MIRA INFORM REPORT

 

 

Report No. :

347101

Report Date :

02.11.2015

 

IDENTIFICATION DETAILS

 

Name :

ZOOMLION INTERNATIONAL TRADING (H.K.) CO. LTD.

 

 

Registered Office :

C/o Two Birds Secretarial Services (Hong Kong) Ltd., Room 406-409, 4/F., Three Pacific Place, 1 Queen’s Road East,

 

 

Country :

Hongkong

 

 

Date of Incorporation :

28.05.2008

 

 

Com. Reg. No.:

39495456

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of all kinds of Machinery and Equipment for Building and Construction.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Small Company

 

 

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)

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

           

ZOOMLION INTERNATIONAL TRADING (H.K.) CO. LTD.

 

ADDRESS:                   C/o Two Birds Secretarial Services (Hong Kong) Ltd.

                                    Room 406-409, 4/F., Three Pacific Place, 1 Queen’s Road East, Hong Kong.

 

PHONE:                        852-2248 6000

 

FAX:                             852-2248 6011

 

E-MAIL:                        zl.hk@hotmail.com

 

 

MANAGEMENT

 

Managing Director:        Mr. Shen Ke

 

 

SUMMARY

 

Incorporated on:            28th May, 2008.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$31,200,000.01

 

Business Category:       Importer and Exporter.

 

Group Turnover:            RMB25,851 million Yuan  (Year ended 31-12-2014)

 

Employees:                  Nil.  (Hong Kong)

 

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

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Registered Office:-

c/o Two Birds Secretarial Services (Hong Kong) Ltd.

Room 406-409, 4/F., Three Pacific Place, 1 Queen’s Road East, Hong Kong.

 

Holding Company:-

Zoomlion H.K. Holding Co. Ltd., Hong Kong.  (Same address)

 

Ultimate Holding Company:-

Zoomlion Heavy Industry Science & Technology Co. Ltd., China/Hong Kong.

 

Associated/Affiliated Companies:-

Zoomlion Group of Companies

Bichamp Cutting Technology (Hunan) Co. Ltd., China.

Changsha Zhonglian Chuanyi Investment Co. Ltd., China.

Changsha Zhonglian Zhitong Trenchless Technology Co. Ltd., China.

Chongqing Zhonglian Shenghong Investment Management Co. Ltd., China.

Compagnia Italiana Forme Acciaio S.p.A., Italy.

Fujian Zhonglian Zhicheng Engineering Machinery Co. Ltd., China.

Gansu Zhonglian Dongsheng Engineering Machinery Co. Ltd., China.

Hubei Zhonglianzhongke Crane Machinery Co. Ltd., China.

Hunan Teli Hydraulic Co. Ltd., China.

Hunan Zhonghan High Polymer Material Technology Co. Ltd., China.

Hunan Zhonglian Engineering Machinery Co. Ltd., China.

Hunan Zoomlion Axle Co. Ltd., China.

Hunan Zoomlion Concrete Machinery Site Equipment Co. Ltd. China.

Hunan Zoomlion Crawling Crane Ltd., China.

Hunan Zoomlion Hardware Co. Ltd., China.

Hunan Zoomlion Intelligent Technology Co. Ltd., China.

Hunan Zoomlion International Trade Co. Ltd., China.

Hunan Zoomlion Special Vehicles Co. Ltd., China.

Jiangsu Hesheng Zhonglian Engineering Machinery Co. Ltd., China.

m-tec mathis technik GmbH, Germany.

Raxtar B.V., Netherlands.

Shaanxi Zoomlion Earth Working Machinery Co. Ltd., China.

Shandong Yifang Zhonglian Engineering Machinery Co. Ltd., China.

Shanghai Zoomlion Pile Foundation Machinery Co. Ltd., China.

Shannxi Xiongtu Zhonglian Engineering Machinery Co. Ltd., China.

Top Carbon S.r.l., Italy.

Xinjiang Zhongcheng Zhonglian Engineering Machinery Co. Ltd., China.

Zoomlion Commercial Factoring (China) Co. Ltd., China.

Zoomlion Finance & Leasing (Beijing) Co. Ltd., China.

Zoomlion Finance & Leasing (China) Co. Ltd., China.

Zoomlion H.K. SPV Co. Ltd., China.

Zoomlion Material Handling Equipment Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

39495456

 

 


COMPANY FILE NUMBER

 

1242105

 

 

MANAGEMENT

 

Managing Director:  Mr. Shen Ke

 

 

ISSUED SHARE CAPITAL

 

HK$31,200,000.01

 

 

SHAREHOLDER

(As per registry dated 28-05-2015)

 

Name

 

No. of shares

Zoomlion H.K. Holding Co. Ltd., Hong Kong.

 

3,120,000,001

==========

 

 

DIRECTOR

(As per registry dated 28-05-2015)

 

Name

(Nationality)

 

Address

SHEN Ke

No. 224, Youyi Zhai, Yuelu District, Changsha Town, China.

