MIRA INFORM REPORT

 

 

Report No. :

323732

Report Date :

26.05.2015

 

IDENTIFICATION DETAILS

 

Name :

DMX  TECHNOLOGIES  (HONG  KONG)  LTD.

 

 

Registered Office :

Room 4303, 43/F., 100 How Ming Street, Kwun Tong, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

09.08.1994

 

 

Com. Reg. No.:

18526626

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is trader of backbone network product

 

 

No. of Employee :

60

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

 

Source : CIA

 

Company name and address

 

DMX  TECHNOLOGIES  (HONG  KONG)  LTD.

 

 

Address:                    Room 4303, 43/F., 100 How Ming Street,

                            Kwun Tong, Kowloon,

                            Hong Kong.

 

 

(Your enquiry given as:               DMX TECHNOLOGIES HK

With former located at:

Room 1401, 14/F., Stanhope House,

738 King’s Road, Quarry Bay, Hong Kong.)

 

PHONE:                  852-2520 2660

FAX:                       852-2802 2062

E-MAIL:                  enquiry@dmxtechnologies.com

 

 

MANAGEMENT

 

Managing Director:  Ms. Teo Chor Khin, Jismyl

 

 

SUMMARY

 

                         Incorporated on:                  9th August, 1994.

 

                         Organization:                       Private Limited Company.

 

                         Issued Share Capital:     HK$14,880.00

 

                         Business Category:             Backbone Network Product Trader.

 

                         Group Revenue:                  US$395,898,000  (Year ended 31-12-2013)

 

                         Employees:                        60.

 

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

 

                         Banking Relation:                Good.

 

Registered Head Office:-

Room 4303, 43/F., 100 How Ming Street, Kwun Tong, Kowloon, Hong Kong.

 

Holding Company:-

DMX (BVI) Ltd., British Virgin Islands.

 

Intermediate Holding Company:-

DMX Technologies Group Ltd., Bermuda. [listed in Singapore]

 

Ultimate Holding Company:-

KDDI Corporation, Japan.

 

Associated Companies:-

DMX Technologies Group of Companies

1MP (HK) Ltd., Hong Kong.

1MP Ltd., British Virgin Islands.

1MP Technology Beijing Ltd., China.

BEE Mediasoft Ltd., Hong Kong.

Beijing AVN Film Development Co. Ltd., China.

Beijing DMX Technologies Ltd., China.

Beijing DMX Xingnet Information Technology Ltd., China.

DMX Technologies (China) Ltd., Hong Kong.

DMX Technologies (India) Private Ltd., India.

DMX Technologies (Macao Commercial Offshore) Co. Ltd., Macau.

DMX Technologies (S’pore) Pte Ltd., Singapore.

DMX Technologies Korea Co. Ltd., Korea.

DMX Technologies Sdn. Bhd., Malaysia.

Lotun Technologies Ltd., Hong Kong.

Packet Systems (Malaysia) Sdn. Bhd., Malaysia.

PT Packet Systems Indonesia, Indonesia.

 

 

BUSINESS REGISTRATION NUMBER

 

18526626

 

 

COMPANY FILE NUMBER

 

0487940

 

 

MANAGEMENT

 

Managing Director:  Ms. Teo Chor Khin, Jismyl

 

 

ISSUED SHARE CAPITAL

 

HK$14,880.00

 

 

SHAREHOLDERS

 

(As per registry dated 09-08-2014)

Name

 

No. of shares

DMX (BVI) Ltd.

P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

 

14,879

TEO Chor Khin, Jismyl

 

1

 

 

––––––

 

Total:

14,880

=====

 

 

DIRECTORS

 

(As per registry dated 09-08-2014)

Name

(Nationality)

 

Address

TEO Chor Khin, Jismyl

20A Nallur Road, Singapore 456638.

 

Emmy WU

Flat A, 46/F., Tavistock II (Tower 2), 10A Tregunter Path, Hong Kong.

