MIRA INFORM REPORT

 

 

Report Date :

26.06.2014

 

IDENTIFICATION DETAILS

 

Name :

HAIKE TRADING HONGKONG LTD.

 

 

Registered Office :

c/o SBC Corporate Services Ltd.

Unit 2209, 22/F., Wu Chung House, 213 Queen’s Road East, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

16.09.2005

 

 

Com. Reg. No.:

36023046

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is a Chemical Trader

 

 

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 :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small company

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 and address

 

HAIKE TRADING HONGKONG LTD.

 

ADDRESS:       c/o SBC Corporate Services Ltd.

Unit 2209, 22/F., Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong.

 

PHONE:            Not available.

 

FAX:                 Not available.

 

 

MANAGEMENT

 

Managing Director:  Mr. Zhang Zai Zhong

 

 

SUMMARY

 

Incorporated on:            16th September, 2005.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000.00

 

Issued:                         HK$10,000.00

 

Business Category:       Chemical Trader.

 

Group Turnover:            RMB20,385,289,000 Yuan  (Year ended 31-12-2012)

 

Employees:                  Nil.

 

Main Dealing Banker:     China CITIC Bank International Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.


Company name

 

HAIKE  TRADING  HONGKONG  LTD.

 

 

ADDRESS

 

Registered Head Office:-

c/o SBC Corporate Services Ltd.

Unit 2209, 22/F., Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong.

 

Holding Company:-

Haike Holding HongKong Ltd., Hong Kong.  (Same address)

 

Intermediate Holding Company:-

Haike Chemical Group Ltd., Cayman Islands.

 

Ultimate Holding Company:-

Hi-Tech Chemical Investment Ltd., British Virgin Islands.

 

Wholly-owned subsidiary:-

Dongying Hi-Tech Spring Chemical Industry Co. Ltd., China.

 

Associated Companies:-

Dongying Hailin Trading Co. Ltd., China.

Dongying He-bang Chemical Co. Ltd., China.

Dongying Tiandong Biochemical Co. Ltd., China.

Haiyan Trading Pte. Ltd., Singapore.

Shandong Hi-Tech Chemical Group Ltd., China.

Shandong Hi-Tech Ruilin Chemical Co. Ltd., China.

Shandong Hi-tech Shengli Electrochemical Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

36023046

 

 

COMPANY FILE NUMBER

 

0996446

 

 

MANAGEMENT

 

Managing Director:  Mr. Zhang Zai Zhong

 

 

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

 

 

SHAREHOLDER

 

(As per registry dated 16-09-2013)

Name

 

No. of shares

Haike Holding HongKong Ltd., Hong Kong.

 

10,000

=====

 

 

DIRECTOR

 

(As per registry dated 16-09-2013)

Name

(Nationality)

 

Address

ZHANG Zai Zhong

West End of Boxin Road, Dongying District, Dongying City, Shandong, China.

 

 

SECRETARY

 

(As per registry dated 16-09-2013)

Name

Address

Co. No.

SBC Corporate Services Ltd.

Room B, 10/F., Tower A, Billion Centre, 1 Wang Kwong Road, Kowloon Bay, Kowloon, Hong Kong.

0618863

 

 

HISTORY

 

The subject was incorporated on 16th September, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Synergy Capital Group Co. Ltd., name changed to the present style on 6th October, 2011.

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

 

 

OPERATIONS

 

Activities:                      Chemical Trader.

 

Lines:                           Speciality chemicals, feedstock

 

Employees:                  Nil.

 

Commodities Imported: Europe, Asian countries

 

Markets:                        China, other Asian countries, Europe, North America

 

Group Turnover:            RMB13,618,395,000 Yuan  (Year ended 31-12-2011)

RMB20,385,289,000 Yuan  (Year ended 31-12-2012)

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$10,000.00

 

(Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000.00

 

Group (Loss) / Profit Attributable to Shareholders:

(RMB    7,099,000 Yuan)  (Year ended 31-12-2011)

(RMB282,363,000 Yuan)  (Year ended 31-12-2012)

 

Profit or Loss:               Group made losses in 2011 & 2012.

