MIRA INFORM REPORT

 

 

Report Date :

24.07.2012

 

IDENTIFICATION DETAILS

 

Name :

ONESTEEL  RECYCLING  HONG  KONG  LTD.

 

 

Formerly Known As :

Smorgon Hartwell Recycling (HK) Ltd

 

 

Registered Office :

Room 2003 & 2005, 20/F., Yat Chau International Plaza, 118 Connaught Road West, Sai Ying Pun

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

13.06.2003

 

 

Com. Reg. No.:

33692228

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of metal scraps.

 

 

No. of Employees :

20

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 


 

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 – 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 and address

 

ONESTEEL  RECYCLING  HONG  KONG  LTD.

 

 

ADDRESS:       Room 2003 & 2005, 20/F., Yat Chau International Plaza, 118 Connaught Road West, Sai Ying Pun, Hong Kong.

 

PHONE:            2517 0920

 

FAX:                 2583 9659

 

 

MANAGEMENT

 

Managing Director:  Mr. Greg Bradley Armstrong

 

 

SUMMARY

 

Incorporated on:              13th June, 2003.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:              HK$100.00

 

Business Category:        Importer, Exporter and Wholesaler.

 

Group Sales Revenue:    A$7,133.0 million  (Year ended 30-06-2011)

 

Employees:                   20.

 

Group Employees:         11,598.  (As at 30-06-2011)

 

Main Dealing Banker:     Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

 

Banking Relation:           Good.


company ADDRESS

 

Registered Head Office:-

Room 2003 & 2005, 20/F., Yat Chau International Plaza, 118 Connaught Road West, Sai Ying Pun, Hong Kong.

 

Holding Company:-

OneSteel Recycling Asia Ltd., Hong Kong.  (Same address)

 

Ultimate Holding Company:-

OneSteel Ltd., Australia.

 

Associated/Affiliated Companies:-

OneSteel Group of Companies

Aquila Steel Co. Pty. Ltd., Australia.

Australian Wire Industries Pty. Ltd., Australia.

HP Metal Recycling (HK) Ltd., Hong Kong.

Ming Sing Electronics Ltd., Hong Kong.

OneSteel Americas Holdings Pty. Ltd., Australia.

OneSteel Asia Ltd., Hong Kong.

OneSteel Australian Tube Mills Pty. Ltd., Australia.

OneSteel Building Supplies Pty. Ltd., Australia.

OneSteel Coil Coaters Pty. Ltd., Australia.

OneSteel Finance Pty. Ltd., Australia.

OneSteel Group (US Holdings) Inc., USA.

OneSteel Insurance Pte. Ltd., Singapore.

OneSteel Investments Pty. Ltd., Australia.

OneSteel Manufacturing Pty. Ltd., Australia.

OneSteel MBS Pty. Ltd., Australia.

OneSteel NSW Pty. Ltd., Australia.

OneSteel NZ Holdings Ltd., New Zealand.

OneSteel NZ Ltd., New Zealand.

OneSteel Queensland Pty. Ltd., Australia.

OneSteel Recycling (Fiji) Ltd., Fiji.

OneSteel Recycling Holdings Pty. Ltd., Australia.

OneSteel Recycling Inc., USA.

OneSteel Recycling NZ Ltd., New Zealand.

OneSteel Recycling Overseas Pty. Ltd., Australia.

OneSteel Recycling PNG Ltd., PNG.

OneSteel Recycling Pty. Ltd., Australia.

OneSteel Reinforcing Pty. Ltd., Australia.

OneSteel Technologies Pty. Ltd., USA.

OneSteel Trading Pty. Ltd., Australia.

OneSteel UK Holdings Ltd., U.K.

OneSteel US Investments (General Partnership), Australia.

OneSteel US Investments 1 Pty. Ltd., Australia.

OneSteel US Investments 2 Pty. Ltd., Australia.

OneSteel Victoria Pty. Ltd., Australia.

OneSteel Wire Pty. Ltd., Australia.

etc.