 

MAK Tak Ming

Flat E, 24/F., Tower Two, Robinson Place, 70 Robinson Road, Hong Kong.

 

 

 

SECRETARY

 

(As per registry dated 09-08-2014)

Name

Address

Co. No.

Evershine Secretaries Ltd.

Unit 818, 8/F., China Insurance Group Building, 73 Connaught Road Central, Hong Kong.

0774373

 

 

HISTORY

 

The subject was incorporated on 9th August, 1994 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Sky Liaison International Ltd., name changed to Skynet Consultants Co. Ltd. on 6th December, 1994, and further to the present style on 14th February, 2001.

Formerly it was located at 1401, 14/F., Stanhope House, 738 King’s Road, Quarry Bay, Hong Kong, moved to the present address in May 2013.

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

 

 

OPERATIONS

 

                         Activities:     Backbone Network Product Trader.

 

                         Lines:   Broadband network infrastructure, e-commerce solutions and network security.

 

                         Employees:   60.

 

                         Commodities Imported:      Europe, North America, other Asian countries, etc.

 

                         Markets:  Hong Kong, China, other Asian countries, etc.

 

                         Group Revenue:        US$190,394,000  (Year ended 31-12-2009)

US$270,615,000  (Year ended 31-12-2010)

US$335,716,000  (Year ended 31-12-2011)

US$379,592,000  (Year ended 31-12-2012)

US$395,898,000  (Year ended 31-12-2013)

US$276,312,000  (9 months ended 30-06-2013)

US$247,133,000  (9 months ended 30-06-2014)

 

                         Terms/Sales/Services:  As per contracted.

 

                         Terms/Buying:  Various terms.

 

 

GOVERNMENT CONTRACTS AWARDED SINCE 2000

 

Date

GN No.

Particulars

Amount

27-06-2003

GN4417

Supply, delivery, installation, commissioning and maintenance of backbone network products and the provision of other related services to various government departments

HK$200,000,000.00

30-01-2004

GN819

The Supply, delivery, Installation, Commissioning, Training, Maintenance & other Related services of Data Network Revamp for the Hong Kong Housing Authority (HAQ 37/2003)

US$1,267,776.40

30-01-2004

GN788

Supply, delivery, installation, commissioning, maintenance and provision of related services of network products

HK$90,000,000.00

31-12-2009

GN8239

Supply of Information Technology Professional services to Government for a period of 48 months

HK$858,000,000.00

27-09-2013

GN5840

Supply of Information Technology Professional services to Government Departments for a period of 48 months

HK$1,169,200,000.00

 

 

FINANCIAL INFORMATION

 

                         Issued Share Capital: HK$14,880.00

 

                         Indebtedness:  US$2,296,306.43 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 09-08-2014)

 

                         Mortgage or Charge (since September 2004):  (See attachment)

 

                         Group Profit Attributable to shareholders:-

US$  8,496,000  (Year ended 31-12-2009)

US$15,541,000  (Year ended 31-12-2010)

US$18,585,000  (Year ended 31-12-2011)

US$20,925,000  (Year ended 31-12-2012)

US$22,773,000  (Year ended 31-12-2013)

US$12,326,000  (6 months ended 30-06-2013)

US$  9,174,000  (6 months ended 30-06-2014)

 

                         Profit or Loss:    Making a small profit every year.

 

                         Condition:  Keeping in a satisfactory manner.

 

                         Facilities:  Making rather active use of general banking facilities.

 

                         Payment:  Met trade commitments as required.

 

                         Commercial Morality:  Satisfactory.

 

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

 

                         Standing:  Good.

 

 

GENERAL

 

DMX Technologies (Hong Kong) Ltd. is a wholly-owned subsidiary of DMX (BVI) Ltd. which is a BVI-registered firm.  This firm is wholly-owned by DMX Technologies Group Ltd. [DMX/Group] which is a Bermuda-registered firm.  DMX is a listed firm in Singapore.  As at 18th March, 2013, DMX was a 51.5% owned by KDDI Corporation which is a Japan-based firm.

