase of RMB19.5 million Yuan or 67.0% as compared to the corresponding period in 2013. Since the Group had increased its net profit in the reporting period, the Group improved its net margin to 0.9% for the six months ended 30th June, 2014 (30th June, 2013: 0.5%) accordingly.
As at 30th June, 2014, the Group employed 13,489 employees (30th June, 2013: 15,049 employees).
The subject is fully supported by the Group. However, the history of the subject in Hong Kong is just over three years and seven months.
On the whole, consider it good for normal business engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.89 |
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1 |
Rs.93.92 |
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Euro |
1 |
Rs.72.01 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
NIS |
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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.