MIRA INFORM REPORT

 

 

Report Date :

17.08.2012

 

IDENTIFICATION DETAILS

 

Name :

BIO-CHEM  TECHNOLOGY  (HK)  LTD.

 

 

Formerly Known As :

Honour Talent Ltd.

 

 

Registered Office :

Unit 1104, 11/F., Admiralty Centre, Tower 1, 18 Harcourt Road

 

 

Country :

Hong Kong 

 

 

Date of Incorporation :

16.12.1998

 

 

Com. Reg. No.:

30514653

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Corn Product Manufacturer and Exporter of all kinds of corn starch, cosmetic chemicals, biochemical products, etc.

 

 

No. of Employees :

20

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


Company name

 

BIO-CHEM  TECHNOLOGY  (HK)  LTD.

 

 

Company ADDRESS

 

Unit 1104, 11/F., Admiralty Centre, Tower 1, 18 Harcourt Road, Hong Kong.

PHONE:            2838 8155

FAX:                 2838 8433

E-MAIL:                        contact@globalbiochem.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Liu Xiaoming

 

 

SUMMARY

 

Incorporated on:             16th December, 1998.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:              HK$2.00

 

Business Category:        Corn Product Manufacturer and Exporter.

 

Group Turnover:             HK$14,438,887,000  (Year ended 31-12-2011)

 

Employees:                   20.

 

Group employees:          6,000  (as at 31-12-2011)

 

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

 

Banking Relation:           Good.


Company ADDRESS

 

Registered Head Office:-

Unit 1104, 11/F., Admiralty Centre, Tower 1, 18 Harcourt Road, Hong Kong.

 

Holding Company:-

Global Bio-Chem Technology Group Co. Ltd., Cayman

Islands/Hong Kong.  (Same address)

 

 

BUSINESS REGISTRATION NUMBER

 

30514653

 

 

COMPANY FILE NUMBER

 

0662537

 

 

MANAGEMENT

 

Managing Director:  Mr. Liu Xiaoming

 

 

CAPITAL

 

Nominal Share Capital:   HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital:     HK$2.00

 

 

SHAREHOLDERS

(As per registry dated 16-12-2011)

 

Name

 

No. of shares

WANG Tieguang

 

1

KONG Zhanpeng

 

1

 

 

 

Total:

2

=

 

DIRECTORS  

(As per registry dated 16-12-2011)

 

Name

(Nationality)

 

Address

XU Zhouwen

Flat 402, Gate 1, Block 10, Yuan Dong Garden, Nanguan District, Changchun, Jilin Province, China.

 

LIU Xiaoming

Flat 2103, 21/F., Block F, Kornhill, Hong Kong.

 

 

SECRETARY

(As per registry dated 08-05-2012)

 

Name

Address

CHEUNG Kin Po

Flat D, 3/F., 111 Broadway, Mei Foo Sun Chuen, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 16th December, 1998 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Honour Talent Ltd., name changed to the present style on

1st December, 1999.

 

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

 

 

OPERATIONS

 

Activities:                      Corn Product Manufacturer and Exporter.

 

Lines:                           All kinds of corn starch, cosmetic chemicals, biochemical products, etc.

 

Employees:                   20.

 

Group employees:          6,000  (as at 31-12-2011)

 

Commodities Imported:   China and other Asian countries, etc.

 

Markets:                       Worldwide countries.

 

Group Turnover: HK$  6,672,940,000 (Year ended 31-12-2007)

HK$  8,687,939,000 (Year ended 31-12-2008)

HK$  7,838,301,000 (Year ended 31-12-2009)

HK$  9,314,898,000 (Year ended 31-12-2010)

HK$14,438,887,000 (Year ended 31-12-2011)

 

Terms/Sales:                 Various terms.

 

Terms/Buying:               As per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$2.00

 

Mortgage or Charge

(since 2011):                 (See attachment)

 

Group Profit:                  HK$   979,854,000 (year ended 31-12-2007)

HK$   627,815,000 (year ended 31-12-2008)

HK$     13,955,000 (year ended 31-12-2009)

HK$   373,606,000 (year ended 31-12-2010)

HK$1,377,972,000 (year ended 31-12-2011)

 

Profit or Loss:                Making a 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:     Very good.

 

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

 

Standing:                      Very good.

 

 

GENERAL

 

Bio-Chem Technology (HK) Ltd. is a wholly-owned subsidiary of Global Bio-Chem Technology Group Co. Ltd. [Global Bio-Chem/Group] which is a listed firm in Hong Kong.

The subject is trading in the products of the Group.

Founded in 1994, Global Bio-Chem is a pioneer of corn refined and corn‑based products in Asia.  Its products have a wide range of applications, including feed production, food and beverage, cosmetics, textiles, pharmaceuticals and chemicals industries, etc.  The Group takes the advantages of vertical integration of production and established leading position in these upstream products such as corn starch, corn fibre, gluten meal and corn oil; as well as its high-value-added downstream products like amino acid, corn sweeteners, modified starch and polyol chemicals.

