MIRA INFORM REPORT

 

 

Report Date :

18.06.2014

 

IDENTIFICATION DETAILS

 

Name :

DOW CHEMICAL PACIFIC LTD.

 

 

Registered Office :

47/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

19.12.1969

 

 

Com. Reg. No.:

02980169

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trading in Chemical Products, Plastic Products, Agricultural Products

 

 

No. of Employees

450

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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

 

 

 


Company name and address

 

DOW  CHEMICAL  PACIFIC  LTD.

 

 

ADDRESS:       47/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong.

 

PHONE:            852-2879 7333

 

FAX:                 852-2827 6019

 

 

MANAGEMENT

 

President:  Mr. Ho Pak Chuen, Patrick

 

 

SUMMARY

 

Incorporated on:            19th December, 1969.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:HK$78,900,000.00

Issued: HK$78,900,000.00

 

Business Category:       Chemical Merchant.

 

Group Net Sales:           US$57,080 million  (Year ended 31-12-2013)

 

Employees:                  450.

 

Main Dealing Bankers:   Citibank N.A., Hong Kong Branch.

Bank of America NT & SA, Hong Kong Branch.

 

Banking Relation:          Excellent.


 

ADDRESS

 

Pacific Area Headquarter, Asia Regional Office, Hong Kong & China Sales Offices:-

47/F. - 49/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong.

 

Mailing Address:-

P.O. Box 711, Hong Kong.

 

Parent Company:-

The Dow Chemical Company

2030 Willard H. Dow Centre, Midland, Michigan 48674, US.

 

Associated Companies:-

Dow Agrosciences Pacific Ltd., Hong Kong.

Dow Chemical (Hong Kong) Ltd., Hong Kong.

Dow Chemical Taiwan Ltd., Taiwan.

Dow Chemical Thailand Ltd., Thailand.

Dow Corning Corporation, US.

EQUATE Petrochemical Co. K.S.C., Kuwait.

Map Ta Phut Olefins Co. Ltd., Tailand.

MEGlobal, UAE.

Merrell Dow Pharmaceuticals Pacific Ltd., Hong Kong.  [Dissolved]

Sadara Chemical Co., Saudi Arabian.

Siam Polyethylene Co. Ltd., Thailand.

Siam Polystyrene Co. Ltd., Thailand.

Siam Styrene Monomer Co. Ltd., Thailand.

Siam Synthetic Latex Co. Ltd., Thailand.

The Kuwait Olefins Co. K.S.C., Kuwait.

Univation Technologies. LLC, US.

 

 

BUSINESS REGISTRATION NUMBER

 

02980169

 

 

 

COMPANY FILE NUMBER

 

0019063

 


 

MANAGEMENT

 

President:  Mr. Ho Pak Chuen, Patrick

Finance Director:  Mr. Lai Wai Kin, Vincent

 

 

CAPITAL

 

Nominal Share Capital: HK$78,900,000.00 (Divided into 789,000 shares of HK$100.00 each)

 

Issued Share Capital: HK$78,900,000.00

 

SHAREHOLDER:          (As per registry dated 19-12-2013)

Name

 

No. of shares

The Dow Chemical Co.

2030 Willard H. Dow Centre, Midland, Michigan 48674, US.

 

789,000

======

 

DIRECTORS:    (As per registry dated 19-12-2013)

Name

(Nationality)

 

Address

Graham Thomas DALEY

Flat B, 1/F., Block 2, Dynasty Court, 23 Old Peak Road, Central, Hong Kong.

 

HO Pak Chuen, Patrick

8/F., Interocean Court, 26 Peak Road, Hong Kong.

 

GAO Fei

Suite 2001, Apt. #2, Building. 301, Bai Zi Wan Jia Yuan, Chaoyang District, Beijing 100022, China.

 

LAI Wai Kin, Vincent

House 393, Regeny Peak, Lane 1883, Hua Mu Road, Pudong, Shanghai 201204, China.

 

SECRETARY:   (As per registry dated 19-12-2013)

Name

Address

WONG Siu Mui

Flat B, 32/F., Tower 3, Marina Habitat, Apleichau, Hong Kong.

 

 

HISTORY

 

The company was incorporated on 19th December, 1969 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.

 


OPERATIONS

 

Activities & Lines:- -Area administrative office for industrial chemicals, plastics, metals and agricultural and specialty chemicals.

 

-       Importer, exporter, distributor, sales supervision, technical services and administrative office for chemicals and performance products, metals, plastics and agricultural chemical products, hydrocarbons and energy, consumer specialities, calibre (polycarbonate resin), styron; methocel (methyl cellulose), voranol (polyether polyol), dowex (ion exchange resin), voralux (polyol), ziploc bag, spray N wash, yes heavy dete 6/640Z, gailant 125EE herbicide/gallant super herbicide, lorsban 4E insecticide, rubigan 6WF fungicide, starane 200 herbicide, trifluralin tech herbicide, water purifying equipment, tyril 1000B san/tyrin 3615P.

 

Trade Marks:     “STYRON”, “PRIMACOR”, “DOW CORNING” and “MOLYKOTA” brands.

 

Employees:      450.

 

Commodities Imported: Mainly bought from US, Canada, Switzerland and other European countries.

