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Report Date : |
29.04.2014 |
IDENTIFICATION DETAILS
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Name : |
SIMS METAL MANAGEMENT ASIA LTD. |
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Registered Office : |
Room 5501-5503, 55/F., Hopewell Centre, 183 Queen’s Road East, Wanchai |
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Country : |
Hong Kong |
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Date of Incorporation : |
17.11.1972 |
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Com. Reg. No.: |
04958631 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of stainless steel
materials |
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No. of Employees : |
16 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 has no tariffs on imported goods, and it levies excise duties on
only four commodities, whether imported or produced locally: 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, its continued reliance on foreign
trade and investment leaves it vulnerable to renewed global financial market
volatility or a slowdown in the global economy. 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 12% of total system
deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have
caused Hong Kong property prices to rise rapidly; consumer prices increased by
more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer
Economic Partnership Agreement, adopted in 2003 to forge closer ties between
Hong Kong and the mainland. The new measures, effective from January 2014,
cover services and trade facilitation, and will improve access to the
mainland's service sector for Hong Kong-based companies.
|
Source
: CIA |
SIMS METAL
MANAGEMENT ASIA LTD.
ADDRESS: Room 5501-5503, 55/F.,
Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong.
PHONE: 852-2866 2900
FAX: 852-2866 7393
Managing Director: Mr. Robert
Christian Larry
Incorporated on: 17th November, 1972.
Organization: Private
Limited Company.
Capital: Nominal: HK$1,196,040,000.00
Issued: HK$1,102,280,000.00
Business Category: Importer,
Exporter and Wholesaler.
Group Turnover: A$7,203.1 million (Year ended
30-06-2013)
Company Employees: 16.
Group Employees: 6,393.
(Year ended 30-06-2013)
Main Dealing Banker: Bank of
America N.A., Hong Kong Branch.
Banking Relation: Satisfactory.
SIMS METAL
MANAGEMENT ASIA LTD.
Registered Head
Office:-
Room 5501-5503, 55/F., Hopewell Centre, 183 Queen’s Road East, Wanchai,
Hong Kong.
Holding Company:-
Sims Metal Management Ltd., US.
Ultimate Holding
Company:-
Sims Metal Management Ltd., Australia.
[Formerly Sims Group Ltd.]
Associated/Affiliated
Companies:-
Sims Group of Companies
All Metal Recovery Cradley Heaath Ltd., UK.
All Metal Recovery Ltd., UK.
Cheque Swap Ltd., UK.
Chiho- Tiande Group Ltd., Cayman Islands.
CIM Trucking Inc., US.
Coper Metal Recycling Ltd., UK.
Deane Wood Export Ltd., UK.
Dover Barge Co., US.
Dunn Brother (1995) Ltd., UK.
Electronic Product Stewardship Australasia Pty. Ltd., Australia.
ER Coley (Cast) Ltd., UK.
ER Coley (Steel) Ltd., UK.
ErgoTrade d.o.o., Croatia.
Evans & Mondon Ltd., UK.
Gaukara Co. No. 2 Ltd., PNG.
ITL Logistics GmbH, Germany.
Life Cycle Services Ltd., UK.
LMS Energy Pty. Ltd., Australia.
Metal Dynamics Detroit LLC, US.
Metal Management Aerospace Inc., US.
Metal Management Inc., US.
Metal Management Indiana Inc., US.
Metal Management Midwest Inc., US.
Metal Management Nashville LLC, US.
Metal Management Memphis Inc., US.
Metal Management Northeast Inc., US.
Metal Management Pittsburgh Inc., US.
Metal Management Arizona L.L.C., US.
Metal Management Ohio Inc., US.
Mirec BV, The Netherlands.
Naporano Iron & Metal Inc., US.
New York Recycling Ventures Inc., US.
PNG Recycling Ltd., PNG.
Proler Southwest Corporation, US.
Recommit Ltd., UK.
Richmond Steel Recycling Ltd., Canada.
Rondout Iron & Metal Co. LLC., US.
