MIRA INFORM REPORT

 

 

Report No. :

330588

Report Date :

10.07.2015

 

IDENTIFICATION DETAILS

 

Name :

CONCORD INTERNATIONAL OIL LTD.

 

 

Registered Office :

Room 605, 6/F., Lippo Sun Plaza, 28 Canton Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

03.09.1992

 

 

Com. Reg. No.:

16072748

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Broker/Trader; Transhipment Agent of All kinds of petroleum products, oil, coal and related chemical products.

 

 

No. of Employee :

10

 

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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 12.5% 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

 

CONCORD INTERNATIONAL OIL LTD.

 

ADDRESS:       Room 605, 6/F., Lippo Sun Plaza, 28 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            852-2376 1861,  2376 1891,  2376 1865

 

FAX:                 852-2735 0179

 

E-MAIL:            andychan17@biznetvigator.com

 

 

MANAGEMENT

 

Managing Director:        Mr. Leung Kai Fai

 

 

SUMMARY

 

Incorporated on:            3rd September, 1992.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$12,500,000.00

 

Business Category:       Broker/Trader; Transhipment Agent.

 

Annual Turnover:           US$25-35 million.

 

Employees:                  10.

 

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

 

Banking Relation:          Satisfactory.


company name and address

 

CONCORD INTERNATIONAL OIL LTD.

 

ADDRESS:

 

Registered Head Office:-

Room 605, 6/F., Lippo Sun Plaza, 28 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

 

Associated Companies:-

Concord (Tianjin) Petro-Chemical Co. Ltd., China.

Concord Asia Pacific Investment Ltd., Hong Kong.

Concord International Management Ltd., Hong Kong. [Dissolved]

Tianjin Zhongya Petrochemical Co. Ltd., China.

Yingkou Asia International Oil Co. Ltd., China.

Yonic Petrochemical Co. Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

16072748

 

 

COMPANY FILE NUMBER

 

 0377481

 

 

MANAGEMENT

 

Managing Director:  Mr. Leung Kai Fai

Contact Persons:  Mr. Xiang Yu, Mr. Andy Chan

 

 

ISSUED SHARE CAPITAL

 

HK$12,500,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 03-09-2014)

Name

 

No. of shares

CHEUNG Sui Ling

 

32,500

LEUNG Kai Fai

 

86,250

LEUNG Man Him

 

6,250

 

 

–––––––

 

Total:

125,000

======

 

 

DIRECTORS

 

(As per registry dated 03-09-2014)

Name

(Nationality)

 

Address

CHEUNG Yan Lam

Flat C1, 3/F., Sunderland Estate, 1 Hereford Road, Kowloon, Hong Kong.

 

LEUNG Kai Fai

House G, 28 LaSalle Road, Kowloon, Hong Kong.

 

LEUNG Man Him

House 16, Mount Beacon, 20 Cornwall Street, Kowloon, Hong Kong.

 

CHEUNG Sui Ling

House G, 28 LaSalle Road, Kowloon, Hong Kong.

 

 

SECRETARY 

 

CHEUNG Sui Ling  (As per registry dated 03-09-2014)

 

 

HISTORY

 

The company was incorporated on 3rd September, 1992 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:                                  Broker/Trader; Transhipment Agent.

 

Lines:                                       All kinds of petroleum products, oil, coal and related chemical products.

 

Employees:                              10.

 

Commodities Imported From:    Southeast Asia, etc.

 

Markets:                                    China, other Asian countries, etc.

 

Annual Turnover:                       US$25-35 million.

 

Terms/Sales:                             Various terms.

 

Terms/Buying:                           L/C, T/T, D/P, etc.

 

 

MEMBERSHIP

 

The Chinese General Chamber of Commerce, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:                 HK$12,500,000.00

 

Mortgage or Charge (Since September 2010):  (See attachment)

 

Profit or Loss:                           Business is profitable.

