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Report Date : |
16.07.2014 |
IDENTIFICATION DETAILS
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Name : |
SINOMOLY LTD. |
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Registered Office : |
Unit 1603, 16/F., Chuang’s |
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Country : |
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Date of Incorporation : |
27.10.1992 |
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Com. Reg. No.: |
16206567 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is engaged in the Mining, Smelting, Processing and distribution of molybdenum products. Subject products portfolio consists of Molybdenum Charging
Materials, Molybdenum Chemical Products, Molybdenum Metal Products, Lead And
Zinc, Magnesium Alloy Profiles, Sulphuric Acid, Electrolytic Copper,
Aluminium Ingots, Electrolytic Nickel & Iron Powder as well as its
products are applied in the Iron and Steel Smelting, Petrochemical,
Mechanical Manufacture, Aerospace, Electronic, Lighting, Biological Medicine
and Other Industries. |
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No of Employees : |
05 |
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
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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.
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Source
: CIA |
SINOMOLY LTD.
Unit 1603, 16/F., Chuang’s Enterprises Building, 382 Lockhart Road, Wanchai, Hong Kong.
PHONE: 852-2588 1858
FAX: 852-2588 1545
E-MAIL: jdcmoly@sinomoly.com.hk
Managing Director: Mr. Song Xiaoying
Incorporated on: 27th October, 1992.
Organization: Private Limited Company.
Capital: Nominal: HK$5,000,000.00
Issued: HK$5,000,000.00
Business Category: Importer, Exporter and Wholesaler.
Group Turnover: RMB8,616.0 million Yuan (Year ended 31-12-2013)
Employees: 5.
Main Dealing Banker: Standard Chartered Bank (HK) Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office:-
Unit 1603, 16/F., Chuang’s Enterprises Building, 382 Lockhart Road, Wanchai, Hong Kong.
Holding Company:-
Jinduicheng Molybdenum Co. Ltd., China.
Intermediate
Holding Company:-
Jinduicheng Molybdenum Group Co. Ltd., China.
Ultimate Holding
Company:-
Shaanxi Non-Ferrous Metals Holding Group Co. Ltd., China.
Associated
Companies:-
Shangxiang Minmetals Investment Ltd., Hong Kong.
Shangxiang Minmetals Inc., US.
[Tel: 1-626-445 894, Fax: 1-815-398 6907
E-mail: georgesong@emetalmarket.com ]
Shangxiang Minmetals Trading Ltd., Hong Kong.
[Tel: 852-2824 0990, Fax: 852-2824 1315]
Sinotungsten Ltd., Hong Kong.
[Tel: 852-2824 0990, Fax: 852-2824 1315]
16206567
0386916
Managing Director: Mr. Song Xiaoying
Nominal Share Capital: HK$5,000,000.00 (Divided into 5,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
(As per registry
dated 27-10-2013)
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Name |
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No. of shares |
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Jinduicheng Molybdenum Co.
Ltd. No. 88 Jinye
First Road, Hi-tech Industry Development Zone, Xi’an, Shaanxi Province,
China. |
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4,000,000 |
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Shangxiang Minmetals Holding
Ltd., Hong Kong. |
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1,000,000 |
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–––––––– |
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Total: |
5,000,000 ======= |
(As per registry
dated 27-10-2013)
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Name (Nationality) |
Address |
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LIU Xinlu |
No. 12 Weiqu Dongjie, Changan County,
Shaanxi Province, China. |
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YU Heming |
Room 602, Second Unit, Block
5, Fenglin Yishu Society, Hi-New District, Xi’an City, Shaanxi Province,
China. |
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YAN Kanrong |
Room 308, Building 4, North
Court, Jinducheng East Zone, Jitai Road, Chang’an District, Xi’an City,
Shaanxi Province, China. |
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CAO Junyi |
Room 502, Unit 3, Building 7,
Jinducheng Society, Fengcheng First Road, Weiyang District, Xi’an City,
Shaanxi Province, China. |
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SONG Xiaoying |
Flat B, 32/F., Fullview Court,
32 Fortress Hill Road, Hong Kong. |
SONG
Xiaoying (As per registry dated
27-10-2013)
The subject was incorporated on 27th October, 1992 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.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of non-ferrous metals
Employees: 5.
Commodities Imported: China, etc.
Markets: Japan, other Asian countries, Europe, North America, etc.
Group Turnover: RMB7,333.3 million Yuan (Year ended 31-12-2011)
RMB8,573.9 million Yuan (Year ended 31-12-2012)
RMB8,616.0 million Yuan (Year ended 31-12-2013)
Terms/Sales: As per contracted.
Terms/Buying: Various terms.
