MIRA INFORM REPORT

 

 

Report Date :

06.05.2014

 

IDENTIFICATION DETAILS

 

Name :

HONGKONG GRAND INTERNATIONAL CO. LTD.

 

 

Registered Office :

c/o North Asia Corporate Services Ltd.

Suite 1001-1002 & 1005, 10/F., Albion Plaza, 2-6 Granville Road, Tsimshatsui, Kowloon,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

25.06.2007

 

 

Com. Reg. No.:

38097001

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of Iron and steel, petrochemical products

 

 

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 :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No operating office in Hong Kong

Payment Behaviour :

Unknown

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

 

HONGKONG  GRAND  INTERNATIONAL  CO.  LTD.

 

 

ADDRESS

 

c/o North Asia Corporate Services Ltd.

Suite 1001-1002 & 1005, 10/F., Albion Plaza, 2-6 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            852-2724 1223

 

FAX:                 852-2722 4373

 

 

MANAGEMENT

 

Managing Director:  Mr. Jin Bo

 

 

SUMMARY

 

Incorporated on:            25th June, 2007.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:US$1,000,000.00

Issued: US$1,000,000.00

 

Business Category:       Importer and Exporter.

 

Group Turnover:            RMB45.2 billion Yuan  (Year ended 31-12-2013)

 

Employees:                  Nil.

 

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

 

Banking Relation:           Satisfactory.


 

ADDRESS

 

Registered Office:-

c/o North Asia Corporate Services Ltd.

Suite 1001-1002 & 1005, 10/F., Albion Plaza, 2-6 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

 

China Office:-

6F-O, Hongqiao Business Center, 2272 Hongqiao Road, 200032 Shanghai, China.

[Tel: 86-21-6217 9585;  Fax: 86-21-6127 9584]

 

Holding Company:-

Grand Resources Group Co. Ltd.,

[Formerly known as Grand Group Corporation]

Building No. 1, Pacific Plaza, 555 Jingjia Road, 315040 Ningbo City, Zhejiang Province, China.

[Tel: +86-0574-87731421    Fax: +86-0574-87720288]

 

Ultimate Holding Company:-

Lianyungang Ideal Group Co. Ltd., China.

 

Wholly-owned subsidiary:-

Yuan Da Materials (Singapore) Co. Ltd., Singapore.

 

Associated/Affiliated Companies:-

Brilliance Resources Co. Ltd., Hong Kong.

Chengdu Xiangyuan Polymeric Materials Co. Ltd., China.

China Grand Enterprises (HK) Ltd., Hong Kong.

China Grand Enterprises Inc., China.

Grand Cross International Co. Ltd., China.

Grand Iron Trade Co. Ltd., China.

Grand Petrochemical Co. Ltd., China.

Hainan Sino-source Petrochemical Industrial Co. Ltd., China.

Hangzhou Guanji Chemical Industry Co. Ltd., China.

HongKong Flow Resource Co. Ltd., Hong Kong.

Ningbo Grand International Logistics Co. Ltd., China.

Ningbo Grand International Trading Co. Ltd., China.

Ningbo Shenyuan Polymeric Materials Co. Ltd., China.

Ningbo Yuanxin Logistics Co. Ltd., China.

Qingdao Guoyuan Rubber Material Co. Ltd., China.

Shanghai Flow International Trade Co. Ltd., China.

Shanghai Spring International Trade Co. Ltd., China.

Tianjin Grand Tianyi Petrochemical Co. Ltd., China.

Xingjiang Tianyi Petrochemical Co. Ltd., China.

Yuyao Grand Plastics Co. Ltd., China.

Zhejiang Flow Commodities Co. Ltd.,China.

Zhejiang New Vision Import & Export Co. Ltd., China.

etc.


 

BUSINESS REGISTRATION NUMBER

 

38097001

 

 

COMPANY FILE NUMBER

 

1143985

 

 

MANAGEMENT

 

Managing Director:  Mr. Jin Bo

 

 

CAPITAL

 

Nominal Share Capital: US$1,000,000.00 (Divided into 1,000,000 shares of US$1.00 each)

 

Issued Share Capital: US$1,000,000.00

 

SHAREHOLDER:          (As per registry dated 25-06-2013)

Name

 

No. of shares

Grand Group Corporation

Jinying Trading Building, Kaifa District, Daxie, Ningbo, Zhejiang, China.

 

1,000,000

=======

 

DIRECTOR:      (As per registry dated 25-06-2013)

Name

(Nationality)

 

Address

JIN Bo

Room 504, No. 14, Lane 58, Caihong South Road, Jiangdong District, Ningbo, Zhejiang, China.