The subject is a system architect specialized in broadband network infrastructure, e-commerce solutions and network security.

Established in 1994 and headquartered in Hong Kong, the subject provides service and support through its nine offices across the Asia Pacific region, including Hong Kong, Beijing, Guangzhou, Xi’an, Shanghai, Fuzhou, Hangzhou, Singapore and Malaysia.  It helps its customers build metropolitan networks, latest generation data centres, and broadband networks, and customized security solutions.

The subject also provides comprehensive services ranging from equipment provision, network planning, designing, installation, and implementation though to after-sales maintenance and technical support.  Its complete end‑end product solutions and professional services help telecommunications service providers and enterprises in Asia Pacific build their next-generation systems.  Its mission is to be the leading system architect of Asia’s Digital Economy.

The subject’s service is providing under three product/service segments: D‑net, D-secure and D-soft.  These solutions are constituted from leading technologies from leading IT vendors in their own areas of specialization, and where necessary, it develops its own cost-effective proprietary solutions such as D-net iBAS Series, D-soft EAI Router and D-secure Chinese Encryption Engine which are compatible with and complement such leading technologies.

The subject offers a wide range of service in China, Hong Kong and Malaysia and commits to extending its regional coverage in Asia, providing inspiring technologies and solutions to its customers.  Its customer portfolio includes a diverse group of companies in various industries: telecom, banking and finance, government, Internet service, data centres, education and utilities, etc.

In Hong Kong, the subject has got a number of contracts awarded by the Hong Kong SAR Government in the supply, deliver, installation, commission and maintenance of backbone network products and the provision of other related services to various government departments.

The Group has the following three segments:-

·         Digital Media Solutions – comprising the integrated solutions provided under the former Digital Fixed Media segment.  This solution caters to the digitisation of cable operators, broadcasters or the providing of Internet Protocol TV (IPTV) services to Telecom operators and other service operators;

·         ICT --- Comprising Infrastructure Solutions, Managed Services

·         Mobil Solution Services

For the year ended 31st December, 2013, the revenue of the Group amounted to US$395.9 million (2012: US$379.6 million); profit attributable to shareholders was US$22.8 million (2012: US$20.9 million).

For the 9 months ended 30th September, 2014, the revenue of the Group amounted to US$247.1 million (same period of 2013: US$276.3 million); profit attributable to shareholders was US$9.2 million (same period of 2013: US$12.3 million).

Please be advised that Ms. Jismyl Teo Chor Khin, the executive director and CEO of the Group has been suspended from all executive duties with effect from 9th February, 2015 for an indefinite period.  It was reported that Ms. Jismyl Teo Chor Khin had been involved in faked account compiling.

The subject is fully supported by the Group.

As the history of the subject is over 20 years and nine months in Hong Kong, on the whole, consider it good for normal business engagements.

 

REMARKS

 

Brief personal profile of Directors:-

Ms. TEO Chor Khin, Jismyl, Executive Director and Chief Executive Officer, Jismyl Teo Chor Khin has been the Chief Executive Officer of the Group since September 2006.  Ms Teo is responsible for the strategic directions, management and financial well-being of our Group.  Prior to her current role, Ms Teo was the Chief Financial Officer and was responsible for all aspects of financial planning, financial budgeting and control, logistics, human resources, administration and corporate secretarial matters for the Group.  She joined the Group in January 2001 and was appointed as Director in December 2001.  Ms Teo had worked for Ernst & Whinney as an assistant accountant from January 1984 to June 1985.  Ms Teo rejoined the Datacraft Asia Group in November 1992 as finance and administration manager and continued to work for them in a series of positions, including regional finance manager, joint company secretary and regional director of operations.  She left the Datacraft Asia Group in January 2001 to join the TVH group in January 2001 and was assigned the Chief Financial Officer of our Group.  Ms Teo is a member of the Institute of Certified Public Accountants of Singapore and holds a post-graduate Diploma in Business Administration and Bachelor of Business Studies from the Massey University of New Zealand.

