MIRA INFORM REPORT

 

 

Report Date :

18.04.2013

 

IDENTIFICATION DETAILS

 

Name :

CHEONGFULI (HONG KONG)  CO.  LTD.

 

 

Formerly Known as:

Super Boom Co. Ltd.

 

 

Registered Office :

Room A, 9/F., Max Share Centre, 367-373 King’s Road, North Point

 

 

Country :

Hong Kong 

 

 

Date of Incorporation :

31.05.1988

 

 

Com. Reg. No.:

12982876

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of Bags and plastic products; arts and crafts; mechanical and electronic products, etc.

 

 

No. of Employees :

10.  (the Company)

8,492.  (the Group)

 

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 :

Good

 

 

Payment Behaviour :

Regular 

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Hong Kong 

A2

A2

 

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 levies excise duties on only four commodities, namely: 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, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous year. 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 exports 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 34.9 million in 2012, 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 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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.

 

Source : CIA

 

 

 

 


Company name

 

CHEONGFULI  (HONG  KONG)  CO.  LTD.

 

 

Company ADDRESS

 

Room A, 9/F., Max Share Centre, 367-373 King’s Road, North Point, Hong Kong.

PHONE:            2571 2223

FAX:                 2887 8943

E-MAIL:                        cheongfuli@tdctrace.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Huang Wenzhou

 

 

SUMMARY

 

Incorporated on:             31st May, 1988.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$227,839,400.00

Issued:              HK$227,839,400.00

 

Business Category:        Importer, Exporter and Wholesaler.

 

Company Sales:            RMB5,351.0 million Yuan  (Year ended 31-12-2012)

 

Group Sales:                 RMB91,167.0 million Yuan  (Year ended 31-12-2012)

 

Employees:                   10.  (the Company)

8,492.  (the Group)

 

Main Dealing Banker:     Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:           Good.


Company ADDRESS

 

Registered Head Office:-

Room A, 9/F., Max Share Centre, 367-373 King’s Road, North Point, Hong Kong.

 

Holding Company:-

Xiamen C & D Inc., China.

 

Ultimate Holding Company:-

Xiamen C&D Corporation Ltd., China.

 

Affiliated/Associated Companies:-

·         Beijing C&D Co. Ltd., China.

C&D (Canada) Import & Export Inc., Canada.

C&D (USA) Inc., USA.

C&D Logistics Group Co. Ltd., China.

C&D Prosper (Hong Kong) Shipping Co. Ltd., Hong Kong.

Changsha C&D Real Estate Co. Ltd., China.

Cheongfuli (Hong Kong) Co. Ltd., Hong Kong.

China Eagle Securities Co. Ltd., China.

Fujian De’er Medical Industrial Co. Ltd., China.

Fujian Zhaofeng Real Estate Co. Ltd., China.

Fuzhou C&D Co. Ltd., China.

Guangzhou C&D Trading Co. Ltd., China.

Hanifat Co. Ltd., Hong Kong.

Hong Kong Heng Chi International Co. Ltd., Hong Kong.

Hong Kong Paper Sources Co. Ltd., Hong Kong.

Lianfa Group Co. Ltd., China.

Quanzhou C&D Co. Ltd., China.

Quanzhou YeoHwa Hotel Co. Ltd., China.

Shanghai C&D Co. Ltd., China.

Shanghai C&D International Freight Forwarding Co. Ltd., China.

Sichuan Yongfeng Paper Industry Inc., China.

Sino East Development Ltd., Hong Kong.

Tianjin C&D Co. Ltd., China.

Wuyi Mountain YeoHwa Resort Co. Ltd., China.

Xiamen Airlines Co. Ltd., China.

Xiamen B&G Co. Ltd., China.

Xiamen C&D Agricultural Product Co. Ltd., China.

Xiamen C&D Art Ceramics Co. Ltd., China.

Xiamen C&D Automobile Co. Ltd., China.

Xiamen C&D Chemicals Co. Ltd., China.

Xiamen C&D Commodities Co. Ltd., China.

Xiamen C&D Communication Co. Ltd., China.

