MIRA INFORM REPORT

 

 

Report Date :

03.01.2014

 

IDENTIFICATION DETAILS

 

Name :

DOHIGH  TRADING  LTD.

 

 

Registered Office :

Room 4601-4610, 46/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

30.10.1987

 

 

Com. Reg. No.:

11420728

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

·         subject is engaged in international procurements for the SinoFert Group and the Group’s associates while most of them are in China.

Importer and Exporter of all kinds of chemical fertilizer and chemical for agricultural used

 

 

No. of Employees :

50.  (Including associates)

 

 

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 :

No Complaints 

 

 

Litigation :

Exists

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 levies excise duties on only four commodities, namely: 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, 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 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. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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

 

DOHIGH  TRADING  LTD.

 

Company ADDRESS

 

Room 4601-4610, 46/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.

 

PHONE:            852-2829 8168,  2824 0100

FAX:                 852-2507 3305

 

 

MANAGEMENT

 

Managing Director:  Mr. Wang Cheng Ping

 

 

SUMMARY

 

Incorporated on:             30th October, 1987.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$15,000,000.00

Issued:              HK$15,000,000.00

 

Business Category:        Fertilizer Trader.

 

Group Turnover:             RMB41,190,137,000 Yuan  (Year ended 31-12-2012)

 

Employees:                   50.  (Including associates)

 

Main Dealing Banker:     Bank of China (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:           Very Good.


Company ADDRESS

 

Registered Head Office:-

Room 4601-4610, 46/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.

 

Immediate Holding Company:-

Sinochem Fertilizer (Overseas) Holdings Ltd., British Virgin Islands.

 

Penultimate Holding Company:-

China Fertilizer (Holdings) Co. Ltd., British Virgin Islands.

 

Ultimate Holding Company:-

SinoFert Holdings Ltd., Bermuda/Hong Kong.

 

Sister Company:-

Sinochem Fertilizer Macao Commercial Offshore Ltd., Macao.

 

Associated/Affiliated Companies:-

SinoFert Group of Companies

Fujian Sinochem Zhisheng Chemical Fertilizer Co. Ltd., China.

Gansu Wengfu Chemical Co. Ltd., China.

Guizhou Xinxin Industrial & Agricultural Trading Co. Ltd., China.

Hubei Sinochem Orient Fertilizer Co. Ltd., China.

Manzhouli Kaiming Fertilizer Co. Ltd., China.

Pingyuan County Xinglong Textile Co. Ltd., China.

Qinghai Ganghua Logistics Co. Ltd., China.

Qinghai Salt Lake Industry Group Co. Ltd., China.

Sinochem Chongqing Fuling Chemical Fertilizer Co. Ltd., China.

Sinochem Fertilizer Co. Ltd., China.

Sinochem Fert-Mart Agricultural Superstone Co. Ltd., China.

Sinochem Hainan Crop Science and Technology Co. Ltd., China.

Sinochem Jilin Changshan Chemical Co. Ltd., China.

Sinochem Ningxia Chemical Co. Ltd., China.

Sinochem Shandong Fertilizer Co. Ltd., China.

Sinochem Yantai Crop Nutrition Co. Ltd., China.

Sinochem Yunlong Co. Ltd., China.

Suifenhe Xinkaiyuan Trading Co. Ltd., China.

Tianjin Beifang Chemical Fertilizer Logistics & Delivery Co. Ltd., China.

Tianjin Beihai Industrial Co. Ltd., China.

Wah Tak Fung (B.V.I.) Ltd., British Virgin Islands.

Yangmei Pingyuan Chemical Co. Ltd., China.
[Formerly known as Sinochem Pingyuan Chemical Co. Ltd.]

Yara Sinochem Environment Protection (Qingdao) Co. Ltd., China.

Yunnan Three Circles-Sinochem-Mosaic Fertilizer Co. Ltd., China.

Yunnan Three-Circles Sinochem Fertilizer Co. Ltd., China.

 

BUSINESS REGISTRATION NUMBER

 

11420728

 

 

COMPANY FILE NUMBER

 

0202110

 

 

MANAGEMENT

 

Executive Director & Chief Executive Officer:  Mr. Feng Zhi Bin

Executive Director & Deputy General Manager:  Mr. Harry Yang

Managing Director:  Mr. Wang Cheng Ping

 

 

CAPITAL

 

Nominal Share Capital:   HK$15,000,000.00 (Divided into 15,000,000 shares of HK$1.00 each)

Issued Share Capital:     HK$15,000,000.00

 

 

SHAREHOLDER

(As per registry dated 30-10-2013)

 

Name

 

No. of shares

Sinochem Fertilizer (Overseas) Holdings Ltd.

