MIRA INFORM REPORT

Report No. :	505592
Report Date :	28.04.2018

IDENTIFICATION DETAILS

Name :	HOUSTON MACHINERY (CHINA) COMPANY LIMITED

Registered Office :	Room 1801-1802, 18/F., Seaview Commercial Building, 21-24 Connaught Road West, Sheung Wan

Country :	Hong Kong

Date of Incorporation :	19.09.1991

Com. Reg. No.:	15078387

Legal Form :	Private Limited Company

Line of Business :	Importer, Exporter and Wholesaler of All Kinds of Construction Machinery and Equipment.

No. of Employees :	27

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Acceptable Risk

Business dealings permissible with moderate risk of default

Status :	Good

Payment Behaviour :	Regular

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Hong Kong

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Excess liquidity, low interest rates and a tight housing supply have caused Hong Kong property prices to rise rapidly. The lower and middle-income segments of the population increasingly find housing unaffordable.

Hong Kong's open economy has left it exposed to the global economic situation. Its continued reliance on foreign trade and investment makes it vulnerable to renewed global financial market volatility or a slowdown in the global economy.

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 surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. After peaking in 2014, overall tourist arrivals dropped 2.5% in 2015 and 4.5% in 2016. The tourism sector rebounded in 2017, with visitor arrivals rising 3.2% to 58.47 million. Travelers from Mainland China totaled 44.45 million, accounting for 76% of the total.

The Hong Kong Government is promoting the Special Administrative Region (SAR) as the preferred business hub for 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, RMB trade settlement is allowed, and investment schemes such as the Renminbi Qualified Foreign Institutional Investor (RQFII) Program was first launched in Hong Kong. Offshore RMB activities experienced a setback, however, after the People’s Bank of China changed the way it set the central parity rate in August 2015. RMB deposits in Hong Kong fell from 1.0 trillion RMB at the end of 2014 to 559 billion RMB at the end of 2017, while RMB trade settlement handled by banks in Hong Kong also shrank from 6.8 trillion RMB in 2015 to 3.9 trillion RMB in 2017.

Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 66% 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. 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 (CEPA), adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, which took effect in March 2015, cover a negative list and a most-favored treatment provision. On the basis of the Guangdong Agreement, the Agreement on Trade in Services signed in November 2015 further enhanced liberalization, including extending the implementation of the majority of Guangdong pilot liberalization measures to the whole Mainland, reducing the restrictive measures in the negative list, and adding measures in the positive lists for cross-border services as well as cultural and telecommunications services. In June 2017, the Investment Agreement and the Agreement on Economic and Technical Cooperation (Ecotech Agreement) were signed under the framework of CEPA.

Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Hong Kong- Shenzhen Stock Connect the Mutual Recognition of Funds, and the Bond Connect scheme are all important steps towards opening up the Mainland’s capital markets and have reinforced Hong Kong’s role as China’s leading offshore RMB market. Additional connect schemes such as ETF Connect (for exchange-traded fund products) are also under exploration by Hong Kong authorities. In 2017, Chief Executive Carrie LAM announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.

Source : CIA

Company name & address

HOUSTON MACHINERY (CHINA) COMPANY LIMITED

ADDRESS: Room 1801-1802, 18/F., Seaview Commercial Building, 21-24 Connaught Road West, Sheung Wan, Hong Kong.

PHONE: 852-2544 8821, 2241 9628

FAX: 852-2544 2866, 2541 5828

E-MAIL: info@houstonhk.com

raymond@houstonhk.com

MANAGEMENT

Managing Director: Mr. Luk Hung, Henry

SUMMARY

Incorporated on: 19th September, 1991.

Organization: Private Limited Company.

Issued Share Capital: HK$10,000.00

Business Category: Machinery Trader.

Employees: 27.

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

Banking Relation: Satisfactory.

Name

HOUSTON MACHINERY (CHINA) COMPANY LIMITED

ADDRESS

Registered Head Office:-

Room 1801-1802, 18/F., Seaview Commercial Building, 21-24 Connaught Road West, Sheung Wan, Hong Kong.

Mailing Address:

G.P.O. Box 8705, Hong Kong.

Holding Company:-

Regency Capital Ltd., Hong Kong. (Same address)

Related/Associated Companies:-

B & H Engineering & Equipment Ltd., Hong Kong.

H.J.I. Construction Equipment & Machinaries Trading LLC, UAE.

Houston Engineering & Equipment Ltd., Hong Kong. [Dissolved]

Houston Machinery Co. Ltd., Hong Kong.

Shanghai Jintai Engineering Machinery Co. Ltd., China.

Yik Fung Concrete Products Manufactory Ltd., Hong Kong. [Dissolved]

Yik Fung Development & Engineering Co. Ltd., Hong Kong. [Dissolved]

BUSINESS REGISTRATION NUMBER

15078387

COMPANY FILE NUMBER

0326447

MANAGEMENT

Managing Director: Mr. Luk Hung, Henry

General Manager: Mr. Yau Yiu Man, Raymond

ISSUED SHARE CAPITAL

HK$10,000.00

SHAREHOLDERS

(As per registry dated 19-09-2017)

Name		No. of shares
FOK Kai Wing		1,500
TSUI Mo Jane		1,500
YAU Yiu Man		1,500
Regency Capital Ltd., Hong Kong.		5,500
		––––––
	Total:	10,000 =====

DIRECTORS

(As per registry dated 12-01-2018)

Name (Nationality)	Address
LUK Hung	Flat B, 7/F., La Belle Mansion, 118-120B Argyle Street, Kowloon, Hong Kong.
TSUI Mo Jane	Flat C, 20/F., Admiralty Heights, Belair Garden, Shatin, New Territories, Kowloon, Hong Kong.
Regency Capital Ltd.	Room 1801-1802, 18/F., Seaview Commercial Building, 21-24 Connaught Road West, Sheung Wan, Hong Kong.
LUK Ting Pong, Edmund	Room 25, 6/F., Block A, Fontana Gardens, Ka Ning Path, Hong Kong.

