MIRA INFORM REPORT

 

 

Report Date :

05.12.2014

 

IDENTIFICATION DETAILS

 

Name :

SINO DRAGON TRADING LTD.

 

 

Registered Office :

C/o Excel Registrations Ltd. Room 1905, 19/F., Nam Wo Hong Building, 148 Wing Lok Street, Sheung Wan

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

21.09.2007

 

 

Com. Reg. No.:

38519724

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of Iron Ore, Steel, Metallurgical Equipment & Materials, Coal and Related Products.

 

 

No of Employees :

01

           

 

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

 

SINO DRAGON TRADING LTD.

 

 

ADDRESS:                   C/o Excel Registrations Ltd. Room 1905, 19/F., Nam Wo Hong Building, 148 Wing Lok Street, Sheung Wan, Hong Kong.

 

PHONE:                        852-2568 9333,  5686 5677

 

FAX:                             852-2568 9330

 

E-MAIL:                        hlmyhk@126.com

 

MANAGEMENT

 

Managing Director:  Mr. Wang Yunpu

 

 

SUMMARY

 

Incorporated on:  21st September, 2007.

 

Organization:  Private Limited Company.

 

Issued Share Capital:     HK$307,310,000.00

 

Business Category:       Importer, Exporter and Wholesaler.

 

Employee:  1.

 

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

 

Banking Relation:  Satisfactory.


Company name

 

SINO  DRAGON  TRADING  LTD.

 

 

ADDRESS

 

Registered Head Office:-

c/o Excel Registrations Ltd.

Room 1905, 19/F., Nam Wo Hong Building, 148 Wing Lok Street, Sheung Wan, Hong Kong.

 

Office in China:-

No. 63, Zhong Jing Avenue, Xi Xia County, Henan Province, China.

 

Holding Company:-

Henan Longcheng Group Co. Ltd., China.

 

Associated Companies:-

Henan Longcheng Efficient-Coal Technical Application Co. Ltd., China.

Henan Longcheng Heavy Steel-Structure Co. Ltd., China.

Longcheng Metallurgy Co. Ltd., China.

Nanyang Hanye Special Steel Co. Ltd., China.

Success Mining Co. Ltd., Malaysia.

Xixia Dinosaurs Relics Garden Tourism Co. Ltd., China.

Xixia Longcheng Metallurgical Materials Co. Ltd., China.

Xixia Longcheng Special Materials Co. Ltd., China.

Xixia longtangou Tourism Development Co. Ltd., China.

Xuchang Mining Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

38519724

 

 

COMPANY FILE NUMBER

 

1169235

 

 

MANAGEMENT

 

Managing Director:  Mr. Wang Yunpu

 

ISSUED SHARE CAPITAL

 

HK$307,310,000.00

 

 

SHAREHOLDER

 

(As per registry dated 21-09-2014)

Name

 

No. of shares

Henan Longcheng Group Co. Ltd.

No. 63, Zhong Jing Avenue, Xi Xia County, Henan Province, China.

 

307,310,000

=========

 

 

DIRECTOR

 

(As per registry dated 21-09-2014)

Name

(Nationality)

 

Address

WANG Yunpu

Guan He Road, Cheng Guan Town, Xi Xia County, He Nan Province, China.

 

 

SECRETARY

 

(As per registry dated 21-09-2014)

Name

Address

Co. No.

Excel Registrations Ltd.

Room 1905, 19/F., Nam Wo Hong Building, 148 Wing Lok Street, Sheung Wan, Hong Kong.

1046730

 

 

HISTORY

 

The subject was incorporated on 21st September, 2007 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, Exporter and Wholesaler.

 

Lines:               Iron ore, steel, metallurgical equipment & materials, coal and related products.

 

Employees:      1.

 

Commodities Imported: India, Europe, Russia

 

Markets:            China, Japan, other Asian countries, Europe

 

Terms/Sales:  As per contracted.

 

Terms/Buying:  Various terms.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital: HK$307,310,000.00

 

Mortgage or Charge (since September 2011):  (See attachment)

 

Profit or Loss:   Making a very small profit every year.

 

Condition:  Keeping in a normal manner.

 

Facilities:  Making fairly active use of general banking facilities.

 

Payment:  Met trade commitments as required.

 

Commercial Morality:  Satisfactory.

 

Bankers:-

DBS Bank (Hong Kong) Ltd., Hong Kong.

ABN AMRO Bank N.V., Hong Kong Branch.

China Merchants Bank Co. Ltd., Hong Kong.

China Minsheng Banking Corp. Ltd., Hong Kong Branch

 

Standing:  Small.

 

 

GENERAL

 

Having issued 307,310,000 ordinary shares of HK$1.00 each, Sino Dragon Trading Ltd. is a wholly owned subsidiary of Henan Longcheng Group Co. Ltd. [Longcheng Group] which is a China-based company.  The director of the subject Wang Yunpu is a China merchant.  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.

 

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at Room 1905, 19/F., Nam Wo Hong Building, 148 Wing Lok Street, Sheung Wan, Hong Kong known as Excel Registrations Ltd. which is handling its correspondences and documents.  This secretarial company is also the corporate secretary of the subject.  One of the employees of the secretarial company has been assigned to handle the business of the subject.  The phone number of this employee is
852-5686 5677.

