MIRA INFORM REPORT

 

 

Report Date :

09.02.2013

 

IDENTIFICATION DETAILS

 

Name :

MARUBENI HONG KONG & SOUTH CHINA LTD.

 

 

Registered Office :

20/F., Tower I, Admiralty Centre, 18 Harcourt Road

 

 

Country :

Hong Kong

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

22.06.1974

 

 

Com. Reg. No.:

04970964

 

 

Legal Form :

Public & Non-Listed Company

 

 

Line of Business :

General Importers, Exporters, Distributors and Agent of General merchandise specializing in textiles, cotton & rayon yarn and fibre raw materials for non-ferrous & ferrous metals, walkie-talkies, colour TVs, medical equipment, production line equipment, semiconductor equipment, foodstuff, fertilizer and sundry goods.

 

 

No. of Employees :

140.  (Including 30 Japanese staff)

 

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 :

Regular

 

 

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

 

MARUBENI HONG KONG & SOUTH CHINA LTD.

 

 

ADDRESS

 

20/F., Tower I, Admiralty Centre, 18 Harcourt Road, Hong Kong.

 

PHONE:            2861 2922

 

FAX:                 2865 6486

 

 

MANAGEMENT

 

Managing Director:  Mr. Hironobu Mizuno

 

 

SUMMARY

 

Incorporated on:             22nd June, 1974.

 

Organization:                 Public & Non-Listed Company.

 

Capital: Nominal:           HK$204,340,856.00

            Issued:              HK$204,340,856.00

 

Business Category:        General Merchant.

 

Annual Revenue:            US$553,585,516  (Year ended 31-12-2011)

 

Employees:                   140.  (Including 30 Japanese staff)

 

Main Dealing Banker:     Mizuho Corporate Bank Ltd., Hong Kong Branch.

 

Banking Relation:           Excellent.


Company name

 

MARUBENI HONG KONG & SOUTH CHINA LTD.

 

 

ADDRESS

 

Registered Head Office:-

20/F., Tower I, Admiralty Centre, 18 Harcourt Road, Hong Kong.

 

China Offices:-

Beijing, Shanghai, Guangzhou, Dalian, Tsingtao, Tianjin, Nanjing, Fuzhou, Xiamen, Shenyang, Haikou, Chongqing & Shenzhen.

 

Parent Company:-

Marubeni Corporation, Japan.

 

Subsidiary:-

Shoes Maru Ltd., Hong Kong.  (75% owned)  [Trading in shoes]

 

Associated Companies:-

Argo Marine Shipping S.A., Panama.

Kenova Ltd., Hong Kong.

Marnix Insurance Agency Ltd., Hong Kong.

Marubeni Chikusan Corporation, Japan.

Marubeni Footwear Resources Ltd., Hong Kong.

Marubeni Guangzhou Co. Ltd., China.

Marubeni International Commodities (Singapore) Pte. Ltd., Singapore.

Marubeni International Petroleum Co. Ltd., Hong Kong.

Marubeni Intex Co. Ltd., Japan.

Marubeni Nisshin Feed Co. Ltd., Japan.

Marubeni Textile Development Co. Ltd., Hong Kong.

Passport Fashion Co. Ltd., Hong Kong.

Polyglory (Hong Kong) Ltd., Hong Kong.

United Fashion Co. Ltd., China.

West Pacific Salt Ltd., Hong Kong.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

04970964

 

 

COMPANY FILE NUMBER 

 

0039039

 

MANAGEMENT

 

Managing Director:  Mr. Hironobu Mizuno

 

 

CAPITAL

 

Nominal Share Capital: HK$240,340,856.00 (Divided into 240,340,856 shares of HK$1.00 each)

 

Issued Share Capital: HK$240,340,856.00

 

 

SHAREHOLDER  

 

(As per registry dated 25-06-2012)

            Name

 

No. of shares

Marubeni Corporation

4-2, 1-chome, Ohtemachi, Chiyoda-ku, Tokyo, Japan.

 

204,340,856

=========

 

 

DIRECTORS  

 

(As per registry dated 25-06-2012)

Name

(Nationality)

 

Address

Hirotaka YONEDA

Apartment 1977, Tower 14, Hong Kong Parkview, 88 Tai Tam Reservoir Road, Hong Kong.

 

Chihiro SHIKAMA

Unit 2701, West Tower, Beijing Kerry Residence, 1 Guang Hua Road, Chao Yang District, Beijing, China.

 

Hironobu MIZUNO

Suite 1906, 19/F., Garden East, 222 Queen’s Road East, Wanchai, Hong Kong.

 

Shigeto TORIYAMA

Suite 2806, 28/F., Convention Plaza, Apartments, 1 Harbour Road, Wanchai, Hong Kong.

 

Akio MURATA

3604, CITIC Plaza Apartments II, 233 Tian He Road North, Tianhe, Guangzhou, China.

 

 

SECRETARY

 

(As per registry dated 25-06-2012)

            Name

Address

Co. No.

Deodand (Nominees) Ltd.

Room 701, 7/F., World-Wide House, 19 Des Voeux Road Central, Hong Kong.

0016756

 

 

HISTORY

 

The subject was firstly registered in Hong Kong on 15th March, 1955 as a Hong Kong branch office with head office in Japan.  Incorporated on 22nd June, 1974 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Marubeni Hong Kong Ltd., name changed to the present style on 2nd April, 2001.

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

 

 

OPERATIONS

 

Activities:                      General Importers, Exporters, Distributors and Agent.

