MIRA INFORM REPORT

 

 

Report Date :

05.02.2013

 

IDENTIFICATION DETAILS

 

Name :

C. G. S. (HONG  KONG) CO. LTD.

 

 

Registered Office :

Unit 01A, 15/F., Low Block, Grand Millennium Plaza, 181 Queen’s Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

16.08.2004

 

 

Com. Reg. No.:

34831562

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of Steel, strips, sheets, iron ore, etc

 

 

No. of Employees :

10

 

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'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

 

C. G. S.  (HONG KONG) CO. LTD.

 

 

ADDRESS

 

Unit 01A, 15/F., Low Block, Grand Millennium Plaza, 181 Queen’s Road Central, Hong Kong.

 

PHONE:            2511 1698,  2167 8621

 

FAX:                 2511 1813

 

 

MANAGEMENT

 

Managing Director:  Mr. Xu Jianyu

 

 

SUMMARY

 

Incorporated on:            16th August, 2004.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$2,000,000.00

            Issued:             HK$2,000,000.00

 

Business Category:       Importer, Exporter and Wholesaler.

 

HSTC Group Turnover:  RMB4,547,818,300.02 Yuan

(Year ended 31-12-2011)

 

Employees:                  10.

 

Main Dealing Banker:     United Overseas Bank Ltd., Hong Kong Branch.

 

Banking Relation:          Satisfactory.


Company name

 

C. G. S. (HONG  KONG) CO. LTD.

 

 

ADDRESS

 

Registered Head Office:-

Unit 01A, 15/F., Low Block, Grand Millennium Plaza, 181 Queen’s Road Central, Hong Kong.

 

Holding Company:-

Hangzhou Cogeneration (Hong Kong) Co. Ltd., Hong Kong.  (Same address)

 

Intermediate Holding Company:-

Hangzhou Cogeneration Import & Export Co. Ltd. [HCIEC], China.

 

Penultimate Holding Company:

Hangzhou Steam Turbine Co. Ltd. [HSTC], China.

 

Ultimate Holding Company:-

Hangzhou Steam Turbine Power Group Co. Ltd., China.

 

Associated/Affiliated Companies:-

HSTC Group of Companies

Beijing Shengxin Cogeneration Steel Co. Ltd., China.

Brazil Cogeneration Steel Trading Co. Ltd., Brazil.

Guizhou Zhongcheng Concrete Co. Ltd., China.

Hangzhou Bohai Iron & Steel Co. Ltd., China.

Hangzhou Chinen Steam Turbine Power Co. Ltd., China.

Hangzhou Dongfeng Shipbuilding Co. Ltd., China.

Hangzhou Energy-Saving Technologies & Design Institute Ltd., China.

Hangzhou Guoneng Steam Turbine Engineering Co. Ltd., China.

Hangzhou Hangfa Electrical Equipment Co. Ltd., China.

Hangzhou Kaineng Forge Co. Ltd., China.

Hangzhou Nanhua Wood Packing Co. Ltd., China.

Hangzhou Pangtong Electronic Equipment Co. Ltd., China.

Hangzhou Steam Turbine Auxiliary Machine Co. Ltd., China.

Hangzhou Steam Turbine Casting Co. Ltd., China.

Hangzhou Steam Turbine Environmental Engineering Co. Ltd., China.

Hangzhou Steam Turbine Group Equipment System Engineering Co. Ltd., China.

Hangzhou Steam Turbine Machinery & Equipment Co. Ltd., China.

Hangzhou Steam Turbine Power Group Packaged Project Engineering Co. Ltd., China.

Hangzhou Steam Turbine Power Sales Co. Ltd., China.

Hangzhou Tongneng Turbine Machinery Co. Ltd., China.

Hangzhou Zhongneng Steam Turbine Power Co. Ltd., China.

Jiangsu Hanglian Goods & Material Co. Ltd., China.

Ningbo Relian Iron & Steel Co. Ltd., China.

Shanghai Cogeneration Steel Trading Co. Ltd., China.

Singapore Cogeneration Steel Trading Co. Ltd., Singapore.

