. MIRA INFORM REPORT
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Report Date : |
24.01.2014 |
IDENTIFICATION DETAILS
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Name : |
Levachem co. Ltd. |
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Registered Office : |
c/o Sinomix
& Co., Certified Public Accountants, Room 1505B, 15/F., Fortress Tower,
250 King’s Road, North Point |
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Country : |
Hongkong |
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Date of Incorporation : |
02.08.2002 |
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Com. Reg. No.: |
32858518 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
The Group has three major businesses: Pharmaceuticals, Dyestuffs and Other Fine Chemicals. According to the subject, it is trading in the following main products:- Catalyst and Auxiliary, Inorganic Chemicals, Organic Intermediates, Agrochemicals, Other Chemicals, Pharmaceuticals and Biochemicals, Laboratory Chemicals, Basic Organic Chemicals, Adhesives and Sealants, Food & Feed Additives, Flavour & Fragrance, Other Chemicals, Daily Chemicals. |
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No. of Employees : |
No Operating 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
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
No Operating Office in Hong Kong |
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Payment Behaviour : |
-- |
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Litigation : |
-- |
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) |
|
Hongkong |
A2 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
HONGKONG - 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
LEVACHEM
CO. LTD.
Registered 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]
32858518
0808808
Nominal Share
Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share
Capital: HK$10,000.00
(As per registry dated 02-08-2013)
|
Name |
|
No.
of shares |
|
LU
Min Yan |
|
2,500 |
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CAI
Jun |
|
2,500 |
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LUO
Kai Yu |
|
2,500 |
|
LIU Tong Qiu |
|
2,500 |
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|
–––––– |
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Total: |
10,000 ===== |
(As per registry
dated 02-08-2013)
|
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. |
(As per registry
dated 02-08-2013)
|
Name |
Address |
Co. No. |
|
SBS Nominee Ltd. |
Unit 1202a, 12/f., Fortress Tower, 250 King’s Road, North
Point, Hong Kong. |
0809165 |
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.
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 as it has changed its
secretarial firm since then. 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.
In
other words, Levachem Group oversees two operating companies, the subject and
Nanjing Levachem.
Nanjing
Levachem was established in 2001 in China.
The Group has had four cooperating manufacturers that are engaged in
producing fine chemicals, diversified pharmaceuticals, agrochemical ingredients
and the other high technology products.
The
Group is an international fine chemicals holding company and one of China’s
leading providers of integrated fine chemical including its core sourcing
business, research and development, custom manufacturing business, as well as
other value-added services.
The
Group has three major businesses: Pharmaceuticals, Dyestuffs and Other Fine
Chemicals. According to the subject, it
is trading in the following main products:-
Catalyst
and Auxiliary, Inorganic Chemicals, Organic Intermediates, Agrochemicals, Other
Chemicals, Pharmaceuticals and Biochemicals, Laboratory Chemicals, Basic
Organic Chemicals, Adhesives and Sealants, Food & Feed Additives, Flavour
& Fragrance, Other Chemicals, Daily Chemicals.
Levachem
Group is significant for its organic chemicals.
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 chemical 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 Lu Min Yan 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 eleven
years.
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.61.99 |
|
|
1 |
Rs.102.67 |
|
Euro |
1 |
Rs.83.98 |
INFORMATION DETAILS
|
Report
Prepared by : |
NNA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.