MIRA INFORM REPORT

 

 

Report Date :

08.01.2013

 

IDENTIFICATION DETAILS

 

Name :

SINOSTEEL INTERNATIONAL HOLDING CO. LTD.

 

 

Registered Office :

Room 2601-2608, 26/F., Great Eagle Centre, 23 Harbour Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

08.09.2005

 

 

Com. Reg. No.:

35998109

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of all kinds of iron and steel products and materials, etc.

 

 

No. of Employees :

30.

 

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 :

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

(31.03.2011)

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 and address

 

SINOSTEEL  INTERNATIONAL  HOLDING  CO.  LTD.

 

 

ADDRESS:                   Room 2601-2608, 26/F., Great Eagle Centre, 23 Harbour Road, Wanchai, Hong Kong.

 

PHONE:                        3669 9688

 

FAX:                             3669 9666

 

E-MAIL:                        hongkong@sinosteel.com

 

 

MANAGEMENT

 

Managing Director:         Mr. Chen Hua

 

 

SUMMARY

 

Incorporated on:             8th September, 2005.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000,000.00

Issued:              HK$10,000,000.00

 

Business Category:        Iron and Steel Trader.

 

Group Annual Turnover:  RMB180~200 billion Yuan

 

Employees:                   30.

 

Main Dealing Banker:     Bank of Communications Co. Ltd., Hong Kong Branch.

 

Banking Relation:           Good.


ADDRESS

 

Registered Head Office:-

Room 2601-2608, 26/F., Great Eagle Centre, 23 Harbour Road, Wanchai, Hong Kong.

 

Holding Company:-

Sinosteel Corporation Ltd., China.

 

Ultimate Holding Company:-

Sinosteel Corporation, China.

 

Subsidiaries:-

China Sinosteel (Singapore) Pte. Ltd., Singapore.

Golden Prosperity Development Ltd., Hong Kong.

Orient Joyce Investment Ltd., Hong Kong.

Provident Faith Investment Ltd., Hong Kong.

Sinosteel International (Beijing) Co. Ltd., China.

Sinosteel International Ltd., British Virgin Islands/Hong Kong.

Sinosteel International Macao Commercial Offshore Ltd., Macau.

Sinosteel International Plaza (Tianjin) Co. Ltd., China.

Sinosteel Xinyi (Yunnan) Copper Ltd., China.

 

Associated/Affiliated Companies:-

Sinosteel Group of Companies

ASA Metals Pty. Ltd., South Africa.

China Metallurgical Mining Corporation, China.

Jingjin Business Development Co. Ltd., China.

P.T. Sinosteel Indobersama, Indonesia.

P.T. Sinosteel Indonesia Mining, Indonesia.

P.T. Sinosteel Indonesia, Indonesia.

Sinosteel Anhui Co. Ltd., China.

Sinosteel Anhui Liutangfang Mining Co. Ltd., China.

Sinosteel Anhui Tianyuan Technology Co. Ltd., China.

Sinosteel Anshan Research Institute of Thermo-Energy Co. Ltd., China.

Sinosteel Assets Administration Co. Ltd., China.

Sinosteel Australia Mining Pty. Ltd., Australia.

Sinosteel Australia Pty. Ltd., Australia.

Sinosteel Binhai Industry Co. Ltd., China.

Sinosteel Brasil Metallurgical Trading Ltd., Brazil.

Sinosteel CAM SA, Republique du Cameroun.

Sinosteel Chifeng Jinxin Mining Co. Ltd., China.

Sinosteel Engineering Design & Research Institute Co. Ltd., China.

Sinosteel Equipment & Engineering Co. Ltd., China.

Sinosteel Ever Glory Co. Ltd., Hong Kong.

Sinosteel Fragrant Technical Training Center, China.

Sinosteel Futures Co. Ltd., China.

Sinosteel Gabon Co. Ltd., South Africa.

Sinosteel Germany GmbH, Germany.

Sinosteel Guangdong Co. Ltd., China.

Sinosteel Hengyang Machinery Co. Ltd., China.

Sinosteel Hunan Co. Ltd., China.

Sinosteel Hunan Fenghuang Mining Co. Ltd., China.

Sinosteel India Private Ltd., India.

Sinosteel Investment Co. Ltd., China.

Sinosteel Iron & Steel Co. Ltd., China.

Sinosteel Jilin Carbon Co. Ltd., China.

Sinosteel Jilin Electro-Mechanical Equipment Co. Ltd., China.

Sinosteel Jilin Ferroalloy Co. Ltd., China.

Sinosteel Jinxin Consultation Co. Ltd., China.