Xiamen C&D Electronics Co. Ltd., China.

Xiamen C&D Energy Co. Ltd., China.

Xiamen C&D Import & Export Co. Ltd., China.

Xiamen C&D Int’l Travel Service Co. Ltd., China.

Xiamen C&D Light Industry Ltd., China.

Xiamen C&D Liquor Industry Co. Ltd., China.

Xiamen C&D Material Co. Ltd., China.

Xiamen C&D Metal Co. Ltd., China.

Xiamen C&D Minerals Co. Ltd., China.

Xiamen C&D Packing Co. Ltd., China.
[Also known as Xiamen C&D Paper & Pulp Co. Ltd.]

Xiamen C&D Paper & Pulp Co. Ltd., China.

Xiamen C&D Pharmaceutical Co. Ltd., China.

Xiamen C&D Pinchuan Real Estate Consulting Co. Ltd., China.

Xiamen C&D Property Management Co. Ltd., China.

Xiamen C&D Real Estate Co. Ltd., China.

Xiamen C&D Shengmao Co. Ltd., China.

Xiamen C&D Tourism & Hotels Co. Ltd., China.

Xiamen Candour Co. Ltd., China.

Xiamen City Hotel Co. Ltd., China.

Xiamen Da Zhong Tong Shang Automobile Sales & Service Co. Ltd., China.

Xiamen Dazhen Magnetic Record Co. Ltd., China.

Xiamen Faratronic Co. Ltd., China.

Xiamen Goldorigin Financial Leasing Co. Ltd., China.

Xiamen Hongfa Electroacoustic Co. Ltd., China.

Xiamen Hualian Electronics Co. Ltd., China.

Xiamen Information Port Construction & Development Co. Ltd., China.

Xiamen International Bank, China.

Xiamen International Conference & Exhibition Co. Ltd., China.

Xiamen International Seaside Hotel Co. Ltd., China.

Xiamen International Trust & Investment Co. Ltd., China.

Xiamen Jiacheng Real Estate Co. Ltd., China.

Xiamen JianFa Sealing Materials Co. Ltd., China.

Xiamen Jianpeng Agricultural of Production Ltd., China.

Xiamen Jiarun Real Estate Co. Ltd., China.

Xiamen King Home Import & Export Co. Ltd., China.

Xiamen Kingland Co. Ltd., China.

Xiamen Kingland Import & Export Co. Ltd., China.

Xiamen Lianfa (Group) Forever Co. Ltd., China.

Xiamen Lianxincheng Co. Ltd., China.

Xiamen Mandarin Hotel Co. Ltd., China.

Xiamen Mandarin Taxi Service Co. Ltd., China.

Xiamen Modern Dock Co. Ltd., China.

Xiamen Overseas Chinese Electronic Co. Ltd., China.

Xiamen Seaview Resort Co. Ltd., China.

Xiamen Shipbuilding Industry Co. Ltd., China.

Xiamen United Development (Group) Co. Ltd., China.

Xiamen Wuyi Mountain C&D International Travel Service Co. Ltd., China.

Xiamen Wuyi Mountain Mandarin Hotel Co. Ltd., China.

Xiamen Xinchi Automobile Co. Ltd., China.

Xiamen Xingsha Pharmaceutical Co. Ltd., China.

Xiamen Zijin Tongguan Mining Investment Development Co. Ltd., China.

XOCECO Holding Co. Ltd., China.

Yuehua International (H.K.) Co. Ltd., Hong Kong.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

12982876

 

 

COMPANY FILE NUMBER

 

0217308

 

 

MANAGEMENT

 

Managing Director:  Mr. Huang Wenzhou

 

 

CAPITAL

 

Nominal Share Capital:   HK$227,839,400.00 (Divided into 2,278,394 shares of HK$100.00 each)

Issued Share Capital:     HK$227,839,400.00

 

 

SHAREHOLDER  

(As per registry dated 31-05-2012)

 

Name

 

No. of shares

Xiamen C & D Inc.

7/F., Seaside Building, 52, Lu Jiang Dao, Xiamen, China.

