MIRA INFORM REPORT

 

 

Report Date :

24.04.2013

 

IDENTIFICATION DETAILS

 

Name :

SMART  TIMING  STEEL  LTD.

 

 

Registered Office :

Room 913-914, 9/F., New East Ocean, 9 Science Museum Road, Tsimshatsui East, Kowloon

 

 

Country :

Hong Kong 

 

 

Date of Incorporation :

28.07.2004

 

 

Com. Reg. No.:

34783347

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of all kinds of steel plate/sheet such as hot rolled steel sheet, hot rolled steel sheet in coil, cold rolled steel sheet, cold rolled steel sheet in coil, etc.

 

 

No. of Employees :

12

 

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 – 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 levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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

 

SMART  TIMING  STEEL  LTD.

 

 

Company ADDRESS

 

Room 913-914, 9/F., New East Ocean, 9 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong.

PHONE:            2171 4130,  2736 2010

FAX:                 2171 4140,  8148 6972

E-MAIL:            smarttl@biznetvigator.com

trader@smarttimingsteel.com

 

 

MANAGEMENT

 

Chairman:  Mr. Wong Kam Shing

 

 

SUMMARY

 

Incorporated on:             28th July, 2004.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$200,000.00

Issued:              HK$123,500.00

 

Business Category:        Steel Trader.

 

Employees:                   12.

 

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

 

Banking Relation:           Satisfactory.


 

Company ADDRESS

 

Registered Head Office:-

Room 913-914, 9/F., New East Ocean, 9 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong.

 

China & Indonesia Offices:-

Beijing Office
Room 621, 6/F., China Minmetals Building, Building 15, Block 4, Anhuili, Chaoyang District, Beijing, China.
Zipcode:            100101
Tel:       86-10-6489 6800, 6489 6811
Fax:      86-10-6489 6805

Shanghai Office
Room 2103, Yifu Building, 1725 Huangxing Road, Shanghai, China.
Zipcode:            200433
Tel:       86-21-6123 0995, 6123 0996, 6123 0997
Fax:      86-21-6123 0993

Indonesia Office
Ariobimo Sentral, 4/F., Jalan H.R. Rasuna Said, Kav X-2 No. 5 Jakarta 12950, Indonesia.
Tel:       62-21-252 5751
Fax:      62-21-252 5755

 

Holding Company:-

Smart Timing Holdings Ltd., Hong Kong.  (Same address)

 

Associated Companies:-

Shanghai Longterm David Trading Co. Ltd., China.

Smart Timing Ltd., Hong Kong.  (Same address)

Fame Honor Development Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

34783347

 

 

COMPANY FILE NUMBER 

 

0914166

 

 

MANAGEMENT

 

·         Chairman:  Mr. Wong Kam Shing

Executive Director:  Mr. Zee Yan Man, Brian

Contact Person:  Ms. Miranda Chan Kei

 

CAPITAL

 

Nominal Share Capital: HK$200,000.00 (Divided into 200,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$123,500.00

 

 

SHAREHOLDERS

(As per registry dated 28-07-2012)

 

Name

 

No. of shares

Smart Timing Holdings Ltd., Hong Kong.

 

100,000

Pearlin Co. Ltd., Hong Kong.

 

1,500

CHAN Chi Fan

 

15,000

HUANG Qian

 

5,000

LAM Chau Mei

 

1,000

LIU Lantao

 

1,000

 

 

–––––––

 

Total:

123,500

======

 

 

DIRECTORS

(As per registry dated 28-07-2012)

 

Name

(Nationality)

 

Address

CHOI Kit Chi, Candice

Unit 913-914, 9/F., New East Ocean Centre, 9 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong.

 

ZEE Yan Man

Unit 913-914, 9/F., New East Ocean Centre, 9 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong.

 

WONG Kam Shing

Unit 913-914, 9/F., New East Ocean Centre, 9 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong.

 

 

SECRETARY

 

CHOI Kit Chi, Candice  (As per registry dated 28-07-2012)

 


HISTORY

 

The subject was incorporated on 28th July, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject was located at Room 1301-1302, 13/F., Austin Tower, 152 Austin Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in January 2011.

 

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           All kinds of steel plate/sheet such as hot rolled steel sheet, hot rolled steel sheet in coil, cold rolled steel sheet, cold rolled steel sheet in coil, etc.

 

Employees:                   12.

 

Commodities Imported:   Bought from Japan, Korea, India, Thailand, Indonesia, Brazil, Argentina, etc.

           

Markets:                       Hong Kong, China and other Asian countries.

           

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

 

Terms/Buying:               As per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$200,000.00 (Divided into 200,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$123,500.00

 

Alternation of Capital:-

Initially

paid up

HK$100,000.00

22-04-2010

paid up

HK$  15,000.00

Dec 2010

paid up

HK$     8500.00

 

 

––––––––––––––

Total:

paid up

HK$123,500.00

============

 

Increase of Nominal Capital:-

From

HK$100,000.00

to

HK$200,000.00

on

22-04-2010

 

Mortgage or Charge (Since 2012):  (See attachment)

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in a satisfactory condition.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

·         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Oversea-Chinese Banking Corporation Ltd., Hong Kong Branch.

