MIRA INFORM REPORT

 

 

Report Date :

20.04.2013

 

IDENTIFICATION DETAILS

 

Name :

HONGKONG GRAND INTERNATIONAL CO. LTD.

 

 

Registered Office :

C/o North Asia Corporate Services Ltd.

Suite 1001-1002 & 1005, 10/F., Albion Plaza, 2-6 Granville Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

25.06.2007

 

 

Com. Reg. No.:

38097001

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer and Exporter of Iron and steel, petrochemical products, etc.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No Operating Office in Hong Kong

Payment Behaviour :

Unknown

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

(31.03.2011)

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 and address

 

HONGKONG  GRAND  INTERNATIONAL  CO.  LTD.

 

 

ADDRESS:       c/o North Asia Corporate Services Ltd.

Suite 1001-1002 & 1005, 10/F., Albion Plaza, 2-6 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            2724 1223

 

FAX:                 2722 4373

 

 

MANAGEMENT

 

Managing Director:  Mr. Jin Bo

 

 

SUMMARY

 

Incorporated on:             25th June, 2007.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           US$1,000,000.00

Issued:              US$1,000,000.00

 

Business Category:        Importer and Exporter.

 

Group Turnover:             RMB36.3 billion Yuan  (Year ended 31-12-2012)

 

Employees:                   Nil.

 

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

 

Banking Relation:           Satisfactory.


ADDRESS

 

Registered Office:-

c/o North Asia Corporate Services Ltd.

Suite 1001-1002 & 1005, 10/F., Albion Plaza, 2-6 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

 

China Office:-

6F-O, Hongqiao Business Center, 2272 Hongqiao Road, 200032 Shanghai, China.

[Tel: 86-21-6217 9585;  Fax: 86-21-6127 9584]

 

Holding Company:-

Grand Group Corporation, China.

[Formerly known as Zhejiang Grand Import & Export Co. Ltd.]

Building No. 1, Pacific Plaza, 555 Jingjia Road, 315040 Ningbo City, Zhejiang Province, China.

[Tel: +86-0574-87731421    Fax: +86-0574-87720288]

 

Ultimate Holding Company:-

Lianyungang Ideal Group Co. Ltd., China.

 

Wholly-owned subsidiary:-

Yuan Da Materials (Singapore) Co. Ltd., Singapore.

 

Associated/Affiliated Companies:-

Brilliance Resources Co. Ltd., Hong Kong.

Chengdu Xiangyuan Polymeric Materials Co. Ltd., China.

China Grand Enterprises (HK) Ltd., Hong Kong.

Grand Cross International Co. Ltd., China.

Grand Iron Trade Co. Ltd., China.

Grand Petrochemical Co. Ltd., China.

Hainan Sino-source Petrochemical Industrial Co. Ltd., China.

Hangzhou Guanji Chemical Industry Co. Ltd., China.

HongKong Flow Resource Co. Ltd., Hong Kong.

Ningbo Grand International Logistics Co. Ltd., China.

Ningbo Grand International Trading Co. Ltd., China.

Ningbo Shenyuan Polymeric Materials Co. Ltd., China.

Ningbo Yuanxin Logistics Co. Ltd., China.

Qingdao Guoyuan Rubber Material Co. Ltd., China.

Shanghai Flow International Trade Co. Ltd., China.

Shanghai Spring International Trade Co. Ltd., China.

Tianjin Grand Tianyi Petrochemical Co. Ltd., China.

Xingjiang Tianyi Petrochemical Co. Ltd., China.

Yuyao Grand Plastics Co. Ltd., China.

Zhejiang Flow Commodities Co. Ltd.,China.

Zhejiang New Vision Import & Export Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

38097001

COMPANY FILE NUMBER

 

1143985

 

 

MANAGEMENT

 

Managing Director:  Mr. Jin Bo

 

 

CAPITAL

 

Nominal Share Capital: US$1,000,000.00 (Divided into 1,000,000 shares of US$1.00 each)

 

Issued Share Capital: US$1,000,000.00

 

 

SHAREHOLDER

(As per registry dated 25-06-2012)

 

Name

 

No. of shares

Grand Group Corporation

Jinying Trading Building, Kaifa District, Daxie, Ningbo, Zhejiang, China.

 

1,000,000

=======

 

 

DIRECTORS  

(As per registry dated 25-06-2012)

 

Name

(Nationality)

 

Address

JIN Bo

Room 504, No. 14, Lane 58, Caihong South Road, Jiangdong District, Ningbo, Zhejiang, China.

 

LI Zhi Guang

Room 504, No. 3, Lane 15, Xianxia Road, Changning District, Shanghai, China.