 

2,278,394

=======

 

 

DIRECTORS

(As per registry dated 31-05-2012)

 

Name

(Nationality)

 

Address

HUANG Wenzhou

Room 702, Block 3, No. 136, Xiaoxue Road, Xiamen, China.

 

ZHANG Yongfeng

Room 302, Block 3, No. 136, Xiaoxue Road, Xiamen, China.

 

LAI Yanda

7/F., Seaside Building, Xiamen 361001, China.

 

WU Xiao Min

5-7/F., Seaside Building, Xiamen, China.

 

 

SECRETARY 

(As per registry dated 31-05-2012)

 

Name

Address

Co. No.

General Secretarial Services Ltd.

20/F., Capital Centre, 5-19, Jardine’s Bazaar, Causeway Bay, Hong Kong.

0029941

 

 

HISTORY

 

The subject was incorporated on 31st May, 1988 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Super Boom Co. Ltd., name changed to the present style on 7th November, 1989.

 

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           Bags and plastic products; arts and crafts; mechanical and electronic products, etc.

 

Employees:                   10.  (the Company)

8,492.  (the Group)

 

Commodities Imported:   Imports raw materials from European countries, some of the Asian countries and finished

products from China.

 

Markets:                       Asian countries, Europe, North America, etc.

 

Company Sales:            RMB5,351.0 million Yuan  (Year ended 31-12-2012)

 

Group Sales:                 RMB40,551.0 million Yuan  (Year ended 31-12-2009)

RMB66,095.5 million Yuan  (Year ended 31-12-2010)

RMB80,254.1 million Yuan  (Year ended 31-12-2011)

RMB91,167.0 million Yuan  (Year ended 31-12-2012)

 

Terms/Sales:                 L/C or as per contracted.

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$227,839,400.00 (Divided into 2,278,394 shares of HK$100.00 each)

 

Issued Share Capital:     HK$227,839,400.00

 

Total Assets:                 RMB648.0 million Yuan  (Year ended 31-12-2012)

 

Net Assets:                   RMB387.0 million Yuan  (Year ended 31-12-2012)

 

Mortgage or Charge:       (See attachmenet)

 

Company Net Profit:       RMB51.0 million Yuan  (Year ended 31-12-2012)

 

Group profit attributable to shareholders:

·         RMB1,063.7 million Yuan  (Year ended 31-12-2009)

RMB1,754.5 million Yuan  (Year ended 31-12-2010)

RMB2,250.2 million Yuan  (Year ended 31-12-2011)

RMB2,156.0 million Yuan  (Year ended 31-12-2012)

 

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.

 

Bankers:-

·         Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

 

Standing:  Very Good.

 

 


GENERAL

 

Cheongfuli (Hong Kong) Co. Ltd. is a wholly-owned subsidiary of Xiamen C & D Inc. [C&D Inc.], China.

Established in June 1998, Xiamen C&D Inc. is 46.3% owned by Xiamen C&D Corp. Ltd. [C&D].

The subject is trading in the same kinds of commodities as C&D.  C&D is trading in bags and plastic products; arts and crafts; mechanical and electronic products, paper and paper products, etc.

C&D is a state-owned conglomerate enterprise which was established in December 1980.  After more than two decades of continuous innovation and improving, C&D has now developed into a large-scale investment enterprise group with a registered capital of RMB3.2 billion Yuan, a total asset of over RMB30 billion Yuan, and an annual income of over RMB40 billion Yuan.  Its main business scope covers Trading and Logistics Services, Real Estate Development & Property Management, Tourist and Hotel Services, Conference & Exhibition, Securities & Fiduciary Contribution, Electronic Products & Pharmacy, etc.

In 2009, C&D ranked the 174th of the “Top 500 Chinese enterprises”, the 59th of the “Top 500 Chinese service enterprises”, the 3rd of logistics, warehousing, transportation and distribution services, and has been ranking the first of the “Top 100 enterprises in Fujian Province” consecutively for several years.

C&D Inc. was listed at Shanghai Stock Exchange on 16th June, 1998 bearing the stock name C&D Stock and stock code 600153.