Nominal Share Capital: HK$5,000,000.00 (Divided into 5,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
Mortgage or Charge: (See attachment)
Group Profit
Attributable to Shareholders:
RMB736.1 million Yuan (Year ended 31-12-2011)
RMB521.9 million Yuan (Year ended 31-12-2012)
RMB178.0 million Yuan (Year ended 31-12-2013)
Profit or Loss: Group business is profitable.
Condition: Keeping in a satisfactory manner.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
· Standard Chartered Bank (HK) Ltd., Hong Kong.
Standard
Bank London Ltd., UK.
Standing: Normal.
Having issued 5 million ordinary shares of HK$1.00 each, Sinomoly Ltd. is jointly owned by Jinduicheng Molybdenum Co. Ltd. [Jinduicheng], a China‑registered company holding 80% interests, and Shangxiang Minmetals Holding Ltd. [Shangxiang], a Hong Kong-registered company holding 20%.
All the directors of the subject are in China except Mr. Song Xiaoying. He is a China merchant but holding a Hong Kong ID. He has got the right to reside in Hong Kong permanently.
Jinduicheng is a listed company in China as its shares have been traded in Shanghai Securities Exchange.
The subject is engaged in the same lines of business as Jinduicheng, more or less.
Jinduicheng is a China-based company principally engaged in the mining, smelting, processing and distribution of molybdenum products. The Company’s products portfolio consists of molybdenum charging materials, molybdenum chemical products, molybdenum metal products, lead and zinc, magnesium alloy profiles, sulphuric acid, electrolytic copper, aluminium ingots, electrolytic nickel & iron powder. Its products are applied in the iron and steel smelting, petrochemical, mechanical manufacture, aerospace, electronic, lighting, biological medicine and other industries. Jinduicheng also involves in the commodities trading business. It distributes its products within domestic market and to overseas markets. However, its products are chiefly distributed in the local market.
Shangxiang belongs to Shangxiang Minmetals Group of the United States. The President of the Group Mr. Song Xiaoying is also one of the Directors of the subject. Shangxiang Minmetals Group is also a non-ferrous metal trader. Its prime market is the United States.
In FY 2013, the turnover of Jinduicheng amounted to RMB8,616.0 million Yuan (FY 2012: RMB8,573.9 million Yuan); group attributable to shareholders amounted to RMB178.0 million Yuan, decreased substantially as compared with RMB521.9 million Yuan in FY 2012.
Jinduicheng should cut down its overhead charges in 2014, otherwise it would made a loss in FY 2014.
For the year ended 31st December, 2013, Jinduicheng had 5,105 employees in China.
The subject is fully supported by its two shareholders. History in Hong Kong is over 21 years.
On the whole, consider the subject good for normal business engagements.
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Date |
Particulars |
Amount |
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04-12-1998 |
Instrument: Charge on Cash Deposit Property: A first fixed charge on a deposit dated 4th December, 1996 of variable amount covering outstanding obligations effected by Sinomoly Ltd. with MeesPierson N.V., Hong Kong Branch and all interest from time to time payable thereon and all right, title and interest of Sinomoly Ltd. whatsoever, present and future, thereto and therein, together with any certificates of deposit or other instruments or securities relating thereto. Mortgagee: MeesPierson N.V., Hong Kong Branch. [Dissolved] |
All obligations and liabilities |
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09-04-2002 |
Instrument: Corporate Cash Collateral Agreement Over Cash Held by Bank Property: The Customer hereby charges with full title guarantee, by way f first fixed charge, in favour of the Bank all Cash Assets for the payment to the Bank and the discharge of all of the Liabilities and the Customer’s obligations. Account Title and Number: 100068998 Mortgagee: Standard Bank London Ltd. Cannon Bridge House, 25 Dowgate Hill, London EC4R 2SB, UK. |
All moneys and liabilities |
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09-04-2002 |
Instrument: Letter of Pledge Property: All goods and all bills of lading, warrants, delivery orders, warchouse-keepers’ certificates or receipts and all documents of title and the goods to which the same relate which are now or may in the future be deposited or lodged with or otherwise in the possession of or transferred to or warehoused or stored in the name of the Bank or its agents or nominees or otherwise held by or to its or their order or under its or their control, whether for safe custody, security or for any specific purpose or generally. Mortgagee: Standard Bank London Ltd. Cannon Bridge House, 25 Dowgate Hill, London EC4R 2SB, UK. |
All moneys and liabilities |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.22 |
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1 |
Rs.102.79 |
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Euro |
1 |
Rs.81.95 |
INFORMATION DETAILS
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Report Prepared
by : |
NNA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.