Sinosteel Kampuchea Co. Ltd., Cambodia.

Sinosteel Liaoning Co. Ltd., China.

Sinosteel Luoyang Institute of Refractories Research Co. Ltd., China.

Sinosteel Maanshan Institute of Mining Research Co. Ltd., China.

Sinosteel Mining Co. Ltd., China.

Sinosteel Northern Metal Resources Co. Ltd., China.

Sinosteel Ocean Investment Co. Ltd., Australia.

Sinosteel Philippines Co. Ltd. Inc., Philippines.

Sinosteel Property Management Co. Ltd., China.

Sinosteel Qinghai Ferroalloy Co. Ltd., China.

Sinosteel Raw Materials Co. Ltd., China.

Sinosteel Refractory Co. Ltd., China.

Sinosteel Scie-Tech Development Co., China.

Sinosteel Shandong Fuquan Mining Development Co. Ltd., China.

Sinosteel Shandong Mining Co. Ltd., China.

Sinosteel Shanghai Advanced Graphite Material Co. Ltd., China.

Sinosteel Shanghai Co. Ltd., China.

Sinosteel Shanxi Co. Ltd., China.

Sinosteel Shenyang Co. Ltd., China.

Sinosteel Shenzhen Co. Ltd., China.

Sinosteel Shipping & Forwarding Co. Ltd., China.

Sinosteel Sichuan Carbon Co. Ltd., China.

Sinosteel Sichuan Co. Ltd., China.

Sinosteel South Africa Pty. Ltd., South Africa.

Sinosteel Tendering Co. Ltd., China.

Sinosteel Tiancheng Environmental Protection Science & Technology Co. Ltd., China.

Sinosteel Tianjin Co. Ltd., China.

Sinosteel Tianjin Geological Academy Co. Ltd., China.

Sinosteel Trading Co. Ltd., China.

Sinosteel Uranium SA Pty. Ltd., Australia.

Sinosteel Wuhan Safety & Environmental Protection Research Institute Co. Ltd., China.

Sinosteel Xi’an Heavy Machinery Co. Ltd., China.

Sinosteel Xingtai Machinery & Mill Roll Co. Ltd., China.

Sinosteel Xinjiang Co. Ltd., China.

Sinosteel Yantai Steel Grating Co. Ltd., China.

Sinosteel Zhejiang Co. Ltd., China.

Sinosteel Zhengzhou Research Institute of Steel Wire & Steel Wire Products Co. Ltd., China.

Sinosteel Zimbabwe Ltd., Zimbabwe.

Tubatse Chrome Minerals Pty. Ltd., South Africa.

Vietnam-China Metal Form Co. Ltd., Vietnam.

Zimasco Consolidated Enterprises Ltd., Zimbabwe.

etc.

BUSINESS REGISTRATION NUMBER

 

35998109

 

 

COMPANY FILE NUMBER

 

0994622

 

 

MANAGEMENT

 

Managing Director:  Mr. Chen Hua

 

 

CAPITAL

 

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

 

Issued Share Capital: HK$10,000,000.00

 

 

SHAREHOLDER

(As per registry dated 08-09-2012)

 

Name

 

No. of shares

Sinosteel Corporation Ltd.

19/F., Building A, 8 Haidian Street, Haidian District, Beijing, China.

 

10,000,000

========

 

 

DIRECTORS

(As per registry dated 08-09-2012)

 

Name

(Nationality)

 

Address

JIA Baojun

8 Haidian Street, Beijing, China.

 

LI Yi

8 Haidian Street, Beijing,, China.

 

LIU Andong

304, South Door, Building A3, Sanlihedong Road, West District, Beijing, China.

 

LIU Zengtian

Room 307, 308 Building 9, 55 An De Street, Dong Cheng District, Beijing, China.

 

CHEN Hua

Flat 3501D, Block D, Fortress Metro Tower, 238 King’s Road, North Point, Hong Kong.

 

 

SECRETARY

(As per registry dated 08-09-2012)

 

Name

Address

Co. No.

Fu Tang Secretarial Services Ltd.

16/F., Kailey Tower, 16 Stanley Street, Central, Hong Kong.

0327024

 

 

HISTORY

 

The subject was incorporated on 8th September, 2005 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:                      Importer and Exporter.

 

Lines:                           All kinds of iron and steel products and materials, etc.

 

Employees:                   30.

 

Commodities Imported:   Europe, Russia, South America, etc.

 

Markets:                       China, Europe, Russia, other Asian countries, Central & South America, etc.