 

Lines:                           General merchandise specializing in textiles, cotton & rayon yarn and fibre raw materials for non-ferrous & ferrous metals, walkie-talkies, colour TVs, medical equipment, production line equipment, semiconductor equipment, foodstuff, fertilizer and sundry goods.

 

Office Space:                 20,318 sq.ft. - self-owned.

 

Employees:                   140.  (Including 30 Japanese staff)

 

Commodities Imported:-

Paper - Japan and South Korea.

Copy machine, cable, wheat flour, steel sheet and synthetic rubber - Japan.

Plastic resin - Japan and U.S.A.

Textile fabric and yarn - Japan, South Korea, Pakistan and Taiwan.

Shoes - Italy.

White cement - Indonesia.

 

Markets:                       Hong Kong, China, Europe, U.S.A., etc.

 

Annual Revenue:            US$520,427,590  (Year ended 31-12-2010)

US$553,585,516  (Year ended 31-12-2011)

 

Terms/Sales:                 Vrious terms.

 

Terms/Buying:               As per contracted.

 

GOVERNMENT CONTRACTS AWARDED SINCE 1990:

 

Date

GN No.

Particulars

Amount

Under the name of “Marubeni Corporation”

25-05-1990

GN1912

Supply of 4 Nos. of 316 Litres/Second Electrically Driven Pumpsets
Country of Origin: Japan/Germany

YEN     94,185,000

28-03-1991

GN1118

Supply of 4 Nos. of 2,580 Litres/Second Electrically Driven Pumpsets
Country of Origin: Japan

YEN     170,602,800            +
FF        3,847,100

Under the name of “Marubeni Hong Kong Ltd.”

26-08-1994

GN3237

Supply of Spares for Kubota 2800 L/S Pump
Country of Origin: Japan

HK$      998,012

28-10-1994

GN4093

Supply of Spare Parts for Kubota Main Pumps
Country of Origin: Japan

HK$      675,225

MEMBERSHIP:             The Hong Kong General Chamber of Commerce, Hong Kong.

The Hong Kong Japanese Chamber of Commerce & Industry, Hong Kong.

The Hongkong Japanese Club, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$240,340,856.00 (Divided into 240,340,856 shares of HK$1.00 each)

 

Issued Share Capital:     HK$240,340,856.00

 

Net Profit:                      US$5,995,644  (Year ended 31-12-2010)

US$2,629,754  (Year ended 31-12-2011)

 

Profit & Loss:                Traded at a profitable angle.

 

Condition:                      Business remains good.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Reliable.

 

Commercial Morality:     Very Good.

 

Bankers:-

Fortis Bank, Hong Kong Branch.

The Bank of Tokyo-Mitsubishi UFJ Ltd., Hong Kong Branch.

Sumitomo Mitsui Banking Corporation, Hong Kong Branch.

Wing Lung Bank Ltd., Hong Kong.

Mizuho Corporate Bank Ltd., Hong Kong Branch.

etc.

 

Standing:                      Very Good.

 

 

 

GENERAL

 

Marubeni Hong Kong & South China Ltd. is a wholly-owned subsidiary of Marubeni Corporation [Marubeni] of Japan, the 5th largest trading company in Japan with shares listed on the stock exchanges in Tokyo, Osaka, Nagoya, Dusseldorf and Frankfurt.

 

The subject although incorporated on 22nd June, 1974, it has not been in operation until 1st April, 1977 when it officially took over all the business of Marubeni Corporation, Hong Kong Branch.  It ranks as the most active Japanese companies in Hong Kong.

 

The subject is one of the overseas corporate subsidiaries of Marubeni, which is one of Japan’s largest general trading companies (Sogo Shosha).

 

The subject’s core business activity is domestic and international trading (export, import and intermediary trade), handling a wide range of products including natural resources, chemical & plastic products, foodstuffs, metals, machinery, plants, paper, general merchandise and so on.  Not only these trading business, the subject is also engaged in logistic support, direct investment and financial arrangement for trade and projects.

 

Entry to WTO, the Chinese Government has been developing the western part of China, and the 11th 5-year plan starting from 2006 may have a huge impact on and boost the speed of the change in the industrial environment.  In order to catch up with this industrial revolution, the subject, itself, is also changing and expanding its business scope in the same direction as the market does, such as IT, Bio-chemical and Environmental related field, in addition to the traditional business.

 

Through this more-than-50-year long business history, the subject has spread its wing over South-East Asian areas including Hong Kong and China.  Its service line has expanded from traditional tradings to the value added support in response to various customer needs.

 

When the Branch started its business in Hong Kong, there was only 8 staff. And now, as a result of business expansion, the subject holds her own subsidiary company (Marubeni Guangzhou Trading Co., Ltd.) and 2 liaison offices (Xiamen and Kunming), and has more than 150 staff under the direct umbrella of it.

 

The subject has successfully established the strong network among numerous business partners in various industries along these years.  It will continue to grow up together with her business partners and the regional economy.

 

For the year ended 31st December, 2011, the revenue of the subject amounted to US$553.6 million (2010: US$520.4 million); profit for the year was US$2.6 million (2010: US$6.0 million).

 

The history of the subject in Hong Kong is over 38 years.

 

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

 

 

REMARKS

 

Court case record in the past:-

Date

Plaintiff

Defendant

Cause

Amount

Sept. 1992

Bonaventure Textiles Ltd.

Marubeni Hong Kong Ltd.

Damages

US$            584,982

 

ANNEX:            Financial Information of the subject please refer to attachment.

 

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.57

UK Pound

1

Rs.84.25

Euro

1

Rs.71.78

 

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.