MIRA INFORM REPORT

 

 

Report Date :

20.03.2013

 

IDENTIFICATION DETAILS

 

Name :

YEE  LEE  INDUSTRIAL  CHEMICAL  LTD.

 

 

Registered Office :

Room 1706, 17/F., Yardley Commercial Building, 1-6 Connaught Road West, Sheung Wan

 

 

Country :

Hong Kong

 

 

Year of Incorporation :

1936

 

 

Com. Reg. No.:

00507450

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter, Wholesaler, Godown Operator, Insurance Broker and Investment. (Industrial and fine chemicals, dyestuffs, pigment and ancillary products)

 

 

No. of Employees :

108 (Group)

 

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

(31.03.2011)

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

 

YEE  LEE  INDUSTRIAL  CHEMICAL  LTD.

 

 

ADDRESS:       Room 1706, 17/F., Yardley Commercial Building, 1-6 Connaught Road West, Sheung Wan, Hong Kong.

 

PHONE:            2545 2611

 

FAX:                 2544 2498

 

E-MAIL:            info@yeelee.com

 

 

MANAGEMENT

 

Executive Director:        Mr. Lau Kam Hung, Alexander

 

 

SUMMARY

 

Establishment:                          1936.

 

Incorporated on:            2nd January, 1953.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$5,000,000.00

Issued:             HK$5,000,000.00

 

Business Category:       Chemical and industrial raw material trader.

 

Group Turnover:-            (Year ended 31-12-2011)

HK$2,784,292,000  (Whole Group)

HK$   403,763,000  (Trading Division)

 

Group Employees:        108.  (As at 30-06-2012)

 

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

Hang Seng Bank Ltd., Hong Kong.

 

Banking Relation:          Good.


ADDRESS

 

Registered Head Office:-

Room 1706, 17/F., Yardley Commercial Building, 1-6 Connaught Road West, Sheung Wan, Hong Kong.

 

Warehouse:-

LZ 2075 King Lam Street, Mui Kong Tsun, New Territories, Hong Kong.

[Tel: 2428 3220]

 

China Office:-  [Operated by Dongguan Yee Lee Trading Co. Ltd.]

No. 7, G/F., Block B, Xing Ye Hua Yuan, Chong Tou, Changan, Dongguan, Guangdong Province, China.

[Tel: (86-769) 8531 2330;  Fax: (86-769) 8553 7330]

 

China Factory:-  [Operated by Mutual Fountain Materials Factory]

Changan, Dongguan, Guangdong Province, China.

 

Immediate Holding Company:-

Yee Lee Technology Co. Ltd., British Virgin Islands/Hong Kong.

 

Intermediate Holding Company:-

Jinhui Holdings Co. Ltd., Hong Kong.

 

Ultimate Holding Company:-

Fairline Consultants Ltd., British Virgin Islands.

 

Affiliated Companies:-

Jinhui Group of Companies

ADVANCE Rich Ltd., British Virgin Islands.

Antow Profits Ltd., British Virgin Islands.

Axton Enterprises Ltd., Liberia.

CARPA Ltd., Hong Kong.

Eenfair Investment Ltd., Hong Kong.

Exalten Ltd., Hong Kong.

Fair Fait International Ltd., Hong Kong.

Fair Group International Ltd., Hong Kong.

First Lion International Ltd., Hong Kong.

Galsworthy Ltd., Liberia.

Goldbeam International Ltd., Hong Kong.

Goldbeam Shipping Inc., Liberia.

Huafeng Shipping Inc., Panama.

inkford International Ltd., Hong Kong.

Inyao Marine Inc., Panama.

Inyuan Marine Inc., Panama.

Inzhou Marine Inc., Panama.

Jin Hui Shipping Inc., British Virgin Islands.

Jinan Marine Inc., Panama.

Jinao Marine Inc., Panama.

Jinbi Marine Inc., Panama.

Jinchao Marine Inc., Panama.

Jincheng Marine Inc., Panama.

Jinfeng Marine Inc., Panama.

Jingang Marine Inc., Panama.

Jinhan Marine Inc., Panama.

Jinhong Marine Inc., Panama.

Jinhui Investments (China) Ltd., Hong Kong & China.

Jinhui Investments Ltd., British Virgin Islands.

Jinhui Marine Inc., Panama.

Jinhui MetCoke Ltd., Bermuda.

Jinhui Shipping & Transportation Ltd., Bermuda.

Jinjeng Marine Inc., Panama.

Jinji marine Inc., Panama.

Jinjun marine Inc., Panama.

Jinlang Marine Inc., Panama.

Jinli Marine Inc., Panama.

Jinmao Marine Inc., Panama.

Jinmei Marine Inc., Panama.

