MIRA INFORM REPORT

 

 

Report Date :

28.11.2013

 

IDENTIFICATION DETAILS

 

Name :

BROTHERS INVESTMENT (HONGKONG) LTD.

 

 

Registered Office :

c/o World Trade Enterprises Consultancy Ltd.

Room 2105, 21/F., JQD455, Trend Centre, 29-31 Cheung Lee Street, Chai Wan

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

17.04.2008

 

 

Com. Reg. No.:

39181209

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in manufacturing Isomaltitol, xylitol, Maltitol, erythritol, xylose, Isomalt, Xylitol DC, Isomalt DC, sodium saccharin, sweetener, aspartame, acesulfame k, Isomaltitol DC, Xylitol powder, xylitol crystal.

 

 

No. of Employees :

No employees in Hong Kong.

 

[It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.]

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Hong Kong

A1

A1

 

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

 

BROTHERS INVESTMENT (HONGKONG) LTD.

 

 

ADDRESS

 

Registered Head Office:-

c/o World Trade Enterprises Consultancy Ltd.

Room 2105, 21/F., JQD455, Trend Centre, 29-31 Cheung Lee Street, Chai Wan, Hong Kong.

 

Associated Companies:-

Brothers Biotech Co. Ltd., China.

C.S.I Group Ltd., Hong Kong.  (Same address)

Qingdao Ever-Lasting Farm Machinery Co. Ltd., China.

Qingdao Ever-Lasting Import & Export Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

39181209

 

 

COMPANY FILE NUMBER

 

1228049

 

 

MANAGEMENT

 

Managing Director:  Mr. Xiong Chunming

 

 

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 17-04-2013)

Name

 

No. of shares

XIONG Chunming

 

6,000

LIU Yan

 

4,000

 

 

––––––

 

Total:

10,000

=====

 

 

DIRECTOR

 

(As per registry dated 17-04-2013)

Name

(Nationality)

 

Address

XIONG Chunming

Room 2105, 21/F., JQD455, Trend Centre, 29-31 Cheung Lee Street, Chai Wan, Hong Kong.

 

SECRETARY 

 

(As per registry dated 17-04-2013)

Name

Address

Co. No.

World Trade Enterprises Consultancy Ltd.

Room 1302, 13/F., Railway Plaza, 39 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

1156560

 

 

HISTORY

 

The subject was incorporated on 17th April, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject’s registered address was located at Room 907, 9/F., JQD455, Wing Tuck Commercial Centre, 117-183 Wing Lok Street, Sheung Wan, Hong Kong, moved to Room 2105, 21/F., JQD455, Trend Centre, 29‑31 Cheung Lee Street, Chai Wan, Hong Kong in March 2011.  The former is the new address of a commercial service provider World Trade Enterprises Consultancy Ltd. [WTEC].  The reference number of the subject in WTEC is JQD455.

 

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

 

 

GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, Brothers Investment (Hongkong) Ltd. is jointly owned by two China merchants, namely, Mr. Xiong Chunming, holding 60% interests; and Ms. Liu Yan, holding 40%.  Xiong is also director of the subject.  He is a China passport holder and does not have the right to reside in Hong Kong permanently.  He is also the only director of the subject.

 

Currently Liu and Xiong are residing in Qingdao City, Shandong Province, China.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at Room 2105, 21/F., JQD455, Trend Centre, 29-31 Cheung Lee Street, Chai Wan, Hong Kong known as World Trade Enterprises Consultancy Ltd. [WTEC] which is handling its correspondences and documents.  WTEC, having several branch companies in Hong Kong, is also the corporate secretary of the subject.

 

The subject has had an associated company C.S.I Group Ltd. [CSI], a Hong Kong-registered company located at the above-mentioned address.  CSI is solely owned by Xiong Chunming.

 

The subject has no employees in Hong Kong.

 

To our knowledge, Xiong is also the operator of Qingdao Ever-Lasting Import & Export Co. Ltd. [Ever-Lasting] which is in Qingdao City, Shandong Province, China.

 

Ever-Lasting has two tractor factories and two agricultural equipment production lines.  Its main products are as follows: trucks, buses, light cars, tractors, farm implanters, harvesters, threshers, trailers, mowers, farm gear cases, furrow blades, harrow blades, shovels, hand tools, automobile fittings, solar energy products, tyres, machinery & equipment for engineering, rubber products, building materials, dried fruit, foodstuffs, etc.

 

Most of the products bear the brand name of “EVER-LASTING”.  It exports its products to North America, England, France, the Netherlands, Germany, Mexico, Hong Kong, Japan, South Korea, Algeria, Morocco, Mali, Tunis, Egypt and the other countries and regions.

 

Founded in 2005, Ever-Lasting has set up many departments such as import & export department, purchasing department, finance & accounting department, quality controlled department, department of transportation and after-sales service department.  The contact person of Ever-Lasting is Xiong Chunming.

 

The subject has had another associated company Brothers Biotech Co. Ltd. [Brothers Biotech] which is also in Qingdao City, Shandong Province, China.  Brothers Biotech is engaged in manufacturing Isomaltitol, xylitol, Maltitol, erythritol, xylose, Isomalt, Xylitol DC, Isomalt DC, sodium saccharin, sweetener, aspartame, acesulfame k, Isomaltitol DC, Xylitol powder, xylitol crystal.  Most of the products are exported to foreign countries.  The contact person of Brothers Biotech is Liu Yan.

 

In China, Ever-Lasting and Brothers Biotech share the same operating office which is in Qingdao City, Shandong Province, China.

 

It is likely that the two China firms deal with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong.  The China firms also export commodities to foreign markets under the name of the subject and its registered address in Hong Kong.

 

The subject’s business in Hong Kong is not active.  History in Hong Kong is over five years and seven 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 L/C basis.

 

NOTE:

 

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.36

UK Pound

1

Rs.101.11

Euro

1

Rs.84.67

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.