 

 

SECRETARY

(As per registry dated 25-06-2012)

 

Name

Address

Co. No.

Larich Ltd.

Suite 1001-1002, 10/F., Albion Plaza, 2-6 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

0437591

HISTORY

 

The subject was incorporated on 25th June, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Suite 1505-1506, 15/F., Albion Plaza, 2‑6 Granville Road, Tsimshatsui, Kowloon, Hong Kong where was the operating office of Asia Corporate Services Ltd., moved to Suite 1001‑1002 & 1005, 10/F. of the same building due to the address change of Asia Corporate Services Ltd. in September 2008.

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           Iron and steel, petrochemical products, etc.

 

Employees:                   Nil.

 

Commodities Imported:   Asia, North & South America, etc.

 

Markets:                       China, Japan, USA, Europe, etc.

 

Group Turnover: RMB21,187.2 million Yuan  (Year ended 31-12-2010)

RMB31,318.1 million Yuan  (Year ended 31-12-2011)

RMB36,300.0 million Yuan  (Year ended 31-12-2012)

 

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

 

Terms/Buying:                As per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   US$1,000,000.00 (Divided into 1,000,000 shares of US$1.00 each)

 

Issued Share Capital:     US$1,000,000.00

 

Indebtedness:                US$11,000,000.00  (Total amount outstanding on all mortgages and charges as per last Annual Return dated 25-06-2012)

 

Mortgage or Charge:        (See attachment)

 

Total Profit of Group:      RMB173.1 million Yuan  (Year ended 31-12-2010)

RMB  87.2 million Yuan  (Year ended 31-12-2011)

 

Profit or Loss:                Keeping a balance account in Hong Kong.

 

Condition:                      Business is not very active in Hong Kong.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

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

BNP Paribas, Hong Kong Branch.

Fortis Bank, Hong Kong Branch.

Cooperatieve Centrale Raiffeisen - Boerenleenbank B.A.
[trading as Rabobank International], Hong Kong Branch.

RB International Finance (Hong Kong) Ltd., Hong Kong.

 

Standing:                      Small.

 

 

GENERAL

 

Incorporated in June 2007, Hongkong Grand International Co. Ltd. is a wholly-owned subsidiary of Grand Group Corporation [Grand] (renamed from Zhejiang Grand Import & Export Co. Ltd. in July 2010) which is a China-based firm.

The ultimate holding company Lianyungang Ideal Group Co. Ltd. [Ideal/Group] which is also a China-based firm.  Ideal has been listed on Shenzhen Stock Exchange.  It bears stock code 000626.

The directors of the subject are Mr. Jin Bo and Mr. Li Zhi Guang.  The former is a China passport holder while the latter is a China ID holder.  Both do not have the right to reside in Hong Kong permanently.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at Suite 1001-1002 & 1005, 10/F., Albion Plaza, 2-6 Granville Road, Tsimshatsui, Kowloon, Hong Kong known as North Asia Corporate Services Ltd. which is handling its correspondences and documents.  Formerly North Asia Corporate Services Ltd. was located at Suite 1505-1506, 15/F. of the same building, moved to the present address in September 2008.

The subject has no employees in Hong Kong.  It is engaged in the same lines of business as Grand and Ideal.

The subject’s main office is in Ningbo City, Zhejiang Province, China.  It also has had an associated company in Shanghai which was founded in January 1994.  The sales manager is a Mr. Lin.  This firm is administered by Li Zhi Guang who is a director of the subject.  The phone number and fax number of the Shanghai Office is 021-6127 9585 and 021-6127 9584 respectively.

The subject and its Shanghai Office are trading in the following commodities: billets, deformed bars, wire rods, HR/CR coils/sheet, GI, PPGI, beams, checker plate, seamless pipe, round bar, stainless steel, etc.  Commodities are imported from India, Russia, etc.  Products are exported to worldwide countries.  Business is rather active.

Established in July 1994, Grand is engaged in importing and exporting business.

Grand was named “One of the Top 100 Enterprises in Tertiary Industry” in 2006 and has been named “ANA Class Company” for 10 consecutive years.  Grand ranked the 362nd in China’s Top 500 enterprises in 2009.

Grand’s major business covers trading, industry and investment.  Exported products include garments, steel, auto-parts, wood products, textile fabrics, clothing, plastics, outdoor leisure products, hardware, chemicals, mechanical products, electrical products, and other manufactured goods.  There are five business divisions in the Group including Export Department, Plastics Department, Steel & Iron Department, Liquid Chemical Department, and Rubber Plastic & Road Materials Department.

