3decades

MIRA INFORM REPORT

Report No. :	485762
Report Date :	16.01.2018

IDENTIFICATION DETAILS

Name :	POINTER INVESTMENT (HONG KONG) LIMITED

Registered Office :	Room 3408, 34/F., China Merchant Tower, Shun Tak Centre, 168-200 Connaught Road

Country :	Hongkong

Date of Incorporation :	30.10.1984

Com. Reg. No.:	09513741

Legal Form :	Private Limited Company.

Line of Business :	Importer, Exporter and Wholesaler of Bicycle, footwear, textile products, peacegoods, transport equipment, yarns, machine parts.

No. of Employees :	10

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 :	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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Hongkong

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

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 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.

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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. 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 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. 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 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.

Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 4.4% in 2014, but slowed to 2.9% in 2015. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.

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 Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities.

Source : CIA

Company name and address

POINTER INVESTMENT (HONG KONG) LIMITED

ADDRESS: Room 3408, 34/F., China Merchant Tower, Shun Tak Centre, 168-200 Connaught Road, Hong Kong.

PHONE: 852-2540 4489

FAX: 852-2858 2539

E-MAIL: pointer@hk.super.net

MANAGEMENT

Managing Director: Mr. Li Zhi Huang

SUMMARY

Incorporated on: 30th October, 1984.

Organization: Private Limited Company.

Issued Share Capital: HK$158,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Group Turnover: RMB98,076.6 million Yuan (Year ended 31-12-2016)

Employees: 10.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Good.

ADDRESS

Registered Head Office:-

Room 3408, 34/F., China Merchant Tower, Shun Tak Centre,
168-200 Connaught Road, Hong Kong.

Holding Company:-

Xiamen International Trade Group Corp. Ltd., China.

Associated Companies:-

Bai Lu Zhou Ltd., British Virgin Islands.

Brisk Development Ltd., Hong Kong. [Dissolved]

Chengdu Investment (HK) Ltd., China.

Egret Oasis Ltd., Hong Kong. [Dissolved]

Everest Tire Corporation, US.

Feng Huang Hai Ltd., British Virgin Islands.

Fujian Golden Strait Guarantee Co. Ltd., China.

Fujian Huaxia Motor City Development Co. Ltd., China.

Guangzhou Keerun Industrial Co. Ltd., China.

ITF Holdings Co., Ltd., Hong Kong.

ITG Futures Co. Ltd., China.

ITG Marine (H.K.) Ltd., Hong Kong.

ITG Resources (Singapore) Pte. Ltd., Singapore.

ITG Shipping (H.K.) Co. Ltd., Hong Kong.

ITG Voma Corporation, US.

Peng Huang Hai Ltd., British Virgin Islands.

Phoenix Ocean Shipping Ltd., Hong Kong. [Dissolved]

Sansteel Minguang Co. Ltd., China.

Shanghai Keerun Industrial Co. Ltd., China.

Tianjin Keerun Investment Co. Ltd., China.

Van Nice Shipping (HK) Corporation Ltd., Hong Kong.

Well Surplus Creation Ltd., Hong Kong.

Xiamen ITG Holding Co. Ltd., China.

Xiamen ITG Logistics Co. Ltd., China.

Xiamen ITG Motors Co. Ltd., China.

XIM 3 Shipping Ltd., Hong Kong.

etc.

BUSINESS REGISTRATION NUMBER

09513741

COMPANY FILE NUMBER

0143030

MANAGEMENT

Managing Director: Mr. Li Zhi Huang

General Manager: Mr. Zhuang Zhi-Cong

ISSUED SHARE CAPITAL

HK$158,000,000.00

SHAREHOLDER

(As per registry dated 30-06-2017)

Name		No. of shares
Xiamen International Trade Group Corp. Ltd. 18/F., Gaomau Building, Hubin South Road, Xiamen Special Economic Zone, China.		158,000,000 =========

Name

No. of shares

Xiamen International Trade Group Corp. Ltd.

18/F., Gaomau Building, Hubin South Road, Xiamen Special Economic Zone, China.

158,000,000

=========

DIRECTORS

(As per registry dated 30-06-2017)

Name (Nationality)	Address
LI Zhi Huang	Room 101, No. 52, Hubin East Road, Siming District, Xiamen Special Economic Zone, China.
CHEN Jinming	Room 602, No. 21, Jianxing Road, Siming District, Xiamen Special Economic Zone, China.
WU Yunxuan	3/F., No. 180, Zhongshan Road, Siming District, Xiamen Special Economic Zone, China.

SECRETARY

LI Zhi Huang (As per registry dated 26-08-2017)

HISTORY

The subject was incorporated on 30th October, 1984 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Pointer Investment Ltd., name changed to the present style on 19th April, 1985.

Formerly the subject was located at ‘Room 3202, 32/F., West Tower, Shun Tak Centre, 200 Connaught Road, Hong Kong’, moved to the present address in June 2017.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: Bicycle, footwear, textile products, peacegoods, transport equipment, yarns, machine parts, etc.

Employees: 10.

Commodities Imported: China, etc.

Markets: China, Japan, other Asian countries, Europe, the Middle East, North America, etc.

