IRA INFORM REPORT

 

 

Report No. :

354834

Report Date :

17.12.2015

 

IDENTIFICATION DETAILS

 

Name :

LINK WIDE INTERNATIONAL INVESTMENT (HONG KONG) LTD.

 

 

Registered Office :

Room 1301, 13/F., West Wing, Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan

 

 

Country :

Hongkong

 

 

Date of Incorporation :

27.08.2003

 

 

Com. Reg. No.:

33887295

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Commodity Trader, Investor & Iron Ore Swap Inter-Dealer Broker.

 

 

No. of Employees :

8

 

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

HONGKONG - 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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 

Company name and address

           

LINK WIDE INTERNATIONAL INVESTMENT (HONG KONG) LTD.

 

ADDRESS:                   Room 1301, 13/F., West Wing, Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan, Hong Kong.

 

(Formerly located at:

2/F., Kam Sang Building, 255-257 Des Voeux Road Central, Hong Kong.)

 

PHONE:                        852-2907 6338

 

E-MAIL:                        linkwidesklo@gmail.com             

 

 

MANAGEMENT

 

Chairman:                     Mr. Han Wen Chen

 

 

SUMMARY

 

Incorporated on:            27th August, 2003.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$20,000,000.00

 

Business Category:       Iron & Steel Trader.

 

Employees:                   8.

 

Main Dealing Banker:     Bank of China (Hong Kong) Ltd., Hong Kong.

Chiyu Banking Corporation Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

Room 1301, 13/F., West Wing, Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan, Hong Kong.

 

Holding Company:-

Tangshan Baoye Industrial Holding Co. Ltd., China.

 

Associated/Affiliated Companies:-

Comonwealth Trust Ltd., British Virgin Islands.

Shaanxi Baoye Chenhui Real Estate Co. Ltd., China.

Shaanxi Hanzhong Iron & Steel Group Co. Ltd., China.

Tangshan Banbidian Steel Co. Ltd., China.

Tangshan Baoye Development Co. Ltd., China. [Dissolved]

Tangshan Shougang Baoye Iron & Steel Co. Ltd., China.

Tangshan Baoye Group of Companies

 

 

BUSINESS REGISTRATION NUMBER

 

33887295

 

 

COMPANY FILE NUMBER

 

0859146

 

 

MANAGEMENT

 

Chairman:  Mr. Han Wen Chen

Contact Person:  Ms. Chan Ying Chun

 

 

ISSUED SHARE CAPITAL

 

HK$20,000,000.00

 

 

SHAREHOLDER

(As per registry dated 27-08-2015)

 

Name

 

No. of shares

HAN Wen Chen

 

20,000,000

========

 

 

DIRECTORS

(As per registry dated 27-08-2015)

 

Name

(Nationality)

 

Address

HAN Wen Chen

1, Building 202, Second Small District, Banbi Village, Kaiping Town, Kaiping District, Tangshan City, Hebei Province, China.

 

WANG Li Xin

Banbi Village West, Kaiping District, Tangshan City, Hebei Province, China.

 

CHAN Ying Chun

Room 3413, 34/F., Wah Yuet House, Tin Wah Estate, Tin Shui Wai, New Territories, Hong Kong.

 

 

SECRETARY

(As per registry dated 15-09-2015)

 

Name

Address

Co. No.

BS Corporate Services Ltd.

Units 1901-1902, 19/F., Wah Hing Commercial Building, 283 Lockhart Road, Wanchai, Hong Kong.

0843939

 

 

HISTORY

 

The subject was incorporated on 27th August, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

 

It was originally registered under the name of Link Wide International Investment Ltd., and the name was changed to present style on 5th September, 2003.

 

Formerly the subject was located at ‘2/F., Kam Sang Building, 255-257 Des Voeux Road Central, Hong Kong’, moved to the present address in May 2015.

 

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

 

 

OPERATIONS

 

Activities & Lines:          Commodity Trader, Investor & Iron Ore Swap Inter-Dealer Broker.

 

Office Area:                  2,560 sq.ft.

 

Employees:                  8.

 

Commodities Imported: China, etc..

 

Business Territories:      Hong Kong, China, other Asian countries.

 

Terms/Sales:                 COD or as per contracted.

 

Terms/Buying:               As per contracted.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$20,000,000.00

 

Mortgage or Charge      (Since 2009):  (See attachment)

 

Profit or Loss:               Business is profitable.

 

Condition:                     Keeping in a normal manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Regularly met.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

Shanghai Commercial Bank Ltd., Hong Kong.

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

Chiyu Banking Corporation Ltd., Hong Kong.

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

CITIC Bank International Ltd., Hong Kong.

Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. [Business names: Rabobank Nederland, Rabobank and Rabobank International], Hong Kong Branch.

 

Standing:                      Good.