Mr. MAK Tak Ming, Michael, Regional Director, Hong Kong & Taiwan, Mr Michael Mak Tak Ming joined the Group in June 2001 and is the Regional Director for Hong Kong and Taiwan; and its General Manager for Hong Kong.  He is responsible for all aspects of the company’s business in the assigned territory.  Mr Mak began his career at Epro System in1984 as an account manager.  He subsequently joined Digital Equipment Corporation in 1987 as a sales account manager.  Between 1990 and 2001, he had served the Datacraft Asia Group in various positions including country sales manager, assistant general manager and general manager.  He holds a Master degree in Operational Research, and a Bachelor of Science degree in Computer Science and Mathematics from the University of London.

Mr. Emmy WU, Executive Chairman, He has been serving as its Executive Chairman since June 2002.  He is responsible for exercising control over the quality and timeliness of the flow of information between the board of Directors and the management of the Group. Mr Wu began his career at the Mitsubishi-Ryoden Group in1982 where he was senior accounts executive.  He left the Mitsubishi-Ryoden Group in 1986 to join Data General, initially as account manager, and later as PRC sales and marketing manager. He was subsequently promoted to regional sales and marketing manager for the PRC and Hong Kong.  Mr Wu left Data General in 1991 and joined the Datacraft Asia Group in a series of positions, including general manager and managing director for Datacraft China Limited, regional director for North Asia of Datacraft Asia Limited, sales director for Datacraft Asia Limited and adviser to Datacraft Japan Limited. Mr Wu has more than 20 years experience of doing business in China.

 

MORTGAGE OR CHARGE

 

(Since September 2004)

 

Date

Particulars

Amount

12-08-2004

Instrument:      Running Deed of Charge

Property:

All monies and deposits now or hereafter in the time deposit account No. HK-266545383 kept by the company with Hang Seng Bank Ltd.

Mortgagee:      Hang Seng Bank Ltd., Hong Kong.

To secure all monies & liabilities which are now or at any time hereafter may be outstanding owing or payable by the company to Hang Seng Bank Ltd.

10-08-2007

Instrument:      Running Deed of Charge

Property:

All monies and deposits now or hereafter in the time deposit account No. HK-266545383 kept by the company with Hang Seng Bank Ltd.

Mortgagee:      Hang Seng Bank Ltd., Hong Kong.

All monies & liabilities

28-04-2009

Instrument:      Charge Over Securities (2-Party)

Property:

A)   Any interests, right or property owned by the company which, at any time and for any reason, are transferred in the name of the Bank or any nominee or agent of the Bank and stand to the credit of the company’s securities account number 266-545383

B)   All dividends, interest, distributions and other moneys derived therefrom

C)   All accretion, allotments, and other benefits accruing or arising in respect thereof.

D)   All stock, securities, moneys or property accruing or offered at any time

E)   All present and other party in respect of any of the foregoing including any rights which the chargor may have to require delivery by such clearance system or party of any of the foregoing to or to the order of, the chargor.

Mortgagee:      Hang Seng Bank Ltd., Hong Kong.

To secure all monies in any currency owing by the company to the Bank at any time

06-07-2009

Instrument:      Charge Over Securities (2-Party)

Property:

A)   Any interests, right or property owned by the company which, at any time and for any reason, are transferred in the name of the Bank or any nominee or agent of the Bank and stand to the credit of the company’s securities account number 266-545383-382

B)   All dividends, interest, distributions and other moneys derived therefrom

C)   All accretion, allotments, and other benefits accruing or arising in respect thereof.

D)   All stock, securities, moneys or property accruing or offered at any time

E)   All present and other party in respect of any of the foregoing including any rights which the chargor may have to require delivery by such clearance system or party of any of the foregoing to or to the order of, the chargor.

Mortgagee:      Hang Seng Bank Ltd., Hong Kong.

To secure all monies in any currency owing by the company to the Bank at any time

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.62

UK Pound

1

Rs.98.51

Euro

1

Rs.69.93

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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.