MIRA INFORM REPORT

 

 

Report Date :

22.04.2013

 

IDENTIFICATION DETAILS

 

Name :

LEVACHEM  CO.  LTD.

 

 

Registered Office :

C/o Sinomix & Co., Certified Public Accountants

Room 1505B, 15/F., Fortress Tower, 250 King’s Road, North Point

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

02.08.2002.

 

 

Com. Reg. No.:

32858518

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of fine chemicals, dyestuffs, pigment intermediates, 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

 

LEVACHEM  CO.  LTD.

 

 

Company ADDRESS

 

c/o Sinomix & Co., Certified Public Accountants

Room 1505B, 15/F., Fortress Tower, 250 King’s Road, North Point, Hong Kong.

 

PHONE:            2174 8030

 

FAX:                 8344 5661

 

 

MANAGEMENT

 

Managing Director:  Mr. Lu Min Yan

 

 

SUMMARY

 

Incorporated on:             2nd August, 2002.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:              HK$10,000.00

 

Business Category:        Importer, Exporter and Wholesaler.

 

Employees:                   Nil.

 

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

 

Banking Relation:           Satisfactory.


Company ADDRESS

 

Registered Head Office:-

c/o Sinomix & Co., Certified Public Accountants

Room 1505B, 15/F., Fortress Tower, 250 King’s Road, North Point, Hong Kong.

 

Associated Company:-

Nanjing Levachem Co. Ltd.

2112, Suning Universal Mansion, 188 Guangzhou Road, Nanjing City 210024, Jiangsu Province, China.

[Tel:      86-25-8324 7442~3, 8324 7445~7

Fax:      86-25-8324 7441

E-mail:  sales@levachem.com]

 

 

BUSINESS REGISTRATION NUMBER

 

32858518

 

 

COMPANY FILE NUMBER

 

0808808

 

 

MANAGEMENT

 

Managing Director:  Mr. Lu Min Yan

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$10,000.00

 

 

SHAREHOLDERS

(As per registry dated 02-08-2012)

 

Name

 

No. of shares

LU Min Yan

 

2,500

CAI Jun

 

2,500

LUO Kai Yu

 

2,500

LIU Tong Qiu

 

2,500

 

 

––––––

 

Total:

10,000

=====

 

 

DIRECTORS

(As per registry dated 02-08-2012)

 

Name

(Nationality)

 

Address

LU Min Yan

Room 2607, No. 2, Xiyi Xincun, Baixia, Nanjing, Jiangsu, China.

 

CAI Jun

Room 2204, No. 4, Beimenqiao Road, Xuanwu, Nanjing, Jiangsu, China.

 

LUO Kai Yu

Room 1506, Unit 3, No. 218, Hanzhong Road, Gulou, Nanjing, Jiangsu, China.

 

LIU Tong Qiu

Room 1406, Unit 3, No. 5, Guangzhou Road, Gulou, Nanjing, Jiangsu, China.

 

 

SECRETARY

(As per registry dated 02-08-2012)

 

Name

Address

Co. No.

SBS Nominee Ltd.

Unit 842, 1/F., Block D, Mai Tak Industrial Building, 221 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong.

0809165

 

 

HISTORY

 

The subject was incorporated on 2nd August, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject’s registered address was located at Room 1020-1021, 10/F., Ocean Centre, Harbour City, 5 Canton Road, Tsimshatsui, Kowloon, Hong Kong where is the operating address of a secretarial firm known as Hong Kong Secretarial Ltd.  The subject’s registered address moved to the present address in August 2010 as it has changed its secretarial firm since then.

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

 

           

OPERATIONS

 

Activities:          Importer, Exporter and Wholesaler.

 

Lines:               All kinds of fine chemicals, dyestuffs, pigment intermediates, etc.

 

Employees:       Nil.

 

Materials/Commodities:  Imports raw materials from European countries, some Asian countries and finished products from China.

 

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

 

Terms/Sales:     L/C, T/T, etc.

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000.00

 

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

 

Condition:                      Business is not active in Hong Kong.

 

Facilities:                      Is making use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

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

 

Standing:                      Small.

 

 

GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, Levachem Co. Ltd. is equally owned by Mr. Lu Min Yan, Mr. Cai Jun, Mr. Luo Kai Yu and Mr. Liu Tong Qiu.  Being China ID Card holders, all the shareholders are also directors of the subject.  Currently, they are residing in Nanjing City, Jiangsu Province, China.

The subject does not have its own operating office.  Its registered office is in an accountant firm located at Room 1505B, 15/F., Fortress Tower, 250 King’s Road, North Point, Hong Kong known as Sinomix & Co., Certified Public Accountants which is handling its correspondences and documents.  The subject changed its registered address in August 2010.  It has no employees in Hong Kong.

To our knowledge, the subject has had a main associated company Nanjing Levachem Co. Ltd. [Nanjing Levachem] which is in Nanjing City, Jiangsu Province, China.  The subject and Nanjing Levachem form the Levachem Group.

Nanjing Levachem was established in 2001 in China.  It has had four cooperating manufacturers that are engaged in producing fine chemicals, diversified pharmaceuticals, agrochemical ingredients and other high technology products.

The Group is an international fine chemicals holding company and one of China’s leading providers of integrated fine chemical services including its core sourcing business, research and development, custom manufacturing business, as well as other value-added customer services.

The Group has three major businesses: Pharmaceuticals, Dyestuffs and Other Fine Chemicals.  It is trading in the following main products:-

·         APIs and Veterinary Medicines;

·         Intermediates for APIs;

·         Agrochemical and Intermediates;

·         Fine Chemicals;

·         Food/Feed Additives;

·         Intermediates for Dyestuff and Pigments; &

·         Dyestuffs.

The following firms are its partners:-

·         Xin Yuan Fine Chemical Co. Ltd. — Produce Dyestuff / Pigment / Agrochemical Intermediates and Special Chemicals, etc.

·         Tian Ma Fine Chemical Co. Ltd. — Produce Pharmaceutical Ingredients, such as N-octyl D-Glucmine, etc.

·         Xing Nong Chemical Co. Ltd. — Produce Agrochemical and Intermediates, etc.

·         Lixin Chemical Co. Ltd. — Produce Dyestuff Intermediates, such as Bromamine Acid, 1-amino Anthraquinone, etc.

Nanjing Levachem is marketing the above-mentioned firms products.  Most of the chemicals are marketed in China, exported to Europe, the Middle East, Africa, Oceania, the other Asian countries, North America, Central and South America, etc.  About 90% of the products are exported.  Currently, it is carrying over 130 type of products.

It was reported that the annual sales turnover of Nanjing Levachem is about RMB760 to 800 million.  However, it profit margin was usually low in the past years.

The customers of Nanjing Levachem are in about fifteen countries of the world.

Nanjing Levachem is also operated and owned by the four shareholders of the subject.  It has opened an account at The Hongkong & Shanghai Banking Corp. Ltd., Shanghai Branch, China.

It is likely that Nanjing Levachem deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong.  Nanjing Levachem also exports commodities to foreign markets under the name of the subject and its registered address in Hong Kong.

The Contact Person of Nanjing Levachem is Lu Min Yan who is one of the shareholders of the subject.

The subject’s business in Hong Kong is not very active.  History in Hong Kong is over ten years and five months.

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

 


 

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 :

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%)

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.