MIRA INFORM REPORT

 

 

Report Date :

02.06.2014

 

IDENTIFICATION DETAILS

 

Name :

BAOSTEEL RESOURCES  INTERNATIONAL  CO.  LTD.

 

 

Formerly Known as: 

Bao Steel Hong Kong Trading Co. Ltd

 

 

Registered Office :

Room 2901, 29/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

10.10.1995

 

 

Com. Reg. No.:

19403671

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

engaged in supplying ore, coal, ferroalloys and nonferrous metals, stainless raw materials and scrap steels and providing logistic services as it has been providing customers with fine quality products and value added services.

 

Subject is trading in the following products:-

·         Coke & Semi Coke Of Coal (Coal include metallurgical coke to China, Japan, South East Asia, Taiwan, Europe & Brazil);

·         Iron (Iron ore, manganese ore, chrome ore from Australia, Brazil, India, South Africa, Canada, Russia & Indonesia); &

·         Metal Scrap (Scarp steel from Japan, US, South America, Europe & Russia).

 

 

No. of Employees

20

 


 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

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 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

 

BAOSTEEL  RESOURCES  INTERNATIONAL CO. LTD.

 

 

Company ADDRESS

 

Room 2901, 29/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.

 

PHONE:            852-2827 7773,  2519 9916

FAX:                 852-2879 4879,  2598 5917

E-MAIL:            bgresources@baosteel.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Li Qingyu

 

 

SUMMARY

 

Incorporated on:            10th October, 1995.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$8,603,693,544.00

Issued:             HK$8,603,693,544.00

 

Business Category:       Importer, Wholesaler and Exporter.

 

Employees:                  20.

 

Main Dealing Banker:     China Development Bank Corporation Hong Kong Branch, Hong Kong.

 

Banking Relation:          Satisfactory.


Company ADDRESS

 

Registered Head Office:-

Room 2901, 29/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.

 

Holding Company:-

Baosteel Group Corporation

Baosteel Tower, No. 370 Pudian Road, Pudong New District, Shanghai, 200122 China.

 

Associated/Affiliates Companies:-

Bao Chico Resource Ltd., Hong Kong.

Bao-Island Enterprises Ltd., Hong Kong.

Bao-NYK Shipping Co. Ltd., Hong Kong.

Baoshan Iron & Steel Co. Ltd., China.

Baosteel (Brasil) Do Lita, Brasil.

Baosteel America Inc., U.S.A.

Baosteel Australia Mining Co. Pty. Ltd., Australia.

Baosteel Comprehensive Industries Development Co. Ltd., China.

Baosteel Engineering & Technology Group Co. Ltd., China.

Baosteel Group Finance Co. Ltd., China.

Baosteel Group Xinjiang Bayi Iron & Steel Co. Ltd., China.

Baosteel Huangshi Coated & Galvanized Sheet Co. Ltd., China.

Baosteel Metal Co. Ltd., China.

Baosteel Resources Co. Ltd., China.

Baosteel Resources Singapore Co. Pty. Ltd., Singapore.

Baosteel Resources South Africa Pty. Ltd., South Africa.

Baosteel Singapore Pte. Ltd., Singapore.

Baosteel Special Steel Co. Ltd., China.

Baosteel Stainless Steel Co. Ltd., China.

Baosteel Trading Europe GmbH, Germany.

Baosteel-NSC/Arcolor Autornotive Steel Sheets Co. Ltd., China.

Bao-Trans Enterprises Ltd., Hong Kong.

Guangdong Shaoguan Iron & Steel Co. Ltd., China.

Hong Kong Hai Bao Shipping Co. Ltd., Hong Kong.

Howa Trading Ltd., Japan.

Huabao Investment Co. Ltd., China.

Huabao Securities Co. Ltd., China.

Huabao Trust Co. Ltd., China.

Nantong Baosteel Iton & Steel Co. Ltd., China.

Ningbo Baoxin Stainless Steel Co. Ltd., China.

Ningbo Iron & Steel Co. Ltd., China.

PT Baosteel Resources Indonesia, Indonesia.

Shanghai Baosteel Chemical Co. Ltd., China.

Shanghai Baosteel International Economic & Trading Co. Ltd., China.

Shanghai Baosteel Software Co. Ltd., China.

Shanghai Meishan Iron & Steel Co. Ltd., China.

VISA Bao Ltd., India.

Yantai Baosteel Pipe Co. Ltd., China.

Yantai Lubao Steel Pipe Co. Ltd., China., etc.

BUSINESS REGISTRATION NUMBER

 

19403671

 

 

COMPANY FILE NUMBER

 

0527537

 

 

MANAGEMENT

 

Managing Director:  Mr. Li Qingyu

 

 

CAPITAL

 

Nominal Share Capital: HK$8,603,693,544.00 (Divided into 8,603,693,544 shares of HK$1.00 each)

Issued Share Capital:     HK$8,603,693,544.00

 

 

SHAREHOLDER

(As per registry dated 10-10-2013)

 

            Name

 

No. of shares

Baosteel Group Corporation

Baosteel Tower, No. 370 Pudian Road, Pudong New District, Shanghai, China.

 

8,603,693,544

==========

 

 

DIRECTORS

(As per registry dated 24-12-2013)

 

Name

(Nationality)

 

Address

ZHANG Dianbo

Room 302, Block 6, 333 Tongji Road, Baooshan District, Shanghai, China.

 

GUO Bin

Room 2901, 29/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.

 

LI Qingyu

Room 2901, 29/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.

 

NIU Jiageng

Room 2901, 29/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.

 

XIA Jiang

Room 2901, 29/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.

