MIRA INFORM REPORT

 

 

Report No. :

319302

Report Date :

29.04.2015

 

IDENTIFICATION DETAILS

 

Name :

HANG TUNG RESOURCES LTD.

 

 

Registered Office :

17/F. & 18/F., Hang Tung Resources Centre, 18 A Kung Ngam Village Road, Shaukeiwan

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

10.04.1984

 

 

Com. Reg. No.:

08960567

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter; Investment Holding and Property Investment of Textile Materials, Fibres, Wool, Cotton

 

 

No. of Employees :

56

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

 

Source : CIA

 

 

Company Name & address

 

HANG TUNG RESOURCES LTD.

 

ADDRESS:       17/F. & 18/F., Hang Tung Resources Centre, 18 A Kung Ngam Village Road, Shaukeiwan, Hong Kong.

 

PHONE:            852-2866 2168

 

FAX:                 852-2866 2008

 

E-MAIL:            ironssze@hangtung.com

irons@hangtung.com

 

MANAGEMENT:

 

Chairman:  Mr. Irons Sze

 

 

SUMMARY

 

Incorporated on:                        10th April, 1984.

 

Organization:                             Private Limited Company.

 

Issued Share Capital:                 HK$20,000,000.00

 

Business Category:                   Importer and Exporter; Investment Holding and Property Investment.

 

Employees:                              56.

 

Main Dealing Bankers:               Bank of Communications Co. Ltd., Hong Kong Branch.

                                                Bank of China (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:                      Very Good.

 

 

Name

 

HANG  TUNG  RESOURCES  LTD.

 

 

ADDRESS

 

Registered Head Office:-

17/F. & 18/F., Hang Tung Resources Centre, 18 A Kung Ngam Village Road, Shaukeiwan, Hong Kong.

 

Associated/Affiliated Companies:-

China Dream Film Culture Industry (HK) Ltd., Hong Kong.

Guangxi Hong Kong Street Development Ltd., China.

Hang Tung Godown Ltd., Hong Kong.

Hang Tung Investment (China) Ltd., Hong Kong.

Hang Tung Investment (International) Ltd., Hong Kong.

Hang Tung Realty (China) Ltd., Hong Kong.

Hang Tung Realty Investment Co. Ltd., Hong Kong.

Hang Tung Resources Finance Ltd., Hong Kong.

Hang Tung Resources Holding Ltd., Hong Kong.

Hang Tung Resources International Ltd., Hong Kong.

Hang Tung Trading Co., Hong Kong.

Hu Yang Holdings Ltd., Hong Kong.

IKT (China) Ltd., Hong Kong.  [Dissolved by Striking Off]

Integral-Kin Tung (Macau) Ltd., Macau.

Integral-Kin Tung Ltd., Hong Kong.

Kin Tung Mineral Products Ltd., Hong Kong.

Shanghai Everbright Real Estate Co. Ltd., China.

Tutex Publishing Ltd., Hong Kong.

Tutex Trading Co. Ltd., Hong Kong.

Xiamen Hang Tung Property Development Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

08960567

 

 

COMPANY FILE NUMBER

 

0135477

 

 

MANAGEMENT

 

Group Chairman:  Mr. Irons Sze

Group Managing Director:  Mr. Ivis Sze

 

 

ISSUED SHARE CAPITAL

 

HK$20,000,000.00

 

SHAREHOLDERS

 

(As per registry dated 10-04-2015)

Name

 

No. of shares

SZE Wing Hang

 

2,300,000

Irons SZE

 

5,030,000

Ivis SZE

 

12,640,000

WU Shu Min

 

30,000

 

 

–––––––––

 

Total:

20,000,000

========

 

 

DIRECTORS

 

(As per registry dated 10-04-2015)

Name

(Nationality)

 

Address

SZE Wing Hang

B2, Seabranch, 31 Horizon Drive, Chung Hom Kok, Hong Kong.

 

Ivis SZE

C1, Seabranch, 31 Horizon Drive, Chung Hom Kok, Hong Kong.

 

Irons SZE

Flat A, 22/F., Tower 1, Ruby Court, 55 South Bay Road, Hong Kong.

 

SZE Wine Him, Jaime

Flat A, 3/F., Seabranch, 31 Horizon Drive, Chung Hom Kok, Hong Kong.

 

 

SECRETARY

 

SZE Wing Hang  (As per registry dated 10-04-2015)

 

 

HISTORY

 

The subject was incorporated on 10th April, 1984 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject was located at 10/F., Belgian House, 77-79 Gloucester Road, Wanchai, Hong Kong, moved to the present address in February 1998.

 

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

 

OPERATIONS

 

Activities:                      Importer and Exporter; Investment Holding and Property Investment.

 

Lines:                           Textile Materials, Fibres, Wool, Cotton.

 

Employees:                  56.

 

Commodities Imported: Europe, India, other Asian countries.

 

Markets:                        China, Taiwan, South Korea, North Korea, East Europe.

 

Terms/Sales:                 Various terms.

 

Terms/Buying:               As per contracted.

 

MEMBERSHIP:             The Chinese General Chamber of Commerce, Hong Kong. The Chinese Manufacturers’

Association of Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:                             HK$20,000,000.00

 

Mortgage or Charge (since 2005):           (See attachment)

 

Profit or Loss:                                       Business is profitable.

 

Condition:                                             Keeping in an active and good condition.

