MIRA INFORM REPORT

 

 

Report Date :

31.05.2014

 

IDENTIFICATION DETAILS

 

Name :

LUEN HING FAT TRADING CO. LTD.

 

 

Registered Office :

Unit 406, 4/F., Vanta Industrial Centre, 21-33 Tai Lin Pai Road, Kwai Chung, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

12.05.1978

 

 

Com. Reg. No.:

05588073

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of Rapeseed oil, soyabean oil, groundnut oil, refined sugar, wheat flour, refined lard, edible oil, potato starch, corn starch, beans and other foodstuffs.

 

 

No. of Employees

20

 

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 – March 31st, 2014

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Hong Kong

A2

A2

 

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

 

LUEN HING FAT TRADING CO. LTD.

 

 

ADDRESS

 

Unit 406, 4/F., Vanta Industrial Centre, 21-33 Tai Lin Pai Road, Kwai Chung, New Territories, Hong Kong.

 

PHONE:            852-2546 0267,  2548 2718,  2548 1388

 

FAX:                 852-2548 1096

 

E-MAIL:            info@lhf.com.hk

 

 

MANAGEMENT

 

Managing Director:        Mr. Chan Siu Man, Francis

 

 

SUMMARY

 

Incorporated on:            12th May, 1978.

 

Organization:                 Private Limited Company.

 

Issued Capital:                          HK$2,500,000.00

 

Business Category:       Importer, Exporter and Wholesaler.

 

Employees:                  20.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Good.


COMPANY NAME

 

LUEN HING FAT TRADING CO. LTD.

 

 

ADDRESS

 

Registered Head Office:-

Unit 406, 4/F., Vanta Industrial Centre, 21-33 Tai Lin Pai Road, Kwai Chung, New Territories, Hong Kong.

 

Associated Companies:-

Kwong Yu Plastic Factory Ltd., Hong Kong.

Luen Hing Fat Ltd., Hong Kong.  [Dissolved]

 

 

BUSINESS REGISTRATION NUMBER 

 

05588073

 

 

COMPANY FILE NUMBER

 

0060272

 

 

MANAGEMENT

 

Managing Director:  Mr. Chan Siu Man, Francis

Contact Person:  Mr. Chan Siu Lun, Allen

 

 

ISSUED CAPITAL

 

HK$2,500,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 12-05-2014)

            Name

 

No. of shares

Nippon Flour Mills Co. Ltd.

27-5, Sendayaya 5-Chome, Sibuya-Ku, Tokyo, Japan.

 

25,000

Sojitz Coropration

1-23, Shiba 4-Chome, Minato-Ku, Tokyo, Japan.

 

12,500

CHAN Shiu Man, Francis

 

87,500

CHAN Shiu Kau, Anthony

 

50,000

CHAN Karm

 

50,000

CHAN Kin Bong, Kenneth

 

25,000

 

 

–––––––

 

Total:

250,000

======

 

 

DIRECTORS  

 

(As per registry dated 12-05-2014)

Name

(Nationality)

 

Address

Toshifumi HORIUCHI

2-14-24, Nogata Nakano-Ku, Tokyo, Japan.

 

CHAN Shiu Kau, Anthony

Flat B, 3/F., 9 Conduit Road, Hong Kong.

 

CHAN Shiu Man, Francis

Flat B, 6/F., 19 Conduit Road, Hong Kong.

 

CHAN Karm

2/F., 444 Sai Yeung Choi Street, Kowloon, Hong Kong.

 

 

SECRETARY

 

(As per registry dated 12-05-2014)

Name

Address

KWAN Fung Yee

Flat B, 15/F., Block 5, Phase 2, Kai Tak Garden, 121 Choi Hung Road, Wong Tai Sin, Kowloon, Hong Kong.

 

 

HISTORY

 

The company was incorporated on 12th May, 1978 as a private limited liability company under the Hong Kong Companies Ordinance.

Long time ago, the subject was located at 1/F., Luen Hing Fat Building, 35‑39 Des Voeux Road West, Hong Kong.  It moved to the present address in March 2008.

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           Rapeseed oil, soyabean oil, groundnut oil, refined sugar, wheat flour, refined lard, edible oil, potato starch, corn starch, beans and other foodstuffs.

 

Employees:                  20.

 

Commodities Imported: Bought from Japan, Europe, China, South Korea, Africa, India, etc.

 

Markets:                        Hong Kong, Macau, China, other Asian countries, etc.

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Issued Capital:              HK$2,500,000.00

 

Alternation of Issued Capital:-

12-05-1978

paid up

HK$            20.00

14-04-1984

paid up

HK$2,499,980.00

 

 

            –––––––––––––––

Total:

paid up

HK$2,500,000.00

            ==============

 

Profit & Loss:               Making a profit every year.

 

Condition:                     Business is active.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Good.

 

Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banque Nationale de Paris, Hong Kong Branch.
[Now known as BNP Paribas]

Wing Lung Bank Ltd., Hong Kong.

etc.

 

Standing:                      Good.

 

 

GENERAL

 

Having issued 25,000 ordinary shares, Luen Hing Fat Trading Co. Ltd. is jointly owned by Nippon Flour Mills Co. Ltd., a Japan-based company holding 10% interests; Sojitz Corporation [Sojitz], another Japan-based company holding 5%, while the balance 85% is held by the Chan family.

The subject was an associated company of Luen Hing Fat Ltd. [LHFL], a well-established foodstuff importer and wholesaler founded in 1947 by Mr. Chan Hong Wah and his family and relatives.  The subject was established in 1978 and has become active since 1984 as it took over most of the trading activities from LHFL in the year.

The subject is the agent of Nippon Flour Mills Co. Ltd. which is selling wheat flour bearing the trade mark Nippn.

The subject also carries the other foodstuffs and edible oil.

The subject is also a registered importer of Mainland Cereals & Grain Flour approved by The Trade & Industry Department of the Government of the Hong Kong SAR.  It handles wheat flour.

Sojitz Corporation was formed out the union of Nichimen Corporation and Nissho Iwai Corporation, both companies have long histories in Japan.  For more than 120 years, Sojitz’s business has helped support the development of many countries and regions.  Today, the Sojitz Group consists of approximately 440 subsidiaries and affiliates located in Japan and throughout the world, and it is developing its wide-ranging general trading company operations in roughly 50 countries and regions across the globe.

The business of the subject is chiefly handled by the Chan family.  History in Hong Kong is over 36 years.

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


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.03

UK Pound

1

Rs.98.91

Euro

1

Rs.80.34

                

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SDA

               

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.