 

Condition:                                 Keeping in an active and satisfactory condition.

 

Facilities:                                   Making active use of banking facilities.

 

Payment:                                  So far so good.

 

Commercial Morality:                 Satisfactory.

 

Bankers:-

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

Australia and New Zealand Banking Group Ltd., Hong Kong.

DBS Bank (Hong Kong) Ltd., Hong Kong.

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

 

Standing:                                  Very Good.

 

 

GENERAL

 

Having issued 125,000 ordinary shares of HK$100.00 each, Concord International Oil Ltd. is jointly owned by Mr. Leung Kai Fai, holding 69% interests; Ms. Cheung Sui Ling, holding 26%, and Mr. Leung Man Him, 5%.  Being Hong Kong merchant, the three shareholders are also directors of the subject.

The subject is trading in all kinds of petroleum products, coal and related chemical products.  China and the other Asian countries are its prime markets.  In recent years, it also has been trading in the following commodities as well: Jatropha Oil, Corn Oil, Palm Oil, Sunflower Oil, etc.

The subject is also a coal exporter and distributor.  Most of its coal is sourced from Shanxi Province, China.

The subject has had an associated company Concord (Tianjin) Petro‑Chemical Co. Ltd. [Concord Tianjin] which is in Tianjin, China.

Business commenced on 4th August, 1994, Concord Tianjin is trading in all kinds of petroleum products.  With a registered capital of RMB500,000 Yuan, Concord Tianjin is in Tianjin Bonded Zone.  Leung Kai Fai is the General Manager of it.  Now, Concord Tianjin has become one of the significant petro-chemical product trader in Tianjin, China.  The legal representative of Concord Tianjin is Mr. Zhang Jianwu who is a Chinese.

Besides Tianjin, the subject also has made investments in Jiangsu and Liaoning Province.  According to the subject, about 8.5% of its total investments have been made in Tianjin, 14.6% made in Jiangsu Province and 76.8% in Liaoning Province.

The subject is chiefly owned by Mr. Leung Kai Fai who was an ex-employee of Feoso Oil.  He had been in charge of lubricating oil sales for ten years.  He left Feoso and started his own business in 1992.

Leung Kai Fai is a “horse-owner” in Hong Kong.  He is also engaged in horses raising and breeding.  He is a rather significant character in Horse Racing field in Hong Kong.  To our knowledge, he and his family own six horses in Hong Kong.  He also has had horses raising outside Hong Kong.

Apart from Leung, the other two shareholders of the subject are also horse owners.

The three shareholders are also engaged in properties investment.

The subject has had an associated company in Hong Kong known as Concord Asia Pacific Investment Ltd. [CAPIL] located at the same address.  This firm purchased a residential unit in Tsimshatsui, Kowloon, Hong Kong at a consideration of HK$14.393 million in May 2009.  In May 2012, CAPIL sold the premises at a consideration of HK$22.88 million.  The firm got a net profit of HK$8.487 million.

The annual sales turnover of the subject ranges from US$25 to 35 million.  Making a profit every year.

The contact person of the subject is Mr. Andy Chan.

As the history of the subject is over 22 years and ten months in Hong Kong, on the whole, consider it good for normal business engagements.

 

 

MORTGAGE OR CHARGE

 

(Since September 2010)

 

Date

Description of Instrument

Mortgagee

24-08-2010

Security Agreement over Bank Account

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

15-02-2011

Charge on Cash Deposit to secure Liabilities of the Depositor

DBS Bank (Hong Kong) Ltd., Hong Kong.

18-08-2011

Charge Over Deposit

Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

01-11-2011

Security Over Deposit with the Bank Placed in Specified Account

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

20-04-2012

Charge Over Deposit

Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

09-08-2013

Trade Finance Security Agreement

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

12-09-2014

Charge Over Securities and Deposits with the Bank

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.51

UK Pound

1

Rs.97.85

Euro

1

Rs.70.50

 

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.