SECRETARY

TSUI Mo Jane (As per registry dated 19-09-2017)

HISTORY

The subject was incorporated on 19th September, 1991 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Honor Master Ltd., name changed to Edilmac Cranes (Far East) Ltd. on 5th December, 1991, and further changed to the present style on 21st March, 1996.

Formerly the subject was located at 4/F., Tung Hip Commercial Building, 244-252 Des Voeux Road Central, Hong Kong, moved to Room 2010, 20/F., 118 Connaught Road West, Hong Kong with effect from 27th June, 2002, and further moved to the present address in September 2003.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of construction machinery and equipment.

Employees: 27.

Commodities Imported: Japan, Italy, Germany, UK, Scandinavia, etc.

Markets: Hong Kong, China, other Asian countries, etc.

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Issued Share Capital: HK$10,000.00

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory manner.

Facilities: Making active use of general banking facilities.

Payment: Regular.

Commercial Morality: Satisfactory.

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

Standing: Satisfactory.

GENERAL

Houston Machinery (China) Company Limited is jointly owned by three Hong Kong merchants and Regency Capital Ltd. [Regency Capital] which is a Hong Kong-registered firm. Regency Capital is holding 55% interests, while the balance 45% is equally held by Mr. Fok Kai Wing, Ms. Tsui Mo Jane and Mr. Yau Yiu Man.

The directors of the subject are Mr. Luk Hung, Ms. Tsui Mo Jane, Regency Capital and Mr. Luk Ting Pong, Edmund. The last was appointed on 12th January, 2018.

The subject has had an associated company Houston Machinery Co. Ltd. [Houston Machinery] which was incorporated on 19th December, 1986. The subject and Houston Machinery are engaged in the same lines of business.

The subject and Houston Machinery belong to the Houston Group. In general, the Group is trading in Ground Engineering Products and General Construction Products.

Currently, the subject is engaged in the following business:-

Sales, rental and engineering service of plant and machinery for following:

•Lifting and hoisting machinery

•Concrete plant, earth moving excavation

•Transport haulage

•Rock drilling, piling for foundation

Manufacturing of ground engineering, piling and drilling machines, rock drill tools, etc.

The subject carries the following machinery and equipment:-

Crawler Crane;

Hydraulic Truck Crane;

Tower Cranes;

Gantry Cranes;

Concrete Batching Plant;

Concrete Pump;

Concrete Mixer Trucks;

Boring Machine and Soil Investigation;

Foundation Pile Drilling Machine;

Rock Drilling System;

Grouting Equipment;

Casing Oscillators;

Casing Rotators and Vibrators;

Pile Driver;

Hydraulic Pile Hammer;

Fork-lift Trucks;

Welding Equipment;

Compressor;

Road Construction Equipment;

Asphalt Mixing Plant;

Asphalt Paving Machine;

Vibrating Rollers;

Aerial Platform;

Scaffoldings;

Tunnel Boring Machines;

Bulldozers, Wheel Loaders;

Hydraulic Excavators;

Container Handling Equipment;

Rock Crushing and Screening Plant; &

Machine Haulaging and Piling Equipment.

Popular Items are as follow:

1) SAMBO Reverse Circulation Drill (RCD)

2) SAMBO Oscillators

3) IHI CCH550T Telescopic Crane

4) IHI CCH3000 300t Service Crane

5) JINTAI Foundation Machinery

6) TADANO ATF 70G-4 All-Terrain Crane

7) TyssenKrupp MULLER MS-25 H3 Vibrator

The following firms are the main suppliers of the subject:-

Tadano Ltd., Japan.

IHI Construction Machinery Ltd., Japan.

Junttan Oy, Finland.

BAUER Maschinen GmbH, Germany.

KYC Machine Industry Co. Ltd., Japan.

Shanghai Jintai Foundation Machinery Co. Ltd., China.

Mc Drill Technology SpA, Italy.

To our knowledge, Shanghai Jintai Foundation Machinery Co. Ltd. which is a China-based company, is a regular and significant supplier of the subject.

The core businesses of the subject are trading in all kinds of foundation machines, coupling with effective network both in China and other countries. Besides, the subject has also gained experience in large projects such as facilitating the establishment of electric plant in India. It is also interested for expanding sales of foundation machines in the Middle East. Besides, it has already established a branch company in Dubai, the United Arab Emirates, as well as another joint venture with a reputable local company in Dubai. According to the subject, its business has been increasing in the Middle East.

The overall business of the Group is active.

As the history of the subject is over 26 years and seven months in Hong Kong, on the whole, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.78
UK Pound	1	INR 92.89
Euro	1	INR 80.74
HKD	1	INR 8.49

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

INFORMATION DETAILS

Analysis Done by :	NIS

Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.