MIRA INFORM REPORT

 

 

Report No. :

340389

Report Date :

16.09.2015

 

IDENTIFICATION DETAILS

 

Name :

HONG KONG KONKA LTD.

 

 

Registered Office :

11/F., Chinabest International Centre, 8 Kwai On Road, Kwai Chung, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

28.03.1995

 

 

Com. Reg. No.:

18959215

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Wholesaler and Re-exporter of Colour TVs, Monitors, Fax machines, Telephones, Refrigerators, Hi‑Fi systems, Washing machines, Cellular phones.

 

 

No. of Employee :

35.  (Hong Kong)

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 12.5% 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

 

Company name and address

 

HONG KONG KONKA LTD.

 

ADDRESS:                   11/F., Chinabest International Centre, 8 Kwai On Road, Kwai Chung, New Territories, Hong Kong.

 

PHONE:                        852-2392 7128

 

FAX:                             852-2392 7638,  2392 7886

 

E-MAIL:                        sales@konka.com

linliping@konka.com

ngwaikong@konkahk.com

niuweidong @konka.com

 

 

MANAGEMENT

 

Managing Director:                    Mr. Huang Zhongtian

 

 

SUMMARY

 

Incorporated on:                        28th March, 1995.

 

Organization:                             Private Limited Company.

 

Issued Share Capital:                 HK$500,000.00

 

Business Category:                   Importer, Wholesaler and Re-exporter.

 

Group Turnover:                         RMB19,423.5 million Yuan.  (Year ended 31-12-2014)

 

Company Employees:               35.  (Hong Kong)

 

Group Employees:                    18,776.  (As at 31-12-2014)

 

Main Dealing Banker:                 The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:                      Good.


Company name and address

 

HONG  KONG  KONKA  LTD.

 

ADDRESS:

 

Registered Head Office:-

11/F., Chinabest International Centre, 8 Kwai On Road, Kwai Chung, New Territories, Hong Kong.

 

Parent Company:-

Konka Group Co. Ltd.

Overseas Chinese Town, Nanshan District, Shenzhen Special Economic Zone, China.

[Tel:      (86-755) 2660 8866

Fax:      (86-755) 2660 0082,  2690 4133,  2691 2144

E-mail:  szkonda@konka.com     ]

 

Associated/Affiliated Companies:-

Konka Group of Companies

Anhui Konka Electric Appliance Co. Ltd., China.

Anhui Konka Electronic Co. Ltd., China.

Anhui Konka Tongchuang Household Appliances Co. Ltd., China.

Beijing Konka Electronics Co. Ltd., China.

Boluo Konka Precision Technology Co. Ltd., China.

Boluo Konka Printed Circuit Board Co. Ltd., China.

Changshu Konka Electronic Co. Ltd., China.

Chongqing Konka Auto Electronic Co. Ltd., China.

Chongqing Konka Electronic Co. Ltd., China.

Chongqing Qingjia Electronic Co. Ltd., China.

Dongguan Konka Electronic Co. Ltd., China.

Dongguan Konka Packaging Co. Ltd., China.

Dongguan Konka Packing Materials Co. Ltd., China.

Dongguan Konka Plastic Mould Co. Ltd., China.

Dongguan Xutongda Mould Plastic Co. Ltd., China.

EnRay Tek Optoelectronics (Shanghai) Co. Ltd., China.

Enraytek Optoelectronic Co. Ltd., China.

Hongdin Invest Development Ltd., Hong Kong.

Indonesia Konka Electronics Co. Ltd., Indonesia.

Indonesia Konka Trading Ltd., Indonesia.

Konda Pacific Pty. Ltd., Australia.

Konka (Europe) Co. Ltd., Germany.

Konka (Kunshan) Real Estate Investment Co. Ltd., China.

Konka (Nanhai) Development Center, China.

Konka (USA) Electronic Co. Ltd., US.

Konka America Inc., US.

Konka Electronic (India) Co. Ltd., India.

