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Report No. : |
348474 |
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Report Date : |
04.11.2015 |
IDENTIFICATION DETAILS
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Name : |
ZXG INTERNATIONAL (HK) LTD. |
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Registered Office : |
5/F., Wilson Logistics Centre, |
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Country : |
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Date of Incorporation : |
16.08.2011 |
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Com. Reg. No.: |
58931679 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Telecommunication Product Trader and Logistic Service Provider of All kinds of Telecommunication Equipment. |
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No. of Employees : |
25 [Including Associates] |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 12.5% 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 |
ZXG INTERNATIONAL
(HK) LTD.
ADDRESS: 5/F., Wilson
Logistics Centre, 24-28 Kung Yip Street, Kwai Chung, New Territories, Hong
Kong.
PHONE: 852-3425 4759
FAX: 852-3425 4760
MANAGEMENT:
Managing Director: Mr. Tang Hong
Shun
Incorporated on: 16th August, 2011.
Organization: Private Limited Company.
Issued Share Capital: HK$100,000.00
Business Category: Telecommunication
Product Trader and Logistic Service Provider.
Group Revenue: RMB81,471.3 million (Year ended 31-12-2014)
Employees: 25. (Including associates)
Main Dealing Banker: China
CITIC Bank International Ltd., Hong Kong.
Banking Relation: Satisfactory.
ZXG INTERNATIONAL (HK) LTD.
Registered Head
Office:-
5/F., Wilson Logistics Centre, 24-28 Kung Yip Street, Kwai Chung,
New Territories, Hong Kong.
Holding Company:-
Shenzhen ZTE Supply Chain Co. Ltd., China.
Ultimate Holding Company:-
ZTE Corporation, China.
Associated
Companies:-
Bestel Communications Ltd., Republic of Cyprus.
Jiangsu Zhongxing Weitong Information and Technology Co. Ltd., China.
Pengzhong Xingsheng, Uzbekistan.
Puxing Mobile Tech Co. Ltd., China.
Shanghai Zhongxing Telecom Equipment Technology & Service Co. Ltd.,
China.
Shenzhen Zhongxing Hetai Hotel Investment & Mangement Co. Ltd.,
China.
Shenzhen Zhongxing ICT Co. Ltd., China.
Sizhuo Zhongxing Hangzhou Technology Co. Ltd., China.
Xi’an Zhongxing New Software Co. Ltd., China.
Xingtian Communication Technology (Tianjin) Co. Ltd., China.
Zhongxing Software Co. Ltd., China.
ZTE (H.K.) Ltd., Hong Kong.
ZTE (Hangzhou) Co. Ltd., China.
ZTE Energy Co. Ltd., China.
ZTE Group Finance Co. Ltd., China.
ZTE Kangxun Telecom Co. Ltd., China.
ZTE Mobile Tech Co. Ltd., China.
ZTE Technology & Service Co. Ltd., China.
ZTEsoft Technology Co. Ltd., China.
58931679
1658099
Managing Director: Mr. Tang Hong
Shun
HK$100,000.00
(As per registry dated 16-08-2014)
|
Name |
|
No. of shares |
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Shenzhen ZTE Supply Chain Co. Ltd. 6/F., South Tower, Wandelai Building, Block 29#, Keji Road South, Hi-tech
Park, Nanshan District, Shenzhen, China. |
|
100,000 ====== |
(As per registry dated 16-08-2014)
|
Name (Nationality) |
Address |
|
LI Wei |
5/F., Wilson Logistics Centre, 24-28 Kung Yip Street, Kwai Chung, New
Territories, Hong Kong. |
|
LI Ying |
5/F., Wilson Logistics Centre, 24-28 Kung Yip Street, Kwai Chung, New
Territories, Hong Kong. |
|
TIAN Wen Guo |
5/F., Wilson Logistics Centre, 24-28 Kung Yip Street, Kwai Chung, New
Territories, Hong Kong. |
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DENG Ke Chao |
5/F., Wilson Logistics Centre, 24-28 Kung Yip Street, Kwai Chung, New
Territories, Hong Kong. |
|
TANG Hong Shun |
5/F., Wilson Logistics Centre, 24-28 Kung Yip Street, Kwai Chung, New
Territories, Hong Kong. |
(As per registry dated 16-08-2014)
|
Name |
Address |
|
CHEN Ning |
5/F., Wilson Logistics Centre, 24-28 Kung Yip Street, Kwai Chung, New
Territories, Hong Kong. |
The subject was incorporated on 16th August, 2011 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Unit D-F, 6/F., Wing Shan Industrial
Building, 428 Cha Kwo Ling Road, Yau Tong, Kowloon, Hong Kong, moved to the
present address in July 2013.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Telecommunication
Product Trader and Logistic Service Provider.
