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Report Date : |
07.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
ANGANG GROUP HONG
KONG CO. LTD |
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|
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Registered Office : |
Room 3412-3413, 34/F., |
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Country : |
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Date of Incorporation : |
21.12.1998 |
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Com. Reg. No.: |
22169882 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
· engaged in importing iron ore, exporting steel products, ocean shipment and relevant bank business. Importer
and Exporter of all kinds of iron and steel as well as iron ores |
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No of Employees : |
12 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
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 |
ANGANG GROUP HONG KONG CO. LTD.
Room 3412-3413, 34/F., Convention Plaza, Office Tower, 1 Harbour Road, Wanchai, Hong Kong.
PHONE: 852-2802 8318, 2231 7300
FAX: 852-2802 8636
E-MAIL: aghk@netvigator.com
Managing Director: Mr. Zhang Xiaogang
Incorporated on: 21st December, 1998.
Organization: Private Limited Company.
Capital: Nominal: HK$800,000,000.00
Issued: HK$787,769,350.00
Business Category: Iron and Steel Trader.
Employees: 12.
Main Dealing Banker: China Development Bank Corporation Hong Kong Branch.
Banking Relation: Good.
Registered Head
Office:-
Room 3412-3413, 34/F., Convention Plaza, Office Tower, 1 Harbour Road, Wanchai, Hong Kong.
Holding Company:-
Angang Group International Trade Corporation, China.
Ultimate Holding
Company:-
Angang Group Company, China.
Associated
Companies:-
Angang Australia Pty. Ltd., Australia.
Angang Cold Rolled Steel (Putian) Co. Ltd., China.
Angang Group Aluminium Powder Co. Ltd., China.
Angang Group Hong Kong (Holdings) Ltd., Hong Kong. (same address)
Angang Group International Trade Corporation Bayuquan Co., China.
Angang Group International Trade Corporation Beijing Co., China.
Angang Group International Trade Corporation Dalian Co., China.
Angang Group International Trade Corporation Northwest Co., China.
Angang Group International Trade Corporation Shanghai Co., China.
Angang Group International Trade Corporation Shenzhen Co., China.
Angang Group International Trade Corporation Spot Sale Co., China.
Angang Group International Trade Corporation Yantai Co., China.
Angang Group International Trade Corporation Zhongnan Co., China.
Angang Group Investment (Australia) Pty. Ltd., Australia.
Angang Steel Distribution (Hefei) Co. Ltd., China.
Angang Steel Distribution (Wuhan) Co. Ltd., China.
Angang Steet Co. Ltd.,
China. (A listed firm in Hong Kong)
[Formerly known as New Steel Co. Ltd.]
China Niobium Investment Holdings Ltd., Hong Kong.
Gindalbie Metals Ltd., Australia.
Guangzhou Angang Steel Processing Co. Ltd., China.
Karara Mining Ltd., Australia.
Pangang Group Co. Ltd., China.
Pangang Group Steel Vanadium & Titanium Co. Ltd., China.
Processing Co. Ltd., China.
Tianjin Angang Tiantie Cold Rolled Sheets Group Ltd., China.
etc.
22169882
0663041
Managing Director: Mr. Zhang Xiaogang
Nominal Share Capital: HK$800,000,000.00 (Divided into 800,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$787,769,350.00
(As per registry
dated 21-12-2013)
|
Name |
|
No. of shares |
|
Angang Group International Trade Corporation 322 South Zhong Hua Road, Anshan, Liaoning, China. |
|
787,769,350 ========= |
(As per registry
dated 21-12-2013)
|
Name |
Address |
|
LI Daguang |
Room 3412-3413, 34/F., Convention Plaza, Office Tower, 1
Harbour Road, Wanchai, Hong Kong. |
|
SHA Xiaochun |
No. 87, 5/F., Unite 6, Building No. 42, Dongshan Street, Tiedong
District, Anshan Cit Liaoning Province, China. |
|
ZHANG Xiaogang |
Flat 5, 6/F., Block C, Great George Building, 11 Great
George Street, Causeway Bay, Hong Kong. |
|
LI Dongwei |
Flat 5, 6/F., Block C, Great George Building, 11 Great
George Street, Causeway Bay, Hong Kong. |
|
YU Wanyuan |
Flat 5, 6/F., Block C, Great George Building, 11 Great
George Street, Causeway Bay, Hong Kong. |
(As per registry
dated 21-12-2013)
|
Name |
Address |
|
GE Suying |
Flat 5, 6/F., Block C, Great George Building, 11 Great
George Street, Hong Kong. |
The subject was incorporated on 21st December, 1998 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 1706-1707, 17/F., Shui On Centre, 6-8 Harbour Road, Wanchai, Hong Kong, moved to the present address in December 2003.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of iron and steel as well as iron ores
Employees: 12.