 

 

SECRETARY

(As per registry dated 28-05-2015)

 

Name

Address

Co. No.

Two Birds Secretarial Services (Hong Kong) Ltd.

Suite 406-409, 4/F., Three Pacific Place, 1 Queen’s Road East, Hong Kong.

0785980

 

 


HISTORY

 

The subject was incorporated on 28th May, 2008 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:                      Importer and Exporter.

 

Lines:                           All kinds of machinery and equipment for building and construction.

 

Brand Name:                 Zoomlion.

 

Employees:                  Nil.  (Hong Kong)

20,314. (Group)  [As at 31-12-2014]

 

Materials/Commodities: Imports raw materials from European countries, some Asian countries and finished  products from China.

 

Markets:                        China and other foreign countries.

 

Group Turnover:            RMB32,193 million Yuan  (Year ended 31-12-2010)

RMB46,323 million Yuan  (Year ended 31-12-2011)

RMB48,071 million Yuan  (Year ended 31-12-2012)

RMB38,542 million Yuan  (Year ended 31-12-2013)

RMB25,851 million Yuan  (Year ended 31-12-2014)

RMB13,989 million Yuan  (6 months ended 30-06-2014)

RMB10,571 million Yuan  (6 months ended 30-06-2015)

 

Terms/Sales:                 L/C or as per contracted.

 

Terms/Buying:                As per contracted.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$31,200,000.01

 

Mortgage or Charge:      (See attachment)

 

Group Profit Attributable to Equity Holders:-

RMB4,666 million Yuan   (Year ended 31-12-2010)

RMB8,066 million Yuan   (Year ended 31-12-2011)

RMB7,330 million Yuan   (Year ended 31-12-2012)

RMB3,844 million Yuan   (Year ended 31-12-2013)

RMB   594 million Yuan   (Year ended 31-12-2014)

RMB   904 million Yuan   (6 months ended 30-06-2014)

(RMB   299 million Yuan)  (6 months ended 30-06-2015)

 

Profit or Loss:               Group made a loss in the first half of 2015.

 

Condition:                     Business is not active in Hong Kong.

 

Facilities:                      Adequate for current running.

 

Payment:                      Met as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

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

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

China Construction Bank (Asia) Corporation Ltd., Hong Kong.

China Merchants Bank Co. Ltd., Hong Kong Branch.

Agricultural Bank of China Ltd., Hong Kong Branch.

 

Standing:                      Small.

 

 

GENERAL

 

Zoomlion International Trading (H.K.) Co., Ltd. is a wholly-owned subsidiary of Zoomlion H.K. Holding Co. Ltd. [ZHKH] which is a Hong Kong-registered firm located at the same registered address.  The subject’s ultimate holding company is Zoomlion Heavy Industry Science & Technology Co. Ltd. [Zoomlion/Company, Group when including associates] is a China-based firm.  However, it was also registered in Hong Kong on 7th December, 2010 as a Non-Hong Kong Company.

 

The subject’s registered office is in a commercial service firm located at Room 406-409, 4/F., Three Pacific Place, 1 Queen’s Road East, Hong Kong known as Two Birds Secretarial Services (Hong Kong) Ltd. which is handling its correspondences and documents.  This firm is also the corporate secretary of the subject.

 

The old Managing Director of the subject Dr. Zhan Chunxin is also the legal representative of Zoomlion.  He is a China businessman holding a China passport.  Currently, Zhan is residing in Changsha City, Hunan Province, China.  He is also Chairman of the Board.  The Director of the subject is Mr. Shen Ke.

 

The subject is an associated company of Hunan Zoomlion International Trade Co. Ltd. [ZITC] which is a wholly-owned subsidiary of Zoomlion.  The head office of Zoomlion is located in Zoomlion Science Park, 361 Yinpen South Road, Changsha, Hunan Province, China.

 

ZITC is engaged in exporting business.  It has set up a marketing department, business supporting department, integration department, financial department, importing department and administration department.  It has about 85 employees, among which 15 have studied abroad and over 80% employees are graduated from universities.  ZITC is importing all needed components of Zoomlion and exporting of all Zoomlion’s products.  Currently, its business has expanded to all around the world, and has set up a branch in Persian Gulf.

 

Founded in 1992, Zoomlion is a listed firm in Shenzhen Special Economic Zone bearing stock code 000157.  It was listed on 12th October, 2000.

 

Zoomlion was also listed in Hong Kong on 23rd December, 2010 in the form of H shares.  Its H Share Stock Code is 1157.

 

The Group’s turnover decreased by 32.93% from RMB38,542 million Yuan for the year ended 31st December, 2013 to RMB25,851 million Yuan for the year ended 31st December, 2014.

 

As a result, the Group’s profit attributable to shareholders of the Company decreased by 84.55% from RMB3,844 million Yuan for 2013 to RMB594 million Yuan for 2014.