East Asia Chambers, P.O. Box 901, Road Town, Tortola, British Virgin Islands.

 

15,000,000

========

 

 

DIRECTORS

(As per registry dated 30-10-2013)

 

Name

(Nationality)

 

Address

FENG Zhibin

Room 402, Unit 1, Building 12, Qiushuiyuan, Xishantingyuan, Xiaojiahe, Haidian District, Beijing, China.

 

WANG Cheng Ping

Flat F, 4/F., Yuan Kung Mansion, 20 Taikoo Shing Road, Taikoo Shing, Hong Kong.

 

Harry YANG

Flat 05, 39/F., Apartment Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.

 

 

 

SECRETARY

(As per registry dated 30-10-2013)

 

Name

Address

Co. No.

W. T. (Secretaries) Ltd.

Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong.

0042150

 

 

HISTORY

 

The subject was incorporated on 30th October, 1987 as a private limited liability company under the Hongkong Companies Ordinance.

 

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter; Transhipment Agent.

 

Lines:                           All kinds of chemical fertilizer and chemical for agricultural used.

 

Employees:                   50.  (Including associates)

 

Commodities Imported:   Imported from Europe, Southeast Asia, etc.

 

Markets:                       China and overseas.

 

Group Turnover:-

RMB45,392,885,000 Yuan          (Year ended 31-12-2008)

RMB27,010,709,000 Yuan          (Year ended 31-12-2009)

RMB29,271,077,000 Yuan          (Year ended 31-12-2010)

RMB36,684,963,000 Yuan          (Year ended 31-12-2011)

RMB41,190,137,000 Yuan          (Year ended 31-12-2012)

RMB20,580,073,000 Yuan          (6 months ended 30-06-2013) – Unaudited

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               L/C, T/T, O/A, etc.

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$15,000,000.00 (Divided into 15,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$15,000,000.00

 

Group Net Profit/(Loss):-

RMB1,907,807,000 Yuan            (Year ended 31-12-2008)

(RMB1,465,969,000) Yuan          (Year ended 31-12-2009)

RMB   482,381,000 Yuan            (Year ended 31-12-2010)

RMB   685,784,000 Yuan            (Year ended 31-12-2011)

RMB   923,654,000 Yuan            (Year ended 31-12-2012)

RMB   344,678,000 Yuan            (6 months ended 30-06-2013) – Unaudited

 

Profit or Loss:                Group Made profits in the past three years.

 

Condition:                      Keeping in an active state.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met obligations on time.

 

Commercial Morality:     Good.

 

Bankers:-

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

BNP Paribas, Hong Kong Branch.

Calyon, Hong Kong Branch.

ING Bank N.V., Hong Kong Branch.

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

ABN AMRO Bank N.V., Hong Kong Branch.

Bank of Communications, Hong Kong Branch.

 

Standing:  Very Good.

 

 

GENERAL

Dohigh Trading Ltd. was incorporated in October 1987 as a wholly-owned subsidiary of Sinochem Fertilizer (Overseas) Holdings Ltd., a BVI-registered firm, which in turn is wholly-owned by SinoFert Holdings Ltd. [SinoFert/Company], a Bermuda-incorporated company.  SinoFert’s shares have been listed on The Stock Exchange of Hong Kong Ltd. bearing the Stock Code 297 since 30th September, 1996.  SinoFert is the holding company of the SinoFert Group.

It should be aware that SinoFert is 52.72%-owned by Sinocham Hong Kong (Group) Co. Ltd. which is a wholly-owned subsidiary of Sinochem Corporation [Sinochem].  Sinochem is a very famous group of companies in China trading in chemicals and fertilizers.

The subject and SinoFert shares the same operating office in Hong Kong.

Formerly the subject was a subsidiary of Sinochem.  In June 2005, the subject was acquired by Sinochem Hong Kong Holdings Ltd. which has changed name to SinoFert.

The subject is engaged in international procurements for the SinoFert Group and the Group’s associates while most of them are in China.

SinoFert is principally engaged in the fertilizers trading in China, with a vertically integrated business model which encompasses R&D, production, procurement, distribution and other related services.  The objective of SinoFert is to serve the Chinese agricultural industry by introducing the quality products to China from overseas.

The SinoFert Group has established a diversified and multi-channels for procurement.  It partners with major suppliers worldwide through exclusive agreements for products distribution in China.  In the domestic market, the Group has developed long term business ties with large producers in China.

