MIRA INFORM REPORT

Report Date :

27.11.2014

IDENTIFICATION DETAILS

Name :	OCI (HONG KONG) LTD.
Registered Office :	7/F., Shum Tower, 268 Des Voeux Road Central
Country :	Hongkong
Date of Incorporation :	16.05.1989
Com. Reg. No.:	12786038
Legal Form :	Private Limited Company
Line of Business :	Importers and Exporters; Transhipment Agent. Import: Yellow phosphorus, sodium sulphate, phosphoric acid, zinc sulphate, other industrial chemicals. Export: Toluene diisocyanate 80/20 hydrogen peroxide 50% soda ash light and dense, other industrial chemicals.
No. of Employees :	6

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Hongkong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

HONGKONG - 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

OCI (HONG KONG) LTD.

ADDRESS: 7/F., Shum Tower, 268 Des Voeux Road Central, Hong Kong.

PHONE: 852-2543 6383, 2854 2416

FAX: 852-2541 2780

E-MAIL: skjung@ocicorp.co.kr

MANAGEMENT

Managing Director: Mr. Huh Byeong Seok

SUMMARY

Incorporated on: 16th May, 1989.

Organization: Private Limited Company.

Capital: Nominal: HK$7,120,000.00

Issued: HK$7,120,000.00

Business Category: Importers and Exporters; Transhipment Agent.

Employees: 6.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Very Good.

ADDRESS

Registered Head Office:-

7/F., Shum Tower, 268 Des Voeux Road Central, Hong Kong.

Parent Company:-

OCI Corporation

16/F., Ferrum Tower, #19 Eulji-Ro 5-Gil, (Suha-Dong), Jung-Gu, Seoul, Korea.

Subsidiaries:-

OCI (Shanghai) International Trading Ltd., China.

OCI International Inc., US.

Associated Companies:-

Dong Yang Silicone Co. Ltd., South Korea.

Eyang Chemical Co. Ltd., South Korea.

OCI – UNID Europe B.V., Netherlands.

OCI – UNID Phils Inc., Philippines.

OCI (Guangzhou) Chemical Ltd., China.

OCI Co. Ltd., South Korea.

OCI Information & Communication Co. Ltd., South Korea.

Ordeg Co. Ltd., South Korea.

Samkwang Glass Ind. Co. Ltd., South Korea.

TEC E & C Ltd., China.

Unid Co. Ltd., South Korea.

BUSINESS REGISTRATION NUMBER

12786038

COMPANY FILE NUMBER

0252510

MANAGEMENT

Managing Director: Mr. Huh Byeong Seok

Contact Person: Ms. Chi

CAPITAL

Nominal Share Capital: HK$7,120,000.00 (Divided into 7,120,000 shares of HK$1.00 each)

Issued Share Capital: HK$7,120,000.00

SHAREHOLDERS

(As per registry dated 16-05-2014)

Name		No. of shares
OCI Corporation 16/F., Ferrum Tower, #19 Eulji-Ro 5-Gil, (Suha-Dong), Jung-Gu, Seoul, Korea.		7,119,999
HUH Byeone Seok		1
		––––––––
	Total:	7,120,000 =======

DIRECTORS

(As per registry dated 16-10-2014)

Name (Nationality)	Address
LEE Seungki	619, Ttukseom Ro, Gwangjin-Gu, Seoul, Korea.
HUH Byeone Seok	Room 1702, No. 13, Lane 1299, Ding Xiang Road, Pudong, Shanghai, China.

SECRETARY

(As per registry dated 16-05-2014)

Name	Address	Co. No.
Fankent Secretaries Ltd.	Room 1912, 19/F., C C Wu Building, 302 Hennessy Road, Wanchai, Hong Kong.	0234450

HISTORY

The company was incorporated on 16th May, 1989 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject moved to the present address in August 2005.

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

OPERATIONS

Activities: Importers and Exporters; Transhipment Agent.

Lines:-

Import: Yellow phosphorus, sodium sulphate, phosphoric acid, zinc sulphate, other industrial chemicals.

Export: Toluene diisocyanate 80/20 hydrogen peroxide 50% soda ash light and dense, other industrial chemicals.

