MIRA INFORM REPORT

 

 

Report Date :

17.12.2012

 

IDENTIFICATION DETAILS

 

Name :

ZHAOHENG  RESOURCES  LTD.

 

 

Registered Office :

Unit 5, 3/F., Mirror Tower, 61 Mody Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

11.06.2012

 

 

Com. Reg. No.:

59934335

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Trader of all kinds of iron and steel materials, alloys, iron ore, Ferro Chrome, etc.

 

 

No. of Employees :

6.  (Including associate)

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

-

NB

                                       New Business

-

 

 

 

Status :

New Business

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

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 re-exports, is about four times GDP. 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, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. 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 exports 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 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

 

Source : CIA

 

 

COMPANY NAME & ADDRESS

 

ZHAOHENG  RESOURCES  LTD.

 

ADDRESS:             Unit 5, 3/F., Mirror Tower, 61 Mody Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE:                  2787 3355

FAX:                       2152 0026

 

MANAGEMENT

 

Managing Director:  Mr. Xu Guo Sheng

 

SUMMARY

 

Incorporated on:            11th June, 2012.

 

Organization:                 Private Limited Company.

 

Capital:                          Nominal:             HK$2.00

Issued:                          HK$2.00

 

Business Category:        Iron & Steel Trader.

 

Employees:                  6.  (Including associate)

 

Main Dealing Banker:     Bank of China (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


 

COMPANY ADDRESS

 

Registered Head Office:-

Unit 5, 3/F., Mirror Tower, 61 Mody Road, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company

 

Zhaoheng Holdings Ltd., China.

Zhaoheng Holdings Ltd., Hong Kong.  (Same address)

 

Associated Companies

 

Zhaoheng Group of Companies

iPanel Technologies Ltd., China.

Shenzhen Zhaoheng Fushun Specialty Steel Co. Ltd., China.

Shenzhen Zhaoheng Hydropower Co. Ltd., China.

Shenzhen Zhaoheng Industrial Co. Ltd., China.

Shenzhen Zhaoheng Specialty Steel Co. Ltd., China.

Zhaoheng Hydropower (Hong Kong) Ltd., Hong Kong.

Zhaoheng Hydropower International Co. Ltd., Hong Kong.

Zhaoheng International Ltd., Hong Kong.

Zhaoheng Kunshan Specialty Steel Co. Ltd., China.

Zhaoheng Leather Trading Ltd., Hong Kong.

Zhaoheng Steel Ltd. Dalian Office, China.

Zhaoheng Steel Ltd., Hong Kong.  (Same address)

etc.

 

BUSINESS REGISTRATION NUMBER

 

59934335

 

COMPANY FILE NUMBER

 

1757832

 

MANAGEMENT

 

Managing Director:  Mr. Xu Guo Sheng

 

 

CAPITAL

 

Nominal Share Capital: HK$2.00 (Divided into 2 shares of HK$1.00 each)

 

Issued Share Capital: HK$2.00

 

SHAREHOLDER  

(As per registry dated 11-06-2012)

Name

 

No. of shares

Zhaoheng Holdings Ltd., Hong Kong.

 

2

=

 

DIRECTORS  

(As per registry dated 11-06-2012)

Name

(Nationality)

 

Address

ZHOU Qiao Li

Unit B, 2/F., Tower 15, One Beacon Hill, 1 Beacon Hill Road, Kowloon Tong, Kowloon, Hong Kong.

 

XU Guo Sheng

Unit B, 2/F., Tower 15, One Beacon Hill, 1 Beacon Hill Road, Kowloon Tong, Kowloon, Hong Kong.

 

SECRETARY 

(As per registry dated 11-06-2012)

Name

Address

Co. No.

Union Alpha (Hong Kong) Ltd.

19/F., 3 Lockhat Road, Wanchai, Hong Kong.

0589835

 

HISTORY

 

The subject was incorporated on 11th June, 2012 as a private limited liability company under the Hong Kong Companies Ordinance.

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

 

OPERATIONS

 

Activities:                             Iron & Steel Trader.

 

Lines:                                   All kinds of iron and steel materials, alloys, iron ore, Ferro Chrome, etc.

 

Employees:                         6.  (Including associate)

 

Commodities Imported:       India, Russia, etc.

 

Markets:                             China, other Asian countries, Europe, etc.

 

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

 

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

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$2.00 (Divided into 2 shares of HK$1.00 each)

 

Issued Share Capital: HK$2.00

 

Profit or Loss:    Too early to offer an opinion.

 

Condition:          Business is under development.

 

Facilities:           Is making use of general banking facilities.

 

Payment:  Met trade commitments as required.