S3 Interactive Ltd., UK.
SA Recycling LLC, US.
Sime Group Australia Holdings Ltd., Australia.
Sime Lifecycle Services GmbH, Germany.
Sims Aluminium Pty. Ltd., Australia.
Sims Cymru Ltd., UK.
Sims E - Recycling (NZ) Ltd., New Zealand.
Sims E-Recycling Pty. Ltd., Australia.
Sims FE Mottram Ltd., UK.
Sims Group Canada Holdings Ltd., Canada.
Sims Group German Holdings GmbH, Germany.
Sims Group Holding 3 Pty. Ltd., Australia.
Sims Group Holdings 1 Pty. Ltd., Australia.
Sims Group Holdings 2 Pty. Ltd., Australia.
Sims Group Mauritius Ltd., Mauritius.
Sims Group Recycling Solutions Canada Ltd., Canada.
Sims Group UK Holdings Ltd., UK.
Sims Group UK Intermediate Holdings Ltd., UK.
Sims Group UK Ltd., UK.
Sims Group UK Pension Trustees Ltd., UK.
Sims Group USA Corporation, US.
Sims Group USA Holdings Corporation, US.
Sims Industrial Pty. Ltd., Australia.
Sims Lifecycle Services BV, The Netherlands.
Sims Lifecycle Service Sp z.o.o., Poland.
Sims Lifecycle Services kft., Hungary.
Sims Lifecycle Services s.r.o., Czech Republic.
Sims M+R GmhH, Germany.
Sims Metal Management China Holdings Ltd., Hong Kong.
Sims Metal Management Dragon Holdings Ltd., Hong Kong.
Sims Metal Management USA GP, US.
Sims Metrade GmbH, Austria.
Sims Municipal Recycling of New York LLC, US.
Sims Recycling Solutions AB, Sweden.
Sims Recycling Solutions Africa Pty. Ltd., South Africa.
Sims Recycling Solutions Austrian Holding GmbH, Austria.
Sims Recycling Solutions Austrian Intermediate Holdings GmbH, Austria.
Sims Recycling Solutions Cooperatief B.A., The Netherlands.
Sims Recycling Solutions FZE, UAE.
Sims Recycling Solutions Holdings Inc., US.
Sims Recycling Solutions Inc., US.
Sims Recycling Solutions India private Ltd., India.
Sims Recycling Solutions NV, Belgium.
Sims Recycling Solutions Pte. Ltd., Singapore.
Sims Recycling Solutions SARL, France.
Sims Recycling Solutions UK Group Ltd., UK.
Sims Recycling Solutions UK Holding Ltd., UK.
Sims Recycling Solutions UK Ltd., UK.
Simsmetal East LLC, US.
Simsmetal Industries Ltd., New Zealand.
Simsmetal Properties NSW Pty. Ltd., Australia.
Simsmetal Properties Qld Pty. Ltd., Australia.
Simsmetal Services Pty Ltd., Australia.
Simsmetal West LLC, US.
Simstar Alloys Pty. Ltd., Australia.
SMM - North America Trade Corporation, US.
SMM Gulf Coast LLC, US.
SMM New England Corporation, US.
SMM South Corporation, US.
SMM Southeast LLC, US.
Trishyirays Recycling India Private Ltd., India.
United Castings Ltd., UK.
Universal Inspection & Testing Co. Pty. Ltd., Australia.
04958631
0030512
Group Chief Executive Officer:
Mr. Michael Charles Lion
Managing Director: Mr. Robert Christian Larry
Nominal Share Capital: HK$1,196,040,000.00 (Divided into 1,196,040,000
shares of HK$1.00 each)
Issued Share Capital: HK$1,102,280,000.00
(As per registry dated 17-11-2013)
|
Name |
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No. of shares |
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Sims Metal Management Ltd. 110 Fifth Avenus, 7/F., NY 10011, New York. |
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1,102,280,000 ========== |
(As per registry dated 17-11-2013)
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Name (Nationality) |
Address |
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Michael Charles LION |
24956, Malibu Road, Apt. 4, Malibu, CA 90265, USA. |
|
Robert Christian LARRY |
4046, Grove Avenue, Western Springs, IL 60558, USA. |
(As per registry dated 17-11-2013)
|
Name |
Address |
Co. No. |
|
Fair Wind Secretarial Services Ltd. |
25/F., Jardine House, 1 Connaught Place, Central, Hong Kong. |
0032181 |
The subject was incorporated on 17th November, 1972 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Cableton Ltd.,
name changed to Sims Asia Holdings Ltd. on 27th January, 1973 and further
changed to the present style on 10th March, 2009.