Employees: 6.

Commodities Imported: Mainly imported from South Korea.

Markets: Hong Kong, China and Southeast Asia.

Terms/Sales: L/C or as per contracted.

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$7,120,000.00 (Divided into 7,120,000 shares of HK$1.00 each)

Issued Share Capital: HK$7,120,000.00

Profit or Loss: Business is profitable angle.

Condition: Keeping in an active and good manner.

Facilities: Making active use of general banking facilities.

Payment: So far regular.

Commercial Morality: Good.

Bankers:-

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

Cho Hung Finance Ltd., Hong Kong.

Standing: Very Good.

GENERAL

OCI (Hong Kong) Ltd. is an overseas marketing subsidiary of OCI Corporation [OCIC] which is a South Korea-based company. It was incorporated in May 1989 to take over the activities of Oriental Chemical Industry Co. Ltd., Hong Kong Liaison Office.

The subject’s business is active in transhipment of chemicals and chemical materials for its parent. It is engaged in the same lines of business as OCIC. The subject is responsible for the sales of the chemical products in Southeast Asia region. It has four representative offices, two of which are in Guangzhou and Shenyang, China. The others are located in Jakarta of Indonesia, Manila of the Philippines and Hochiminh of Vietnam.

OCIC is a well-established trading company based in Seoul, South Korea. Its business includes export, import, and local distribution of chemicals and chemical-related products.

OCIC is one of the chemical trading firms in Hong Kong bearing South Korean background. It is trying to develop solid business relationship with the leading suppliers and customers both in domestic and overseas markets.

The export division of OCIC handles more than 100 items of chemical products.

OCIC is actively engaged in developing and maintaining long-term relationships with customers in China, the other Asian countries, Europe, North and Latin America through its own overseas branches and partners.

OCIC also imports a variety of chemical materials to meet the demand of the textile, paint, ceramic, fertilizer and adhesive industries in South Korea. For the supply of specific items, the import division has long-term supply arrangements with the world’s leading chemical manufacturers and distributors including Celanese Chemical (the United States), Arkema (France), US Borax (the United States), Elementis (the United Kingdom), J.H.C. (Japan), Oxiteno (Brazil), Shell (EU), etc.

Now, OCIC has set up offices in the following cities: Jakarta (Indonesia), Manila (the Philippines), Frankfurt (Germany), Mumbai (India), Hochiminh (Vietnam), Sao Paulo (Brazil), Chengdu (China), Shenyang (China), Guangzhou (China)

The offices in China and the offices in Manila, the Philippines and Hochiminh, Vietnam are the representative offices of the subject.

In order to enhance sales activities and expand its business, the subject has established a trading company, called OCI (Shanghai) International Trading Ltd. [OCI Shanghai] in Waigaoqiao Free Trade Zone of Shanghai, China to conduct trading activities in China.

OCI Shanghai has one representative office in Chengdu of China. It imports products from South Korea and sells them to customers in the domestic markets in China. It also purchases materials from China and exports to South Korea and other countries. Besides, it has a local trading business based on RMB currency.

In addition, the subject has acquired OCI International Inc. [OCI Int’l] from DC Chemical for the trading activities in the America.

OCI Int’l is a wholly owned subsidiary of OCIC. OCI Int’l imports products from Korea and sells them to customers in North, Central and South America. It also purchases materials from North, Central and South Americas and exports to South Korea and other countries.

OCI (Guangzhou) Chemical Limited [OCI Guangzhou] is a joined venture jointly set up by a Chinese company Zengcheng Zhongyuan Chemical Limited and the subject. OCI Guangzhou is engaged in producing phosphoric acid. It was set up in March 2007. The registered capital of OCI Guangzhou was RMB20 million Yuan and its annual output is about RMB80 million Yuan. Currently it has about 100 employees.

The annual sales turnover of OCIC ranges from KRW 700 to 800 billion while its net income ranges from KRW 18 to 25 billion. Business is normal and active although annual profit margin is low.

The subject is fully supported by OCIC. History in Hong Kong is over 25 years and six months.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.87
UK Pound	1	Rs.97.23
Euro	1	Rs.77.21

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	NIT

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.