Commodities Imported: Imported from Europe, South America, Japan, etc.
Markets: North America, Europe and Southeast Asia, Middle East, etc.
Terms/Sales: As per contracted.
Terms/Buying: Various terms.
Nominal Share Capital: HK$800,000,000.00 (Divided into 800,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$787,769,350.00
Mortgage or Charge: (See attachment)
Profit & Loss: Made a small profit in 2013.
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.
BNP
Paribas, Hong Kong Branch.
Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
Standard
Chartered Bank (HK) Ltd., Hong Kong.
The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Good.
Angang Group Hong Kong Co. Ltd. is a wholly-owned subsidiary of Angang Group International Trade Corporation which is a China-based firm. The ultimate holding company of the subject is Angang Group Company, also a China-based firm.
The subject is mainly engaged in importing iron ore, exporting steel products, ocean shipment and relevant bank business. It is providing customers with professional service. It has had a stable customer base in North America, Europe and Southeast Asia. The subject is playing an important role for the internationalisation of the Angang Group. It will continue to expand its steel products trading business and also bids for international engineering projects, technology exchange, etc. Furthermore, as an overseas trading arm of the Angang Group, the subject will establish branches in the United States and Europe so as to penetrate the markets further.
The Angang Group’s products include hot rolling plate, cool rolling plate, medium and heavy plate, section products, section steel wire roll, seamless steel pipe
In Hong Kong, the subject has had a main associated company known as Angang Steel Co. Ltd. [ASCL] which is a listed firm in Hong Kong.
The subject’s main affiliated company is Angang Group International Trade Corporation [AGITC]. AGITC is also a wholly-owned subsidiary of Angang Group.
AGITC is one of the first international trade enterprises in China’s metallurgical field that has got the right in importing and exporting. It is the exclusive agent to do the import and export business for the Angang Group and it is also the bridge linking the Angang Group and the rest of the world. AGITC’s annual imports and exports totalling about US$450 million, and maybe increase further in the immediate future. AGITC is the main firm to sell the Angang Group’s products in China and abroad. Every year, AGITC sells about 4 million tons of iron and steel and the annual consolidated sales amounted to nearly RMB10 billion Yuan. AGITC has had 8 branches in the economic zones and in some large cities of China. It also has 25 sales offices.
The subject is one of the two overseas branches while the other one is in Australia. AGITC also has set up branch companies in the United States and in some of the European Countries. Now, AGITC has got more than 600 business partners in over 40 countries and regions throughout the world. Over 90% of the steel products sold by AGITC have been manufactured according to the international standards. Besides, the products of the Angang Group have got the ISO 9002 certification.
AGITC has more than 10 scientific and technical research and engineering institutes in China.
AGITC exports about one million tons of steel products annually. Main products are plates, hot rolled coils, cold rolled coils, heavy rail, petroleum pipes, section steel, wire rod, slab and billet, pig iron and so on. Prime markets and regions include Southeast Asia, Europe, North America, South America, the Middle East, Japan, South Korea, Hong Kong, Taiwan, etc.
AGITC also imports raw materials and fuels needed by the Angang Group such as iron ore, scrap, HBI powder, etc. AGITC also exports all kinds of by‑products such as industrial refractory material, coking coal and series of chemical products. Raw materials and fuels are mainly imported from Australia, India, South Africa, Brazil, Japan, Europe, North America, etc. The refractory and chemical products are mainly exported to Japan, South Korea, Russia, