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MIRA INFORM REPORT
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Report No. : |
484062 |
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Report Date : |
06.01.2018 |
IDENTIFICATION DETAILS
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Name : |
CHANGHONG (HONGKONG) TRADING LIMITED |
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Registered Office : |
Room 1412, 14/F., West Tower, Shun Tak Centre, 168-200 Connaught Road
Central, Sheung Wan |
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Country : |
Hongkong |
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Date of Incorporation : |
24.05.2005 |
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Com. Reg. No.: |
35656159 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer and Exporter of Air-Conditioners, Electronic Products, Other
Electric Appliances. |
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No. of Employees : |
14. (Including
Associates) |
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+ |
Low Risk |
Business dealings permissible with low
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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Hongkong |
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 |
HONGKONG - 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, effective 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 4.4% in 2014, but slowed to 2.9% in 2015. 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.
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Source
: CIA |
Company
name and Address
CHANGHONG (HONGKONG)
TRADING LIMITED
ADDRESS: Room 1412, 14/F., West Tower,
Shun Tak Centre, 168-200 Connaught Road
Central, Sheung Wan, Hong Kong.
PHONE: 852-3690
2366
FAX: 852-3690
2108
E-MAIL: eileen.yang@changhong.com
MANAGEMENT
Managing Director:
Ms. Hu Jia
SUMMARY
Incorporated on: 24th May, 2005.
Organization: Private Limited Company.
Issued Share Capital: HK$200,000,000.00
Business Category: Electric
Product Trader.
Group Turnover: RMB67,175,343,225.71
Yuan (Year ended 31-12-2016)
Company Employees:
14. (Including associates)
Group Employees : 60,439
(As at 31-12-2016)
Main Dealing Banker: Bank
of China (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
ADDRESS
Registered Head
Office:-
Room 1412, 14/F., West Tower, Shun Tak Centre, 168-200
Connaught Road Central, Sheung Wan, Hong Kong.
Holding Company:-
Sichuan Changhong Electric Co. Ltd. [Changhong], China.
Ultimate Holding
Company:-
Sichuan Changhong Electronic Holdings Co. Ltd., China.
Affiliated/Associated
Companies:-
Changhong Group of Companies
Apex Digital Inc., British Virgin Islands.
Apex Honour Resources Ltd., British Virgin Islands.
BVCH Optronics (Sichuan) Co. Ltd., China.
Changchun Changhong Electric Technologies Co. Ltd.,
China.
Changhong (Hong Kong) Enterprises Ltd., Hong Kong.
Changhong Deutschland Ltd., Germany.
Changhong Electric (Australia) Pty. Ltd., Australia.
Changhong Electric India Pvt. Ltd., India.
Changhong Electric Middle East FZE, UAE.
Changhong Europe Electric s.r.o., Czech Republic.
Changhong IT (Hong Kong) Information Products Co. Ltd.,
Hong Kong.
Changhong IT Information Products Co. Ltd., China.
Changhong Jiahua Holdings Ltd., Bermuda / Hong Kong.
Changhong Overseas Development Ltd., Hong Kong. (Same address)
Changhong Ruba Trading Co. (Pvt) Ltd., Pakistan.
Changhong Russia Electric Co. Ltd., Russia.
Changhong USA Inc., US.
Electra Investments B.V., the Netherlands.
Fit Generation Holding Ltd., British Virgin Islands.
Guangdong Changhong Digital Technology Co. Ltd., China.
Guangdong Changhong Electronics Co. Ltd., China.
Guohong Communications Digital Group Co. Ltd., China.
Hefei Changhong Industry Co. Ltd., China.
Hefei Meiling Co. Ltd., China.
Huayi Compressor Co. Ltd., China.
Jiangsu Changhong TV Co. Ltd., China.
Mianyang Guohong Communication Digital Group Co. Ltd.,
China.
Orion OLED Co. Ltd., South Korea.
Orion PDP Co. Ltd., South Korea.
P.T. Changhong Electric Indonesia, Indonesia.
PT Changhong Meiling Electric Indonesia, Indonesia.
Safe & Nice Hong Kong Holdings Ltd., Hong Kong.
Sichuan CCO Display Technology Co. Ltd., China.
Sichuan Changhong Electric Power Co. Ltd., China.
Sichuan Changhong Network Technologies Co. Ltd., China.
Sichuan Changhong New Energy Technology Co. Ltd., China.
Sichuan Changhong Precision Electronics Technology Co.
Ltd., China.
Sichuan Changhong-Sinew Technologies Co. Ltd., China.
Sichuan TECO Changhong Precision Co. Ltd., China.
Sterope Investments B.V., the Netherlands.
Sufficient Value Group Ltd., British Virgin Islands.
Wide Miracle Ltd., British Virgin Islands.
etc.