 

Annual Turnover:            RMB180~200 billion Yuan

 

Terms/Sales:                  As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

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

 

Issued Share Capital:     HK$10,000,000.00

 

Indebtedness:                HK$4,768,028,521.75  (Total amount outstanding on all mortgages and charges as per last Annual Return dated 08-09-2012)

 

Mortgage or Charge (since 2008):  (See attachment)

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in an active state.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

Bank of Communications Co. Ltd., Hong Kong Branch.

Morgan Stanley Bank International (China) Ltd., China.

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

BNP Paribas, Hong Kong Branch.

 

Standing:                      Very Good.

 

 

GENERAL

 

Sinosteel International Holding Co. Ltd. is a wholly-owned subsidiary of Sinosteel Corporation Ltd. which is a Beijing-based firm.  Sinosteel Corporation Ltd. belongs to the Sinosteel Corporation [Sinosteel].

The subject is trading in iron and steel products for building and construction. 

The followings are the core business of the subject:-

1.       To participate in the core business and product of Sinosteel for internationalised operation;

2.       To optimised overseas assets and operating structure;

3.       To participate in overseas resources exploiting and domestic and overseas investment project of Sinosteel;

4.       To develop capital operation fully utilizing integral assets and resources of Sinosteel;

5.       To exploit the third national business;

6.       To manage business and capital operation of overseas organs of Sinosteel.

Sinosteel is a central enterprise under the administration of the State-Owned Assets Supervision and Administration Commission of the PRC.  There are 86 subsidiaries under the jurisdiction of Sinosteel, among which 63 are in China and 23 abroad.  In 2009, the core businesses revenue of Sinosteel reached RMB164 billion Yuan, ranking the 352nd of the World Top 500 according to the 2010 Fortune’s list.

Sinosteel is mainly engaged in developing and processing of metallurgical mineral resources, trading in metallurgical raw materials and products and offering clients with related engineering technical services and equipment.  It is a large multi-national enterprise with core businesses that integrate resources development, trading and logistics, engineering project and science and technology, equipment manufacturing and engaged in specialized service, providing comprehensive auxiliary service for steel industry, especially steel mills.

Sinosteel is one of the state-owned enterprises that has been seeking for economic and technological cooperation from abroad.  It has been striving for the exploration and application of the global distribution of metallurgical mineral resources.  As early as in the 1980s, Sinosteel began to develop overseas resources, in terms of iron ore, chrome ore, manganese ore, nickel ore and uranium ore, and has established safe, stable and reliable resource supplying chain.

The followings are the main product lines of Sinosteel:-

·         Carbon Products;

·         Coking Products;

·         Electronic Magnetic Materials;

·         Equipment Manufacturing;

·         Ferro-alloy;

·         Ferrous Metal Minerals;

·         Non-Ferrous Metals;

·         Non-Metal Minerals;

·         Refractory; &

·         Steel/Finished Steel Products.

Sinosteel possesses global-running sales network and logistics service system.  It is the raw material supplier and sales-agent for major Chinese steel mills, many of which Sinosteel has entered into long-term strategic partnership.  Its trading transactions in iron ore, chrome ore, DRI, fluorspar, coke, manganese ore, scrap, steel products, manganese and rare earth are in the leading position in China, which generate important influence in steel industry.

The scientific and technological companies under Sinosteel have solid research foundation and strength in the fields of geological exploration, beneficiation, heat engineering, environmental protection, refractory materials, metal products and engineering design, etc.  Boasting several stand-alone intellectual property rights, they accommodate 10 state-level research centres and are qualified to carry out master and doctor education.  As a result of industrialization of research findings, dozens of production lines have been established with products prevailing in domestic and international markets.

Sinosteel is qualified to undertake project engineering and purchase, construction and auxiliary supply.  As the agent for many Chinese and international equipment and technology suppliers, Sinosteel provides financing and bidding services for big Chinese steel mills on technique modification and project importation.  Sinosteel consultancy is the only metallurgical company in China that is given exclusive investment evaluation entrusted by the National Development and Reform Commission.

Sinosteel also has established internationally heavy metallurgical machinery manufacturing base that integrates heavy machinery research and development, core products manufacturing and general and sub-project bidding, and the largest domestic manufacturing and researching and developing bases in refractory, carbon, ferroalloy with the highest comprehensive strengths.  Via improving the supporting role of its industrial enterprises, Sinosteel unceasingly promotes capabilities at providing comprehensive auxiliary services to steel industry, especially steel mills in China.

After many years of development, Sinosteel keeps on expanding.

The business of Sinosteel was good in the past years.  With the favourable market environment, the business of overseas resources development, iron ore, steel products, project contracts, equipment manufacturing, new materials, etc. in Sinosteel run well.