 

 

SECRETARY:   (As per registry dated 25-06-2013)

Name

Address

Co. No.

Larich Ltd.

Suite 1001-1002, 10/F., Albion Plaza, 2-6 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

0437591

 


HISTORY

 

The subject was incorporated on 25th June, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Suite 1505-1506, 15/F., Albion Plaza, 2‑6 Granville Road, Tsimshatsui, Kowloon, Hong Kong where was the operating office of Asia Corporate Services Ltd., moved to Suite 1001‑1002 & 1005, 10/F. of the same building due to the address change of Asia Corporate Services Ltd. in September 2008.

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           Iron and steel, petrochemical products, etc.

 

Employees:                  Nil.

 

Commodities Imported: Asia, North & South America, etc.

 

Markets:                        China, Japan, US, Europe, etc.

 

Ideal Group Turnover:-

RMB31,318.1 million Yuan  (Year ended 31-12-2011)

RMB36,307.7 million Yuan  (Year ended 31-12-2012) - [restated]

RMB45,194.8 million Yuan  (Year ended 31-12-2013)

 

Terms/Sales:  L/C, T/T, etc.

 

Terms/Buying:  As per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: US$1,000,000.00 (Divided into 1,000,000 shares of US$1.00 each)

 

Issued Share Capital: US$1,000,000.00

 

Indebtedness:  US$110,000,000.00  (Total amount outstanding on all mortgages and charges as per last Annual Return dated 25-06-2013)

 

Mortgage or Charge:  (See attachment)

 

Total Profit of Ideal Group:-

RMB 30.3 million Yuan  (Year ended 31-12-2011)

RMB 15.8 million Yuan  (Year ended 31-12-2012) - [restated]

RMB 45.2 million Yuan  (Year ended 31-12-2013)

 

Profit or Loss:   Keeping a balance account in Hong Kong.

 

Condition:         Business is not very active in Hong Kong.

 

Facilities:          Making fairly active use of general banking facilities.

 

Payment:          Met trade commitments as contracted.

 

Commercial Morality:  Satisfactory.

 

Bankers:-

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

BNP Paribas, Hong Kong Branch.

Fortis Bank, Hong Kong Branch.

Cooperatieve Centrale Raiffeisen - Boerenleenbank B.A.
[trading as Rabobank International], Hong Kong Branch.

RB International Finance (Hong Kong) Ltd., Hong Kong.

 

Standing:  Small.

 

 

GENERAL

 

Incorporated in June 2007, Hongkong Grand International Co. Ltd. is a wholly-owned subsidiary of Grand Resources Group Co. Ltd., [Grand/ formerly known as Grand Group Corporation] which is a China-based firm.

The ultimate holding company Lianyungang Ideal Group Co. Ltd. [Ideal/Group] which is also a China-based firm.  Ideal has been listed on Shenzhen Stock Exchange.  It bears stock code 000626.

The directors of the subject is Mr. Jin Bo.  He is a China passport holder and does not have the right to reside in Hong Kong permanently.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at Suite 1001-1002 & 1005, 10/F., Albion Plaza, 2-6 Granville Road, Tsimshatsui, Kowloon, Hong Kong known as North Asia Corporate Services Ltd. which is handling its correspondences and documents.  Formerly North Asia Corporate Services Ltd. was located at Suite 1505-1506, 15/F. of the same building, moved to the present address in September 2008.

The subject has no employees in Hong Kong.  It is engaged in the same lines of business as Grand and Ideal.

The subject’s main office is in Ningbo City, Zhejiang Province, China.  It also has had an associated company in Shanghai which was founded in January 1994.  The sales manager is a Mr. Lin.  This firm is administered by Li Zhi Guang.  The phone number and fax number of the Shanghai Office is 021-6127 9585 and 021-6127 9584 respectively.

The subject and its Shanghai Office are trading in the following commodities: billets, deformed bars, wire rods, HR/CR coils/sheet, GI, PPGI, beams, checker plate, seamless pipe, round bar, stainless steel, etc.  Commodities are imported from India, Russia, etc.  Products are exported to worldwide countries and marketed in China.  Business is rather active.

Established in July 1994, Grand is engaged in importing and exporting business.  Establish in July 1994, Grand has developed into a comprehensive group integrating trade, logistics and investment.  With annual sales volume of over RMB45 billion Yuan, Grand ranks among Top 500 China Enterprises.

Specialized in the distribution of such bulk raw material as petrochemical, metal, agricultural products, etc. and the export of light industrial products, Grand has shaped a business pattern combining physical commodities and futures transaction, import and export business, international and domestic trade.  So far, it has more than 30 wholly-owned and holding subsidiaries.  Moreover, it has set up representative offices in Hong Kong, South Korea, Singapore, etc.  A strategic layout has been formed which covers the whole China and goes global with headquarter in Ningbo, Yangtze River Delta.