Formerly the subject was located at Room 5407-5408, 54/F., Hopewell
Centre, 183 Queen’s Road East, Wanchai, Hong Kong, moved to Room 5501-5503
of the same building in September 2009.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of stainless steel materials.
Company Employees: 16.
Group Employees: 6,393. (Year ended 30-06-2013)
Commodities Imported: Europe,
Asian countries
Markets: China,
Europe, US
Group Revenue from continuing operations:-
A$8,641.0 million (Year ended
30-06-2009)
A$7,458.5 million (Year ended
30-06-2010)
A$8,852.9 million (Year ended
30-06-2011)
A$9,042.3 million (Year ended
30-06-2012)
A$7,203.1 million (Year ended
30-06-2013)
Terms/Sales: L/C, T/T
Terms/Buying: L/C, D/P, O/A
Nominal Share Capital: HK$1,196,040,000.00
(Divided into 1,196,040,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,102,280,000.00
Group Profit/(Loss) Attributable to Shareholders:-
(A$150.3) million (Year ended
30-06-2009)
A$121.4 million (Year ended 30-06-2010)
A$187.3 million (Year ended 30-06-2011)
(A$622.5) million (Year ended
30-06-2012)
(A$466.1) million (Year ended
30-06-2013)
Profit or Loss: Group
suffered from great losses in 2012 & 2013.
Condition: Keeping in an active manner.
Facilities: Making active use of general banking facilities.
Payment: Met as required.
Commercial Morality: Satisfactory.
Banker: Bank of America N.A., Hong Kong Branch.
Standing: Normal.
Sims Metal Management Asia Ltd. is a wholly-owned subsidiary of Sims
Metal Management Ltd. which is a US-based firm.
The ultimate holding company of the subject Sims Metal Management Ltd.
[Sims] is also an Australia-based firm.
Sims was a listed company in the United States of which shares are
traded in New York Stock Exchange.
However, it has been delisted since October 2013.
In view of the significant costs associated with maintaining a US
listing, and the fact that the vast majority of the trading of its shares
occurs on the Australian Securities Exchange, or ASX, it voluntarily delisted
its shares from the New York Stock Exchange, or NYSE, on 11th October,
2013. Following the NYSE delisting, its
ADSs trade in the US in the “over-the-counter” (OTC) market. The OTC market is a significantly more
limited market than the NYSE which may result in reduced trading volumes of its
ADSs potentially reducing liquidity in the market for its ADSs.
Sims is an Australian domiciled corporation that is incorporated in the
State of Victoria, Australia, and operates under the Australian Corporations
Act. Its principal place of business is
located at 16 West 22nd, Street, 10th Floor, New York, NY 10010 and the
telephone number is (212) 604-0710.
It is a global, unified full-service recycling company focused on
providing efficient end-of-life solutions for obsolete, post-consumer and
post-industrial metal and electronics products.
Sims is one of the world’s largest metals recycling companies on the
basis of its market capitalization and the size and scope of its operations and
marketing capabilities. It operates a
geographically diverse metals recycling business with a network of processing
facilities, many with deep-water port access, supported by an extensive network
of feeder yards from which to source recyclable ferrous and non-ferrous metals. It has significant positions in the metals
recycling markets of Australasia, the US and the UK. It also has a strategic network of trading
offices in Asia. Through our SRS (Sims
Recycling Solutions) business, it has an e-recycling business with a global
reach and with established operations in the UK, Continental Europe, North
America, a developing presence in the Asia Pacific region, and South Africa,
India and the Middle East.
