3decades

MIRA INFORM REPORT

Report No. :	515793
Report Date :	26.06.2018

IDENTIFICATION DETAILS

Name :	LONGSHINE (H.K.) INDUSTRY LIMITED

Registered Office :	Flat A, 9/F., Silvercorp International Tower, 707-713 Nathan Road, Mongkok, Kowloon

Country :	Hong Kong

Date of Incorporation :	31.07.2013

Com. Reg. No.:	61819078

Legal Form :	Private Limited Liability Company

Line of Business :	Subject is engaged in manufacturing printing and packaging machinery and equipment.

No. of Employees :	The subject has 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 :

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

(31.12.2017)

Current Rating

(01.04.2018)

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

Note:

(Formerly located at:

c/o Parkview Gain Ltd.

Flat 7A, 7/F., Kimley Commercial Building,

142-146 Queen’s Road Central, Hong Kong.)

Company name

LONGSHINE (H.K.) INDUSTRY LIMITED

ADDRESS

Registered Office:-

c/o All Prestige Registration Co. Ltd.

Flat A, 9/F., Silvercorp International Tower, 707-713 Nathan Road, Mongkok, Kowloon, Hong Kong.

Associated Company:-

Dongguan Longxingsheng Machinery Co. Ltd.

No. 2 Chunagye Road, Bajiaowo Industrial, Wanjiang District, Dongguan City, Guangdong Province, 523000 China.

[Tel: 0769-2317 6552, 2317 6653

Fax: 0769-23176550

Email: info@lxspmc.com]

BUSINESS REGISTRATION NUMBER

61819078

COMPANY FILE NUMBER

1945537

DATE OF INCORPORATION

31st July, 2013.

ISSUED SHARE CAPITAL

HK$10,000.00

SHAREHOLDER

(As per registry dated 31-07-2017)

Name

No. of shares

CAO Chenming

10,000

=====

DIRECTORS

(As per registry dated 31-07-2017)

Name (Nationality)	Address
CAO Chenming	No. 1, Caowu, Huanglong Village, Fenggang Town, Nankang City, Jiangxi Province, China.

SECRETARY

(As per registry dated 31-07-2017)

Name	Address	Co. No.
All Prestige Registrations Co. Ltd.	Flat A, 9/F., Silvercorp International Tower, 707-713 Nathan Road, Mongkok, Kowloon, Hong Kong.	1268502

HISTORY

The company was incorporated on as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject’s registered address was located at Flat 7A, 7/F., Kimley Commercial Building, 142-146 Queen’s Road Central, Hong Kong where was the operating address of a Hong Kong company known as Parkview Gain Ltd. The subject’s registered office moved to the present address in August 2017 as it has moved its registered address to another commercial service provider since then.

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

GENERAL

Longshine (H.K.) Industry Limited was incorporated on 31st July, 2013 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 ‘Flat A, 9/F., Silvercorp International Tower, 707-713 Nathan Road, Mongkok, Kowloon, Hong Kong’ known as ‘All

Prestige Registration Co. Ltd.’ which is handling its correspondences and documents. This company is also its corporate secretary.

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 which is wholly-owned by Mr. Cao Chenming who is a China merchant.

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

The subject has had an associated company in China known as Dongguan Longxingsheng Machinery Co. Ltd. [Longxingsheng] which is in Dongguan City, Guangdong Province, China.

This company is engaged in manufacturing printing and packaging machinery and equipment.

Longxingsheng was established in 2009 and its registered capital was RMB100,000.00 Yuan.

Longxingsheng has its own independent R & D department which is led by Tsinghua University professors. It has been specialized in semi-automatic post-press packaging equipment for more than 10 years. Other products include Cardboard / MDF / sheet paper grooving machine series, box forming set series and rigid box making machine series. These are the three main product lines of the company.

Longxingsheng now has the following customers: Hucai, Junsi, Yuto and other famous printing and packaging companies. In overseas market, it supplies to RR Donnelley, Motivating Graphics, Pragati Offset, Star Print, Yuto, Tasin and so on. Its foreign markets are Japan, the other Asian countries, Europe, South America, etc.

The legal representative of Longxingsheng is also Mr. Cao Chenming.

The subject’s business in Hong Kong is not active. History in Hong Kong is about five years.

On the whole, 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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 68.14
UK Pound	1	INR 90.27
Euro	1	INR 79.34
HKD	1	INR 8.68

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

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	SUJ

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.