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MIRA INFORM REPORT
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Report No. : |
500868 |
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Report Date : |
06.04.2018 |
IDENTIFICATION DETAILS
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Name : |
WELLING INTERNATIONAL HONG KONG LIMITED |
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Registered Office : |
Suites 3906-10, 39/F., Tower 6, The Gateway, Harbour City, 9 Canton
Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
12.06.2008 |
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Com. Reg. No.: |
39421176 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Investment Holding; Manufacturer, Importer and Exporter of Motors for Air-Conditioner, Refrigerator. |
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No. of Employees : |
Approx. 17,000. (As at
30-06-2017 - Group) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 reexports, 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 continues to
link its currency closely to the US dollar, maintaining an arrangement
established in 1983.
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 aided a more rapid initial recovery 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 9.4% of
total system deposits in Hong Kong by the end of 2015. 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. Mainland
visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million,
reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong
has also established itself as the premier stock market for Chinese firms
seeking to list abroad. In 2015, mainland Chinese companies constituted about
51% of the firms listed on the Hong Kong Stock Exchange and accounted for about
62.1% 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. 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, which took effect in
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. Credit expansion and a tight housing supply have caused Hong Kong
property prices to rise rapidly; consumer prices increased 2.6% in 2016, but
slowed to 2.0% in 2017. Lower- and middle-income segments of the population are
increasingly unable to afford adequate housing.
Hong Kong’s economic integration with the mainland continues to be most
evident in the banking and finance sector. Initiatives like the Hong
Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong
Shanghai Gold Connect are all important steps towards opening up the Mainland’s
capital markets and has reinforced Hong Kong’s leading role as China’s offshore
RMB market. Additional connect schemes from bonds to commodities and other
investment products are also under exploration by Hong Kong authorities. In
2017, Chief Executive Lam announced plans to increase government spending on
research and development, education, and technological innovation with the aim
of spurring continued economic growth through greater sector diversification.
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Source
: CIA |
Company name & address
WELLING INTERNATIONAL HONG KONG LIMITED
ADDRESS: Suites 3906-10, 39/F., Tower 6, The
Gateway, Harbour City, 9 Canton Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-3669 4888
FAX: 852-2175 0031
MANAGEMENT
Managing Director: Mr. Fu Yongjun
SUMMARY
Incorporated on: 12th June, 2008.
Organization: Private Limited Company.
Issued Share Capital: HK$10,000,000.00
Business Category: Investment
Holding; Manufacturer, Importer and Exporter.
Group Revenue: HK$7,954.5 million (Year ended
31-12-2016)
Group Employees: Approx. 17,000. (As at 30-06-2017)
Main Dealing Banker: Bank of
China (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Name
WELLING INTERNATIONAL HONG KONG LIMITED
ADDRESS
Registered Head
Office:-
Suites 3906-10, 39/F., Tower 6, The Gateway, Harbour City, 9 Canton
Road, Tsimshatsui, Kowloon, Hong Kong.
Immediate Holding
Company:-
Welling Holding (BVI) Ltd., British Virgin Islands.
Penultimate
Holding Company:-
Welling Holding Ltd., Hong Kong.
(Same address)
Ultimate Holding
Company:-
Midea Group Co. Ltd., China.
Subsidiary/Sister/Affiliated
Companies:-
Welling Group of Companies
Changzhou Honglu Huate Electric Co. Ltd., China.
Changzhou Welling Motor Manufacturing Co. Ltd., China.
Foshan Welling Electronic & Electric Co. Ltd., China.
Foshan Welling Material Supply Co. Ltd., China.
Foshan Welling Washer Motor Manufacturing Co. Ltd., China.
Guangdong Welling Motor Manufacturing Co. Ltd., China.
Hefei Welling Motor Manufacturing Co. Ltd., China.
Huaian Welling Motor Manufacturing Co. Ltd., China.
Midea Welling Motor Technology (Shanghai) Co. Ltd., China.
Welling (Wuhu) Motor Manufacturing Co. Ltd., China.
Wuhu Welling Motor Sales Co. Ltd., China.
etc.
BUSINESS
REGISTRATION NUMBER
39421176
COMPANY
FILE NUMBER
1246214
MANAGEMENT
Group Executive Director & Chairman:
Mr. Fu Yongjun
ISSUED
SHARE CAPITAL
HK$10,000,000.00
SHAREHOLDER
(As per registry dated 12-06-2017)
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Name |
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No. of shares |
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Welling Holding (BVI) Ltd. P.O. Box 3340, Road Town, Tortola, British Virgin Islands. |
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10,000,000 ======== |
DIRECTORS
(As per registry dated 20-07-2017)
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Name (Nationality) |
Address |
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FU Yongjun |
Room 401, Block 8, Gui Pan Wan, Tai Gen Road, Da Liang Street, Shunde
District, Foshan City, Guangdong Province, China. |
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PAN Xinling |
Room 1202, Block 25, Jiaxin City Garden Diyuan Phase 1, Daliang,
Shunde District, Foshan City, Guangdong Province, China. |
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LI Li |
Room 15D, Block 19, Jiaxin City Garden, Daliang , Shunde District,
Foshan City, Guangdong Province, China. |
SECRETARY
(As per registry dated 25-01-2018)
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Name |
Address |
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CHEUNG Wai Yu |
Suites 3906-10, 39/F., Tower 6, The Gateway, Harbour City, 9 Canton
Road, Tsimshatsui, Kowloon, Hong Kong. |
HISTORY
The subject was incorporated on 12th June, 2008 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at ‘Suite 3904, 39/F., Tower 6, The
Gateway, Harbour City, 9 Canton Road, Tsimshatsui, Kowloon, Hong Kong’, moved
to the present address with effect from 21 July, 2017.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Investment
Holding; Manufacturer, Importer and Exporter.