 

Commercial Morality:  Satisfactory

 

Banker:  Bank of China (Hong Kong) Ltd., Hong Kong.

 

Standing:  Normal.

 

GENERAL

 

Zhaoheng Resources Ltd. is a wholly-owned subsidiary of Zhaoheng Holdings Ltd. which is a Hong Kong-registered firm located at the same operating address.  The head office of this firm is in Shenzhen Special Economic Zone, China.

The subject is a member of the Zhaoheng Group which is China-based.  The Group is located at Flat A, 17/F., Jinfengcheng Building, 5015 Zhenzhen East Road, Shenzhen Special Economic Zone, China.

Your given phone and fax number 86-755-8207 0166 and 86-755-8207 1999 respectively belong to Zhaoheng Holdings Ltd. which is in Shenzhen Special Economic Zone.

The subject has had a main associated company Zhaoheng Steel Ltd. which is located at the same address of the subject.

The Group is trading in all kinds of iron and steel materials.  Its main associated companies are the following three China firms:-

1.     Shenzhen Zhaoheng Fushun Specialty Steel Co. Ltd.

2.     Shenzhen Zhaoheng Specialty Steel Co. Ltd. [Shenzhen Zhaoheng]

3.     Zhaoheng Kunshan Specialty Steel Co. Ltd.

Collectively the above firms are known as Zhaoheng Specialty Steel.  Zhaoheng Specialty Steel is an alloy steel distributor and exporter in China.  Started steel business in1994 and jointly set up with Fushun Special Steel in 2000, Zhaoheng Specialty Steel has set up three warehouses in Guangdong Province and Shanghai.  The Group sold more than 30,000 metric tons of high alloy steel in 2007.  Zhaoheng Specialty Steel is trying to penetrate the South Korea market.  It is finding partners in South Korea.

Zhaoheng Specialty Steel has developed service networks in South and East China.  It also has been cooperating with the main alloy steel distributors in Europe.

Zhaoheng Specialty Steel is trading in the following commodities: carbon structure steel, tool steel, alloy structural steel, forgings, high speed steel, bearing steel, stainless steel, CPM, etc.

The Group now has formed strategic cooperation with most alloy steel manufacturers in China, like Fushun Dalian Beiman Changcheng, etc.  It also acts as the agent for the Crucible steel distributor to distribute the CPM steel in China.

Shenzhen Zhaoheng is a joint venture between Fushun Special Steel (Dongbei Special Steel Group) and Zhaoheng Group.  This firm is the direct sales branch of the mill and in charge of the sales of South China and international market.

Acting as the sole agent of Crucible (US) and Lucchini (Italy) in mainland China, Shenzhen Zhaoheng supplies the following products with mill price:-

·         Cold Work Steel (A2/1.2363, 01/1.2510, D2/1.2379, D3/1.2080, SKD11, S7)

·         Hot Work Steel (H11/1.2343, H13/1.2344, H21/1.2581, L6/1.2714)

·         Plastic Work Steel (P20/1.2311, 718/1.2738, S136/1.4034, NAK80)

·         Carbon Structural Steel (1018, 1045/S45C, 1050/S50C, 20Mn, 40Mn)

·         Carbon Tool Steel (T7, T8, T10, T11)

·         Alloy Tool Steel (4140/42CrMo4, 4340/40CrNiMoA, 51CrV4 38CrMoAl)

·         High Speed Steel (M2, M35, M42, T1)

·         Alloy Structural Steel (20Cr, 40Cr, 4140/42CrMo4, 40CrNiMoA/4340, 8620)

·         Machinery Steel (20CrNiMo/8620, 4130, 4140/42CrMo4)

·         Stainless Steel (201, 202, 301, 302, 304, 304L, 316, 316L, 310S, 430, 490L)

·         Seamless Pipe (4140/42CrMo4)

·         Mould and Die Steel (P20/1.2311, H13/1.2344, 01/1.2510, 718/1.2738, 1045/S45C, etc.)

The subject also trades in the above products.  It also trades in Ferro-chrome alloy.

The CEO of the Group Mr. Xu Guo Sheng is also the managing director of the subject.

Zhaoheng Group has had the following main co-operators:-

·         State Power Grid of China

·         Jinjian Rice Industry

·         Tak Sing Alliance Holdings Ltd.

·         Fushun Special Steel Co., Ltd.

·         Huazhong University of Science and Technology

·         Beijing Gehua CATV Network Co., Ltd.

·         Hunan Province Water Facilities and Water Power Exploring & Designing Institute

The history of the subject in Hong Kong is just over six months.

On the whole, since the history of the subject is short, consider it good for normal business engagements on L/C basis.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.62

UK Pound

1

Rs.88.40

Euro

1

Rs.71.85

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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%)