MIRA INFORM REPORT

 

 

Report Date :

03.12.2014

 

IDENTIFICATION DETAILS

 

Name :

TRAXYS FAR EAST LTD.

 

 

Registered Office :

15/F., Centre Point, 181-185 Gloucester Road, Wanchai

 

 

Country :

Hongkong

 

 

Date of Incorporation :

24.10.2001

 

 

Com. Reg. No.:

32172158

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trader of Ferrous and Non-Ferrous Metal.

 

 

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

HONGKONG - 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


Company Name and address

 

TRAXYS FAR EAST LTD.

 

ADDRESS:                   15/F., Centre Point, 181-185 Gloucester Road, Wanchai, Hong Kong.

 

PHONE:                        852-3969 1781

FAX:                             852-3969 1789,  2887 0893

E-MAIL:                        info@traxys.com

 

 

MANAGEMENT

 

Managing Director:        Ting Nang, Norman

 

 

SUMMARY

 

Incorporated on:            24th October, 2001.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$23,260,002.00

 

Business Category:       Ferrous and Non-ferrous metal trader.

 

Employees:                  10.

 

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

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

15/F., Centre Point, 181-185 Gloucester Road, Wanchai, Hong Kong.

 

Holding Company:-

Traxys S.a.r.l, Luxembourg.

 

Associated Companies:-

L’Anse Warden Electric Co. LLC., US.

Traxys (Beijing) Industrial Raw Materials Trading Ltd., China.

Traxys (Shanghai) Trading Co. Ltd., China.

Traxys Africa Pty. Ltd., South Africa.

Traxys Australia Pty. Ltd., Australia.

Traxys Brasil Ltda., Brazil.

Traxys Deutschland GmbH, Germany.

Traxys Europe SA, Luxembourg.

Traxys France, France

Traxys India, India.

Traxys Metales y Quimicos S.L.U., Spain.

Traxys Mexico SA, Mexico.

Traxys North America LLC, US.

Traxys Peru  SAC., Peru.

Traxys Projects LT, US.

Traxys Russia, Russia.

Traxys S.A., Luxembourg.

Traxys Turkey, Turkey.

Traxys U.K. Ltd., UK.

U.P. Power Marketing LLC, US.

White Pine Electric Power LLC, US.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

32172158

 

 

COMPANY FILE NUMBER

 

0773726

 

 

MANAGEMENT

 

Managing Director:  Ting Nang, Norman

 

 

ISSUED SHARE CAPITAL

 

HK$23,260,002.00

 

 

SHAREHOLDER

(As per registry dated 24-10-2014)

 

Name

Occupation

No. of shares

Traxys S.a.r.l

19-21, route d’Arlon L-8009 Strassen Grand-Duchy of Luxembourg.

Corporation

23,260,002

========

 

 

DIRECTORS

(As per registry dated 24-10-2014)

 

Name

(Nationality)

 

Address

Serge Joseph Pierre WEBER

9, rue de la Gare, L-8705 Useldange, Luxembourg.

 

Paul Georges Marie Albert ROESELER

 

114 Avenue Orban, 1150 Bruxelles, Belgium.

Jean-Dominique, Marie Yves Bernard SOREL

 

5, avenue Gaston Diderich L-1420 Luxembourg.

Daniel J MARX

303 Mercer Street, Apartment #B 602, New York, NY 10003, US.

 

TING Nang, Norman

Unit 221, Orchid Garden, 18 Xinjin Road, Chaoyang District, Beijing, Post Code 100015, China.

 

Bernard Albert Olivier Ghislain DE BUSSCHER

180B, rue de Reckenthal L-2410 Strassen, Luxembourg.

 

 

SECRETARY

(As per registry dated 24-10-2014)

 

Name

Address

Co. No.

Topfit Enterprises Ltd.

Suite 901, 9/F., Wayson Commercial House, 68-70 Lockhart Road, Wanchai, Hong Kong.

0599602

 

 

HISTORY

 

The subject was incorporated on 24th October, 2001 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Sogem (Far East) Ltd., name changed to the present style on 14th December, 2005.

 

Last time, the subject was located at Suite 1502, 15/F., Chinachem Century Tower, 178 Gloucester Road, Wanchai, Hong Kong, moved to the present address with effect from 28th January, 2013.

 

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

 

 

OPERATIONS

 

Activities:                      Ferrous and Non-ferrous metal trader.

 

Lines:                           Non-ferrous metal, alloys, other metals

 

Employees:                  10.