Suzhou Jushengtong Cogeneration Import & Export Co. Ltd., China.

Tangshan Cogeneration Steel Trading Co. Ltd., China.

Tianjin Relian Coated Steel Co. Ltd., China.

Zhangjiagang Bonede Area Relian Iron & Steel Co. Ltd., China.

Zhejiang Hanglian Iron & Steel Co. Ltd., China.

Zhejiang Huayuan Steam Turbine Machinery Co. Ltd., China.

Zhejiang Steam Turbine Packaged Technology Development Co. Ltd., China.

Zhejiang Turbine Import & Export Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

34831562

 

 

COMPANY FILE NUMBER

 

0917124

 

 

MANAGEMENT

 

Managing Director:  Mr. Xu Jianyu

Contact Person:  Ms. S. T. Chu

 

 

CAPITAL

 

Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$2,000,000.00

 

 

SHAREHOLDER  

 

(As per registry dated 16-08-2012)

Name

 

No. of shares

Hangzhou Cogeneration (Hong Kong) Co. Ltd., Hong Kong.

 

2,000,000

=======

 

 

 

DIRECTORS

 

(As per registry dated 30-08-2012)

Name

(Nationality)

 

Address

Xu Jian Yu

Room 401, No. 62, Block 15, Xiahuinancun, Shangchengqu, Hangzhou City, China.

 

LU Yong Hong

Room 206, Unit 10, Block 5, Weiyuanlong, Gongshu District, Hangzhou City, China.

 

Yuan Wen Jiong

Room 401, 2 Lianxinglidonghang, Dahuajiedao, Shantou City, Guangdong Province, China.

 

 

SECRETARY

 

(As per registry dated 16-08-2012)

Name

Address

Co. No.

Sky Well Consultants Ltd.

Unit B, 17/F., Success Commercial Building, 245251 Hennessy Road, Wanchai, Hong Kong.

0612124

 

 

HISTORY

 

The subject was incorporated on 16th August, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject was located at Room 6509, 65/F., The Center, 99 Queen’s Road Central, Hong Kong, moved to Unit 13, 19/F., COSCO Tower, Grand Millennium Plaza, 183 Queen’s Road Central, Hong Kong in December 2007; and further to the present address with effect from 1st September, 2010.

 

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           Steel, strips, sheets, iron ore, etc.

 

Employees:                  10.

 

Commodities Imported: India, other Asian countries, Europe, Americas, etc.

 

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

 

HSTC Group Turnover:

RMB3,319,171,377.40 Yuan  (Year ended 31-12-2008)

RMB3,586,010,243.78 Yuan  (Year ended 31-12-2009)

RMB4,276,205,308.54 Yuan  (Year ended 31-12-2010)

RMB4,547,818,300.02 Yuan  (Year ended 31-12-2011)

RMB3,291,713,228.11 Yuan  (9 months ended 30-09-2012)

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$2,000,000.00

 

Mortgage or Charge (since 2006):  (See attachment)

 

HSTC Group Net Profit Attributable to Shareholders:-

RMB573,649,026.96 Yuan  (Year ended 31-12-2008)

RMB583,517,590.81 Yuan  (Year ended 31-12-2009)

RMB680,184,677.22 Yuan  (Year ended 31-12-2010)

RMB640,387,703.33 Yuan  (Year ended 31-12-2011)

RMB509,077,227.18 Yuan  (9 months ended 30-09-2012)

 

Profit or Loss:               Business is lucrative.

 

Condition:                     Keeping in an active condition.

 

Facilities:                      Is making use of general banking facilities.

 

Payment:                      Met as agreed.

 

Commercial Morality:  Satisfactory.

 

Bankers:-                      United Overseas Bank Ltd., Hong Kong Branch.

ABN AMRO Bank N.V., Hong Kong Branch.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

 

Standing:                      Good.

 

GENERAL

 

C. G. S. (Hong Kong) Co. Ltd. is a wholly-owned subsidiary of Hangzhou Cogeneration (Hong Kong) Co. Ltd. [HCHK] which is a Hong Kong-registered firm located at the same operating address.

