MIRA INFORM REPORT

 

 

Report Date :

24.09.2014

 

IDENTIFICATION DETAILS

 

Name :

JUNMA TYRE CORD (HONGKONG)  CO. LTD.

 

 

Registered Office :

c/o HKRTP Ltd.

MSZ2197, Room 1007, 10/F., Ho King Commercial Centre, 2-16 Fa Yuen Street, Mongkok, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

16.04.2010

 

 

Com. Reg. No.:

52103549

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Not Available

[We tried to confirm / obtain the detailed activity but the same is not available from any sources]

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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

 

JUNMA  TYRE  CORD  (HONGKONG)  CO.  LTD.

 

 

ADDRESS:       c/o HKRTP Ltd.

MSZ2197, Room 1007, 10/F., Ho King Commercial Centre, 2-16 Fa Yuen Street, Mongkok, Kowloon, Hong Kong.

 

PHONE:            Not available

 

 

MANAGEMENT

 

Managing Director:  Mr. Yang Peixing

 

 

SUMMARY

 

Incorporated on:             16th April, 2010.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:HK$10,000.00

Issued:  HK$10,000.00

 

Business Category:        Tyre Cord Trader.

 

Group Turnover:   RMB2,513.8 million Yuan  (Year ended 31-12-2013)

 

Employees:                    Nil.

 

Main Dealing Banker:     Industrial & Commercial Bank of China, China.

 

Banking Relation:           Satisfactory.


 

ADDRESS

 

Registered Head Office:-

c/o HKRTP Ltd.

MSZ2197, Room 1007, 10/F., Ho King Commercial Centre, 2-16 Fa Yuen Street, Mongkok, Kowloon, Hong Kong.

 

Parent Company:-

Junma Tyre Cord Co. Ltd., China.

 

Affiliated Company:-

Suqian Junma Tyre Cord Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

52103549

 

 

COMPANY FILE NUMBER

 

1444299

 

 

MANAGEMENT

 

Managing Director:  Mr. Yang Peixing

 

 

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 16-04-2014)

Name

 

No. of shares

Junma Tyre Cord Co. Ltd.

No. 80 East Chenghanghe Road, Yangshe Town, Zhangjiagang City, Jiangsu, China.

 

10,000

=====

 

DIRECTOR:       (As per registry dated 16-04-2014)

Name

(Nationality)

 

Address

YANG Peixing

No. 80 East Chenghanghe Road, Yangshe Town, Zhangjiagang City, Jiangsu.

 

 

SECRETARY:    (As per registry dated 16-04-2014)

Name

Address

Co. No.

HKRTP Ltd.

Room 1007, 10/F., Ho King Centre, 2-16 Fa Yuen Street, Mongkok, Kowloon, Hong Kong.

0663489

 

 

HISTORY

 

The subject was incorporated on 16th April, 2010 as a private limited liability company under the Hong Kong Companies Ordinance.

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

 

 

OPERATIONS

 

Activities:                      Tyre Cord Trader.

 

Lines:                           All kinds of tyre cord.

 

Employees:                   Nil.

 

Commodities Imported:   Southeast Asia, Europe, etc.

 

Markets:                       China, other Asian countries, Europe, etc.

 

Group Turnover: RMB2,438.7 million Yuan  (Year ended 31-12-2012)

RMB2,513.8 million Yuan  (Year ended 31-12-2013)

RMB1,209.1 million Yuan  (6 months ended 30-06-2014)

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               As per contracted.

 

 

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


 

Mortgage or Charge:-

Date of Security Over Deposit in respect of Obligations of the Depositor:  25-05-2010

Amount:            All monies and liabilities

Property:           By way of first fixed charge to the Chargee the Account No. 861530036644

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

 

Parent Profit/(Loss)        Attributable to equity holders:

(RMB159.5 million Yuan)  (Year ended 31-12-2012)

(RMB  26.8 million Yuan)  (Year ended 31-12-2013)

(RMB    7.8 million Yuan)  (6 months ended 30-06-2014)

 

Profit or Loss:                Group made losses in past two years.