BUSINESS
REGISTRATION NUMBER
35656159
COMPANY
FILE NUMBER
0972481
MANAGEMENT
Managing Director:
Ms. Hu Jia
Marketing Manager:
Ms. Yang Lu, Eileen
ISSUED
SHARE CAPITAL
HK$200,000,000.00
SHAREHOLDER
(As per registry dated 24-05-2017)
|
Name |
|
No. of shares |
|
Sichuan Changhong Electric Co. Ltd. 35, East Mian Xing Road, High-Tech Park, Mian Yang,
Sichuan, China. |
|
200,000,000 ========= |
DIRECTORS
(As per registry dated 31-10-2017)
|
Name (Nationality) |
Address |
|
HU Jia |
No. 321, Block 76, No. 5 Yue Jin Lu, Fu Cheng Qu, Mian
Yang Shi, Si Chuan Sheng, China. |
|
CHEN Hua |
Purchase Department, 35# East Mian Xing Road, Hi-Tech
Park, Mian Yang, Sichuan, China. |
|
SHI Qiang |
No. 111, 71 Chuang, No. 5 Yue Jin Road, Fu Cheng
District, Mian Yang City, Sichuan Province, China. |
|
ZHANG Di |
No. 5, 3/F., Unit 4, No. 1 Jianshe Street, Fu Cheng
District, Mian Yang City, Sichuan Province, China. |
|
HE Jiayou |
No. 361, Block 63, No. 5 Yuejin Road, Fu Cheng
District, Mian Yang City, Sichuan Province, China. |
SECRETARY
(As per registry dated 24-05-2017)
|
Name |
Address |
Co. No. |
|
SBC Corporate Services Ltd. |
Room B, 10/F., Tower A, Billion Centre, 1 Wang Kwong
Road, Kowloon Bay, Kowloon, Hong Kong. |
0618863 |
HISTORY
The subject was
incorporated on 24th May, 2005 as a private limited liability company under the
Hong Kong Companies Ordinance.
The subject was
formerly located at Room 3701, 37/F., West Tower, Shun Tak Centre, 168-200
Connaught Road Central, Sheung Wan, Hong Kong, moved to the present address in
29th May, 2012.
The subject changed
its directors on 31st October, 2017.
Apart from these,
neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer
and Exporter.
Lines: Air-conditioners,
electronic products, other electric appliances.
Employees: 14. (Including associates)
Group Employees: 60,439
(As at 31-12-2016)
Materials/Commodities: Imports raw materials from
European countries, some Asian countries and finished
products from
China.
Markets: Europe,
Australia, North America, etc.
Group Turnover:-
RMB52,334,149,134.26
Yuan (Year ended 31-12-2012)
RMB58,875,274,661.52
Yuan (Year ended 31-12-2013)
RMB59,619,884,745.33
Yuan (Year ended 31-12-2014)
RMB64,847,813,147.02
Yuan (Year ended 31-12-2015)
RMB67,175,343,225.71
Yuan (Year ended 31-12-2016)
RMB48,498,804,572.09
Yuan (9 months ended 30-09-2016)
RMB54,447,608,636.37
Yuan (9 months ended 30-09-2017)
Terms/Sales: L/C or as per contracted.
Terms/Buying: Various terms.
FINANCIAL
INFORMATION
Issued Share Capital: HK$200,000,000.00
Mortgage or Charge:
(See attachment)
Group Net Profit / (Loss) Attributable to Shareholders:-
RMB 325,328,360.29 Yuan (Year ended 31-12-2012)
RMB 512,481,605.58 Yuan (Year ended 31-12-2013)
RMB 58,857,812.40 Yuan (Year ended 31-12-2014)
(RMB1,973,601,189.38
Yuan) (Year ended 31-12-2015)
RMB 554,784,735.52 Yuan (Year ended 31-12-2016)
RMB 521,769,384.56 Yuan (9 months ended 30-09-2016)
RMB 167,110,461.08 Yuan (9 months ended 30-09-2017)
Profit or Loss: Group
& Company made profits in 2016.
Condition: Keeping in an active and good
condition.
Facilities: Making active use of general
banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Good.
Bankers:-
Bank of China
(Hong Kong) Ltd., Hong Kong.
RB International
Finance (Hong Kong) Ltd., Hong Kong.
Industrial &
Commercial Bank of China (Asia) Ltd., Hong Kong.
Deutsche Bank AG,
Hong Kong Branch.
Société Générale,
Hong Kong Branch.
The Bank of East Asia
Ltd., Hong Kong.
Standing: Very Good.
GENERAL
Changhong (Hongkong)
Trading Limited is a wholly-owned subsidiary of Sichuan Changhong Electric Co.
Ltd. [Changhong] which is a China-based and listed firm. The subject is responsible for overseas
marketing and re‑exporting the products of Changhong.
In October of 2017,
the subject’s old director Yao Bing resigned and two new directors Mr. Zhang Di
and Mr. He Jiayou joined in as directors.
The subject is also
known as Changhong Hongkong in abbreviation.
It has increased its share capital to HK$200 million in March 2012.
The subject has had
another associated firm known as Changhong Jiahua Holdings Ltd.
[Jiahua/formerly China Data Broadcasting Holdings Ltd.]. Jiahua is a listed firm in Hong Kong bearing
the stock code 8016.
At present, Changhong
and its subsidiaries are holding 52.53% of Jiahua’s interests.
