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Report Date : |
11.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
LG INTERNATIONAL (HK) LTD. |
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Registered Office : |
26/F., 633 Kings Road, North Point, |
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Country : |
Hong Kong |
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Date of Incorporation : |
23.12.1977 |
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Com. Reg. No.: |
05426893 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
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No. of Employees |
32 |
RATING & COMMENTS
|
MIRAs Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 compaints |
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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 |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate 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 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 |
LG INTERNATIONAL
(HK) LTD.
ADDRESS: 26/F., 633 Kings Road, North Point, Hong Kong.
PHONE: 852-2820 7800, 852-2820 7840
FAX: 852-2868 1460
E-MAIL: kwlee@lgi.co.kr
Managing Director: Mr. Jaeho Heo
Incorporated on: 23rd December, 1977.
Organization: Private Limited Company.
Capital: Nominal:HK$78,000,000.00
Issued: HK$78,000,000.00
Business Category: General Merchant; Investment Holding Company.
Group Turnover: KRW 12,793,756 million (Year ended 31-12-2012)
Company Turnover: KRW 3,471,890 million (Year ended 31-12-2012)
Employees: 32. (Including 6 Korean staff)
Main Dealing Bankers: BNP Paribas, Hong Kong Branch.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office:-
26/F., 633 Kings Road, North Point, Hong Kong.
Holding Company:-
LG International Corporation
LG Twin Towers, 20 Yoido-dong, Youngdungpo-gu, Seoul 150-606, South Korea.
[Tel: 82-2-3773-1114; Fax: 82-2-3773-5446]
Associated
Companies:-
LG International
Group of Companies
Colmineral S.A. de. C.V., Mexico.
Guangzhou Steel Flower Electric Machinary Co. Ltd., China.
Hebei Youneng Trading Ltd., China.
Korea Carbon International Co. Ltd., Hong Kong.
Kumah Steel Co. Ltd., Korea.
LG International (America) Inc., USA.
LG International (Australia) Pty. Ltd., Australia.
LG International (China) Ltd., China.
LG International (Deutschland) GmbH, Germany.
LG International (Japan) Ltd., Japan.
LG International (Singapore) Pte. Ltd., Singapore.
LG International Investment (Canada) Ltd., Canada.
LG International Yakutsk Ltd., Russia.
LHC Solar LLC, USA.
Najing LG International VMI Co. Ltd., China.
Philco Resources Ltd., Malaysia.
Pixdix Co. Ltd., Korea.
PT. Batubara Global Energy, Indonesia.
PT. Ganda Alam Makmur, Indonesia.
PT. Green Global Lestari, Indonesia.
PT. Indonesia Renewable Resources, Indonesia.
PT. Mega Global Energy, Indonesia.
PT. Megaprima Persada, Indonesia.
PT. Parna Agromas, Indonesia.
PT. Tutui Batubara Utama, Indonesia.
Resource Investment (Hong Kong) Ltd., Hong Kong.
Resource Investment (Marree) Pty. Ltd., Australia.
Tianjin Steel Flower Eletric Machinary Co. Ltd., China.
Yantai VMI Hub LG International Co. Ltd., China.
etc.
05426893
0057497
Managing Director: Mr. Jaeho Heo
Contact Person: Mr. Jeong Key Hong
Nominal Share Capital: HK$78,000,000.00 (Divided into 78,000 shares of HK$1,000.00 each)
Issued Share Capital: HK$78,000,000.00
SHAREHOLDER: (As per registry dated 23-12-2013)
|
Name |
|
No. of shares |
|
LG International Corporation LG Twin Towers, 20 Yoido-dong, Youngdungpo-gu, Seoul 150-606, Korea. |
|
78,000 ===== |
DIRECTORS: (As per registry dated 23-12-2013)
|
Name (Nationality) |
Address |
|
Jaeho HEO |
26/F., 633 Kings Road, Hong Kong. |
|
Jeong Key HONG |
Flat A, 22/F., Tower 3, Grand Promenade, 38 Tai Hong Street, Hong Kong. |
SECRETARY: Jaeho HEO
(As per registry dated 15-01-2014)
The subject was incorporated on 23rd December, 1977 as a private limited liability company under the Hong Kong Companies Ordinance.
It was originally registered under the name of Bando Sangsa (Hong Kong) Ltd., name changed to Lucky-Goldstar International (HK) Ltd. on 22nd December, 1983, and further changed to the present style on 1st March, 1995.
Formerly the subject was located at Room 1501, 15/F., Bank of America Tower, 12 Harcourt Road, Hong Kong, moved to the present address in June 2008.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter, Re-exporter and Transhipment Agent; Investment Holding Company.