 

Commodities Imported: Belgium, other European countries, etc.

 

Markets:                        China, other Asian countries, etc.

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$23,260,002.00

 

Profit or Loss:               Making a small profit every year.

 

Condition:                     Keeping in a satisfactory manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

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

 

Standing:                      Good.

 

 

GENERAL

 

Having issued 23,260,002 ordinary shares of HK$1.00 each, Traxys Far East Ltd. is a wholly owned subsidiary of Traxys S.a.r.l [Traxys] which is a Luxembourg based firm.

 

The subject is trading in the following products: Aluminium Ingots, Zinc Ingots, Brass Ingots, Tin-lead Ingots, Lead Ingots, Cobalt Ingots, Cadmium, Cobalt Oxide, Nickle, Nickle Foam, SHG Zinc, Selenium Powder, Germanium Wafers, etc.

 

Most of the commodities are imported from Belgium, prime markets are China and the other Asian countries, etc.  Business is rather active.

 

The predecessor of the subject Sogem (Far East) Ltd. was engaged in the same lines of business.

Traxys provides financial and logistical solutions for the ferroalloy, metal, mineral, mining, and energy industries.  It focuses on the marketing and sourcing of base metals and concentrates, minor and alloying metals, industrial minerals and chemicals, materials for steel mills and foundries, and carbon products.  Traxys also provides marketing and trading services, which include off-take agreements, market support, agencies, logistics, hedging, and credit risk coverage.  In addition, it operates electric power generation stations in Michigan, as well as provides electricity to retail customers and to the state.  It has strategic partnerships with Molycorp Minerals LLC, Sublime Technologies, Kanawha River Terminals, and First Uranium Corporation.  Traxys was formerly known as Sogem S.A. and it changed its name to Traxys S.A. in January 2003.  The company was founded in 1919 and is based in Luxembourg.

 

In 2006, both Arcelor and Umicore sold a majority stake in Traxys to the management of Traxys in a buyout sponsored by two pre-eminent private equity firms: Pegasus Capital Advisors and Kelso & Company.  Subsequently, Resource Capital Funds became a shareholder.

 

In July 2014, global alternative asset manager The Carlyle Group (NASDAQ: CG), together with affiliates of Louis M. Bacon, the founder, Chairman, Chief Executive Officer and principal investment manager of Moore Capital Management, L.P., acquired a majority interest in Traxys from Pegasus, Kelso and RCF.  As part of the transaction, Traxys management increased its investment stake in the company.

 

Traxys has become a global leader in financing, marketing, distribution and financial services for the mining, metals and minerals industries.  With more than 20 global locations, Traxys continues to add offices, create partner networks, and is aggressively focusing on business development and investment in and with its customers.

 

Now the Group has over 300 employees in over 20 offices worldwide.  Its annual turnover is in excess of US$6 billion.

 

Norman Ting is one of the directors of the subject.  Now he is in Beijing, China administering the business of the Traxys Group in China.

 

The Group has set up an associated company in Shanghai, China.

 

Being a veteran in metal trading, Norman Ting has returned to the metals sector, joining Traxys as chairman of its Far East unit after less than two years with infrastructure group Ausenco.  Ting’s new role was effective from 23rd December, 2011.  He is responsible for running and developing Traxys activities in China and the rest of Asia.  It is therefore the subject is also under his management.

 

As the history of the subject is over thirteen years in Hong Kong, on the whole, consider it good for normal business engagements.

 

 

REMARKS

 

Brief personal profile of the CEO of Traxys Group:-

Mr. Mark S. Kristoff has been the Chief Executive Officer of the Traxys Group since April 2005.  He serves as the Chief Executive Officer of Traxys North America LLC and Traxys S.A.  He had served as Chief Operating Officer of Traxys S.A. from 8th July, 2003 to April 2005.  He also had served as the president of Considar Inc. from 1991 to 2003.  His experience in global trading, financing, supply chain management, and the distribution of metals in the rare earths markets.  He has been a Director of Neo Material Technologies Inc. since May 2012.  He serves as Director of MolyCorp. Minerals, LLC.  He has been a Director of Molycorp, Inc. since September 2008.  He had served as Director of Purple Communications, Inc. from June 1998 to 12th September, 2006.  Mr. Kristoff graduated from Cornell University with a BA in Economics in 1984.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.93

UK Pound

1

Rs.97.39

Euro

1

Rs.77.21

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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.