 

HCHK is a wholly-owned subsidiary of Hangzhou Cogeneration Import & Export Co. Ltd. [HCIEC] which is a China-based firm.  In turn, HCIEC is a subsidiary of Hangzhou Steam Turbine Co. Ltd. [HSTC] which is a listed firm in Shenzhen Special Economic Zone, China.  HSTC is 63.64%-owned by Hangzhou Steam Turbine Power Group Co. Ltd. [HSTPG], also a China-based firm.

 

The subject is an iron and steel trader.  The subject exports its commodities to Africa, Australia, Central and South America, other Asian countries, Eastern and Western Europe, etc.  Business is rather active.  The manager of the subject Ms. S. T. Chu is a Hongkongnese.

 

Since 1988, HSTPG has ranked the top three in the integrated benefit indexes in the same trade domestically.  In 2005, it was listed in the top 500 enterprises in China.  It is also a public listed company in Shenzhen B Share Market.  HSTPG is controlled by Hangzhou State-owned Assets Administrative Committee which is a government organization belongs to the Hangzhou City Government.

 

The subject is trading in iron and steel, steel strips, steel sheets, iron ore, etc.  Commodities are imported from India, other Asian countries, Europe, South America, etc.  Prime markets are China, Japan and other Asian countries.  It is also responsible for acquiring commodities for HSTPG and HSTC.

 

Founded in October 1997 and with a registered capital of RMB100 million Yuan, HCIEC is a state-owned holding company under the jurisdiction of HSTPG.  Since 1988, HSTPG has ranked the top three in the integrated benefit indexes in the same trade domestically; in 2005, it was listed in the top 500 enterprises in China.  HCIEC is trading in iron and steel raw materials, semi-finished products and finished products.  Now its main business includes three main parts: exporting, importing and domestic trading.

 

HCIEC’s steel products export business has extended to countries and areas as Korea, Taiwan, Vietnam, Thailand, the Philippines, Singapore, Indonesia, the Middle East, Australia, Europe, America etc.  The import business is HCIEC’s traditional core business.  HCIEC now keeps frequent business contacts with countries and areas around the world as Russia, Ukraine, South Africa, Turkey, India, Brazil, Europe, etc.  Especially in 2005, HCIEC opened up its import business of iron ore, mill scale, nickel ore and established stable supply channels in India, Australia, Indonesia and South America.  HCIEC also has a significant share in the domestic market, its main customers extend all over the provinces and municipalities around China as Zhejiang, Shanghai, Jiangsu, Shandong, Tianjin, Beijing, Sichuan, Guangdong, Fujian, etc.  HCIEC’s outstanding commercial reputation enables it to keep better business relationships with many steel mills, distributors, and end users.

 

In 2011, HCIEC sold 18 million ton in volume.  Its sales turnover reached RMB40,700 million Yuan and the net profit achieved was RMB604 million Yuan, which increased by 69.6% and 43.35% respectively.  Up to September 2012, HCIEC sold 13.7 million ton and sales turnover reached RMB30,413 million Yuan, which increased by 12% and 8% respectively as compared with the same period of previous year.

 

In 2004, HCIEC was conferred the title of one of the Top 100 Hangzhou Municipal Enterprises Taxpayer.  From 2004 to 2007, HCIEC had got the ‘Gold Dragon Award’ of Import and Export Trade Company by the government of Hangzhou.  In 2006, HCIEC was conferred by the government of Zhejiang Province the title as one of the ‘Top Law-abiding and Credit Import and Export Enterprises’.  In 2011 and 2012, HCIEC ranked the 4th in the top 100 steel trade enterprises and among top 500 foreign trade enterprises in China in 2012.

 

HCIEC has an outstanding competitive superiority in respect of capital strength and banking credit.  Its credit facility has reached RMB16,800 million Yuan in Industrial & Commercial Bank of China, China Construction Bank, Agricultural Bank of China, China Merchants Bank, China Ever Bright Bank, China Minsheng Bank, Shanghai Pudong Development Bank, etc.