 

Condition:                      Business is not active in Hong Kong.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:  Satisfactory.

 

Bankers:-

Industrial & Commercial Bank of China, China.

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

 

Standing:                      Small.

 

 

GENERAL

 

Junma Tyre Cord (Hongkong) Co. Ltd. is a wholly-owned subsidiary of Junma Tyre Cord Co. Ltd. [JTCCL/Group] which is a China-based company.

JTCCL is a listed company in Singapore.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at MSZ2197, Room 1007, 10/F., Ho King Centre, 2-16 Fa Yuen Street, Mongkok, Hong Kong known as HKRTP Ltd. which is handling its correspondences and documents.  HKRTP Ltd. is also the corporate secretary of the subject.  MSZ2197 is the file number of the subject in the secretarial company.

The subject has no employees in Hong Kong.

The director of the subject Yang Peixing is also the Executive Chairman of JTCCL.

Incorporated on 12th June, 1998 and listed on the Singapore Exchange Securities Trading Limited in November 2004, JTCCL (the “Company”) is the leading Nylon 6 dipped tyre cord manufacturer in China.  It is principally engaged in the production and sale of Nylon 6 industrial yarn and Nylon 6 dipped tyre cords to customers in the PRC and abroad for use in the manufacture of biasply tyres.

The Company incorporated a 55% owned subsidiary, Zhangjiagang Junma Steel Tyre Cord Company Limited [STC] in July 2003 to carry out the business of production and sale of steel tyre cords, which is the tyre reinforcement material adopted for the production of the more advanced radial-ply tyres.  STC embarked on a plan to progressively expand its production capacity.  By the end of 2013, the production capacity of steel tyre cords has reached 160,000 tons per year.  However, STC continued to incur losses due to the unfavourable industry conditions.

Revenue for FY2013 increased by RMB75 million Yuan (3%) from RMB2,439 million Yuan in FY2012 to RMB2,514 million Yuan in FY2013 due to the increase the sales volume of Nylon tyre cord fabrics and High modulus low shrinkage fabrics, partially offset by the decrease in the average selling price of both products.  The sales volume of High modulus low shrinkage fabrics in FY2013 saw a significant increase of 309% as the product started to gain traction among certain customers.

Loss attributable to shareholders in FY2013 is RMB27 million Yuan, compared to a loss of RMB160 million Yuan in FY2012.

The Group made a loss of RMB7.8 million Yuan in the first half year of 2014 as compared with a loss of RMB14.1 million Yuan in the first half year of 2013.

The subject’s business in Hong Kong is not active.  History in Hong Kong is just over four years and five months.

Since the subject does not have its own operating office and has no employees in Hong Kong, and its parent is suffering from losses, 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.

 

 

REMARKS

 

Brief personal profile of the director:-

YANG Peixing, Executive Chairman

Mr. Yang Peixing, 52, is the Executive Chairman and has been the Executive Director of the Group since 10 July 2000.  Mr. Yang is responsible for the overall management, operations and the charting and reviewing of corporate directions and strategies of the Group.  Prior to joining the Company, Mr. Yang performed accounting duties for Lunmin Village in Chenghang Town Government, Zhangjiagang City, Jiangsu Province in 1979.  From 1980 to 1994, Mr. Yang founded and managed four manufacturing businesses producing zips, knit-webbing, textile machinery and Nylon 6 dipped tyre cords respectively.  In 1994, upon joining the Company, Mr. Yang was appointed the general manager of Jun Ma Group Company.  Subsequent to the establishment of the predecessor Jun Ma Nylon in June 1998, Mr. Yang was appointed the Chairman of the board of directors and the general manager of Jun Ma Nylon.  In July 2000, with the conversion of Jun Ma Nylon into a joint stock limited company, Mr. Yang was appointed Executive Chairman of the Company.  Mr. Yang completed a course specializing in Trade and Management in 1994 conducted by Suzhou University and obtained a Business Management Certificate from Dongnan University in 2003.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.87

UK Pound

1

Rs.99.63

Euro

1

Rs.78.22

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIS

 

               

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.