 

Condition:                     Keeping in a normal manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Banker:                         China CITIC Bank International Ltd., Hong Kong.

Standing:                      Small.

 

 

GENERAL

 

Haike Trading Hongkong Ltd. is a wholly-owned subsidiary of Haike Holding HongKong Ltd. which is a Hong Kong registered company.  The intermediate holding company Haike Chemical Group Ltd. [Haike/Group] is a Cayman Islands-registered company.  This company is a listed company.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at “Unit 2209, 22/F., Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong” known as “SBC Corporate Services Ltd.” [SBC] which is handling its correspondences and documents.  SBC is also the corporate secretary of the subject.

The subject has no employees in Hong Kong.  However, it is one of the key members of the Haike Group.

Haike Chemical Group Ltd., based in Shandong Province, China, comprises of Spring Chemical and Haike Trading.

The subject is trading in feedstock on behalf of the Group for both the refinery and the chemical businesses, including Spring Chemical.

The subject is trading in the following products:

Dimethyl Carbonate (DMC);

Dipropylene Glycol (DPG);

Isopropyl Alcohol (IPA); &

Propylene Glycol (PG).

Spring Chemical focuses on the production and sale of a number of speciality chemicals.  The Company is one of the leading producers of DMC and pharmacy grade propylene glycol in China. DMC is widely used in medical applications, agricultural pesticides and the manufacture of synthetic materials.  DMC produced by the Group is sold primarily in the Guangdong and Jiangsu provinces of the PRC and exported to key markets in Europe. Propylene glycol is used in the medical industry as well as the food industry for flavourings and fragrances.  This production is largely for Chinese domestic consumption.  Spring Chemical is the only enterprise in China that holds a pharmaceutical supplementary materials manufacturing licence and is capable of producing medical grade propylene glycol, as well as having an independent import / export licence.

Spring Chemical holds certificates including ISO9001, ISO14001, ISO18001 and an international Kosher Certificate.  Its products are sold to a number of nations and regions in Europe, the US, the Middle East and South America. Marketing is focused on customers in Northern China as well as in Europe.

On 14th February, 2007, Haike was successfully listed with London Stock Exchange and became the first Chinese chemical enterprise that goes public with AIM.

In general, the Haike Group is trading in the following products:

Oil Chemicals, Fine Chemicals, Chlorine Alkali Chemicals, and Bio‑Pharmaceutical Industrial Products.

For the year ended 31st December, 2012, total revenue of the Group increased by 49.7% to RMB20.4 billion Yuan (or £2.0 billion, 2011: RMB13.6 billion Yuan or £1.3 billion).  The other financial highlights are the followings:

Chemical products (including speciality, salt and biochemical) revenue comparable to previous year at RMB1.5 billion Yuan (or £149.0 million, 2011: RMB1.5 billion Yuan or £149.0 million);

Loss attributable to the Group was RMB282.4 Yuan million (or
-£28.2 million, 2011: loss of RMB7.1 million Yuan or -£0.7 million);

Loss for the year was RMB317.4 million Yuan (or - £32 million, 2011: profit of RMB41.9 million Yuan, or £4.1 million); &

Petrochemical products revenue grew by 55.9% to RMB18.9 billion Yuan (or £1.9 billion, 2011: RMB12.1 billion Yuan or £1.2 billion).

The subject is fully supported by the Group.

The subject’s business in Hong Kong is not active.  History in Hong Kong is over eight 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.

 

 

REMARKS

 

Brief Personal Profile of Director:

Mr. Zaizhong Zhang, Chief Executive Officer, age 47

Mr. Zhang, a senior engineer, has nearly 25 years’ experience in technology management.  After graduating in 1988, Mr. Zhang started his career as a technician in the Dongying Chemical factory in 1988.  From 1990 to 1995, he had served as a plant manager for the Dongying Chemical factory and was promoted to vice president in 2000.  In 2000, Mr. Zhang was appointed as the Chief Executive Officer.  He holds an MBA certificate from Tsinghua University.

 

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.60.28

UK Pound

1

Rs.102.28

Euro

1

Rs.82.05

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NNA

 

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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