 

BUSINESS REGISTRATION NUMBER

 

 33692228

 

 

COMPANY FILE NUMBER

 

0849675

 

 

MANAGEMENT

 

Director & Chief Executive (Recycling):  Mr. Gregory Allan Waters

Managing Director:  Mr. Greg Bradley Armstrong

 

 

CAPITAL

 

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

 

Issued Share Capital: HK$100.00

 

 

SHAREHOLDERS

(As per registry dated 13-06-2011)

 

Name

 

No. of shares

HP Metal Recycling (HK) Ltd., Hong Kong.

 

1

OneSteel Recycling Asia Ltd., Hong Kong.

 

99

 

 

–––

 

Total:

100

===

 

 

DIRECTORS

(As per registry dated 05-11-2011)

 

Name

(Nationality)

 

Address

Greg Bradley ARMSTRONG

Apartment 34A, Birchwood Place, 96 MacDonnell Road, Mid Levels, Hong Kong.

 

Ronald Arthur MOLLOY

7 Emma Street, Leichhardt, NSW 2040, Australia.

 

Geoffrey Doyd Alexander FEURTADO

3 Seymour Close, Wahroonga, New South Wales, Australia 2076.

 

 

SECRETARY

(As per registry dated 13-06-2011)

 

Name

Address

Co. No.

B. & McK. Nominees Ltd.

1401, Hutchison House, 10 Harcourt Road, Hong Kong.

0054552

 

 

HISTORY

 

The subject was incorporated on 13th June, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Smorgon Hartwell Recycling (HK) Ltd., name changed to the present style on 9th May, 2008.

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of metal scraps.

 

Employees:                   20.

 

Group Employees:         11,598.  (As at 30-06-2011)

 

Commodities Imported:   India, other Asian countries, etc.

 

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

 

Group Sales Revenue:    A$4,300.6 million  (Year ended 30-06-2007)

A$7,434.3 million  (Year ended 30-06-2008)

A$7,241.5 million  (Year ended 30-06-2009)

A$6,204.6 million  (Year ended 30-06-2010)

A$7,133.0 million  (Year ended 30-06-2011)

A$3,239.5 million  (Half year ended 10-12-2010)

A$3,716.3 million  (Half year ended 11-12-2011)

 

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

 

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

 

FINANCIAL INFORMATION

 

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

 

Issued Share Capital:     HK$100.00

 

Group Net Profit/(Loss) After Tax:-

A$207.0 million  (Year ended 30-06-2007)

A$244.9 million  (Year ended 30-06-2008)

A$229.5 million  (Year ended 30-06-2009)

A$258.4 million  (Year ended 30-06-2010)

A$230.3 million  (Year ended 30-06-2011)

A$116.2 million  (Half year ended 10-12-2010)

(A$  73.6 million)(Half year ended 11-12-2011)

 

Profit or Loss:                Making a loss in the first half year of FY 2012.

 

Condition:                      Keeping in a satisfactory condition.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Banker:                         Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

 

Standing:                      Normal.

 

 

GENERAL

 

OneSteel Recycling Hong Kong Ltd. is a wholly-owned subsidiary of OneSteel Recycling Asia Ltd., a Hong Kong-registered firm located at the operating address of the subject.  The ultimate holding company of the subject OneSteel Ltd. [OneSteel] is an Australia-based and listed firm.

The subject belongs to the Recycling Segment of the OneSteel Group.  It is responsible for the recycling of scrap metals, zinc, aluminium, ferrous and non-ferrous metals, etc.  Commodities are provided to the subject’s affiliated mills in Australia and other countries of the world for processing.  The subject has set up several scrap metal collecting centres in Hong Kong.

OneSteel is a fully integrated, global manufacturer and distributor of steel and finished steel products, self-sufficient in both iron ore and scrap metal, with revenues in excess of A$6 billion.  OneSteel’s major manufacturing facilities are located in Whyalla, South Australia, Melbourne, Victoria, Western Sydney and Newcastle, New South Wales and Brisbane, Queensland.  Smaller manufacturing and distribution facilities are located throughout regional Australia.

Additionally, OneSteel has more than 50 operating facilities in New Zealand, Asia and the Pacific that encompass major manufacturing sites and recycling locations.  OneSteel also operates eight facilities in the United States consisting of Grinding Media, LiteSteelTM Technologies, Recycling and a ferrous shredder in Tampa, Florida.