Lines: All
kinds of telecommunication equipment.
Employees: 25.
Commodities Imported: China.
Markets: Japan, Asian
countries, Europe, North America, Middle East, etc.
Group Revenue: RMB69,906.7
million (Year ended 31-12-2010)
RMB86,254.5 million (Year ended
31-12-2011)
RMB84,118.9 million (Year ended
31-12-2012)
RMB75,233.7 million (Year ended
31-12-2013)
RMB81,471.3 million (Year ended
31-12-2014)
Terms/Sales/Services: As per
contracted.
Terms/Buying: Various terms.
Issued Share Capital: HK$100,000.00
Mortgage or Charge: (See
attachment)
Group Profit/(Loss) Attributable to shareholders:-
RMB3,250.2 million (Year ended
31-12-2010)
RMB2,060.2 million (Year ended
31-12-2011)
(RMB2,840.9 million) (Year ended 31-12-2012)
RMB1,357.6 million (Year ended
31-12-2013)
RMB2,633.6 million (Year ended
31-12-2014)
Profit or Loss: Group
made a great loss in 2012.
Condition: Business
is normal.
Facilities: Making
active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Good.
Banker: China CITIC Bank International Ltd., Hong
Kong.
Standing: Normal.
ZXG International (HK) Ltd. is a wholly-owned subsidiary of Shenzhen ZTE
Supply Chain Co. Ltd. [Shenzhen ZTE], China.
In turn, Shenzhen ZTE is a wholly-owned subsidiary of ZTE Corporation
[ZTE], a China-based company.
ZTE is a Hong Kong listed company bearing stock code 763HK. It is also a listed company in Shenzhen
Special Economic Zone, China.
The subject in fact was the logistics department of ZTE. In 2011, the department was spun off from the
parent and became the subject which is a legal entity.
The subject is not only providing the Group’s associated companies with
all kinds of logistic services, but also the other companies. Since ZTE is a significant company in China,
the subject is able to take advantage of this and is able to get more and more
portfolios.
ZTE is a leading integrated telecommunications equipment manufacturer in
the world market and a provider of global telecommunications solutions, with
shares listed on the main board of the Shenzhen Stock Exchange and the Main
Board of the Hong Kong Stock Exchange.
In November 1997, ZTE conducted an initial public offering of A shares
for listing on the main board of the Shenzhen Stock Exchange. The Company is currently the largest
telecommunications equipment manufacturer in China’s A share market in terms of
operating revenue. In December 2004, ZTE
conducted an initial public offering of H shares for listing on the Main Board
of the Hong Kong Stock Exchange, becoming the first A-share company to be listed
on the Main Board of the Hong Kong Stock Exchange.
The Group is dedicated to the design, development, production,
distribution and installation of a broad range of advanced telecommunications
systems and equipment, including carriers networks, terminals and
telecommunications software systems, services and other products. The Group is one of the major
telecommunications equipment suppliers in China’s telecommunications market and
has also succeeded in gaining access to the international telecommunications
market with respect to each of its major product segments. The Group has achieved a leading market
position for its various telecommunications products in China with longstanding
business ties with China’s leading telecommunications service providers such as
China Mobile, China Telecom and China Unicom.