Lines: Motors
for air-conditioner, refrigerator.
Group Employees: Approx.
17,000. (As at 30-06-2017)
Materials/Commodities: Imports raw materials
from European countries, some Asian countries and finished
products from
China.
Markets: China,
Europe, Southeast Asia, North America, etc.
Group Revenue: HK$9,273.4
million (Year ended 31-12-2014)
HK$8,040.4 million (Year ended 31-12-2015)
HK$7,954.5 million (Year ended 31-12-2016)
HK$4,301.7 million (6 months ended
30-06-2016)
HK$4,972.2 million (6 months ended
30-06-2017)
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, D/P, etc.
FINANCIAL
INFORMATION
Issued Share Capital: HK$10,000,000.00
Mortgage or
Charge:-
Date: 31-12-2015
Description of Instrument: Security
Over Deposits with the Bank
Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Group Net Profit: HK$618.2
million (Year ended 31-12-2014)
HK$522.7 million (Year ended 31-12-2015)
HK$591.6 million (Year ended 31-12-2016)
HK$408.9 million (6 months ended 30-06-2016)
HK$342.8 million (6 months ended 30-06-2017)
Profit or Loss: Making
a small profit every year.
Condition: Keeping in a satisfactory
condition.
Facilities: Making active
use of general banking facilities.
Payment: Regular.
Commercial Morality: Satisfactory.
Bankers:- Bank
of China (Hong Kong) Ltd., Hong Kong.
Agricultural Bank of China, Hong Kong
Branch.
Industrial & Commercial Bank of China
Ltd., China.
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Good.
GENERAL
Welling International Hong Kong Limited is a wholly-owned subsidiary of
Welling Holding (BVI) Ltd. which is a BVI-registered firm. In turn, Welling Holding (BVI) Ltd. is a
subsidiary company of Welling Holding Ltd. [Welling], a Hong Kong-listed firm
located at the same operating address as the subject.
Welling has been listed on the Main Board of The Stock Exchange of Hong Kong
Ltd. bearing Stock Code 382 since 20th December, 1993. Welling is the holding company of the Welling
Group.
Midea Group Co. Ltd. [Midea] is the controlling shareholder of
Welling. On 31st March, 2008, with the
support of Midea, Welling completed an important restructuring exercise which
involved a business and assets swap.
Welling has disposed of its then existing business principally engaged
in the manufacturing and distribution of electric household appliances,
including principally air-conditioners, refrigerators and mini-refrigerators,
to a subsidiary of Midea, and acquired from Midea its indirect wholly-owned
subsidiary, Welling Holding (BVI) Ltd., which is principally engaged in the
manufacturing and distribution of motors for electric household appliances,
including principally air-conditioners, washing machines, and electronic and
electric components.
Welling is one of the manufacturers of motors for global white goods of
electric household appliances.
Prior to 2008, the Group was principally engaged in manufacture and
distribution of electrical household appliances including air-conditioners,
refrigerators and mini-refrigerators under the ‘‘Hualing’’ brand (the
‘‘Electrical Appliances Business’’). Due
to the consecutive loss making years, the Group had shifted its principal
business to the current one, being manufacturing, distribution and selling of
motors and electronic and electric components for electrical household
appliances in the PRC and overseas (the ‘‘Motor Business’’) through an acquisition
of the target company principally engaged in the Motor Business in 2008 (the
‘‘Motor Acquisition’’) and had disposed of the Electrical Appliances Business
to a wholly-owned subsidiary of Midea Group Co., Ltd.
However, the Group has experienced a downward trend in its profit and
gross profit margin since 2014 due to the prolonged sluggish property market in
the PRC and the increase in research and development (‘‘R&D’’) costs.
The Group now mainly manufactures and distributes three types of motors
including motors for air-conditioners, motors for washing machines, and motors
for other electrical appliances such as range hoods, vacuum cleaners, etc.
(collectively, the ‘Motors’). Over 80%
of the Motors are alternating current (‘‘AC’’) motors while the remaining is
direct current (‘‘DC’’) motors. AC motors offer relatively lower gross profit
margin as compared to the DC motors due to the degree of technicalities
involved.
The Group’s customers are mainly manufacturers of electrical household
appliances in the PRC, which contributed around 70% of the Group’s total
revenue in FY2015 and FY2016. The top
one customer of the Group is Midea Group Co., Ltd. and its subsidiaries (the ‘‘Midea
Group’’), contributing approximately about half of the total revenue of the
Group for the latest three financial years of the Group given it is one of the
major domestic brands of air-conditioners and washing machines in the PRC. The
remaining 30% of the total revenue of the Group was generated from export
sales, which were denominated in US dollars and Euro dollars.
In November 2017, the Group
decided to put forward a proposal to privatize Welling Holding Ltd. The privatization was sanctioned and
confirmed by the High Court of Hong Kong on 15th February, 2018. The listing of Welling shares in Hong Kong
was withdrawn effective from 20th February, 2018.
For the six months ended 30th
June, 2017, the revenue of the Group amounted to HK$5.0 billion, grew by 16.3%
as compared with HK$4.3 billion in the same period of previous year. The net profit of the Group amounted to
HK$342.8 million, decreased by 16.2% as compared with HK$408.9 million in the
same period of previous year.
The subject is fully
supported by the Welling Group.
On the whole, consider the
subject 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 |
INR 65.06 |
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1 |
INR 91.50 |
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Euro |
1 |
INR 79.77 |
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HKD |
1 |
INR 8.28 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
NIS |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.