 

Markets:            Hong Kong, China, other Asian Pacific Areas.

 

Group Net Sales:           US$59.985 million  (Year ended 31-12-2011)

US$56,786 million  (Year ended 31-12-2012)

US$57,080 million  (Year ended 31-12-2013)

 

Terms/Sales:                 Various terms.

 

Terms/Buying:               As per contracted.

 

MEMBERSHIP: The Hong Kong General Chamber of Commerce, Hong Kong.

The American Chamber of Commerce in Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$78,900,000.00 (Divided into 789,000 shares of HK$100.00 each)

 

Issued Share Capital: HK$78,900,000.00

 

 

Increases of Nominal Capital:-

From

HK$       1,000.00

to

HK$  6,000,000.00

on

01-04-1970

From

HK$6,000,000.00

to

HK$78,900,000.00

on

17-12-1986

 

Alternation of Issued Capital:-

12-01-1971

paid up

HK$  1,000,000.00

17-12-1986

paid up

HK$77,900,000.00

 

 

––––––––––––––––

Total:

paid up

HK$78,900,000.00

==============

 

Group Net Income:        US$2,402 million  (Year ended 31-12-2011)

US$   842 million  (Year ended 31-12-2012)

US$4,447 million  (Year ended 31-12-2013)

 

Profit & Loss:               Business is profitable.

 

Condition:                     Keeping in an active status

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Reliable.

 

Commercial Morality:     Very Good.

 

Bankers:-

Bank of America NT & SA, Hong Kong Branch.

Citibank N.A., Hong Kong Branch.

Sumitomo Mitsui Banking Corporation, Hong Kong Branch.

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

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

etc.

 

Banking:-

One source reports it maintains active and well conducted account with them.  Their relationship, including the extension of credit facilities, has been entirely satisfactory.  They have a very favourable institutional relationship with the Dow Group of Companies for whom the bank has high regard and whose credit standing is beyond doubt.

 

Standing:          Sound.

 


GENERAL

 

Dow Chemical Pacific Ltd. [Dow Pacific] is a wholly-owned subsidiary of The Dow Chemical Company [Dow] of Michigan, the United States.  conducting business as a manufacturer of chemicals, plastics and bio‑products.

Dow Pacific is Dow’s Hong Kong Business Centre.  It has had a manufacturing site, TS&D facility in Tsing Yi, New Territories, Hong Kong.

Founded in Midland, Michigan in 1897, to date, Dow has grown to be the fifth largest chemical company in the world, with annual sales of more than US$56 billion.

Today, Dow manufactures and supplies chemicals, plastics, energy, agricultural products and environmental services for customers in 170 countries around the world, and employs approximately 53,000 people worldwide.  Dow conducts its operations through 14 global businesses.  It has 123 manufacturing sites in 32 countries and supplies more than 3,500 products.

As one of the world’s largest chemical enterprises, Dow offers customers one of the broadest product portfolios in the world, backed by the applications and formulations expertise that customers need.  Dow serves customers in more than 175 countries, offering innovative chemical, plastic and agricultural products and services to many essential markets, including food, water, household goods, personal care, transportation, building and construction, healthcare and electronics.  Through its innovative products and deep understanding of the market in China, Dow will continue to provide customized and market-oriented products and solutions to Chinese customers.

Dow provides basic chemicals that are used across a host of different industries and also serve as critical raw materials used to manufacture a broad array of products.  Dow plastic products span the performance continuum — from industry workhorse resins to highly differentiated specialty polymers. Dow’s extremely diverse portfolio allows customers to find the exact match for their specific requirements.

Dow is trading in Chemical Products, Plastic Products, Agricultural Products and Licensing business from Dow that are available to customers in China.

Dow opened its first sales office in Greater China in Hong Kong in 1957.  Taiwan office opened in 1968, followed by the first China office in Guangzhou in 1979.

As Dow has expanded, so has its network of Greater China-based manufacturing, sales, research and development facilities.  Today, Dow has established 5 business centres in Beijing, Shanghai, Guangzhou, Taipei and Hong Kong, plus 10 manufacturing sites and R&D sites in the region.  The Dow Shanghai office also serves as the headquarters of Dow Greater China.

The followings are Dow in China:

Beijing --- Business Centre;

Guangzhou --- Business Centre, Manufacturing Site;

Huzhou --- Manufacturing Site;

Nantong --- Manufacturing Site;

Ningbo --- Manufacturing Site, TS&D Facility;

Shanghai --- Regional Headquarters;

Wuhan --- Manufacturing Site ;

Zhangjiangang --- Manufacturing Site; &

Zhongshan --- Manufacturing Site, TS&D Facility.

Dow has over 2,000 employees in the Greater China region.

For the year ended 31st December, 2013, the net sales of the Dow Group amounted to US$57,080 million (2012: US$56,786 million), grew by 0.5% as compared with previous year.  Group net income amounted to US$4,447 million, grew substantially as compared with US$842 million as compared with previous years.

As the history of Dow Pacific is over 44 years in Hong Kong, on the whole, consider it good for normal business engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.37

UK Pound

1

Rs.102.48

Euro

1

Rs.81.87

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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

 

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.