MIRA INFORM REPORT

Report Date :

05.07.2014

IDENTIFICATION DETAILS

Name :	KINGWELL (CHINA) LTD.
Registered Office :	M/F., Tsun Mee Industrial Building, 8 Wang Yip Street East, Yuen Long, New Territories
Country :	Hong Kong
Date of Incorporation :	30.04.1997
Com. Reg. No.:	20995653
Legal Form :	Private Limited Company
Line of Business :	Importer & Distributor of Lubricants, Chemicals and Auxiliaries For the Leather Industry.
No. of Employees :	14 [Including Associates]

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 :	Satisfactory
Payment Behaviour :	No Complaints
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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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 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'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, 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 12% of total system deposits in Hong Kong by the end of 2013. 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 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

Source : CIA

Company name & address

KINGWELL (CHINA) LTD.

ADDRESS: M/F., Tsun Mee Industrial Building, 8 Wang Yip Street East, Yuen Long, New Territories, Hong Kong.

PHONE: 852-2944 0155

FAX: 852-2944 0355

MANAGEMENT

Managing Director: Mr. Ling Siu Wah

SUMMARY

Incorporated on: 30th April, 1997.

Organization: Private Limited Company.

Issued Capital: HK$10,000.00

Business Category: Lubricant and Chemical Trader.

Employees: 14. (Including associates)

Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.

Banking Relation: Satisfactory.

Name

KINGWELL (CHINA) LTD.

ADDRESS

Registered Head Office:-

M/F., Tsun Mee Industrial Building, 8 Wang Yip Street East, Yuen Long, New Territories, Hong Kong.

China Factories:-

Guangzhou Zhaoxiong Tannery Co. Ltd., China.

Guangzhou Zhaoxiong Tannery, China.

Associated/Affiliated Companies:-

*Grand Land Trading Ltd., Hong Kong.

*Kingful Industrial Ltd., Hong Kong.

Leather Port International Ltd., Hong Kong. [Deregistration]

Sino Force (Asia) Ltd., Hong Kong. [Deregistration]

Siu Kee (Hong Kong) Tannery Ltd., Hong Kong.

*Siu May (Guangzhou) Tannery, China.

*Siu May Tannery (China) Ltd., Hong Kong.

Tsun Mee Investment (HK) Ltd., Hong Kong.

(*Dissolved)

BUSINESS REGISTRATION NUMBER

20995653

COMPANY FILE NUMBER

0605966

MANAGEMENT

Managing Director: Mr. Ling Siu Wah

ISSUED CAPITAL: HK$10,000.00

SHAREHOLDERS

(As per registry dated 30-04-2014)

Name		No. of shares
LING Siu Wah		5,000
WONG Kwan Chuen		2,500
WONG Yui Chuen		2,500
		––––––
	Total:	10,000 =====

DIRECTORS

(As per registry dated 30-04-2014)

Name (Nationality)	Address
LING Siu Wah	Flat 2, 10/F., Block D, The Trend Plaza, Tuen Mun, New Territories, Hong Kong.
WONG Kit Yuet	Flat B, 34/F., Block 2, Maywood Court, Kingswood Villas, 9 Ting Lung Road, Tin Shui Wai, New Territories, Hong Kong.

SECRETARY

(As per registry dated 30-04-2014)

Name	Address	Co. No.
Great Faith Secretarial Services Ltd.	Room 2007, 20/F., Wellborne Commercial Centre, 8 Java Road, North Point, Hong Kong.	0490760

HISTORY

The subject was incorporated on 30th April, 1997 as a private limited liability company under the Hong Kong Companies Ordinance.

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

OPERATIONS

Activities: Importer and Distributor.

Lines: Lubricants, chemicals and auxiliaries for the leather industry.

Agent of:-

Atlas Refinery Inc.

142 Lockwood Street, Newark, New Jersey, U.S.A.

[Tel: 973-589-2002, Fax: 973-589-7377]

Employees: 14. (Including associates)

Commodities Imported: Mainly imported from US, Europe

Markets: Hong Kong, Macau, China, other Asian countries

Terms/Sales: As per contracted.

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

FINANCIAL INFORMATION

Issued Capital: HK$10,000.00

Mortgage or Charges:-

Date of Deed of Charge on Cash Deposit: 31-03-2006

Amount: To secure credit facilities or financial accommodation

Property: A cash deposit of US$205,5363.18 placed with The Bank of East Asia Ltd., Yuen Long Branch under Account No.: 015‑142-30-08136-9 Deposit No.: 0001

The Charge is a continuing security and is a first fixed charge on the Deposit.

Mortgagee: The Bank of East Asia Ltd., Hong Kong.

Profit or Loss: Business is profitable.

Condition: Keeping in an active state.

Facilities: Making rather active use of general banking facilities.

Payment: Met as required.

Commercial Morality: Satisfactory.

Bankers

Hang Seng Bank Ltd., Hong Kong.

The Bank of East Asia Ltd., Hong Kong.

Standing: Good.

GENERAL

Kingwell (China) Ltd. formerly was equally held by Mr. Ling Siu-Wah and Grand Land Trading Ltd., a Hong Kong-registered firm. At the very beginning, the subject had just issued 2 shares while each of the shareholders held just one share of HK$1.00 each.

Now, the subject’s ordinary shares have been increased to 10,000 which are 50% owned by Mr. Ling Siu Wah, 25% owned by Mr. Wong Kwan Chuen and also 25% by Mr. Wong Yui Chuen. The two Wongs belong to the same family.

The subject is dealing in lubricants, chemicals and auxiliaries for the leather industry. China is its prime market. The subject is also the Hong Kong agent of Atlas Refinery Inc. [Atlas], a US-based leather chemical manufacturer. Atlas is the global leader in lubricants and auxiliaries for the leather industry. Atlas Refinery Inc., with its 114 years of experience in supplying quality fat‑liquors, has got the ISO 9001 certification.

The subject also distributes other chemicals imported from European countries. Most of its buyers are leather product manufacturers and tanneries in China. Business has been steady.

The subject has had an associated company known as Siu Kee (Hong Kong) Tannery Ltd. [Siu Kee] located at the same address.

In 1987, Siu Kee further expanded its business into China and set up a factory in Guangzhou, China known as Guangzhou Zhaoxiong Tannery which is a China-based firm.

The subject also has a Sino-foreign co-operative venture in China known as Guangzhou Zhaoxiong Tannery Co. Ltd. which is also a China-based firm. The legal representative of this firm is Wong Kwan Chuen.

The subject has had another associated company known as and Siu Kee Leather Factory.

Siu Kee Leather Factory was founded in the 1950s. In 1981, Siu Kee (Hong Kong) Tannery Ltd. was incorporated. Being one of the first to bring in Italian technology and machineries, and the use of quality assured branded chemicals, Siu Kee produces high quality leather suitable for manufacturing handbags, watchstraps and other accessories.

The overall business of the subject is good. It had a number of associated companies in Hong Kong but most of them have been dissolved or deregistered.

The history of the subject in Hong Kong is over seventeen years. On the whole, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.02
UK Pound	1	Rs.102.69
Euro	1	Rs.81.91

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	TPT

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.