MIRA INFORM REPORT

Report No. :	486620
Report Date :	22.01.2018

IDENTIFICATION DETAILS

Name :	CHINA GENERAL MACHINE (HONG KONG) LIMITED
Registered Office :	C/o Huayi Union (China) Investment Ltd. Room 1502 (111), 15/F., Easey Commercial Building, 253-261 Hennessy Road, Wanchai
Country :	Hong Kong
Date of Incorporation :	12.01.2007
Com. Reg. No.:	37564176
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in manufacturing and trading in the following commodities: · Spare parts of motorcycle · Auto-Parts · Diesel Engines · Motors for vehicles · Plastic materials, chemical materials · Electrical equipment
No. of Employees :	No Employees in Hong Kong NOTE: It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

RATING & COMMENTS

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

MIRA’s Rating :

C

Credit Rating	Explanation	Rating Comments
C	Medium High Risk	Business dealings permissible preferably on secured basis

Status :	No Operating Office in Hong Kong
Payment Behaviour :	Unknown
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)
Hong Kong	A1	A1

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.

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

Note

([Formerly Located At:

c/o HK RJ Int’l Business Ltd.

Room 517, 5/F., New City Centre,

2 Lei Yue Mun Road, Kwun Tong,

Kowloon, Hong Kong.)

Company name

CHINA GENERAL MACHINE (HONG KONG) LIMITED

ADDRESS

Registered Office:-

C/o Huayi Union (China) Investment Ltd.

Room 1502 (111), 15/F., Easey Commercial Building,
253-261 Hennessy Road, Wanchai, Hong Kong.

Associated Company:-

Jiangmen Zhicheng General Engineering Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

37564176

COMPANY FILE NUMBER

1101763

DATE OF INCORPORATION

12th January, 2007.

ISSUED SHARE CAPITAL

HK$10,000.00

SHAREHOLDERS

(As per registry dated 12-01-2018)

Name		No. of shares
YAN Qiancheng		9,500
YAN Wangming		500
		––––––
	Total:	10,000 =====

DIRECTOR

(As per registry dated 12-01-2018)

Name (Nationality)	Address
YAN Qiancheng	No. 12, Building 27, Yingxin Yi Cun, Lu Song District, Zhu Zhou City, Hunan Province, China.

SECRETARY

(As per registry dated 12-01-2018)

Name	Address	Co. No.
Huayi Union (China) Investment Ltd.	Room 1502 (111), 15/F., Easey Commercial Building, 253-261 Hennessy Road, Wanchai, Hong Kong.	2059495

HISTORY

The subject was incorporated on 12th January, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject’s registered address was located at ‘Room 517, 5/F., New City Centre, 2 Lei Yue Mun Road, Kwun Tong, Kowloon, Hong Kong’ where was the operating office of a commercial service provider known as HK RJ Int’l Business Ltd. It moved to the present address in January 2016 as it has changed its commercial service provider since then.

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

GENERAL

China General Machine (Hong Kong) Limited was incorporated on 12th January, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject does not have its own operating office. Its registered office is in a commercial service firm located at ‘Room 1502 (111), 15/F., Easey Commercial Building, 253-261 Hennessy Road, Wanchai, Hong Kong’ known as ‘Huayi Union (China) Investment Ltd.’ [HUCIL] which is handling its correspondences and documents. This company is also the corporate secretary of the subject. ‘111’ is the file number of the subject in HUCIL.

The subject has no employees in Hong Kong.

According to the Companies Registry of Hong Kong, the subject has issued 10,000 ordinary shares of HK$1.00 each of which 95% are owned by Mr. Yan Qiancheng, and 5% by Mr. Yan Wangming. Both are China merchants.

The former is also the only director of the subject. He is a China ID holder and does not have the right to reside in Hong Kong permanently. His registered address is in Zhu Zhou City, Hunan Province, China.

To our knowledge, the subject has had an associated company in Jiangmen City, Guangdong Province, China known as Jiangmen Zhicheng General Engineering Co. Ltd. [Zhicheng], a China-registered company.

Its brief information is as follow:

Name: Jiangmen Zhicheng General Engineering Co. Ltd. [Zhicheng]

Address: South of 1/F., 118 Baishiao, Qili, Pangjiang District, Jiangmen City, Guangdong Province, China.

Phone: 86-750-3119371

Date of Incorporation: 23rd November, 2004.

Legal Status: Limited Liability Company (owned by natural person)

Registered Capital: RMB500,000.00 Yuan

Duration: Unlimited

Registration No.: 440700000014678

Legal Representative: Mr. Yan Qiancheng

Shareholder: Mr. Yan Qiancheng

Zhicheng is engaged in manufacturing and trading in the following commodities:

Spare parts of motorcycle;

Auto-Parts;

Diesel Engines;

Motors for vehicles;

Plastic materials, chemical materials;

Electrical equipment;

Metal products, hardware, iron & steel, building materials, textile products, etc.

General machinery and equipment, etc.

Zhicheng also offers clients with consultancy services on motorcycles, spare parts manufacturing, etc.

Zhicheng’s products are exported to India, other Southeast Asian countries, Africa, etc.

The legal representative of Zhicheng is also Mr. Yan Qiancheng who is the principal shareholder of the subject.

The subject also trades in the products of Zhicheng.

The subject’s business in Hong Kong is not active. History in Hong Kong is over eleven years.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

NOTE:

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.72
UK Pound	1	INR 88.64
Euro	1	INR 78.14
HKD	1	INR 8.16

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

INFORMATION DETAILS

Analysis Done by :	VIV
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)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.