Jinming Marine Inc., Panama.

Jinping Marine Inc., Panama.

jinpu Marine Inc., Panama.

Jinquan Marine Inc., Panama.

Jinrong Marine Inc., Panama.

Jinrui Marine c., Panama.

Jinshun Shipping Inc., Panama.

Jinsui Marine Inc., Panama.

Jintong Marine Inc., Panama.

Jinwan marine Inc., Panama.

Jinxing Marine Inc., Panama.

Jinyang Marine Inc., Panama.

Jinyu Shipping Inc., Panama.

Jinyue Marine Inc., Panama.

Jinze Marine Inc., Panama.

Ompol Trading Ltd., Liberia.

Onder Enterprises Ltd., Liberia.

Onocosmic Ltd., Hong Kong.

Ringo Star Co. Ltd., Hong Kong.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

 00507450

 

 

COMPANY FILE NUMBER

 

0003674

 

MANAGEMENT

 

Executive Director:  Mr. Lau Kam Hung, Alexander

Director & General Manager:  Mr. Wong Hing Wai, Harry

 

 

CAPITAL

 

Nominal Share Capital: HK$5,000,000.00 (Divided into 50,000 shares of HK$100.00 each)

 

Issued Share Capital: HK$5,000,000.00

 

 

SHAREHOLDERS

(As per registry dated 02-01-2013)

 

Name

 

No. of shares

Yee Lee Technology Co. Ltd.

P.O. Box 71, Craigmuir Chambers, Road Town, Tortola, British Virgin Islands.

 

49,999

Asiawide Profits Ltd.

P.O. Box 71, Craigmuir Chambers, Road Town, Tortola, British Virgin Islands.

 

1

 

 

––––––

 

Total:

50,000

=====

 

 

DIRECTORS

(As per registry dated 02-01-2013)

 

Name

(Nationality)

 

Address

LAU Kam Hung

Flat A, 9/F., Shing Loong Court, 13 Dragon Terrace, Hong Kong.

 

WONG Hing Wai

Flat LA, 26/F., Tower 1, Le Prestige, Lohas Park, 1 Lohas Park Road, Tseung Kwan O, New Territories, Hong Kong.

 

 

SECRETARY

 

LAU Kam Hung  (As per registry dated 02-01-2013)

 


HISTORY

 

The subject was incorporated on 2nd January, 1953 as a private limited liability company under the Hong Kong Companies Ordinance to take over the activities of Yee Lee Industrial Chemical Company which was established in 1936.

Re-organized to be a member of the Jinhui Group in 1997.

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

 

 

OPERATIONS

 

Activities:          Importer, Exporter, Wholesaler, Godown Operator, Insurance Broker and Investment.

 

Lines:               Industrial and fine chemicals, dyestuffs, pigment and ancillary products.

 

Import/Agent for:-

Brand

Products

Country of Origin

BASF

Plastic raw materials

Korea

CCP

Copper clad laminates, hydrogen peroxide

Taiwan, Japan

CHANGCHUN

Printed circuit boards, adhesives

Taiwan

DENKA

Plastic raw materials

Singapore

EBCHEM

Adhesives

China

HKPC

Plastic raw materials

Hong Kong

IMC

Copper anodes, nickel sulphamate

U.S.A., Japan

INCO

Nickel anodes

Canada

LIH JEOU

Surface finishing machines

Korea

MGC

Chemical micro-etching solution

Japan

MITSUBISHI

Plastic raw materials

Japan

NS

Copper clad laminates

Korea

OMG

Nickel sulphamate, nickel anodes

Finland

TALCO

Copper anodes

U.S.A.

TOAQCSEI

Trichloroethylene

Japan

UCAR

Adhesives

Indonesia

UJIDEN

Surface finishing media

Japan

VIBRO TECH

Surface finishing machines

Taiwan

-

Alpaste (aluminium paste)

South Africa

-

Solvents

Europe, Japan, Netherlands, U.K.

 

Office Floor Space:  3,673 sq.m. in Hong Kong.

 

Group Employees:  108.  (As at 30-06-2012)

 

Commodities Imported: Imported from Japan, Taiwan, Korea, China, Singapore, Indonesia, Europe, South Africa, etc.

 

Markets:            Hong Kong and China.

 

Group Turnover:-

Period

Whole Group

Trading Division

Year ended 31-12-2007

HK$2,575,790,000

HK$264,764,000

Year ended 31-12-2008

HK$3,885,957,000

HK$179,801,000

Year ended 31-12-2009

HK$2,867,606,000

HK$142,754,000

Year ended 31-12-2010

HK$3,120,053,000

HK$403,503,000

Year ended 31-12-2011

HK$2,784,292,000

HK$403,763,000

 

Terms/Sales:  COD or 30-120 days credit.