Sinosteel is preparing to be listed in China.  The IPO of Sinosteel Corporation Ltd. is proceeding.  It has already passed the environmental inspection while the other preparation proceeds orderly.

The subject is fully supported by Sinosteel.  Most of the directors of the subject are also the directors of Sinosteel.  For instance, the director of the subject Jia Baojun is also the President of Sinosteel.

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

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

 


MORTGAGE OR CHARGE

(Since 2008)

 

Date

Particulars

Amount

01-09-2008

Instrument:        Deed of Indemnity, Charge Over Deposit 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. 02753220078754 and 02753293100491) and all interest from time to time payable thereon and together with all title deeds and documents relating thereto

Mortgagee:        Bank of Communications Co. Ltd., Hong Kong Branch.

All actions, suits, proceedings, claims, demands, losses, damages, costs, fees, expenses and/or liabilities

23-12-2009

Instrument:        An Assignment of Shareholder Loans

Property:

a)         All the security created under the Deed

b)         If the rights of an Assignor under a document cannot be secured without the consent of a party to that document

c)         The Security Agent holds the benefit of the Deed on trust for the Finance Parties

Mortgagee:        Morgan Stanley Bank International (China) Ltd., China.

All present and future obligations and liabilities

23-12-2009

Instrument:        A Share Mortgage

Property:

3,455/100,000th parts or shares of and in Inland Lot No. 8392 (Entire 26/F. of Great Eagle Centre, 23 Harbour Road, Wanchai, Hong Kong.)

Mortgagee:        Morgan Stanley Bank International (China) Ltd., China.

All present and future obligations and liabilities

16-04-2010

Instrument:        Trade Finance Security Assignment

Property:

The Borrower as beneficial owner and as security for the payment of all Secured Liabilities: (a) assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower; (b) charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower; and (c) pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents

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

All obligations and liabilities

16-07-2010

Instrument:        Transfer of Security executed by Fortis Bank [Transferor], BNP Paribas [Transferee] and the Chargor [Transfer]

Property:

The Transferor as chargee assigns and transfers to the Transferee all the right, title, benefit, power and interest of the Transferor of and in the Assets and the Security and all appurtenances thereto

Mortgagee:        BNP Paribas, Hong Kong Branch.

(i) the Secured Debt and (ii) the payment by the Transferee to the Transferor of any amount

25-07-2011

Instrument:        Deed of Charge

Property:

All moneys & liabilities whatsoever which now are or at any time hereafter may be due, owing or payable, in any currency, to the Bank by the Company, actually or contingently, solely or jointly and severally with another or other, as principal or surety, for any reason & on any account, with reference to any bill, note or other security, in connection with any advance, loan, credit, guarantee or indemnity made or issued to or at request of the Company

Mortgagee:        Banque Paribas, Hong Kong Branch.  [Renamed to Paribas but merged into BNP Paribas]

To secure all present & future indebtedness, obligations and liabilities

25-07-2011

Instrument:        Pledge & Master Trust Receipt

Property:

As beneficial owner & as a continuing security for the payment or discharge in full of the Secured liabilities, hereby pledges & agrees to pledge to the Bank all of its right, title & interest in and to the Pledged Assets from time to time

Mortgagee:        Banque Paribas, Hong Kong Branch.  [Renamed to Paribas but merged into BNP Paribas]

Secured liabilities means all present and future indebtedness, obligations & liabilities of the Company

17-01-2012

Instrument:        General Agreement for Banking Facilities

Property:

(A)        Charges to the Lender, by way of first fixed charge:-

1)         All the right, title & interest of the Company whatsoever, present & future

2)         All dividends payable & other distributions made in relation to any of the Securities

(B)        Assigns, and agrees to assign absolutely to the Lender all its right, both present & future, relating to any of the Securities including, without limitation:-

1)         its rights against any relevant clearing system, including right relating to or against any depositary, custodian, nominee, clearing house or system, investment manager or similar person with whom any of the Securities may be deposited to the extent of those Securities;

2)         right it may have against any person to require delivery to it of any of the Securities;

3)         Its rights to give instructions relating to any of the Securities, and

4)         All claims for damages and rights to receive moneys due or to become due for any reason whatsoever in respect of any of the Securities

Mortgagee:        China Development Bank Corporation, Hong Kong Branch.

All moneys, obligations & liabilities which are now or at any time after the date of the Agreement become due, owing incurred and payable by the Company to the Lender anywhere


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.98

UK Pound

1

Rs.88.11

Euro

1

Rs.71.67

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.