Hang Seng Bank Ltd., Hong Kong.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

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

China Construction Bank (Asia) Corporation Ltd., Hong Kong.

 

Standing:  Good.

 

 

GENERAL

Smart Timing Steel Ltd. is a 81% subsidiary of Smart Timing Holdings Ltd. [STHL], a Hong Kong-registered firm located at the operating office of the subject.  The other 19% is jointly owned by four Hong Kong and China merchants and a Hong Kong-registered company Pearlin Co. Ltd.  The subject has increased its ordinary shares from 115,000 to 123,500.

STHL was founded in 1997 by Wong Kam Shing who is a Hong Kong merchant.

The subject has had a subsidiary company Smart Timing Ltd. [STL] which was incorporated in October 1997.  STL is engaged in the same lines of business as the subject and located at the same operating address.

The subject is engaged in selling steel to South China, mainly serving customers in Shenzhen Special Economic Zone, Dongguan and Lecong of Guangdong Province.

The main products traded are the followings:-

·         Cold rolled steel, Hot rolled steel/strip, hot rolled sheet/plate, cold rolled coil/sheet;

Pig iron, billet, bloom, slab; &

Wire rods, angles, debars, round bars, deformed bars, galvanized steel, and PPGI.

 

In 2000, the subject was appointed by “TATA Steel” as their sole agent for the South China market.

The subject’s suppliers include steel mills from Taiwan, Thailand, Indonesia, India, Russia and Latin America.  Famous suppliers are the companies such as Usiminas, CSN, AMT, Gerdau, Siderar, Essar, Bhushan, Krakatau, SUS, TCR and Yieh Group, Sysco, Shangshing, etc.

The subject’s customer base also has been growing and its geographical distribution extended across the entire Chinese coast line.  Its main customers are Cargill, Macstee, Stemcor, etc.

The subject is also exporting iron and steel from China.  In 2004 and 2005, representative offices were set up in Beijing and Shanghai respectively to represent those reputable suppliers in mainland China.  Currently, the subject is partnering directly with many Chinese mills.  It also has set up an office in Indonesia.

According to the subject, its business has been supported by several regional and global banks such as HSBC, Standard Chartered Bank, Bank of China, China Construction Bank Asia, OCBC, Hang Seng Bank, and Dah Sing Bank.

In terms of market, the subject serves more than 100 customers spreading over 20 countries.  It is continuously evolving and has become a trustworthy partner.

The following firms are the subject’s active partners:-

·         Angang Group International

Arcelormittal Brasil S.A.

Baosteel Singapore Pte. Ltd.

Baotou Steel International Economic & Trading Co. Ltd.

Benxi Iron & Steel Group

China National Building Materials & Equipment Import & Export Corporation

China National Metal & Minerals Imp. & Exp. Corporation

China Shougang International Trade & Engineering Corporation

Gerdau Acominas S.A.

Handan Zongheng Iron & Steel Group Co. Ltd.

Hebei Jingye Group

Hebei Wenfeng Group

Hsin Kuang Steel Co. Ltd.

Jiangsu Feida Panel Co. Ltd.

Jiangsu Jiangnan Industrial Group Co. Ltd.

Jiangsu Panhua Group Co. Ltd.

Jiangsu Provincial Foreign Trade Corporation

Jiangsu Shagang International Trade Co. Ltd.

Jiangxi Xingang Co. Ltd.

Jinan Steel International

Jiugang (Group) Hongtai Trade Corporation

Lien Tei Steel Enterprises Co. Ltd.

P.T. Gunung Garuda

P.T. Hanil Steel

P.T. Interworld Steel

P.T. Krakatau Steel

Rizhao Steel Holding Group Co. Ltd.

Shandong Laiwu Steel International

Shangshing Steel Industrial Co. Ltd.

Sheng Yu Steel Co. Ltd.

Shun Cheong Steel Co. Ltd.

Sinosteel Steel Co. Ltd.

South Polar Lights Steel (Shanghai) Co. Ltd.

Sun Cheung Metal Co. Ltd.

Suzhou Iron & Steel Group Co. Ltd.

Taigang Group International Trade Co. Ltd.

Tata Steel Ltd.

Tonghua Iron & Steel Group

Wugang Trading Co. Ltd.

Yieh Phui Enterprise Co. Ltd

Zhangjiagang Baofeng Steel Co.

Zhejiang Materials Industry International Co. Ltd.

Zhejiang Metals & Materials Co.

The subject’s main associated company in Shanghai is Shanghai Longterm David Trading Co. Ltd. [Longterm David] which was established in 2003.  With a registered capital of RMB1 million Yuan, Longterm David is trading in all kinds of iron and steel raw materials.