With respect to the global telecommunications market, the Group has
provided innovative technology and product solutions to telecommunications
service providers in more than 140 countries and regions, making contributions
to facilitate communications via multiple means, such as voice, data,
multi-media, wireless broadband and cable broadband, for users all over the
world.
The Group’s overall operating revenue for 2014 increased by 8.3% to RMB81.47
billion Yuan as compared to 2013, primarily reflecting operating revenue growth
for 4G system products in the domestic and international markets, routers and
switches in the domestic and international markets, optical communication
systems in the domestic market and 4G handsets in the domestic and
international markets. In 2014, the
continued growth in scale of the Group’s domestic and international 4G system
equipment business and domestic and international 4G handset business coupled
with ongoing improvements in contract profitability resulted in growth in both
sales volume and gross profit margin. In
addition, the Group enhanced financial expenses control and mitigated the
impact of exchange rate volatility on the Group’s operations, resulting in the
relatively substantial decrease in overall financial expenses. As a result of the aforesaid factors, the
Group reported net profit attributable to shareholders of the listed company of
RMB2.63 billion Yuan for 2014, representing a year-on-year growth of 94.0%.
During the year 2014, the Group reported operating revenue of RMB40.58
billion Yuan from the domestic market, accounting for 49.8% of the Group’s
overall operating revenue. The Group
worked proactively in support of the network construction plans of domestic
carriers as it established and implemented in depth its M-ICT Strategy and
maintained its dominant market position through competitive innovative
solutions. Moreover, the Group also made
vigorous moves to roll out its operations in strategic emerging sectors such as
Cloud Computing, Big Data and Smart City, with a view to ensuring positive
development in the long term.
During the year, the Group reported operating revenue of RMB40.89
billion Yuan from the international market, accounting for 50.2% of the Group’s
overall operating revenue. The Group has
formed comprehensive partnerships with mainstream global carriers as it
continued to focus on major populous nations and mainstream global carriers and
bolster its competitiveness on all fronts while securing stable operations and
quality growth.
During the year, the Group reported operating revenue of RMB46.77
billion Yuan for carriers’ networks.
Operating revenue for handset terminals amounted to RMB23.12 billion
Yuan. Operating revenue for
telecommunications software systems, services and other products amounted to
RMB11.58 billion Yuan.
For the year ended 2014, the Group had 75,609 employees while 35.9% of
them are engaged in research and development.
The subject is fully supported by the Group.
On the whole, since the history of the subject is short, consider it
good for normal business engagements on L/C basis or in small credit amounts.
Brief personal profile of the director:
Mr. TIAN Wenguo, born in 1969, has been Executive Vice President of the
Company since 2005 and is currently in charge of sales and engineering service
of the Company. Mr. Tian graduated from
Harbin Institute of Technology in 1991 with a bachelor’s degree in engineering,
specialising in electromagnetic surveys and devices. In 2006, he graduated from Tsinghua
University with a master’s degree in business administration. Mr. Tian joined Zhongxingxin, controlling
shareholder of the Company, in 1996. Mr.
Tian was manager of the Company’s Chongqing Sales Office and general manager
(Southwest Region) from 1997 to 2002 and Senior Vice President and General
Manager of Sales Division II of the Company from 2002 to 2005. Since 2005, he
has been Executive Vice President of the Company in charge of Marketing and Operations
System, Marketing System, Product Marketing System and Logistics System of the
Company. Mr. Tian has many years of
experience in the telecommunications industry and over 17 years of management
experience.
|
Date |
Description of
Instrument |
Mortgagee |
|
19-07-2013 |
Trade Finance Security Assignment |
China CITIC Bank International Ltd., Hong Kong. |
|
19-07-2013 |
Charge on Cash Deposit |
China CITIC Bank International Ltd., Hong Kong. |
|
11-03-2015 |
Trade Finance Security Assignment |
Agricultural Bank of China Ltd., Hong Kong Branch. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.45 |
|
|
1 |
Rs.100.96 |
|
Euro |
1 |
Rs.72.10 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
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Report Prepared
by : |
ASH |
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.