Grand has had ten wholly-owned subsidiaries and one joint stock company.  It has established representative offices in Shanghai, Beijing, Dalian, etc. and in countries of South Korea, Turkey and Vietnam.  Major import products include plastic materials, liquid chemicals, medicinal compounds, timber, metals, and other staple products.  Products are imported from South Korea, Japan, Singapore, India, the United States, Taiwan, the United Arab Emirates, etc.  Prime markets of the Group are the United States, Japan, Europe, including more than 50 countries and regions of the world.

Grand’s major business covers trading, logistics and investment.  Close business ties have been developed with many world leading companies such as LAG, SK, Deli, Hyundai in South Korea, Mitsubishi in Japan, Formosa Chemical & Fibber in Taiwan, Gesso and Mite in Singapore, Reliance in India and other world leading companies, etc.  Grand has got ISO 9001 certification.  It has set up a number of associated and affiliated companies in Zhejiang Province, China.

In July 2011, Grand ranked the seventh in 100 top enterprises in Ningbo City, Zhejiang Province, China.  It also has got the other awards.

Lianyungang Ideal holds 52% of Grand’s interests while some of the employees hold 48%.

For the year ended 31st December, 2011, the turnover of the Group amounted to RMB31,318.1 million Yuan (2010: RMB21,187.2 million Yuan); total profit was RMB87.2 million Yuan (2010: RMB173.1 million Yuan).

For the year ended 31st December, 2012, the turnover of the Group amounted to RMB36.3 billion Yuan.

Grand and the subject’s Shanghai Office do business with foreign parties under the name of the subject with its corresponding address in Hong Kong.  The history of the subject in Hong Kong is over five years.

Since the subject does not have its own office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

19-10-2007

Instrument:        Deed of Charge

Property:

1)         Charged Property means the property, assets and rights for the time being comprised in or subject to the charges contained in this Deed

2)         As security for the due payment and discharge of the Secured Amounts

Mortgagee:        BNP Paribas (China) Ltd., China.

To secure the payment and discharge of all moneys and liabilities

17-04-2008

Instrument:        Deed of Charge

Property:

As security for the due payment and discharge of the Secured Amounts

Mortgagee:        BNP Paribas, Singapore Branch.

All moneys and liabilities

22-07-2009

Instrument:        Charge Over Deposits – CD 1 (09)

Property:

1)         By fixed Charge:  all the Company’s rights in respect of (i) the sum deposited by the Company; and (ii) all other sums in any currency from time to time standing to the credit of the Company or the credit of any other person for the Company’s benefit whether alone or jointly with others, on any deposit account with the Bank or any other SCB Group Company including additions to or renewals or replacements of such sum; and all interest from time to time accruing or payable on the sums specified in (i) and (ii) above;

2)         By assignment:  all Deposits held with any SCB Group Company

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

To secure the payment or discharge of all moneys, obligations and liabilities, whether actual or contingent at the date of the Charge or at any time after the date thereof, due, owing or incurred by the Company to Standard Chartered Bank (Hong Kong) Ltd.

20-05-2010

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

Property:

By way of first fixed charge to the Chargee the account number 873530004923 and all deposits

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

All monies and liabilities

13-08-2010

Instrument:        Trade Finance Security Assignment

Property:

The Borrower as beneficial owner and as security for the payment of all Secured Liabilities

Mortgagee:        Cooperatieve Centrale Raiffeisen - Boerenleenbank B.A. [trading as Rabobank International], Hong Kong Branch.

All obligations and liabilities

30-05-2011

Instrument:        Letter of Pledge

Property:

Any documents, bills of exchange, negotiable instruments, documents of title, transport documents, Insurance policies, delivery orders, godown warrants and any other documents

Mortgagee:        RB International Finance (Hong Kong) Ltd., Hong Kong.

All obligations and liabilities

30-05-2011

Instrument:        Trade Finance Security Assignment

Property:

All the present and future rights, title, interests and benefits of the Company

Mortgagee:        RB International Finance (Hong Kong) Ltd., Hong Kong.

All obligations and liabilities

30-05-2011

Instrument:        Charge on Collateral Account

Property:

All and any money from time to time standing to the credit of or earned on such account as shall from time to time be designated by the Lender as the Company’s Collateral Account

Mortgagee:        RB International Finance (Hong Kong) Ltd., Hong Kong.

All moneys and liabilities

18-07-2011

Instrument:        Trade Finance Security Assignment

Property:

1)         As security for the payment of all Secured Liabilities

2)         As security for the Assigned Obligations

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

All obligations and liabilities

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.03

UK Pound

1

Rs.82.43

Euro

1

Rs.70.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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