 

The credit facility of the subject is US$1,800 million in United Overseas Bank, De Nederlandsche Bank and Communication Bank of Hong Kong Special Administrative Region.

 

HSTC is principally engaged in the design, manufacture and sale of industrial steam turbines and related auxiliaries and components.  This company offers its products under two categories: industrial steam turbines and power-generating steam turbines, which are used in the fields of petroleum, chemical industry, electricity power, metallurgy, construction material and light textile.  HSTC’s impulse turbines include condensing turbines, extraction condensing turbines and backpressure turbines, while its reaction turbines include condensing turbines, extraction condensing turbines, multi-stage backpressure turbines and extraction backpressure turbines.  It distributes its products within China’s domestic market and to overseas markets.

 

HCIEC has set up the following main departments:-

 

The directors of the subject are Mr. Xu Jianyu, Mr. Lu Yonghong and Mr. Yuan Wenjiong.  All of them are also directors of HCHK.

 

The General Manager of HCIEC is Mr. Jiang Yuanqing, Deputy General Manager is Mr. Xu Jianyu, and Executive Vice Manager is Mr. Jiang Yuanshun.

 

For the year ended 31st December, 2011, the turnover of HSTC Group amounted to RMB4,547.8 million Yuan, net profit attributable to shareholder of HSTC was RMB640.4 million Yuan.  Business was good in the year.

 

For the 9 months ended 30th September, 2012, the turnover of HSTC Group amounted to RMB3,291.7 million Yuan, grew by 3.2% as compared with RMB3,189.2 million Yuan of the same period of previous year; net profit attributable to shareholder of HSTC was RMB509.1 million Yuan, grew by 21.5% as compared with RMB419.0 million Yuan of the same period of previous year.  Business was also good.

 

The subject is fully supported by HCHK and HCIEC.

 

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

 


MORTGAGE OR CHARGE

 

(Since 2006)

 

Date

Particulars

Amount

24-01-2006

Instrument:        Assignment of Letters of Credit

Property:

All the Borrower’s rights, title, interest and benefit in and to all and any moneys now or at any time due or owing to the Borrower

Mortgagee:        United Overseas Bank Ltd., Singapore.

To secure general banking facilities

24-01-2006

Instrument:        Charge Over Account and Set-Off

Property:

All the Borrower’s rights, title and interest in and to the Account

Mortgagee:        United Overseas Bank Ltd., Singapore.

To secure general banking facilities

24-01-2006

Instrument:        General Memorandum of Pledge of Goods

Property:

All the Borrower’s rights, title and interest in and to the Merchandise

Mortgagee:        United Overseas Bank Ltd., Singapore.

To secure general banking facilities

16-03-2012

Instrument:        Trade Finance Security Assignment

Property:

The Borrower as beneficial owner and as security for the payment of all Secured Liabilities

Mortgagee:        United Overseas Bank Ltd., Singapore.

All obligations and liabilities

28-03-2012

Instrument:        Security Memorandum (First Party)

Property:

The Company hereby assigns and agrees to assign absolutely and unconditionally to the Bank all its right, title and interest in and to each Receivable as continuing security for the payment or discharge of the Secured Liabilities

Mortgagee:        ABN AMRO Bank N.V., Singapore.

All indebtedness, obligations and liabilities

26-07-2012

Instrument:        Trade Finance Security Assignment

Property:

The Borrower as beneficial owner and as security for the payment of all Secured Liabilities:
(a)        assigns to the Bank to the following assets: (i) the Export Credits; (ii) the Export Collection Bills; (iii) the Sales Contracts; (iv) the Export Invoice Receivables; (v) the Insurances; (vi) the Trade Documents; and (vii) all claims
(b)        charges to the Bank to the following assets: (i) the Goods together with their proceeds; (ii) the Pledged Goods; (iii) the Deposit; (iv) to the extent any Security Assets
(c)        pledges to the Bank the Pledged Goods and the Trade Documents

Mortgagee:        Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

All obligations and liabilities of the Borrower owed to the Bank


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.97

UK Pound

1

Rs.83.17

Euro

1

Rs.72.20

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.