It is domiciled in Australia; however approximately 86% of its revenue is
derived from operations outside Australia, including approximately 63% derived
from our North America segment. Its
business consists of metal recycling, SRS and other smaller businesses. The metal recycling business collects and
processes ferrous and non-ferrous metals for sale to customers in domestic and
international markets. The SRS business
collects and processes post-consumer products such as televisions, radios,
computers and other electronic and electrical consumer goods. It also operates, or has interests in, other
businesses, including manufacturing and renewable energy businesses which are
small in the context of its overall business.
Sims’ metal recycling operations encompass buying, processing and
selling of ferrous and non-ferrous recycled metals. It is a geographically diverse metals
recycler with a network of processing facilities, many with deep-water port
access, supported by an extensive network of feeder yards from which it sources
recyclable ferrous and non-ferrous metals.
The Metal Recycling business has operations in six countries, but mostly
operates in the US, Australia and the UK.
It buys ferrous metal from metal dealers, peddlers (individuals that
constitute our retail trade), auto wreckers, demolition firms and others who generate
obsolete metal and from manufacturers who generate industrial metal. It process ferrous metal for resale using a
variety of methods, including sorting, shredding, cutting, torching, baling or
breaking. After processing, ferrous
recycled metal is sold to end users such as EAF mills, integrated steel mills,
foundries and brokers.
It sources non-ferrous metals from manufacturers, known as production
offcuts, and from generators of electricity, telecommunication service
providers and others who generate obsolete metal. Peddlers and metal dealers, who collect from
a variety of sources, also deliver material directly to its facilities. In addition, it generates significant quantities
of non-ferrous metal as a by-product, which is referred to as NFSR, Zorba or
mixed metals, from our ferrous shredding operations. It reports such sales as ferrous product
sales.
Sims’ export and import marketing activities are conducted through its
international businesses, being the subject, which is based in Hong Kong and
markets and brokers non-ferrous metals, and Sims Group Global Trade
Corporation, which is based in the US and markets and brokers ferrous
metals. These activities consist of
teams of traders and exclusive agents, marketing and brokering recycled ferrous
and non-ferrous metals and alternative steel making raw materials on its behalf
and third parties.
The subject and Sims Group Global Trade Corporation manage relationships
with a large percentage of its overseas client base in over 20 countries in
various regions, including Asia, Eastern Europe and South America. The international businesses also are
involved in the global trading of numerous metal-related commodities and
provide a service to its customer base through their market and product
knowledge, financial strength and expertise in shipping and banking.
SRS includes electronic product de-manufacturing and processing
operations, and commonly is referred to as e-recycling. SRS was launched with the construction of an
end-of-life refrigerator recycling plant in the UK in 2002, and its first
significant acquisition in SRS was the Mirec Group of companies in October
2004. SRS has established operations in
the UK, Continental Europe and North America and a developing presence in the
Asia-Pacific region. It currently has 42
operating facilities located in 18 countries on five continents.
For the year ended 30th June, 2013, the revenues of the Group from
continuing operations amounted to A$7,203.1 million (2012: A$9,042.3 million);
made a loss of A$466.1 million (2012: made a loss of A$622.5 million).
For the year ended 30th June, 2013, the Group had 6,393 employees.
The subject is fully supported by the Group.
On the whole, consider the subject good for normal business engagements
in small credit amounts as it made great losses in past two years.
Brief personal profile of the principal directors:-
Mr. Robert Christian LARRY (Managing Director), aged 52, is the Group
Chief Financial Officer since March 2008.
He is also an Executive Vice President and Chief Financial Officer of
Metal Management from August 1996 to March 2008, and Treasurer of Metal
Management from September 2004 to March 2008.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.50 |
|
|
1 |
Rs.101.69 |
|
Euro |
1 |
Rs.83.62 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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|
Report Prepared
by : |
NNA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.