Konka Household Appliances International Trading Co. Ltd., China.

Konka Household Appliances Investment & Development Co. Ltd., China.

Konray International Development Ltd., Hong Kong.

Kunshan Jielunte Molds & Plastic Co. Ltd., China.

Kunshan Kangsheng Investment Development Co. Ltd., China.

Kunshan Konka Electronic Co. Ltd., China.

Mudanjiang Arctic Ocean Appliance Co. Ltd., China.
[Formerly known as Mudanjiang Konka Industrial Co. Ltd.]

Shanhai Konka Green Science & Technology Co. Ltd., China.

Shanzhen Konka Optoelectronic Technology Co. Ltd., China.

Shenzhen Electronic Fittings Technology Co. Ltd., China.

Shenzhen Konka Communications Technology Co. Ltd., China.

Shenzhen Konka Electronic Co. Ltd., China.

Shenzhen Konka Electronics Technology Co. Ltd., China.

Shenzhen Konka Energy Technology Co. Ltd., China.

Shenzhen Konka Information Network Co. Ltd., China.

Shenzhen Konka Injected Plastic Factory, China.

Shenzhen Konka Injected Plastic Manufactory Co. Ltd., China.

Shenzhen Konka Optoelectronic Technology Co. Ltd., China.

Shenzhen Konka Plastic Product Co. Ltd., China.

Shenzhen Konka Precision Mould Manufacturing Co. Ltd., China.

Shenzhen Konka Telecommunications Technology Co. Ltd., China.

Shenzhen Konka Visual Information System Engineering Co. Ltd., China.

Shenzhen Refond Optoelectronics Co. Ltd., China.

Shenzhen Shushida Electronic Co. Ltd., China.

Shenzhen Shushida Logistics Service Co. Ltd., China.

Shenzhen Wankaida Science & Technology Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

18959215

 

 

COMPANY FILE NUMBER 

 

0509730

 

 

MANAGEMENT

 

Managing Director:  Mr. Huang Zhongtian

 

 

ISSUED SHARE CAPITAL

 

HK$500,000.00

 

 

SHAREHOLDER  

 

(As per registry dated 28-03-2015)

Name

 

No. of shares

Konka Group Co. Ltd.

Overseas Chinese Town, Nanshan District, Shenzhen Special Economic Zone, China.

 

500,000

======

 

 

DIRECTORS

 

(As per registry dated 28-03-2015)

Name

(Nationality)

 

Address

CHANG Dong

Room 6D, Block 5, Kangjai Court, Shantou Street, Overseas Chinese City, Nanshan Dirtrict, Shenzhen Special Economic Zone, China.

 

LI Hai Tao

Room 604, Block 3, Kangjai Court, Shantou Street, Overseas Chinese City, Nanshan Dirtrict, Shenzhen Special Economic Zone, China.

 

XIAO Qing

Yikang Building, Shantou Street, Overseas Chinese City, Nanshan Dirtrict, Shenzhen Special Economic Zone, China.

 

 

SECRETARY

 

(As per registry dated 28-03-2015)

Name

Address

Co. No.

T.N. Luu Ho Consultants Ltd.

Room 2702-2703, 27/F., C.C. Wu Building, 302‑308 Hennessy Road, Wanchai, Hong Kong.

0142334

 

 

HISTORY

 

The subject was incorporated on 28th March, 1995 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, Wholesaler and Re-exporter.

 

Lines:                                       Colour TVs, Monitors, Fax machines, Telephones, Refrigerators, Hi‑Fi systems, Washing machines, Cellular phones.

 

Brand Name:                             KONKA.

 

Company Employees:               35.  (Hong Kong)

 

Group Employees:                    18,776.  (As at 31-12-2014)

 

Materials/Commodities:             Imports spare parts and raw materials from Japan.

 

Markets:                                    Worldwide countries.