 

 

GENERAL

 

Link Wide International Investment (Hong Kong) Ltd. [LWII] was incorporated in Hong Kong on 27th August, 2003 as a private limited liability company.  With an issued capital of HK$20,000,000.00, the company is solely owned by a PRC merchant known as Mr. Han Wen Chen.

 

LWII is chiefly trading in iron and steel, and building materials.

 

LWII is in fact one of the members of the Baoye Group in China.  Baoye Group is based in Tangshan, Hebei province.  Through more than 30 years of effort, it has become a large cross-industry enterprise group combining steel, real estate, domestic and foreign trade, warehousing, logistics and mining as one.  Group headquarters is based in Beijing.

 

Mr. Han Wen Chen is also the President of Baoye Group.  He is also managing director of Shaanxi Hanzhong Iron & Steel Group Co. Ltd., China.

 

Following 30 years’ reform and opening up in China, Baoye Group has developed to be one of the leading private enterprises in Mainland China.  Domestic industry mainly centralizes in Beijing, Hebei, Shanxi, Hainan province with branches set up in Hong Kong and Singapore; foreign business in India, South Korea, Australia, Brazil, Europe, North America and other countries and regions.

 

Since its establishment, Baoye Group has won the awards as “the quality trustworthy enterprise”, “AAA + grade credit customer”,  “environmental management standard enterprise”, China iron and steel enterprise advanced collective”, “National Technical Innovation Award”, “The National Quality & Benefit Advanced Enterprise”, “National Enterprise Management Outstanding Contribution Award”, “The National Civilized Unit” and a series of other honours.

 

LWII was set up in Hong Kong as an overseas platform for Baoye Group.  It is engaged in commodity trading, investing and dealing as an iron ore swap inter-dealer broker.  Since its incorporation, LWII took advantage of Baoye Group’s development in the iron and steel industry, has already gathered extensive experiences in the field of international trading of commodities like steel products, iron ore and coal, etc.

 

Since 2011, LWII has entered into the fields of financial derivatives for commodities like iron ore swap.  LWII has become one of the members of Chicago Mercantile Exchange (CME Group) and also the Inter-Dealer Brokers (IDB) of SGX (member code:S778).

 

LWII has established direct business relationship with top international investment banks.  Relying on its own rich experiences in the commodity trades and experiences in the over the counter (OTC) field, LWII will provide clients with services for both physical commodity trades and service of IDB for OTC.  In addition, LWII also provides professional advice and consulting service about hedging and arbitrage to the clients.

 

Tangshan Baoye Industrial Holding Co. Ltd.  [TBIH] is regarded as the holding company of LWII.  The registration details of TBIH are as follow:-

Name:  TBIH

Registration Number:  130000000006870

Address:  Banbi Village West, Kaiping District, Tangshan City, Hebei Province, China.

Date of Incorporation:  20th June, 2003

Capital:  RMB120,000,000.00

Legal Representative:  Han Wen Chen 

Operating Period:  20th June, 2003 to 17th June, 2023.

Company Type:  Limited Liability Company (natural investment)

Registration Authority:  Tangshan AIC

 

The president, Mr. Han Wen Chen, born in December 1957, was ranked as the 261st richest men in China in 2008 with a personal net worth of RMB3 billion Yuan.

 

In early 2015, LWII bought its office located at Shun Tak Centre at a consideration of HK$52.8 million.  The office covers an area of 2,560 sq.ft.

 

Since the output of iron and steel in China has been excess and the demand is decreasing, the Chinese government issued an order to iron and steel companies to cut down their production capacity in early 2015.  The companies of Han Wen Chen will be hit in the first.

 

LWII is fully supported by its associated companies in China.

 

On the whole, in view of the background of LWII, consider it good for normal business engagements.

 

 

REMARKS

 

Court case:-

Action Date

Case No.

Plaintiff

Defendant

Cause

Amount

02-07-2014

H1235

Jovian Corporate Communications Ltd.

Link Wide International Investment (Hong Kong) Ltd.

Land

HK$2,380,000

 

 

MORTGAGE OR CHARGE

(Since 2009)

 

Date

Description of Instrument

 

Mortgagee

02-12-2009

Trade Finance Security Assignment

Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. [Business names: Rabobank Nederland, Rabobank and Rabobank International], Hong Kong Branch.

23-07-2010

Deed of Indemnity, Charge Over Deposit(s) and Set-off

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

26-04-2011

Deed of Indemnity, Charge Over Deposit(s) and Set-Off

Chiyu Banking Corporation Ltd., Hong Kong.

07-10-2011

Trade Finance Security Assignment

CITIC Bank International Ltd., Hong Kong.

19-09-2012

Security Over Deposits

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

20-04-2015

Mortgage

Shanghai Commercial Bank Ltd., Hong Kong.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.85

UK Pound

1

Rs.100.58

Euro

1

Rs.73.16

HKD

1

Rs.8.60

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               


 

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.