MIRA INFORM REPORT

 

 

Report Date :

04.02.2014

 

IDENTIFICATION DETAILS

 

Name :

DACHING ENTERPRISES LTD.

 

 

Registered Office :

Suite 2002-2004, 20/F., Two International Finance Centre, 8 Finance Street, Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

08.03.1985

 

 

Com. Reg. No.:

09554480

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Investment Holder Aluminium foil

 

 

No of Employees :

20 (Group)

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 & ADDRESS

 

DACHING  ENTERPRISES  LTD.

 

ADDRESS: Suite 2002-2004, 20/F., Two International Finance Centre, 8 Finance Street, Central, Hong Kong.

 

PHONE:      852-2838 6693,  2236 7800,  2236 7891

 

FAX:           852-2572 2841

 

 

MANAGEMENT

 

Chairman & Managing Director:  Mr. Chan Shing Sau

 

 

SUMMARY

 

Incorporated on:  8th March, 1985.

 

Organization:  Private Limited Company.

 

Capital: Nominal:     HK$25,000,000.00

        Issued:       HK$20,000,000.00

 

Business Category:  Importer, Exporter and Investment Holder.

 

Group Employees:  20.

 

Main Dealing Bankers: Nanyang Commercial Bank Ltd., Hong Kong.

                             Bank of China (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:  Good.

 

 

COMPANY NAME & ADDRESS

 

DACHING  ENTERPRISES  LTD.

 

 

ADDRESS:

 

Registered Head Office:-

Suite 2002-2004, 20/F., Two International Finance Centre, 8 Finance Street, Central, Hong Kong.

 

China Factory:-

Xiamen Xiashun Aluminium Foil Co. Ltd.

Xinglong Road, Huli Industrial District, Xiamen Special Economic Zone 361006, China.

[Tel: 86-592-6518388;   Fax: 86-592-6023649]

 

 

Holding Company

 

Xiashun Holdings Ltd., Bermuda/Hong Kong.

 

 

Associated Companies

 

Daching Development Ltd., Hong Kong.

Daching Holdings Ltd., Hong Kong.

Daching Investment (China) Ltd., Hong Kong.

Daching Ltd., Hong Kong.

Daily Rich Ltd., Hong Kong.  [Dissolved]

Heater Industrial Ltd., Hong Kong.

See Chun Co. Ltd., Hong Kong.

See Kong Silk Ltd., Hong Kong.

Tung Wah Garment & Handbag Manufactory Co. Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

09554480

 

 

COMPANY FILE NUMBER

 

0148058

 

 

MANAGEMENT

 

Chairman & Managing Director:  Mr. Chan Shing Sau

Vice Chairman:  Ms. Wong Siu Wah, Sophia

 

 

 

CAPITAL

 

Nominal Share Capital: HK$25,000,000.00 (Divided into 25,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$20,000,000.00

 

 

SHAREHOLDER

 

(As per registry dated 08-03-2013)

Name

 

No. of shares

Xiashun Holdings Ltd.

Clarendon House 2, Church Street, Hamilton HM 11, Bermuda.

 

20,000,000

========

 

 

DIRECTORS

 

(As per registry dated 08-03-2013)

Name

(Nationality)

 

Address

CHAN Shing Sau

 

40/F., Block B, The Mayfair, 1 May Road, Hong Kong.

WONG Siu Wah

 

40/F., Block B, The Mayfair, 1 May Road, Hong Kong.

CHAN Sye Wai

Suite 2002-2004, 20/F., Two International Finance Centre, 8 Finance Street, Central, Hong Kong.

 

 

SECRETARY

 

WONG Siu Wah  (As per registry dated 08-03-2013)

 

 

HISTORY

 

The subject was incorporated on 8th March, 1985 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject was located at Suite 3201-3202, 32/F., Sino Plaza, 255 Gloucester Road, Causeway Bay, Hong Kong, moved to the present address in January 2004.

 

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

 

OPERATIONS

 

Activities:                      Importer, Exporter and Investment Holder.

 

Lines:                           Aluminium foil.

 

Group Employees:         20.

 

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

 

Markets:                        China, Southeast Asia, Europe, North America, etc.

 

Terms/Sales:                   L/C or as per contracted.

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$25,000,000.00 (Divided into 25,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$20,000,000.00

 

Mortgage or Charge:  (See attachment)

 

Profit or Loss:          Making a small profit every year.

 

Condition:  Keeping in a satisfactory manner.

 

Facilities:  Making active use of general banking facilities.

 

Payment:  So far so good.

 

Commercial Morality:  Satisfactory.

 

Bankers:-

Nanyang Commercial Bank Ltd., Hong Kong.

Bank of China (Hong Kong) Ltd., Hong Kong.

United Overseas Bank Ltd., Hong Kong Branch.

United Overseas Bank (China) Ltd., Xiamen Branch, China.

etc.

 

Standing:  Very Good.

 

GENERAL

 

Daching Enterprises Ltd. is a wholly-owned subsidiary of Xiashun Holdings Ltd. [Xiashun] which is a Bermuda-incorporated firm.

 

The subject is the trading arm of Xiashun.  Currently, Xiashun has had a factory known as Xiamen Xiashun Aluminium Foil Co. Ltd. which is located at Xiamen Special Economic Zone, China.

 

Xiashun is the largest manufacturer of light-gauge aluminium foil in the PRC as in terms of sales, production volume and production capacity.  It is a global leader in the industry in production capacity.  Its customers use Xiashun’s high-quality light-gauge aluminium foil as a clean, safe and convenient means for packaging a wide variety of consumer products from beverages to cigarettes.