 

Terms/Buying:  L/C, D/P, etc.

 

 

MAIN JAPANESE SUPPLIERS

 

Mitsubishi Gas Chemical Co., Japan.

Mitsui Toatsu Chemical Inc., Japan.

Nisso Shoji Co. Ltd., Tokyo, Japan.

Ohara & Co. Ltd., Tokyo, Japan.

Ryoko Chemical Co. Ltd., Tokyo, Japan.

Toryo Corporation Ltd., Japan.

Ujiden Chemical Industry Co. Ltd., Japan.

 

GOVERNMENT CONTRACTS AWARDED SINCE 1990:

Date

GN No.

Particulars

Amount

01-06-1990

GN1993

Tender for Supply of Two (2) Items of Chemicals for the Kowloon Park Swimming Pool

HK$346,422 (Jointly)

29-10-1993

GN3992

Supply of Refrigerant Gas
Country of Origin:  Japan

HK$1,045,244 (Estimated)

 

 

MEMBERSHIP

 

The Hong Kong General Chamber of Commerce, Hong Kong.

[Membership No. HKY0016]

The Industrial Chemical Merchants’ Association Ltd., Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$5,000,000.00 (Divided into 50,000 shares of HK$100.00 each)

 

Issued Share Capital:     HK$5,000,000.00

 

Alternation of Capital:-

19-02-1953

paid up

HK$   960,000.00

10-03-1953

paid up

HK$   302,000.00

17-08-1953

paid up

HK$   725,200.00

16-09-1953

paid up

HK$   180,000.00

29-11-1953

paid up

HK$   199,800.00

12-04-1954

paid up

HK$     50,000.00

07-09-1954

paid up

HK$   183,000.00

29-02-1956

paid up

HK$     40,000.00

19-07-1965

paid up

HK$   800,000.00

08-10-1976

paid up

HK$1,560,000.00

 

 

–––––––––––––––

Total:

paid up

HK$5,000,000.00

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

 

Increases of Nominal Capital:-

From

HK$3,000,000.00

to

HK$3,500,000.00

on

25-07-1963

From

HK$3,500,000.00

to

HK$5,000,000.00

on

08-10-1976

 

Group Net Profit:           HK$   671,692,000         (Year ended 31-12-2007)

HK$1,758,559,000         (Year ended 31-12-2008)

HK$1,197,275,000         (Year ended 31-12-2009)

HK$  6,76,032,000         (Year ended 31-12-2010)

HK$  4,77,689,000         (Year ended 31-12-2011)

HK$   429,185,000         (6 months ended 30-06-2011)

HK$   127,380,000         (6 months ended 30-06-2012)

 

Group Net Worth:          HK$1,601,482,000  (As at 31-12-2007)

HK$2,428,425,000  (As at 31-12-2008)

HK$3,102,443,000  (As at 31-12-2009)

HK$3,470,500,000  (As at 31-12-2010)

HK$3,734,665,000  (As at 31-12-2011)

HK$3,734,665,000  (6 months ended 30-06-2011)

HK$3,802,657,000  (6 months ended 30-06-2012)

 

Profit & Loss:               Group has been making profits since 2003.

 

Condition:                     Business is actively conducted.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Regularly met.

 

Commercial Morality:     Good.

 

Bankers:-

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

Hang Seng Bank Ltd., Hong Kong.

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

Bank of America N.A., Hong Kong Branch.

Deutsche Bank AG, Hong Kong Branch.

 

Banking:-

One source reports they have maintained an active and well conducted current account in their books since 1953.  They finance their import bills under Letter of Credit and on a collection basis to their entire satisfaction.

 

Another source informs it maintains a well conducted current account on their books since 1967.  They have financed a considerable volume of their imports with entirely satisfactory results.

 

Standing:  Very Good.

 

 

GENERAL

 

Yee Lee Industrial Chemical Ltd. [YLIC], incorporated in January 1953, is a wholly-owned subsidiary of Yee Lee Technology Co. Ltd. [Yee Lee] which is a BVI-registered firm.

YLIC was first founded in Hong Kong in 1936 by the late Chiu Kung Po.  After his death in September 1956, YLIC changed hands and owned by his widow and son.  Trading in chemicals, YLIC is one of the leaders in the line of business and enjoying good reputation.  Since its establishment, YLIC has been specialised in supplying end users with quality chemicals and industrial raw materials.  In 1997, YLIC was reorganised and shifted under the control of Yee Lee, a British Virgin Islands-registered firm with business operating in Hong Kong.  Yee Lee is engaged in the trading business in chemical and industrial raw materials.  Now, Yee Lee is 75% owned by Jinhui Holdings Co. Ltd. [Jinhui Holdings], a public listed company in Hong Kong.