 

SONG Bin

Room 2901, 29/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.

 

DAI Zhihao

Room 2901, 29/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.

 

 

SECRETARY

(As per registry dated 10-10-2013)

 

Name

Address

Co. No.

Bremen Nominees Ltd.

22/F., Infinitus Plaza, 199 Des Voeux Road Central, Hong Kong.

0333260

 

 

HISTORY

 

The subject was incorporated on 10th October, 1995 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Bao Steel Hong Kong Trading Co. Ltd., name changed to the present style on 23rd July, 2010.

 

The subject has increased its share capital for several times.

 

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

 

 

OPERATIONS

 

Activities:                      Importer, Wholesaler and Exporter.

 

Lines:                           Iron and steel products.

 

Employees:                  20.

 

Commodities Imported: Mainly imported from Europe, Russia, China, etc.

 

Markets:                        Worldwide.

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$8,603,693,544.00 (Divided into 8,603,693,544 shares of HK$1.00 each)

 

Issued Share Capital:     HK$8,603,693,544.00

 

Mortgage or Charge:-    (See attachment)

 

Profit & Loss:               Business is profitable.

 

Condition:                     Keeping in an active state.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Good.

 

Bankers:-

·         China Development Bank Corporation Hong Kong Branch, Hong Kong.

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

 

Standing:  Very Good.

 

 

GENERAL

 

Baosteel Resources International Co. Ltd. is a private limited company wholly-owned by Baosteel Group Corporation [BGC] which is a Shanghai-based and registered company.

 

The subject is BGC’s Hong Kong marketing associate.  The subject is responsible for marketing BGC’s products, mainly iron and steel materials as well as chemicals.  It also imports raw materials and equipment for BGC.

 

The subject mainly is engaged in mineral resource investment, trading and logistics services.


The subject is trading in the following products:

·         Coke & Semi Coke Of Coal (Coal include metallurgical coke to China, Japan, South East Asia, Taiwan, Europe & Brazil);

·         Iron (Iron ore, manganese ore, chrome ore from Australia, Brazil, India, South Africa, Canada, Russia & Indonesia); &

·         Metal Scrap (Scarp steel from Japan, US, South America, Europe & Russia).

 

Its prime markets are Central & South America, China, Japan, Southeast Asia, Taiwan, Western Europe, etc.

 

The subject is engaged in supplying ore, coal, ferroalloys and nonferrous metals, stainless raw materials and scrap steels and providing logistic services as it has been providing customers with fine quality products and value added services.

 

The subject has been granted the following qualifications:

·         Import and export business qualification;

·         iron-ore import license

·         Coal business license of qualification

·         Authorized shipper of exported coke

·         Collection and purchase license of regenerative scrap metals

·         ISO9001 certification

 

BGC is a typical enterprise arising from China’s reform and opening-up.  The construction of Baosteel commenced on the bank of Yangtze River in north Shanghai on 23rd December, 1978.  After over 35 years of development, BGC has grown into a competitive iron and steel group.  At the end of 2012, Baosteel had a total of 130,401 employees located throughout the world.

 

In 2012, BGC achieved steel output of 43.83 million tons and a total profit of RMB 10.4 billion Yuan, ranking the second among the world’s iron and steel enterprises.  In 2013, Baosteel was listed among the Fortune Global 500 by the US Fortune magazine for the tenth consecutive year and ranked the 222nd.  In addition, BGC has also been awarded the honour of the “World’s Most Admired Company” for another year and the highest credit ranking among the world’s iron and steel enterprises by the Big Three credit rating agencies, namely Standard & Poor’s, Moody’s and Fitch Ratings.

 

In 2012, BGC has been recognized jointly by the Ministry of Industry and Information Technology and the Ministry of Finance as the “National Model Enterprise for Technological Innovation” and won the “China Charity Award”, the top government award in Chinese philanthropy, for the fourth consecutive year.

 

The subject is fully supported by BGC.  Its history in Hong Kong is over 18 years.

 

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

 

 


MORTGAGE OR CHARGE

 

Date

Particulars

Amount

22-06-1996

Instrument:      Security Over Deposits with the Bank (Limited Company – Under Seal

Property:

US$40,000 and any further sums hereafter standing to the credit of the Company’s A/C No. 485-212880 and any deposit accounts with the Bank

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

To secure general banking facilities

31-08-2011

Instrument:      Share Charge Over the entire share capital of China Niobium Investment Holdings Ltd. made between the Chargors, the Borrower and the Chargee

Property:

By Clause 2.1 of the Charge of the Charge, in consideration of the Chargee agreeing to make the facility available to the Borrower upon the terms and conditions of the Finance Documents, the Chargor as legal and beneficial owner of the Shares, hereby charges the Security Assets owned by it to the Chargee by way of first fixed charge as continuing security for the payment and discharge of the Secured Obligations

Mortgagee:      China Development Bank Corporation, Hong Kong Branch.

To Secured Obligations

31-08-2011

Instrument:      Subordination and Assignment Deed made between the Subordinated Lenders, the Borrower and the Lender

Property:

By way of Clause 3.1 of the Deed, the Subordinated Lender, as beneficial owner and as continuing security for the irrevocable and unconditional payment or discharge of all Senior liabilities, assigns absolutely to the Lender all its right, title and interest and benefit from time to time in request of:

A)   All of its Shareholder Loan Right; and

B)   Each Subordinated Instrument to which the Subordinated lender is a party

Mortgagee:      China Development Bank Corporation, Hong Kong Branch.

To secured Liabilities


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.03

UK Pound

1

Rs.98.91

Euro

1

Rs.80.34

 

INFORMATION DETAILS

 

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%)

 

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.