 

Xiashun is the largest PRC exporter of light-gauge aluminium foil products and it believes it is the only Asia-based global supplier of light-gauge aluminium foil for Tetra Pak, a global leading manufacturer of aseptic laminated paperboard packaging materials and the largest global supplier of flexible packaging products.

 

Xiashun’s other major customers include one of the world’s leading manufacturers of aseptic carton packaging for long-life foods, including juice, milk, soups and sauces, as well as other international and domestic packaging services and solutions providers.

 

Its aluminium foil complied with the United States Food and Drug Administration requirements for direct food contact packaging material according to a test report in April 2007.  The total lead, cadmium, mercury and hexavalent chromium content in its aluminium foil complied with the requirement of European Council Directive 94/62/EC according to a test report in March 2007.

 

Xiashun’s principal production facilities are located in Xiamen.  Its advanced production facilities use machinery and process technologies imported from Europe.

 

In 2004, Xiashun was conferred the title of “China’s Top Ten Aluminium Foil Enterprise”.  In 2006, Xiashun’s aluminium foil was named “China Famous Brand – Fujian Famous Brand Product”.  Besides, its aluminium foil has been conferred the titles of “Fujian Outstanding New Product – Second Class Prize”, “Xiamen Technology Improvement – First Class Prize” and “Xiamen Outstanding New Product – First Class Prize”, etc.

 

Xiashun has had the following three plants:

 

·                                             The 1st phase project was built in 1992 and put into production in Huli Foil Plant with an annual production capacity of 6,000 tons.  The 2nd Phase of Huli plant was put into operation in 1997, expanding the annual production capacity to 20,000 tons.

 

·                                             Haicang Foil plant was built and put into production in 2003 with the capacity increased to 50,000 tons.  2007 Haicang Foil Plant (3rd Phase) was built and put into production in 2007, bringing the total production capacity up to 80,000 tons.

 

·                                       Haicang Sheet Plant was put into operation in 2010 with its annual capacity reaching 350,000 tons for litho stock and foil stock which ushered in Xiashun’s start to produce foil stock by its own.

 

Xiashun’s products are marketed in China.  It has divided China into five regions: Central, East, South, North and Southwest China.  It also has established warehouses in Wuhan, Wuxi and Kunming.

 

Mr. Chan Shing Sau is the Chairman and Executive Director of Xiashun.  His wife Ms. Sophia Wong Siu Wah is the Vice Chairman and Executive Director of Xiashun.

 

The history of the subject in Hong Kong is over 28 years.

 

On the whole, consider the subject good for normal business engagements.

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

13-04-2010

Instrument:      Letter of Charge and Set-Off

Property:

The Company as beneficial owner hereby charge the Deposits and assign transfer and set over absolutely to Bank all the Company’s rights, title and interest in and to the Other Deposits

Mortgagee:      United Overseas Bank (China) Ltd., Xiamen Branch, China.
1-2/F., United Overseas Bank Building, 19 Hubin Bei Road, Xiamen 361012, China.

To secure general banking facilities granted to Xiamen Xiashun Aluminium Foil Co. Ltd., China

13-04-2010

Instrument:      Addendum To Letter of Charge and Set-Off

Property:

The addendum, as an integral part of the Letter of Charge, varies the letter of Charge in term of the Deposits and other deposits as secured deposits being differentiated and identified as being protected or not protected by or under the Scheme and the guarantee and such variation shall come into effect from the data of the Letter of Charge until the Expiry Date (31st December, 2010).  From the date immediately following the Expiry Date, the payment of compensation for the company’s deposits and other deposits with respect to the protection limit pursuant to the protection level following the principles of the Scheme shall remain applicable, as and wherever appropriate

Mortgagee:      United Overseas Bank (China) Ltd., Xiamen Branch, China.
1-2/F., United Overseas Bank Building, 19 Hubin Bei Road, Xiamen 361012, China.

To secure general banking facilities granted to Xiamen Xiashun AI. Foil Co., Ltd.

19-01-2012

Instrument:      Trade Finance Security Assignment

Property:

The Borrower as beneficial owner and as security for the payment of all secured liabilities:-

(a)  Assigns and agrees to assign absolutely to the Bank all the present and future right, title, interests and benefits of the Borrower in and to the following assets:-

1) The export credits;

2) The export collection bills;

3) The sales contracts;

4) The Export Invoice receivables;

5) The insurances;

6) The trade documents; and

7) All claims, remedies and proceeds in connection with any of the foregoing

(b)  Charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the borrower in and to the following assets:-

1) The goods together with their proceeds;

2) The Pledged Goods; and

3) To the extent any Security Assets is not effectively assigned under sub-clause (a), such Security Asset; and

(C)  Pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the possession of the Bank

Mortgagee:      United Overseas Bank Ltd., Singapore.|
80 Raffles Place, UOB Plaza, Singapore 048624.

All obligations and liabilities of whatever nature of the Borrower owed to the Bank at any time

21-02-2012

Instrument:      Charge on Deposit

Property:

Deposit Balance placed or to be with Nanyang Commercial Bank Ltd. under the account No. 043-472-92-13450-8 maintained in the name of the company

Mortgagee:      Nanyang Commercial Bank Ltd., Hong Kong.

To secure the payment of all moneys, obligations and liabilities

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.68

UK Pound

1

Rs. 102.96

Euro

1

Rs. 84.57

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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.