The subject’s business is chiefly handled by Wong Kam Shing.  The other CEOs of the subject are Mr. Stephen C. F. Chan and Ms. Abby Huang.  The former is the General Manager while the latter is the Chief Representative of STL, China.

In 2012, the subject traded around 500,000 metric tonnes steel, serving more than 100 customers in over 30 countries.

According to the subject, it has scored first class credit rating from HSBC, Standard Chartered Bank, Bank of China, ANZ, China Construction Bank Asia, OCBC, Hang Seng Bank, and Dah Sing Bank.

The subject’s business keeps on improving as the demand of iron and steel materials in the world is increasing.  The history of the subject in Hong Kong is over eight years.

On the whole, in view of the background and lines of business of the subject, consider it good for normal business engagements.

 

REMARKS:

 

Brief information of the principal directors:-

Mr. WONG Kam Shing (Chairman) has long been a popular figure in Hong Kong steel industry.  He inherited his father’s stockist shop at Tai Kok Tsui, Kowloon, Hong Kong in 1983.  He expanded the shop by inviting investors and formed Kenta Steel in 1992.  He widened the business spectrum of Kenta Steel and started trading in steel to South China.  He was one of the pioneers in the earlier nineties who traded directly with Chinese counter parties.  Owing to this comparative advantage, a number of international traders worked frequently with Kenta Steel during nineties.  He founded STL in end 1997 due to the withdrawal of other investors.  Though volume and size shrunk owing to the macro economic environment, he re-oriented the company in marketing industrial flat products.  In 1999, he won the acclaim of TATA Steel in recognizing his in-depth knowledge towards the flat product market.  STL became the sole sales channel of TATA Steel.

 

Mr. Brian ZEE Yan Man (Executive Director) attained a Bachelor degree from the University of Hong Kong.  He started his steel trader career in Cargill Ferrous International [CFI].  He has worked and stationed with the global team in various locations, including Singapore, Russia, Europe and the United States.  He pioneered and supervised CFI’s Beijing and Shanghai operations from 1995 onwards.  At the verge of entering to 21st Century, Mr. Zee moved to Macsteel International Far East Ltd. [MIFE] as the Head for China Desk and Asia Semis Desk.  He successfully restructured the team and contributed new ideas for the Asia operation.  Mr. Zee joined STL as a partner in 2003, taking the lead of Global expansion programme.  He established STL overseas offices and local agencies throughout Asia as well as alliance with international trader.

 

 

MORTGAGE OR CHARGE

(Since 2012)

 

Date

Particulars

Amount

20-07-2012

Instrument:      Deed of Indemnity, Charge Over Deposit(s) and Ser-Off

Property:

By way of Fixed Charge to the Bank all the Company’s estate, right, title, claim, benefit and interest to and in the Deposit (Account No. 012-1790564-2) and all interest from time to time payable thereon and together with all title deeds and documents relating thereto

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

All moneys in respect of general banking facilities of whatever nature and in whatever currency or currencies to any extent Bank of China (Hong Kong) Ltd., shall think fit granted or to be granted to Smart Timing Steel Ltd., on such terms, conditions, manner and form and for so long as the Bank may at its sole discretion think fit together with interest accrued thereon

20-07-2012

Instrument:      Deed of Indemnity, Charge Over Deposit(s) and Set-Off

Property:

By way of Fixed Charge to the Bank, all the Company’s estate, right, title, claim, benefit and interest to and in the

Deposit (Account No. 012-1790564-2) and all interest from time to time payable thereon and together with all title deeds and documents relating thereto

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

All moneys in respect of general banking facilities of whatever nature and in whatever currency or currencies to any extent Bank of China (Hong Kong) Ltd., shall think fit granted or to be granted to Smart Timing Ltd., on such terms, conditions, manner and form and for so long as the Bank may at its sole discretion think fit together with interest accrued thereon

24-07-2012

Instrument:      Security Agreement over Bank Account (All Moneys) (Third Party)

Property:

The Chargor charges by way of first fixed charge all of rights in respect of any amount standing to the credit of the Account and the debt represented by it.

Note:

1   The Chargor must not:

(a)  create or allow to subsist any Security Interest

(b)  sell, transfer, licence, lease or otherwise dispose of any Security Asset

(c)  take, or purport to take any security from the Obligor, and any security taken shall be held in trust for the Bank as security for the Chargor’s liability to the Bank under the Security Agreement

2   The Bank may, on or at any time after the security constituted by the Security Agreement becomes enforceable

Mortgagee:      Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

To secure the payment and satisfaction of all present and future obligation and liabilities granted to Smart Timing Ltd., and Fame Honor Development Ltd., and Smart Timing Steel Ltd (the Obligor)

11-09-2012

Instrument:      Security Over Deposits with the Bank (Limited Company - Under Seal)

Property:

A deposit with chargee in the amount of US$600,000 - under Deposit A/C No. 808-606446 whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any further monies in any deposit account with the chargee at any of its offices

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

All monies in any currency owing by the Company to the chargee at any time


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.30

UK Pound

1

Rs.82.88

Euro

1

Rs.70.80

 

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.