Lines: Electronics and telecommunications, cable and wire, elevator, metal waste, iron and steel, ingot, chemicals and plastics, machinery and plants, ferrous and non-ferrous metals, energy and resources, gold bars, textiles and garments (woven shirt, knitted T-shirts, pyjamas and pants), planning and execution of plants and foodstuffs, and general merchandise.
Trade Marks: LG or LUCKY GOLDSTAR brands.
Employees: 32. (Including 6 Korean staff)
Commodities Imported:-
ALCOMPO and BYDESIGN Polo shirts Bangladesh.
AUCHAN and BYDESIGN Shirts Bangladesh.
HANES T-shirts Bangladesh.
Aluminium ingot Russia and China.
Coal China and Taiwan.
Computer peripherals and accessories Korea.
Copper cathode China.
Crude-oil UAE, Indonesia and Ecuador.
Electronics Korea.
Floor covering Korea.
Industrial chemicals Korea and China.
Oil products (gasoline etc.) Singapore.
Plastic resins Korea.
Steel Korea.
Markets: Korea, Hong Kong, China, Singapore, USA, Japan, Taiwan, Middle East, Southeast Asia, Europe and elsewhere.
Group Turnover: KRW 14,386,136 million (Year ended 31-12-2010)
KRW 13,986,834 million (Year ended 31-12-2011)
KRW 12,793,756 million (Year ended 31-12-2012)
Company Turnover: KRW 2,711,542 million (Year ended 31-12-2011)
KRW 3,471,890 million (Year ended 31-12-2012)
Terms/Sales: L/C, D/P, D/A or O/A, etc.
Terms/Buying: L/C or as per contracted.
MEMBERSHIP: The Korean Chamber of Commerce in Hong Kong, Hong Kong.
Nominal Share Capital: HK$78,000,000.00 (Divided into 78,000 shares of HK$1,000.00 each)
Issued Share Capital: HK$78,000,000.00
Alternation of Capital:-
|
23-12-1977 |
paid up |
HK$ 2,000.00 |
|
13-04-1978 |
paid up |
HK$ 228,000.00 |
|
28-10-1987 |
paid up |
HK$ 4,000.00 |
|
29-10-1987 |
paid up |
HK$ 2,106,000.00 |
|
24-11-2004 |
paid up |
HK$75,660,000.00 |
|
|
|
|
|
Total: |
paid up |
HK$78,000,000.00 =============== |
Increases of Nominal Capital:-
|
From |
HK$ 500,000.00 |
to |
HK$ 2,340,000.00 |
on |
29-10-1987 |
|
From |
HK$2,340,000.00 |
to |
HK$78,000,000.00 |
on |
24-11-2004 |
Group Net Profit: KRW 324,224 million (Year ended 31-12-2010)
KRW 261,782 million (Year ended 31-12-2011)
KRW 229,272 million (Year ended 31-12-2012)
Company Profit: KRW 5,906 million (Year ended 31-12-2011)
KRW 14,532 million (Year ended 31-12-2012)
Profit or Loss: Business was profitable in past two years.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments on time.
Commercial Morality: Good.
Bankers:-
BNP Paribas, Hong Kong Branch.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Korea Exchange Bank, Hong Kong Branch.
Citibank N.A., Hong Kong Branch.
Mizuho Corporate Bank Ltd., Hong Kong Branch.
Shinhan Finance Ltd., Hong Kong.
The Bank of Tokyo-Mitsubishi UFJ Ltd., Hong Kong Branch.
Bank of America N.A., Hong Kong Branch.
Fortis Bank, Hong Kong Branch.
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Bank of China (Hong Kong) Ltd., Hong Kong.
The Industrial Bank of Korea, Hong Kong Branch.
etc.
Standing: Very Good.
LG International (HK) Ltd. [LGHK] is a wholly-owned subsidiary of LG International Corporation [LGIC] (formerly known as Lucky-Goldstar International Corporation) which was incorporated in November 1953 and its shares have been quoted on Korean Stock Exchange since January 1976. On 12th November 1976, LGIC was designated as a general trading company by the South Korean government.
LGHK is a branch of LGIC which can directly purchase or sales any trading items. It has been in the non-ferrous field for more than twenty years. LGHK is chiefly trading in metal waste, iron and steel, non-ferrous metal products, ingot, etc. Prime market are South Korea and other Eastern Asian countries.
LGHK has had an associated company LG Chem HK Ltd. [LG Chem] located at its operating address. LG Chem is also a member of the LG International Group.
LGIC is part of LG Group, one of the chaebol (industrial conglomerates) that have long dominated South Koreas business landscape. LG imports products essential for Koreas industrial growth, and exports the products of Koreas major industries. It acquires and supplies resources and material parts to its three business groups: Energy and Raw Materials (oil/gas, coal, and metal), Industrial Materials (machinery, electronic components, and chemicals), and Import/Distribution (auto, aviation, and digital retail). It also sells IVECOs European-made commercial vehicles after retrofitting them to meet domestic requirements. It is comprised of six subsidiaries and has 46 overseas operations.