 

Group Turnover:                        RMB16,217,619,883.23 Yuan  (Year ended 31-12-2011)

RMB18,337,861,657.29 Yuan  (Year ended 31-12-2012)

RMB20,006,736,878.82 Yuan  (Year ended 31-12-2013)

RMB19,423,488,994.07 Yuan  (Year ended 31-12-2014)

RMB  8,390,067,695.48 Yuan  (6 months ended 30-06-2014)

RMB  8,944,558,920.96 Yuan  (6 months ended 30-06-2015)

 

Company Turnover:-

RMB2,315,453,138.85 Yuan  (Year ended 31-12-2011)

RMB2,722,190,273.75 Yuan  (Year ended 31-12-2012)

RMB2,650,276,237.06 Yuan  (Year ended 31-12-2013)

RMB3,408,213,237.85 Yuan  (Year ended 31-12-2014)

RMB1,700,208,001.07 Yuan  (6 months ended 30-06-2015)

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Issued Capital:                                      HK$500,000.00

 

Group Net Profit / (Loss):-

RMB  24,972,838.12 Yuan   (Year ended 31-12-2011)

RMB  50,342,194.51 Yuan   (Year ended 31-12-2012)  [restated]

RMB  45,820,496.73 Yuan   (Year ended 31-12-2013)  [restated]

RMB  52,623,527.86 Yuan   (Year ended 31-12-2014)

RMB  44,394,585.84 Yuan   (6 months ended 30-06-2014)

(RMB296,953,507.39 Yuan)  (6 months ended 30-06-2015)

 

Company Total Assets:-

RMB1,532,682,080.40 Yuan  (Year ended 31-12-2012)

RMB1,755,430,184.36 Yuan  (Year ended 31-12-2013)

RMB3,259,825,831.58 Yuan  (Year ended 31-12-2014)

RMB2,631,427,077.20 Yuan  (6 months ended 30-06-2015)

 

Company Net Assets:-

RMB  95,238,229.25 Yuan  (Year ended 31-12-2012)

RMB111,655,271.79 Yuan  (Year ended 31-12-2013)

RMB115,135,576.35 Yuan  (Year ended 31-12-2014)

RMB  61,802,269.30 Yuan  (6 months ended 30-06-2015)

 

Company Net Profit / (Loss):-

RMB16,852,619.32 Yuan  (Year ended 31-12-2011)

(RMB  6,140,663.21 Yuan) (Year ended 31-12-2012)

RMB18,121,058.99 Yuan  (Year ended 31-12-2013)

RMB  2,403,438.70 Yuan  (Year ended 31-12-2014)

(RMB53,437,493.49) Yuan  (6 months ended 30-06-2015)

 

Profit or Loss:                           Group made a loss in the first half of 2015 but the subject made a loss in 2012 and made profits again in 2013 and 2014.

 

Condition:                                 Keeping in an active manner.

 

Facilities:                                  Actively using general banking facilities.

 

Payment:                                  Met trade commitments on time.

 

Commercial Morality:                 Very Good.

 

Bankers:-

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

The Bank of East Asia Ltd., Hong Kong.

 

Standing:                                  Good.

 

 

GENERAL

 

Hong Kong Konka Ltd. is a subsidiary of Konka Group Co. Ltd. [Konka] which is a significant Shenzhen-based enterprise.  Konka has been listed on the Shenzhen Stock Exchange.

The subject is responsible for marketing and re-exporting Konka Group’s products.  It also acquires raw materials from abroad for the Group.

Established in 1980, Konka is China’s first Sino-foreign joint consumer electronics enterprise, manufacturing and distributing its own brand of prime quality products.  The Konka Group’s major product lines are Colour TV sets and mobile phones.  Refrigerators, washing machines, air conditioners, component, and packaging material also form part of the Group’s product lines.

In August 1991, Konka was restructured into a Sino-foreign public share-hold company and on 27th March, 1992, its A-share and B-share were listed on the Shenzhen Stock Exchange.