The Group manufactures phosphate fertilizers and compound fertilizers.  Its plants are built around the areas which are rich in resources or with great consumption.

For the twelve months ended 31st December 2012, sales volume of the Group was 17.14 million tons, and turnover amounted to RMB41,190 million Yuan, increased by 4.13% and 12.28%, respectively, over the corresponding period of 2011.

For the twelve months ended 31st December 2012, gross profit of the Group amounted to RMB2,378 million Yuan, increased by RMB288 million Yuan over the corresponding period of 2011.  The profit for the year attributable to owners of the Company amounted to RMB878 million Yuan, increased by RMB200 million Yuan or 29.56% over the corresponding period of 2011.

For the six months ended 30th June 2013, the Group’s sales volume reached 9.14 million tons, up by 1.06% compared to the corresponding period in 2012, turnover reached RMB20.58 billion Yuan, down by 8.68% compared to the corresponding period in 2012, and profit attributable to shareholders of the Company reached RMB352 million Yuan, down by 35.53% compared to the corresponding period in 2012.

In the first half of 2013, the total production capacity of the Group exceeded 10 million tons, among which Sinochem Changshan, a subsidiary of the Group, owns the annual production capacity of 500,000 tons of fertilizers and realized the output of 208,700 tons of nitrogen and others.  The renovation project of energy-saving and consumption-reduction for urea production equipment of Sinochem Changshan with total investment of RMB1.198 billion Yuan was promoted steadily as scheduled, and some civil construction was already completed.  Upon the completion of the project, annual production capacity of synthesis ammonia and urea of Sinochem Changshan would increase to 360,000 tons and 600,000 tons respectively.

Most of the subject’s directors are also the executive directors of the Group.

The subject is fully supported by the SinoFert Group.

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

 

REMARKS:

 

Brief personal profiles of the principal directors:-

 

Mr. FENG Zhi Bun, aged 49, is Executive Director and Chief Executive Officer of SinoFert.  He is also the Chariman of the Corporate Governance Committee.  Mr. Feng graduated from Renmin University of China wih his Master degree in philosophy and subsequently obtained his EMBA degree from China Europe International Business School.  Before Mr. Feng joined Sinchem Group in 2000, he worked as General Manager of HR Department and Enterprise Development Department in China Natinal Machinery Import and Export Corporation, and then became in charge of Genertec Industrial Corporation Ltd.  Over his 10 years in Sinochem, Mr. Feng had previously held various positions, in charge of the management of Sinochem Group’s investmetn business, fluorine chemicals business, and non-banking financial businesses including financial leasing and trust.  Mr. Feng was appointed as Assistant President of Sinochem Group in July 2007 and promoted as Vice President of Sinochem Group in January 2006.  From 2008 to 2010, Mr. Feng had been apointed as Chairman and General Manager of Sinchem Lantian Corporation Ltd., and Chairman of Zhejiang Int’l Group Corporation Ltd., and affiliate of Sinochem Group.  Mr. Feng served as a Director of Sinochem Corporation since May 2009 and had been appointed to the current position of the Company since July 2010.  Mr. Feng has over 20 years of experience in corporate management and operations.

 

Mr. Harry YANG, aged 50, is an Executive Director and Deputy General Manager of SinoFert, mainly responsible for overseeing of SinoFert’s investor relations, legal, and logistic management.  He is also a member of the Nomination Committee, the Remuneration Committee and the Corporate Governance Committee of teh Company.  Mr. Yang graduated from Shandong Normal University in 1983 with a Bachelor degree and from the University of International Business and Economics in 1989 with a Master degree in International Business English.  Mr. Yang joined Sinochem Group in 1989 and served successively as the General Manager of Sinochem (USA) Inc. and Sinochem International London Oil Co. Ltd. and the director, general manager and deputy general manager of US Agrichemicals Corporation.  In 2002, Mr. Yang was appointed as the Deputy General Manager of fertilizer centre, and was promoted to the present position in March 2006.  Mr. Yang possesses years of experiences in international trade and fertilizer business with a deep understanding of the international fertilizer market.  Mr. Yang had served at Sinochem Corporation for more than 20 years.

 

Court case:-

Date

Plaintiff

Defendant

Cause

Amount

Aug. 1995

Kuok Khoon Tsen

Dohigh Trading Ltd. and others

Damages

Not stated

May 1999

China Ping An Insurance (Hong Kong) Co. Ltd.

Dohigh Trading Ltd.

Amount due

HK$951,372

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.90

UK Pound

1

Rs.102.74

Euro

1

Rs.85.16

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.