LGIC is headquartered in Seoul, South Korea. Its China representative offices are in Beijing, Chengdu, Shanghai, Dalian, Qingdao, Tianjin, Shenyang, Nanjing, Wuhan, Guangzhou and Shenzhen. LGIC established its regional head office LGHK in Hong Kong in late 1977.
Concerning nonferrous metal business, LGIC imports industrial nonferrous metals, including aluminium, copper, and tin, from suppliers around the world and supply them to domestic exporters of industrial and processed materials. This enables LGIC to meet the domestic industrial demand or to re-export nonferrous products. LGIC recently has expanded into a third‑to‑third country trade business.
LGIC is also involved in investment projects for the Rapu Rapu mine in the Philippines and the Coro Coro mine in Bolivia. Notably, LGIC is the largest stakeholder and the main operator in the Rapu Rapu mine project, which is the first foray into overseas mines for a South Korean company. It is producing and selling copper and zinc concentrates.
LGIC now has 30 directly owned subsidiaries, 17 liaison offices and 23 overseas branches offices as of 31st December, 2012.
For the year ended 31st December, 2012, the consolidated sales of the LG International Group amounted to KRW 12,793,756 million, decreased by 8.5% as compared with KRW 13,986,834 million in FY 2011; profit of the Group was KRW 229,272 million, decreased by 12.4% as compared with KRW 261,782 million FY 2011. The net profit of the Group has been decreasing since 2010.
LGHK serves as a trading arm of the LG International Group. It is engaged in exporting machinery, chemicals, petrochemicals, steel, IT products, electronics and textiles to China and importing agricultural products, machinery tools and silk from China. Products are re-exported to South Korea and the other foreign markets.
Now, fully supported by the LG International Group, LGHK has become the control centre for the entire Asia Pacific region.
For the year ended 31st December, 2012, the revenue of LGHK amounted to KRW 3,471,890 million, grew by 28.0% as compared with KRW 2,711,542 million in FY 2011; its profit was KRW 14,532 million in the year, grew by 146.1% as compared with KRW 5,906 million in FY 2011.
It seems that the business of LGHK will keep on improving in the years ahead.
On the whole, in view of the background and parentage of LGHK, consider it good for normal business engagements.
Court case:-
|
Action Date |
Case No. |
Plaintiff |
Defendant |
Cause |
Amount |
|
June 1987 |
- |
Cheer Sails Co. Ltd. |
Lucky-Goldstar International (HK) Ltd. [Now known as LG International (HK) Ltd.] |
Breach of Contract |
HK$145,080 |
|
June 1987 |
- |
See Kong Enterprises Co. |
Lucky-Goldstar International (HK) Ltd. [Now known as LG International (HK) Ltd.] |
Breach of Contract |
HK$546,000 |
|
Nov. 1987 |
- |
Guilar Co. Ltd. |
Lucky-Goldstar International (HK) Ltd. [Now known as LG International (HK) Ltd.] |
Breach of Contract |
Not stated |
|
Jan. 1989 |
- |
Ching Tai Trading Co. Ltd. |
Lucky-Goldstar International (HK) Ltd. [Now known as LG International (HK) Ltd.] |
Breach of Contract |
US$603,000 |
|
Mar. 1991 |
- |
Comce Trading Ltd. |
Lucky-Goldstar International (HK) Ltd. [Now known as LG International (HK) Ltd.] |
Damages |
Not stated |
|
July 1991 |
- |
Korea Exchange Bank |
Lucky-Goldstar International (HK) Ltd. [Now known as LG International (HK) Ltd.] |
Amount Due |
HK$9,372,000 |
|
Feb. 1993 |
- |
ICD Group (HK) Ltd. |
Lucky-Goldstar International (HK) Ltd. [Now known as LG International (HK) Ltd.] |
Damages |
Not stated |
|
05-05-1997 |
D9114 |
Eastern Bright Shipping Ltd. and Eastern Bright Shipping Agency Ltd. |
LG International (HK) Ltd. and other |
Service Rendered |
HK$69,535 |
|
14-04-1999 |
H5898 |
Wong Miu Yee, Sally |
LG International (HK) Ltd. |
Owing |
HK$47,000 |
|
16-05-2000 |
S8311 |
South China House of Technology Consultants Ltd. |
LG International (HK) Ltd. |
Refund |
Not stated |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.26 |
|
|
1 |
Rs.99.63 |
|
Euro |
1 |
Rs.80.59 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIS |
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 |
|
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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 |
|
|
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
SCs 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.