Today, the Group is the largest corn refiner in Asia.  By 2008, its corn processing capacity per annum was 2.4 million metric tonnes.  It is one of the world’s largest lysine series products manufacturers, while its products include 98% Lysine and 65% Protein Lysine.  It is also the first to use corn in the commercial production of polyol chemicals in the world.

Global Bio-Chem has been listed on the Main Board of the Stock Exchange of Hong Kong Limited since 2001.  The Group is principally engaged in the manufacture and sale, research and development of corn-based biochemical products in the People’s Republic of China [PRC].  Its products are sold in the PRC and other countries in Asia, Europe, America and Africa.  Headquartered in Hong Kong and with its production facilities based in various provinces in the PRC, Global Bio-Chem is the largest vertically integrated corn-based biochemical product manufacturer in Asia with an annual corn processing capacity of 3 million metric tonnes.  The Group is a leading lysine manufacturer in the world with an annual fermentation capacity of approximately 600,000 metric tonnes.  The Group is one of the pioneers in applying corn starch as raw material for the commercial production of polyol chemicals.  Global Bio-Chem is also the parent company of Global Sweeteners Holdings Limited, one of the largest corn sweeteners producers in the PRC, which is also listed on the Main Board of the Stock Exchange of Hong Kong Limited.

For the year ended 31st December, 2011, the sales of the Group amounted to HK$14,438.9 million, grew by 55.0% as compared with HK$9,314.9 million in FY 2010; profit after taxation was HK$1,378.0 million, grew by 268.8% as compared with HK$373.6 million in FY 2010.

The Group’s profit in FY 2011 is good.

Revenue and gross profit of the Group’s downstream products, including amino acids, polyol chemicals, modified starch, and corn sweeteners, in 2011, rose substantially by 61% and 140% to HK$10.3 billion and HK$3.2 billion respectively when compared with those of the previous year.  The increase in revenue and gross profit was mainly attributable to a year-on-year rise in the average selling prices and sales volume of most of the Group’s downstream product series of 44% and 12% respectively.

Amino acids – the Group’s major business – remained the largest contributor to the Group’s total revenue and gross profit for the Year, accounting for 49% and 78% respectively.  During the Year 2011, revenue and gross profit of amino acids soared by 76% and 169% year-on-year to HK$7.0 billion and HK$2.6 billion respectively.  The remarkable growth was mainly attributable to the significant increase in the prices of meat and egg, resulting in upsurges in both demand and selling price of amino acids.

Global Bio-Chem announced that it has been selected as a constituent of each of the following indexes, effective 5th March 2012.

·         Hang Seng Global Composite Index;

Hang Seng Composite Index Series;

Hang Seng Composite Index;

Hang Seng Composite Industry Index – Consumer Goods; &

Hang Seng Composite SmallCap Index.


As at 31st December, 2011, the Group had about 6,000 full time employees in Hong Kong and China.

The subject is fully supported by the Group.  On the whole, consider the subject good for normal business engagements.

 

REMARKS:

 

Brief personal history of the directors:

Mr. LIU Xiaoming, is the Co-Chairman of the Group.  He is responsible for the Group's overall business development, as well as the formulation of corporate direction and strategies.  He holds a bachelor's degree in chemical engineering from the Hua Nan Polytechnic University.  He has worked with the Group for over 10 years.

Mr. XU Zhouwen, is the Co-Chairman of the Group.  He is responsible for formulating and implementing the Group’s product diversification strategies, managing the Group’s product development and technology research, as well as supervising the Group’s overall production and operations.  He graduated from the Harbin Electric University in 1970.  Mr. Xu was appointed an executive director of the Company in 2001.

 

 

MORTGAGE OR CHARGE

(since 2011)

 

Date

Particulars

Amount

04-01-2011

Instrument:      Mortgage

Property:

All Those 612/227, 600 part or shares of and in Inland No. 8423 (Office No. 1104 on 11/F., of Tower I of Admiralty Centre, No. 18 Harcourt Road, Hong Kong)

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

To secure general banking facilities granted to Lender

24-03-2011

Instrument:      Assignment of Life Insurance

Property:

(1)  All the Assignor’s claims under the Insurance:

Insurance Policy No: 28003307

Name of Insurance Co.: HSBC Life (International) Ltd.

Name of the Insured: Mr. Liu Xiaoming

Assignor / Policy Owner:Bio-Chem Technology (HK) Ltd.

(2)  All the Assignor’s claims against the issuer of the Policy

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

(i) All and any monies in any currency owing by the Assignor to the Bank (ii) interest on such monies (iii) all monies paid by the Bank in respect of the Policy


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.98

UK Pound

1

Rs.87.55

Euro

1

Rs.68.69

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.