It has got seven major manufacturing plants in the North-East, North-West, South, East and South-West of China, and has established production bases in Indonesia, Mexico and Slovakia.  Almost half a million TVs roll off the Group’s production lines every year, with enough room for up to 6 million units.

Konka was the first China TV producer to obtain both the international and domestic ISO 9001 and ISO 14001 in 1997.  At present, the “Konka” brand is significant in foreign markets.

With three world-class R&D centres in China and one in the United States, Konka has developed a series of new generation electronics and telecommunications products with high market adaptability and competitiveness, including large‑screen colour TV, combo TV, digital TV, LCDTV, plasma screen, HD CRT TV, ultrathin LED TV, 3D TV, smart 3D TV, etc.

Konka is one of four members of the China National High-Definition Digital TV Standardization Specialist Committee, and is also a member of the American Digital TV Alliance.

Specialized in colour TV sets since 1980, Konka now sells its products to over 95 markets outside China, mainly the United States, Canada, Japan and Australia.

Konka has set up a Multimedia Product Development Centre and employs more than 360 engineers and works closely with industry leaders such as Sanyo, Toshiba and STMicroelectronics.

Ever since its establishment in 1979, the Konka has been the second largest TV manufacturer in China.

The Group is expanding its production base to the outskirts of the Shenzhen Special Economic Zone, so as to implement economy of scale and strengthen its production capability.  This has come in the form of the Konka Electronic City [KEC] in Dongguan City, Guangdong Province, China.

Today, Konka is one of the 500 largest industrial enterprises in China, as well as the first company in the country’s colour TV sector to obtain both national and international Quality Management System Certificates of ISO 9001 standard and the ISO 14000 certificate for environmental protection.  Besides the ISO 9001 certification, Konka’s products are in conformity of the UL and CSA standards.

In 2009, China’s largest module manufacture base - Konka Kunshan LCM factory was put into operation, which has reached 10,000 sets daily output and 1 million sets annual output by now.

In the same year, Konka became one of the largest shareholders of a giant LED manufacture enterprise - Refond Optoelectronics, which helps the company complete the LCD TV industrial chain and reducing the cost in manufacturing, logistics and CBU units.  By far, the annual gross production capacity in terms of TV and refrigerator of Konka Group has reached 25 million sets.

The principal operating income of the Group in 2014 was RMB19,423.5 million Yuan (2013: RMB20,006.7 million Yuan), decreased by 2.9% as compared with previous year.  Net profit was RMB52.6 million Yuan (2013: RMB45.8 million Yuan), increased by 14.8%.

In the first half of 2015, the principal operating income of the Group was RMB8,944.6 million Yuan (same period of 2014: RMB8,390.1 million Yuan), increased by 6.6% as compared with previous year.  Net loss for the period was RMB297.0 million Yuan (same period of 2014: made a profit of RMB44.4 million Yuan).  It is likely that the Group will suffer from a loss in the full year of 2015.

For the year ended 31st December, 2014, the turnover of the subject amounted to RMB3,408.2 million Yuan (2013: RMB2,650.3 million Yuan), net profit was RMB2.4 million Yuan (2013: RMB18.1 million Yuan).

In the first half of 2015, the turnover of the subject amounted to RMB1,700.2 million Yuan.  It made a loss of RMB53.4 million Yuan during the period.

In 2014, the Group disposed two of its subsidiaries to third parties.  The subsidiaries were:

Shaanxi Konka Electronic Co. Ltd.

Shenzhen Konka Video & Communications System Engineering & Co. Ltd., China.

The subject has about 35 employees in Hong Kong.  However, the Group had 18,776 employees as at 31-12-2014.

In 2013, the Group issued a declaration that it is fully liable for the debts of the subject.

The history of the subject in Hong Kong is over 20 years and five months.

On the whole, as the subject is fully supported by Konka Group, consider it good for normal business engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.44

UK Pound

1

Rs.102.41

Euro

1

Rs.75.05

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

SDA

 

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%)

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