Grand’s major business covers trading, industry and investment.  Exported products include garments, steel, auto-parts, wood products, textile fabrics, clothing, plastics, outdoor leisure products, hardware, chemicals, mechanical products, electrical products, and other manufactured goods.

Major import products include plastic materials, liquid chemicals, medicinal compounds, timber, metals, and other staple products.  Products are imported from South Korea, Japan, Singapore, India, the United States, Taiwan, the United Arab Emirates, etc.  Prime markets of the Group are the United States, Japan, Europe, including more than 50 countries and regions of the world.

Grand’s major business covers trading, logistics and investment.  Close business ties have been developed with many world leading companies such as LAG, SK, Deli, Hyundai in South Korea, Mitsubishi in Japan, Formosa Chemical & Fibber in Taiwan, Gesso and Mite in Singapore, Reliance in India and other world leading companies, etc.  Grand has got ISO 9001 certification.  Besides, it has set up a number of associated and affiliated companies in Zhejiang Province, China.

For the year ended 31st December, 2013, the turnover of the Ideal Group amounted to RMB45,194.8 million Yuan (2012: RMB36,307.7 million Yuan), increased by 24.5%; total profit was RMB45.2 million Yuan (2012: RMB15.8 million Yuan), increased by 132.2%.

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

Since the subject does not have its own 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.

 


 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

19-10-2007

Instrument:        Deed of Charge

Property:

1)         Charged Property means the property, assets and rights for the time being comprised in or subject to the charges contained in this Deed

2)         As security for the due payment and discharge of the Secured Amounts

Mortgagee:        BNP Paribas (China) Ltd., China.

To secure the payment and discharge of all moneys and liabilities

17-04-2008

Instrument:        Deed of Charge

Property:

As security for the due payment and discharge of the Secured Amounts

Mortgagee:        BNP Paribas, Singapore Branch.

All moneys and liabilities

22-07-2009

Instrument:        Charge Over Deposits – CD 1 (09)

Property:

1)         By fixed Charge:  all the Company’s rights in respect of (i) the sum deposited by the Company; and (ii) all other sums in any currency from time to time standing to the credit of the Company or the credit of any other person for the Company’s benefit whether alone or jointly with others, on any deposit account with the Bank or any other SCB Group Company including additions to or renewals or replacements of such sum; and all interest from time to time accruing or payable on the sums specified in (i) and (ii) above;

2)         By assignment:  all Deposits held with any SCB Group Company

Mortgagee:        Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

To secure the payment or discharge of all moneys, obligations and liabilities, whether actual or contingent at the date of the Charge or at any time after the date thereof, due, owing or incurred by the Company to Standard Chartered Bank (Hong Kong) Ltd.

20-05-2010

Instrument:        Security over Deposit in respect of Obligations of the Depositor

Property:

By way of first fixed charge to the Chargee the account number 873530004923 and all deposits

Mortgagee:        Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

All monies and liabilities

13-08-2010

Instrument:        Trade Finance Security Assignment

Property:

The Borrower as beneficial owner and as security for the payment of all Secured Liabilities

Mortgagee:        Cooperatieve Centrale Raiffeisen - Boerenleenbank B.A. [trading as Rabobank International], Hong Kong Branch.

All obligations and liabilities

30-05-2011

Instrument:        Letter of Pledge

Property:

Any documents, bills of exchange, negotiable instruments, documents of title, transport documents, Insurance policies, delivery orders, godown warrants and any other documents

Mortgagee:        RB International Finance (Hong Kong) Ltd., Hong Kong.

All obligations and liabilities

30-05-2011

Instrument:        Trade Finance Security Assignment

Property:

All the present and future rights, title, interests and benefits of the Company

Mortgagee:        RB International Finance (Hong Kong) Ltd., Hong Kong.

All obligations and liabilities

30-05-2011

Instrument:        Charge on Collateral Account

Property:

All and any money from time to time standing to the credit of or earned on such account as shall from time to time be designated by the Lender as the Company’s Collateral Account

Mortgagee:        RB International Finance (Hong Kong) Ltd., Hong Kong.

All moneys and liabilities

18-07-2011

Instrument:        Trade Finance Security Assignment

Property:

1)         As security for the payment of all Secured Liabilities

2)         As security for the Assigned Obligations

Mortgagee:        Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

All obligations and liabilities

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.05

UK Pound

1

Rs.101.32

Euro

1

Rs.83.34

 

INFORMATION DETAILS

 

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%)

 

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.