Group Turnover:

RMB 42,102.0 million Yuan (Year ended 31-12-2012)

RMB 49,374.7 million Yuan (Year ended 31-12-2013)

RMB 55,283.6 million Yuan (Year ended 31-12-2014) [restated]

RMB 64,212.6 million Yuan (Year ended 31-12-2015) [restated]

RMB 98,076.6 million Yuan (Year ended 31-12-2016)

RMB 66,061.3 million Yuan (9 months ended 30-09-2016)

RMB109,150.7 million Yuan (9 months ended 30-09-2017)

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

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

FINANCIAL INFORMATION

Issued Share Capital: HK$158,000,000.00

Mortgage or charge (since 2012): (See attachment)

Group profit attributable to shareholders:

RMB 382.7 million Yuan (Year ended 31-12-2012)

RMB 939.4 million Yuan (Year ended 31-12-2013)

RMB 844.9 million Yuan (Year ended 31-12-2014) [restated]

RMB 650.5 million Yuan (Year ended 31-12-2015)

RMB 642.6 million Yuan (Year ended 31-12-2016)

RMB 783.7 million Yuan (9 months ended 30-09-2016)

RMB1,606.5 million Yuan (9 months ended 30-09-2017)

Profit or Loss: Making a small profit every year.

Condition: Keeping in a good manner.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

Bankers:-

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

Agricultural Bank of China Ltd. Hong Kong Branch.

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

Société Générale, Hong Kong Branch.

Standing: Good.

GENERAL

Pointer Investment (Hong Kong) Limited is a wholly-owned subsidiary of Xiamen International Trade Group Corp. Ltd. [ITG/Group] which is a China-based company.

The subject is one of the key companies of the ITG Group. ITG is a listed company in Shanghai bearing stock code 600755. Its shares are traded in Shanghai Stock Exchange, China.

The subject is trading in the commodities of the ITG Group. It is one of the leading exporters of garments and fabrics in China. It provides customers with various types of garments, including men’s and women’s uniform, outerwear, winter wear and t-shirts, sportswear, etc.

The subject was founded in 1984 and its customers are all over the world.

The subject is trading in the following commodities:-

· Piecegoods - Vegetable Fibre (From China)

· Piecegoods - Synthetic (Rayon from China)

· Yarn - Synthetic (Excluding Acrylic & Nylon ) (Viscose from China)

· Knitted Garments

· Building Materials

· Bicycles, and accessories (Iron frame)

· Auto Parts

· Footwear

· Iron & Steel, Iron Ore

· Coal

· Chemicals, etc.

Commodities are exported to Central & South America, Japan, South Korea, Southeast Asia, Taiwan, Western Europe, etc. Business is active.

ITG is a comprehensive enterprise founded in 1980 and listed in Shanghai Stock Exchange in 1996. Now the company has built up three core businesses: Trading, Real Estate and Logistics.

ITG is listed in “Top 500 Chinese Enterprises” and “Top 100 Chinese listed companies”.

The directors of the subject are also CEOs of ITG.

For the year ended 31st December, 2016, the turnover of ITG amounted to RMB98.1 billion Yuan (2015: RMB64.2 billion Yuan); group profit attributable to shareholders in the year was RMB642.6 million Yuan (2015: RMB650.5 million Yuan). Group business in the past six years were profitable. However, it profit attributable to shareholders has been decreasing.

For the first nine months ended 31st December, 2017, the turnover of ITG amounted to RMB109.2 billion Yuan (same period of 2016: RMB66.1 billion Yuan); group profit attributable to shareholders in the period was RMB1,606.5 million Yuan (same period of 2016: RMB783.7 million Yuan). ITG’s business in the full year of 2017 would be good.

The following table shows the financial highlights of the subject for the years of 2014 to 2016:

Unit: HK$’ million (year ended 31 December)

Item	2016	2015	2014
Turnover	21,961.1	16,753.7	14,804.6
Profit/(Loss) After Taxation	(32.9)	13.9	64.2
Non-Current Assets	1,375.2	952.5	486.5
Current Assets	4,155.1	4,565.0	3,555.8
Current Liabilities	4,910.3	4,892.8	3,324.6
Net Assets	620.1	624.7	717.7
Total Equity	620.1	624.7	717.7

For the year ended 31st December, 2016, the turnover of the subject amounted to HK$22.0 billion (2015: HK$16.8 billion), loss after taxation was HK$32.9 million (profit of 2015: HK$13.9 million).

One of the directors Ms. Wu Yunxuan is also the Vice President and Financial Controller of ITG.

As at end of December 2016, ITG had 4,552 employees (2015: 4,241 employees). The subject is fully supported by ITG. History in Hong Kong is about 33 years and two months.

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

MORTGAGE OR CHARGE

(Since 2012)

Date	Description of Instrument	Mortgagee
16-10-2012	Security Agreement over Bank Account (all moneys) (Own Obligations)	Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
16-10-2012	Trade Finance Security Assignment	Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
30-05-2014	Trade Finance Security Agreement	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
30-09-2014	Trade Finance Security Assignment	Société Générale, Hong Kong Branch.
11-03-2015	Trade Finance Security Assignment	Agricultural Bank of China Ltd., Hong Kong Branch.
20-04-2017	Mortgage	Chiyu Banking Corporation Ltd., Hong Kong.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.41
UK Pound	1	INR 87.18
Euro	1	INR 77.45
HKD	1	INR 8.14

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

INFORMATION DETAILS

Analysis Done by :	PRA

Report Prepared by :	NIT

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.