C&D Inc. is a modern service enterprise cantering on supply chain operation.  Its main business covers supply chain operation, real estate development, property leasing, industrial investments, etc.  Main products include paper and pulp materials, mineral products, iron & steel and metal products, products of energy and chemicals, farm produce and by-products, cereals, oils and foodstuffs, construction materials, mechanical & electronic equipment, automobiles, ships, textile products, etc.

 

C&D Inc.’s major businesses are as the following:-

·         Conference & Exhibition: operated by its subsidiary Xiamen International Conference & Exhibition Co. Ltd.  Sales are the allowances from the government, regular conference and exhibition rentals and self‑operating income.  This firm offers a comprehensive range of services, including exhibition venue leasing, exhibition organization, exhibition services, exhibition projects and advertisement information services.;

Import & Export and Domestic Trade: one of its core businesses and operated by subject’s directly subordinated Trade Department; &

Real Estate Development: operated by its subsidiary Lianfa Group which is mainly engaged in real estate development, industrial property leasing and property management.

C&D Inc. possesses the usufruct of circulation service trademarks “C&D” and “CODECO”.

C&D Inc.’s commodities are imported from Japan, Europe, the United State, etc. and also purchased in China.

C&D Inc. has established business relationship with more than 70 countries and regions of the world, and has established its branches in Beijing, Tianjin, Shanghai, Guangzhou, Fuzhou, Quanzhou, Hong Kong, Canada, etc.

In 2012, its sales amounted to RMB91,167.0 million Yuan (2011: RMB80,254.1 million Yuan), Group profit attributable to shareholders was RMB2,156.0 million Yuan (2011: RMB2,250.2 million Yuan).  Business was good in the past years.

C&D Inc. has been honoured as the “AAA” grade enterprise by the Xiamen Financial Consultant Evaluation Company.  In 2010, C&D Inc. ranked the 60th in “China Top 500 Listed Companies” and ranked the first in “Top 300 Tertiary‑Industry Enterprises (Import & Export Industry) of Fijian”.  Besides, C&D Inc. has been conferred the titles of “2010 China’s Top 100 Investment‑Worthy Public Companies” and “2010 China’s Top 100 Most Competitive Public Companies”.

According to the subject, its sales for the year ended 31st December, 2012 amounted to RMB5,351.0 million Yuan, net profit was RMB51.0 million Yuan in the year.  Profit margin was low in the year.

However, the subject predicts its sales in 2013 would be amount to RMB95 billion Yuan.

The subject is fully supported by C&D Inc.

On the whole, consider the subject good for normal business engagements.

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

15-02-2011

Instrument:      Trade Finance Security Assignment (the “Assignment)

Property:

For the payment of all Secured Liabilities:

(a)  assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Export Credits; (ii) the Export Collection Bills; (iii) the Sales Contracts; (iv) the Export Invoice Receivables; (v) the Insurances; (vi) the Trade Documents; and (vii) all claims, remedies and proceeds in connection with any of the foregoing;

(b)  charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Goods together with their proceeds; (ii) the Pledged Goods; (iii) the Deposit; and (iv) to the extent any Security Assets

(c)  pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the possession of the Bank

Mortgagee:      Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

All obligations and liabilities

01-03-2011

Instrument:      Security Over Deposit in respect of Obligations of the Depositor

Property:

By way of first fixed charge to the Chargee the account no. 702530010813

Mortgagee:      Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

All monies and liabilities

21-09-2011

Instrument:      Trade Finance Security Assignment (All Moneys) (Own Obligations) (“the Security Assignment)

Property:

1.   By way of fixed charge all the Chargor’s right, title, interest and benefit from time to time in and to any amount standing to the credit of the Charged Account

2.   By way of assignment, all the Chargor’s right, title, interest and benefit form time to time in and to the Assigned Assets

Mortgagee:      Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

To secure the payment and satisfaction of all present and future obligations and liabilities


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.94

UK Pound

1

Rs.82.77

Euro

1

Rs.71.05

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.