MIRA INFORM REPORT

 

 

Report No. :

324943

Report Date :

01.06.2015

 

IDENTIFICATION DETAILS

 

Name :

HENGTONG OPTIC-ELECTRIC INTERNATIONAL CO. LTD.

 

 

Registered Office :

C/o Accenture Room 8505B-8506A, 85/F., International Commerce Centre, 1 Austin Road West, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

04.06.2013

 

 

Com. Reg. No.:

61544209

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Manufacturer of all kinds of Optic-Electric Cable.

 

 

No. of Employees :

No Employees in Hong Kong.

 

NOTE :

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

 


 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Status :

No Operating Office in Hongkong

 

 

Payment Behaviour :

Unknown

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 2014 more than 274 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.

 

Source : CIA

 

Company Name and address

 

HENGTONG OPTIC-ELECTRIC INTERNATIONAL CO. LTD.

 

ADDRESS:                   C/o Accenture

Room 8505B-8506A, 85/F., International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong.

 

PHONE:                        852-2249 2388

 

 

MANAGEMENT

 

Managing Director:        Mr. Yin Jicheng

 

 

SUMMARY

 

Incorporated on:            4th June, 2013.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     US$200,000.00

 

Business Category:       Importer, Exporter and Manufacturer.

 

Group Turnover:            RMB10,419.5 million Yuan  (Year ended 31-12-2014)

 

Employees:                  Nil.

 

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

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

C/o Accenture

Room 8505B-8506A, 85/F., International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong.

 

Holding Company:-

Hengtong Optic-Electric Co. Ltd., China.

 

Associated Companies:-

Beijing Hengtong Sibo Communication Technology Co. Ltd., China.

Changshu Hengtong Port Co. Ltd., China.

Chengdu Hengtong Optic Communication Co. Ltd., China.

Fujikura Hengtong Aerial Cable System Ltd., China.

Furukawa Electric (Xi’an) Optial Communication Co. Ltd., China.

Guangde Hengtong Copper Co. Ltd., China.

Hengtong Finance Co. Ltd., China.

Hengtong Group Co. Ltd., China.

Jiangsu Hengtong Goldensky Electric Wire & Cable Co. Ltd., China.

Jiangsu Hengtong HV Power Cable System Co. Ltd., China.

Jiangsu Hengtong Optical Fiber Technology Co. Ltd., China.

Jiangsu Hengtong Power Cable Co. Ltd., China.

Jiangsu Hengtong Wire & Cable Technology Co. Ltd., China.

Jiangsu Nanfang Optical Technology Co. Ltd., China.

Jiangsu OFS Hengtong Optical Technology Co. Ltd., China.

Shanghai Hengtong Hongpu Communication Technology Co. Ltd., China.

Shanghai Hengtong Photoelectric Technology Co. Ltd., China.

Shenyang Hengtong Optical Communication Co. Ltd., China.

Suzhou Hengtong Copper Co. Ltd., China.

Suzhou Hengtong Gloria Holiday Hotel Co. Ltd., China.

Suzhou Henry Communication Material Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

61544209

 

 

COMPANY FILE NUMBER

 

1918173

 

 

MANAGEMENT

 

Managing Director:  Mr. Yin Jicheng

 

 

ISSUED SHARE CAPITAL 

 

US$200,000.00

 

 

SHAREHOLDER  

(As per registry dated 04-06-2014)

 

Name

 

No. of shares

Hengtong Optic-Electric Co. Ltd.

No. 88, Heng Tong Da Dao, Qi Dou Town, Wu Jiang District, Suzhou City, Jiang Su Province, China.

 

200,000

======

 

 

DIRECTOR    

(As per registry dated 04-06-2014)

 

Name

(Nationality)

 

Address

YIN Jicheng

No.21 Xi Wan Li, Ling Tian Cun (6), Qi Dou Town, Wu Jiang District, Su Zhou City, Jiang Su Province, China.

 

 

SECRETARY

(As per registry dated 04-06-2014)

 

Name

Address

Co. No.

Golden China Consultants Ltd.

Room 2201-2203, 22/F., World-Wide House, 19 Des Voeux Road Central, Hong Kong.

0662723

 

 

HISTORY

 

The subject was incorporated on 4th June, 2013 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, Exporter and Manufacturer.

 

Lines:                           All kinds of optic-electric cable

 

Employees:                  Nil.

 

Group Employess:        7,022.  (As at 31-12-2014)

 

Commodities Imported: China.

 

Markets:                        Asian countries, Europe, North America, etc.