 

The main office of the subject is in Henan Province, China.

 

The subject, established in September 2007, is a comprehensive importing and exporting company mainly engaged in mine investing, abroad investing and trading of ore, steel, metallurgical equipment and materials, and related elements.

 

The subject has set up the following departments: Steel trading Dept., Metallurgy material trading Dept., Iron ore Trading Dept., Mining investment Dept., Finance Dept. and Logistics Services Dept.

 

The subject has made investments in Xuchang Mining Co. Ltd, Henan Longcheng Special Materials Co. Ltd., Nanyang Hanye Special Steel Co. Ltd. and Henan Longcheng Efficient-Coal Technical Application Co. Ltd. in China and Success Mining Co. Ltd. in Malaysia.

 

The subject has had agencies in Indonesia, Germany, Russia, Mexico, South Korea and Taiwan.

 

Longcheng Group is a non-governmental joint-stock high technology enterprise.  Its headquarters are located in Xixia, Henan Province, China.

 

Since the establishment in 1988, Longcheng has been engaged in iron ore sourcing, special steel, machine manufacturing, metallurgy, high efficiency coal-using, engineering technology, steel structure, international trading and tourism, etc.  It has five solely-invested corporations, namely, Nanyang Hanye Special Steel Co. Ltd. [Nanyang Hanye], Xixia Longcheng Special Materials Co. Ltd., Xixia Longcheng Metallurgy Materials Co. Ltd., Henan Longcheng Heavy Steel-Structure Co. Ltd., Longcheng High-Efficient Coal-used Co. Ltd, Hanlong Trading Co. Ltd., Xixia Dinosaurs Relics Garden Tourism Co. Ltd. and two holding enterprises known as Xuchang Mining Co. Ltd. and Xixia Longtangou Tourism Development Co. Ltd.

 

Longcheng Group is engaged in iron-ore sourcing, trading in steel products, metallurgical material products, coal and related products, etc.  Its Nanyang Hanye Special Steel Co. Ltd. is able to produce 4 million tonnes of iron and steel materials yearly.  The first phase of Nanyang Hanye was completed in July 2011 and the second phase will be completed in early 2015.  The third phase will begin after the second phase is completed.  The total investment will be up to RMB1,205 million Yuan.  Nanyang Hanye has more than 1,000 employees.

 

The total employees of the Group is over 10,000 in China.

 

The chairman of the Group is Mr. Zhu Shucheng and executive director/general manger is Mr. Wang Yunpu.  Wang is also the only director of the subject.

 

The subject is fully supported by the Longcheng Group.  History is over seven years and two months in Hong Kong.

 

Since the subject’s registered office is in a secretarial company, consider it good for business engagements on L/C basis or in very small credit amounts.

 

 

MORTGAGE OR CHARGE

 

(Since September 2011)

 

Date

Particulars

Amount

16-09-2011

Instrument:        Charge Over Deposits

Property:

A) The sum now or hereafter deposited by the company or for the company benefit in the account

B)         All other sums in any currency from time to time standing to the company credit or the credit of any other person for the company benefit, whether alone or jointly with others, on any deposit account with the Bank, including additions to or renewals or replacements of such sum

Charged Account:         20094834

Mortgagee:        China Merchants Bank Co. Ltd., Hong Kong Branch.

To secure all moneys obligations and liabilities whether actual or contingent now or at anytime hereafter due owing or incurred to the bank by Sino Dragon Trading Ltd. anywhere

07-09-2011

Instrument:        Deposit Account Pledge Agreement

Property:

Account No.:     NRA755918331310801

Amount:            RMB167,043,931.08

Rate of Interest:            0.6%

Mortgagee:        China Minsheng Banking Corp. Ltd., Hong Kong Branch.

All monies and liabilities

24-02-2012

Instrument:        Security Memorandum

Property:

The company hereby assigns and agrees to assign absolutely and unconditionally to the bank all its right, title and interest in and to each receivable as continuing security for the payment or discharge of the secured liabilities

Mortgagee:        ABN AMRO Bank N.V., Hong Kong Branch.

All indebtedness, obligations and liabilities

27-11-2012

Instrument:        Security Memorandum

Property:

The company hereby assigns and agrees to assign absolutely and unconditionally to the bank all its right, title and interest in and to each receivable as continuing security for the payment or discharge of the secured liabilities

Mortgagee:        ABN AMRO Bank N.V., Hong Kong Branch.

All indebtedness, obligations and liabilities

09-08-2013

Instrument:        Charge on Cash Deposit to secure liabilities

Property:

1)         By way of first fixed charge and agreement to charge:

The Deposit and all right and interest of the company whatsoever, present and future, thereto and therein, together with any certificates of deposit or other securities evidencing title, or otherwise relating, thereto and any account to which the same is credited

2)         By way of set-off:

Any sum standing to the credit of any one or more of the accounts of the company with the bank wheresoever situate

Mortgagee:        DBS Bank (Hong Kong) Ltd., Hong Kong.

All sums of money and liabilities

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.88

UK Pound

1

Rs.97.02

Euro

1

Rs.76.13

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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%)

 

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.