Under the support of the Intermediate holding company Jinhui Holdings Co. Ltd. [JHC], YLIC has been expanding and trading in a wider range of products which are applied in different industries.  Products carried include printed circuit boards, electronics, chemicals for electroplating, surface finishing, bleaching and dyeing, coating, paper packaging, plastics producing, food processing, etc.  Main products are copper clad laminates, copper anodes, trichloroethylene, nickel sulphamate, hydrogen peroxide, nickel anodes, etc.

YLIC is also carrying the following textile chemicals: glacial acetic acid, hydrogen peroxide, perchloroethylene, potassium hydroxide, sodium hydroxide, softening agents, etc.

YLIC maintains a logistic supporting system with a lorry fleet and well‑facilitated warehouses for stocking general and dangerous goods in Hong Kong.  An office has been set up in Changan Town, Dongguan City, Guangdong Province, China to service the customers in Southern China.  The Dongguan Office also can provide clients in China with supporting services including the latest products and technology information.

YLIC is also engaged in developing new products.  It also has established its first manufacturing plant, Mutual Fountain Materials Factory, in Changan Town, Dongguan City, Guangdong Province, China.  The factory commenced business on 27th July, 2001.

JHC was incorporated on 23rd April, 1991 as a holding company of the Jinhui Group.  It has been listed on The Stock Exchange of Hong Kong Ltd., bearing the stock code 137, since 6th December, 1991.

Jinhui Group is principally engaged in ship chartering, ship owning, trading, transportation and warehousing.  It is also trading in dry bulk commodities, metallurgical coke products.  All these businesses serve as a complement to its ship chartering business.  It acquired the Yee Lee Group which is trading in chemical products in 1997.

Jinhui Group’s trading activities have been carried out by Yee Lee and its subsidiaries.  Jinhui Group’s turnover in trading usually represents the turnover of Yee Lee.

The Group’s revenue for the year of 2011 was HK$2,784,292,000, representing a decrease of 11% as compared to HK$3,120,053,000 for the year 2010.  The Group’s net profit for the year 2011 amounted to HK$477,689,000, whereas HK$676,032,000 was reported in 2010.

The Group’s revenue for the first half of 2012 was HK$1,066,674,000, representing a decline of 31% as compared to HK$1,544,617,000 for the first half of 2011.

The net profit attributable to shareholders of the group for the first half of 2012 was HK$67,992,000 whereas HK$234,328,000 was reported in the same period in 2011.

The Group operates its worldwide shipping activities through Jinhui Shipping and Transportation Limited (“Jinhui Shipping”), an approximately 54.77% owned subsidiary of the Group, whose shares are listed on the Oslo Stock Exchange, Norway.

Dry bulk shipping market was under severe challenges in the first half of 2012.  China and India, the main driving forces for global seaborne trade, showed signs of slowing down in economic growth, reflecting economic distress in western countries has cascaded into the emerging countries.  The continual delivery of new dry bulk tonnages rapidly outpaced market demand for dry bulk carriers, and caused market freight rates to drop rigorously.  The market sentiment was further weighed down by the worsening Eurozone financial crisis when Spain recently revealed its banking crisis that immediately triggered a chain reaction on the financial markets across peripheral Europe.  Given the weak macroeconomic market environment, the Baltic Dry Index opened at 1,738 points at the beginning of 2012 and collapsed to its record low at 647 points on 3 February 2012 and closed at 1,004 points by end of June 2012.

As at 30th June 2012, the Group had thirty seven owned vessels which included two modern Post-Panamaxes, two modern Panamaxes, thirty one modern grabs fitted Supramaxes, one Handymax and one Handysize.

Apart from the owned vessels, the Group operated four chartered-in vessels which included two Capesizes and two Supramaxes as at 30th June 2012.

Subsequent to the six months ended 30th June 2012, a newly built Supramax named as “Jin Xiang” was delivered to the Group on 23rd July 2012.

As at 30th June, 2012, Jinhui Group had 108 full-time employees.

The management of the Group predicts that the Group’s trading business is expected to contribute steady returns to the Group in future.

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

 

 

REMARKS

 

            Brief information of the principal director:-

Mr. LAU Kam Hung Alexander, aged 52, Joined the Group in 1994 as a director of Yee Lee Technology Company Ltd, Which is engaged in the trading business in chemical and industrial raw materials.  Mr. Lau has extensive working experience in finance and management.  He graduated in Accountancy from the Hong Kong Polytechnic (now known as The Hong Kong Polytechnic University) and is an associate member of the Hong Kong Institute of Certified Public Accountants.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.26

UK Pound

1

Rs.81.93

Euro

1

Rs.70.21

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.