 

Group Turnover:            RMB  5,187.3 million Yuan  (Year ended 31-12-2010)

RMB  6,688.6 million Yuan  (Year ended 31-12-2011)

RMB  7,804.3 million Yuan  (Year ended 31-12-2012)

RMB  8,586.5 million Yuan  (Year ended 31-12-2013)

RMB10,419.5 million Yuan  (Year ended 31-12-2014)

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     US$200,000.00

 

Mortgage or Charge:     (See attachment)

 

Profit Attributable to Equity Holders:-

RMB236.7 million Yuan  (Year ended 31-12-2010)

RMB255.6 million Yuan  (Year ended 31-12-2011)

RMB345.0 million Yuan  (Year ended 31-12-2012)

RMB291.0 million Yuan  (Year ended 31-12-2013)

RMB344.2 million Yuan  (Year ended 31-12-2014)

 

Profit or Loss:               Group business is profitable.

 

Condition:                     Business is not active in Hong Kong.

 

Facilities:                      Adequate for current running.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

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

 

Standing:                      Small.

 


GENERAL

 

Hengtong Optic-Electric International Co. Ltd. is a wholly-owned subsidiary of Hengtong Optic-Electric Co. Ltd. [HTOEC] which is a China-based company.

 

The director of the subject Mr. Yin Jicheng is a China merchant.  He is a China ID holder and does not have the right to reside in Hong Kong permanently.  He is also the only director of the subject.

 

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at “Room 8505B-8506A, 85/F., International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong” known as “Accenture” which is handling its correspondences and documents.

 

The subject has no employees in Hong Kong.

 

The director of the subject is Mr. Yin Jicheng who is a China merchant.  He is a China passport holder and currently residing in Suzhou City, Jiangsu Province, China.

 

HTOEC is a listed company in Shanghai, China, bearing stock code No. 600487.  Its shares have been traded in Shanghai Stock Exchange.

 

The largest shareholder of HTOEC is Hengtong Group Co. Ltd., also a China-based company.

 

HTOEC is manufacturing independent optical communication industry chain of “optical fibre perform-optical fiber-fiber optic cable”, the full range of FTTx ODN R & D and manufacturing has been completed to lead a full range of series of product industrial clusters of optical network town, a full range of series of power cable industrial clusters of submarine optical fibre composite cable and submarine optical fibre cable, submarine super high-voltage cable and power cable industrial clusters fully ranging from medium-low voltage to high voltage to super high-voltage series, electrical equipment cable industrial clusters of locomotives, rail transportation, marine engineering, new energy and other areas and a full range of electronic consumer cable industrial clusters of high-speed data cable, high-speed signal transmission cable, etc.

 

HTOEC is specialized in providing customers with solutions in the field of optical cable system.

 

HTOEC has set up five major scientific research platforms such as the State-level Corporate Technical Centre, National Corporate Postdoctoral Research Station, Jiangsu Provincial Academician Workstation, Jiangsu Province Optical Cable Transmission Engineering Technology Research Centre.

 

HTOEC has participated in the preparation of 70 national and industry standards and obtained more than 450 nationally-authorized patents (the total number of patents applied ranked the first, including 62 invention patents), has successively undertaken more than 50 national, provincial and ministerial level new product projects and technology research projects, including three provincial and ministerial major scientific and technological achievement funded projects.

 

The products of HTOEC are mainly used in China Mobile, China Telecom, China Unicom and other communication operators, as well as specialized communication networks of aerospace, power, radio and television, national defence, General Staff Department, marine engineering, etc.

 

The turnover of HTOEC in 2014 was RMB10,419.5 million Yuan (2013: RMB8,586.5 million Yuan), and profit attributable to equity holders were RMB344.2 million Yuan (2013: RMB291.0 million Yuan).

 

Most of the China customers of HTOEC are significant telecommunication companies, including State Electricity Network and China Railway General Corporation.  HTOEC has been maintaining a number of regular customers.

HTOEC had 7,200 employees as at end of 2014.  Mr. Yin Jicheng is also General Manager of HTOEC.

 

The subject’s business in Hong Kong is not active.  History, which is short in Hong Kong, is less than two years.

The subject is fully supported by HTOEC.

 

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis or in small credit amounts.

 

MORTGAGE OR CHARGE

 

Date

Description of Instrument

Mortgagee

03-12-2014

Assignment of Receivables – Specific Arrangement

HSBC Bank (China) Co. Ltd.
Room 101-3, Innovative Science & Technology Centre, No. 333 Dongnan Avenue, Changshu New & Hi-Tech Industrial Development Zone, Changshu, Jiangsu Province, 215550, China.

04-12-2014

Debentures Mortgaged or Charged

China Development Ltd.
No. 29 Fuxingmenwei Street, Xicheng District, Beijing, China,.

 

 

NOTE:

 

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.76

UK Pound

1

Rs.97.80

Euro

1

Rs.69.91

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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.