During the year of FY2011, OneSteel acquired and integrated the Moly-Cop Group mining consumables businesses in the Americas.  This represented another significant milestone in OneSteel’s long-term growth strategy and transformation.  The acquisition positions OneSteel as a global player in grinding media with participation in some of the world’s largest and most attractive mining consumables markets, as well as providing OneSteel with a solid platform for further growth in mining consumables.

Following completion of the acquisition at the end of 2010, OneSteel established a new Mining Consumables segment.  This segment also performed well delivering EBIT of A$65 million for the year.

In total, OneSteel services more than 30,000 customers, offers more than 40,000 products globally and employs over 11,590 people.

OneSteel manufactures and distributes structural, rail, rod, merchant bar, cold finished bar, chrome plated bar, reinforcing, wire, tube, pipes, fittings, valves and actuation, rail wheels and axles, steel beam, grinding media and recycled metals.  The majority of OneSteel’s products are used in the construction, manufacturing, housing, mining and agricultural industries.

OneSteel is an integrated, global manufacturer and distributor of steel and finished steel products.  It is self sufficient in iron ore and has the ability to be self sufficient in scrap metal, providing significant flexibility to the integrated model that ranges from the mining, collection and supply of steel making raw materials through to steel production, manufacturing and distribution in Australia and overseas.  OneSteel also makes external sales of hematite iron ore and scrap metal.

OneSteel’s business segments include:-

·         Iron Ore — Mining and sales of iron ore and by products

·         Recycling — Collection and sales of ferrous and non-ferrous metals for internal use and external sales

·         Manufacturing — Manufacturing and value add steel products

·         Australian Distribution and New Zealand Distribution

OneSteel’s Recycling business supplies steelmaking raw materials to domestic and international steel mills.  The Recycling business operates in 15 countries through a combination of physical operations in the form of collection sites and trading offices that supply raw materials to foundries, smelters and steel mills in Australia and globally.

Within Australia, the Recycling business now operates from over 36 locations, including five ferrous shredder production facilities.  OneSteel’s Asian non-ferrous business operates in four countries and carries out the Group’s non-ferrous trading.  Recycling operations in the United States consist of nine locations throughout the East and South East, including a ferrous shredder in Tampa, Florida.

OneSteel’s recyclable material is sourced from the rural, mining, demolition and manufacturing industries and the general public.  The Recycling segment also sells raw materials to OneSteel’s Manufacturing segment.  All sales between OneSteel’s Recycling and Manufacturing businesses are conducted on commercial terms equivalent to those negotiated with external parties.

For the year ended 30th June, 2011, the sales of the OneSteel Group amounted to A$7,133.0 million, increased by 15.0% as compared with that of A$6,204.6 million in FY 2010; net profit after tax was A$230.3 million, decreased by 10.9% as compared with that of A$258.4 million in FY 2010.

Operationally, the resources focused Iron Ore and Mining Consumables segments performed well in the 2011 financial year, underpinned by continued strong mining activity.  Its Iron Ore segment was again the standout performer for the year, delivering revenue of A948 million and EBIT of A$524 million.

For the half year ended 11th December, 2011, the sales of the OneSteel Group amounted to A$3,716.3 million, increased by 14.7% as compared with that of A$3,239.5 million in the half year ended 10th December, 2010; net loss was A$73.6 million, as compared with a profit of A$116.2 million in the same period of previous year.

The subject is fully supported by OneSteel.

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

 


REMARKS

 

            Brief personal profile of the principal director:-

Mr. Gregory Allan WATERS, BBus (Mktg), (Chief Executive – Recycling), aged 50, joined OneSteel in October 2008 from BlueScope Steel where he held a number of Senior roles including President Western Port Works and President – Greater China.  Prior to this, he has held General Management roles for BHP and Brambles in Land and Sea Transport and Logistics located in Australia, Southeast Asia and the United States.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.76

UK Pound

1

Rs.86.80

Euro

1

Rs.67.43

 

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.