 

In particular, the Group’s turnover from sales of concrete machinery decreased by 38.60% from RMB17,191 million Yuan for 2013 to RMB10,555 million Yuan for 2014.  Its turnover from sales of crane machinery fell by 40.52% from RMB12,479 million Yuan for 2013 to RMB7,423 million Yuan for 2014, mainly attributable to the continuing slowdown in the growth of the state’s fixed assets investment, especially the real estate investment, resulting in a further shrinkage of the market demand for our two major products, concrete machinery and crane machinery.

 

In the first half of 2015, the Group’s revenue was RMB10,571 million Yuan (same period of previous year: RMB13,898 million Yuan).  With respect to product segment, the Group recorded a significant decrease of revenue in concrete machinery and crane machinery products as compared to the same period of last year, resulting in a decrease in revenue.

 

The Group’s revenue recorded a decrease of 52.97% and 35.55% in concrete machinery and crane machinery products, respectively, mainly due to the further shrinkage of market demand for the two major products in the construction machinery sector, namely concrete machinery and crane machinery, and the tightened sales policies maintained by the Group.

 

As a result of the foregoing, the Group’s net loss attributable to shareholders of the parent company amounted to RMB299 million Yuan in the first half of 2015 (same period of previous year: made a profit of RMB904 million Yuan).

 

The Group had 20,814 employees as at end of 2014.

 

The subject is fully supported by the Zoomlion Group.

 

On the whole, consider it good for normal business engagements in small credit amounts since it does not have any employees in Hong Kong.

 

 


REMARKS

 

Brief personal profile of Senior Management of the Board:-

 

Dr. ZHAN Chunxin was born in 1955, is the Chairman and Group Chief Executive Officer of Zoomlion.  Dr. Zhan has been appointed as a director of Zoomlion since the establishment of Zoomlion in 1999, and as the Chairman since 2001.  Currently, Dr. Zhan also serves as the chairman of various subsidiaries of Zoomlion, including Zoomlion Powermole Ltd. and Hunan Teli Hydraulic Co. Ltd. and as the director of various subsidiaries of Zoomlion, including Zoomlion H.K. Holding Co. Ltd., Zioomlion International Trading (H.K.) Co. Ltd., and Zoomlion Capital (H.K.) Co. Ltd.  Dr. Zhan became an expert entitled to special government subsidy granted by the State Council since January 1994, a senior engineer as recognised by the Ministry of Construction in 1995 and a researcher-level senior engineer specialised in management and engineering as recognised by the Ministry of Construction in September 1997.  Dr. Zhan has previously served various senior positions in Construction Machinery Research Institute of Changsha, the Ministry of Construction [Research Institute], including the deputy head of Research Institute fro February 1992 to July 1996 and head of Research Institute from July 1996 to December 2008.  Dr. Zhan has been serving various public functions.  He was appointed as a representative at the 16th National Congress of the Communist Party of China in 2002, the 10th National People’s Congress in 2003, the 17th National Congress of the Communist Party of China in 2007 and 10th National Congress of the Communist Party of China in Hunan Province in 2011, a member of the 10th Session of CPC Hunan Provincial Committee in 2011 and a representative at the 12th National People’s Congress in 2013.  Dr. Zhan has also served as the deputy chairman of China Entrepreneurs Association and China Enterprise Confederation since September 2008.  Dr. Zhan has received various titles and awards, including the Yuan Baohua Enterprise Management Gold Award awarded in May 2010 which is the most distinguished award for corporate executives in China, the 2010 Leonardo Award in Italy awarded in January 2011, the 2011 CCTV Chinese Economic Annual Figure awarded in December 2011 and the Most Outstanding Person Award awarded in January 2013.  Dr. Zhan graduated from Northwestern Polytechnicial University in 1978 and obtained a master’s degree in aeronautical engineering from Northwestern Polytechnical University in 2000 and a doctorate degree in system engineering from Northern Polytechnical University in December 2005.

Mr. SHEN Ke, born in 1971, is currently the secretary to the Board of Directors and the company secretary of the Company. He also serves as the director of the Office of Secretary to the Board of Directors, the director of the Office of Investment Management, the deputy general manager of environmental industry branch of the Company, executive director and legal representative of Hunan Zoomlion Special Vehicle Co. Ltd., and the chairman of Zoomlion Gulf FZE.  Mr. Shen was the vice manager and head of investment development department of the Company from July 2003 to August 2008, deputy head of investment financing management department of the Group’s Company from September 2008 to July 2010. Mr. Shen graduated from Shenyang University of Technology in Shenyang City, the PRC with a bachelor’s degree in industrial management in July 1993, and Central South University of Technology (currently known as Central South University) in Changsha City, the PRC with a master’s degree in management science and engineering in December 1998.

 

 

MORTGAGE OR CHARGE

 

Date

Description of Instrument

Mortgagee

28-05-2011

Trade Finance Security Assignment

China Merchants Bank Co. Ltd., Hong Kong Branch.

14-08-2014

Trade Finance Security Assignment

Agricultural Bank of China Ltd., Hong Kong Branch.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.22

UK Pound

1

Rs.99.93

Euro

1

Rs.71.67

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.