 

Facilities:                                              Making active use of general banking facilities.

 

Payment:                                              Met on time.

 

Commercial Morality:                             Very Good.

 

Bankers:-

Bank of Communications Co. Ltd., Hong Kong Branch.

Bank of China (Hong Kong) Ltd., Hong Kong.

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

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

 

Standing:  Very Good.

 


GENERAL

 

Hang Tung Resources Ltd. is a well-established company owned by the Sze family.  The largest shareholder Mr. Ivis Sze is holding 63.2% of the subject’s interests.

 

The subject is principally trading in textile materials, stone articles and chemical products.  In 1985, it set up its first textile factory in Mongolia with Chinese partner Liaoning Provincial Textile Industrial Bureau, a government body.  It then has established factories in Shanghai, Fujian, Jiangsu and Guangdong in the following years.  Now it has about 9 associated factories in China.

 

The subject’s core business is trading in textile fibres such as wool, cotton, acrylic yarn, nylon yarn, other synthetic yarns, etc.  It is trading in the following commodities as well: raw cotton, baseball cap, cotton lint, etc.  Commodities are imported form South Korea, India, Japan and Taiwan.  Prime markets are China and the other Asian countries.  Business is active.

 

The subject is also an investment holding company with interests in joint ventures in China and also owns real estate properties in Hong Kong and China.  The subject has good connection with some of the China national organizations.

 

Now, the subject has had a number of affiliated/associated companies engaged in diversified economy such as trading, real estate investments, finance and publications.  The subject has had an associated company Kin Tung Mineral Products Ltd. which is engaged in civil engineering construction.  Besides, the subject has had another associated company Integral-Kin Tung Ltd. in Hong Kong.  This firm is trading in marble and granite.  It is also a marble and granite project contractor.  This firm is located at a different address.

 

The annual total turnover of the subject and its associated companies has been significant.

 

The subject and its associated companies form the Hang Tung Group.  The Group Chairman is Dr. Sze Chi Ching, JP.

 

Now, the Group is managed by the four sons of Dr. Sze Chi Ching, namely, Sze Wing Hang, Irons Sze, Ivis Sze, and Sze Wing Him Jaime.  Sze Wing Him is responsible for making investments for the Group.

 

Mr. Sze Wing Hang is also director of the following companies:

  • Guangxi Hong Kong Street Development Ltd., China;
  • Shanghai Everbright Real Estate Co. Ltd., China; &
  • Xiamen Hang Tung Property Development Ltd., China.

 

The above-mentioned companies are engaged in property development.

Mr. Irons Sze is also the director of Continental Holdings Ltd. which is a listed firm in Hong Kong.  He has been elected as the 39th President of The Chinese Manufacturers’ Association of Hong Kong.

 

According to the subject, its annual sales turnover in textiles (especially cotton spinning) ranges from RMB1.0 to 1.2 billion Yuan.  Overall business is good.  In the years ahead, the subject will make more investments in China.

All the family member of the Szes are famous characters both in Hong Kong and China.

 

The history of the subject in Hong Kong is over thirty-one years.

 

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

REMARKS

 

Brief personal profile of the principal director:-

Mr. Irons SZE, (Chairman) graduated with a Bachelor’s degree in Science from University of Wisconsin, United States in 1985.  Mr. Sze has extensive experience in investment and corporate management and is currently the chief executive officer and managing director of a private company, Hang Tung Resources Holding Ltd., and holds directorship in various private companies.  Mr. Sze is an executive member of the Beijing Committee of the Chinese People’s Political Consultative Conference.  He is also the vice-chairman of Hunan Province Youth Federation and the vice president of the Chinese Manufacturers’ Association of Hong Kong.  He is also a member of the Council and Court of Lingnan University (2008 to 2011) and elected as a member of Election Committee of the Chief Executive of the Hong Kong Special Administrative Region (2007 to 2012).

 

 

MORTGAGE OR CHARGE

 

(Since 2005)

 

Date

 

Description of Instrument

Mortgagee

05-08-2005

Supplement to Security Document

Bank of Communications Co. Ltd., Hong Kong Branch.

31-08-2007

Deed of Charge Over Securities

Bank of Communications Co. Ltd., Hong Kong Branch.

22-02-2008

Deed of Charge Over Securities

Bank of Communications Co. Ltd., Hong Kong Branch.

18-06-2009

Deed of Indemnity, Charge Over Deposit and Set-Off

Bank of Communications Co. Ltd., Hong Kong Branch.

10-10-2012

Customer Agreement between the Customer, Bank Morgan Stanley AG (“BMSAG”) and Morgan Stanley & Co. International plc (“MSIP”) constituted by inter alia General Dealing Terms

Bank Morgan Stanley AG

Bahnhofstrasse 92, CH-8021 Zurich, Switzerland. ; and Morgan Stanley & Co. International plc

25 Cabot Square, Canary Wharf, London E14 14QA, England.

18-03-2013

Security Over Deposits With the Bank

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

16-05-2014

Charge Over Deposits

Hang Seng Bank Ltd., Hong Kong.

13-10-2014

Security Agreement

Bank Morgan Stanley AG

Bahnhofstrasse 92, CH-8021 Zurich, Switzerland. ; and Morgan Stanley & Co. International plc

20 Bank Street, Canary Wharf, London E14 4AD, England.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.33

UK Pound

1

Rs.96.52

Euro

1

Rs.68.93

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

               


 

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.