Since Changhong is
the largest shareholder of Jiahua, it has had the right to control the Jiahua
Group. Now, Jiahua has become an arm for
overseas development of Changhong.
Established in 1958,
Changhong is a listed firm in China. It
became a public traded company with shares listed on the Shanghai Stock
Exchange bearing stock code 600839 in March 1994.
Changhong is located
at Mianyang City, Sichuan Province, China. Changhong is now one of the largest Chinese
consumer electronics providers specialized in R&D, manufacturing and
marketing consumer electronics products.
Today, Changhong has
set up branches and joint ventures worldwide.
It has established overseas branches and representative offices in the
United States, Europe, Australia, Russia, Turkey, Thailand, India, Southeast
Asia and the Middle East and is continuing setting up branches and offices in
the other markets. With a world-class
manufacturing facility, claimed by Changhong, it has got the ISO 9001 and ISO
14001 certifications. Its products are
in conformity with international standards such as 3C, UL, FCC, FDA, CE, SASO,
GS, CB, etc. Changhong has more than
20,000 Sales and Service outlets throughout the world. Its products have found ready markets in over
100 countries and regions.
Changhong has
established many joint laboratories with Toshiba, Sanyo, GE, Microsoft, TI,
Samsung, LG, Philips, etc. It also has
established R&D centres in Shanghai and Shenzhen Special Economic Zone in
China, American Silicon Valley, and Japan.
With advantages of
four R&D and manufacturing bases located in Mianyang, Zhongshan, Nantong,
and Changchun in China, Changhong has become an industry leader and the largest
supplier of consumer electronics in Asia.
In the years ahead,
the subject will keep on developing products for the military uses. It is also developing more products for the
general householders.
In 2016, Changhong’s
turnover amounted to RMB67.2 billion Yuan, grew by 3.7% as compared with
RMB64.8 billion Yuan in 2015; net profit attributable to shareholders for the
year was RMB554.8 million Yuan, as compared with a loss of RMB1,973.6 million
Yuan in 2015.
For the 9 months
ended 30th September, 2017, Changhong’s turnover amounted to RMB54.4 billion
Yuan, grew by 12.2% as compared with RMB48.5 billion Yuan in the same period of
2016; net profit attributable to shareholders for the year was RMB167.1 million
Yuan, decreased by 68.0% as compared with a profit of RMB521.8 million Yuan in
the same period of 2016.
It is predicted that
the net profit in the fully year of 2017 will decrease substantially as
compared with previous year.
The following table shows the financial highlights of the
subject:
Unit: RMB’ million
Yuan (year ended 31 December)
|
Items |
2016 |
2015 |
|
Revenue |
2.84 |
2.79 |
|
Net Profit |
0.24 |
(0.06) |
|
Total Assets |
1.10 |
1.38 |
|
Net Assets |
0.99 |
0.08 |
For the year ended 31st
December, 2016, the turnover of the subject amounted to RMB2.84 million Yuan
(2015: RMB2.79 million Yuan). Its net
profit was RMB0.24 million (loss of 2015: RMB 0.06 million Yuan).
As at 31st December,
2016, Changhong Group had about 60,493 employees.
The subject is fully
supported by Changhong.
The history of the
subject in Hong Kong is over twelve years and seven months.
On the whole,
consider it good for normal business engagements.
MORTGAGE
OR CHARGE
|
Date |
Description
of Instrument |
Mortgagee |
|
21-07-2008 |
Third Party Charge Over Cash Deposit |
RZB Austria Finance (Hong Kong) Ltd. [Now known as RB International Finance
(Hong Kong) Ltd.] |
|
20-05-2011 |
Trade Finance Security Assignment |
Industrial & Commercial Bank of China (Asia) Ltd.,
Hong Kong. |
|
23-08-2011 |
An Agreement of Cash Pledge |
Deutsche Bank (China) Co. Ltd., Guangzhou Branch on
behalf of Deutsche Bank AG, Hong Kong Branch. |
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23-08-2011 |
Security Agreement |
Deutsche Bank AG, Hong Kong Branch. |
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05-03-2012 |
Security Agreement |
Deutsche Bank AG, Singapore Branch. |
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05-03-2012 |
An Agreement of Cash Pledge |
Deutsche Bank (China) Co. Ltd., Guangzhou Branch. |
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29-08-2013 |
HK Account Charge dated 29th August 2013 executed by
the Chargor, the chargee and Societe Generale, Hong Kong Branch as Account
Bank |
Societe Generale |
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03-04-2014 |
Charge Over Securities and Deposits with the Bank |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
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03-04-2014 |
Charge Over Securities and Deposits with the Bank
(Unlimited Amount) |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
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29-03-2016 |
Deed of Indemnity, Charge Over Deposits and Set-Off |
Bank of China (Hong Kong) Ltd., Hong Kong. |
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25-04-2017 |
Trade Finance Security Assignment |
The Bank of East Asia Ltd., Hong Kong. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.38 |
|
|
1 |
INR 86.02 |
|
Euro |
1 |
INR 76.50 |
|
HKD |
1 |
INR 8.10 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRA |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
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.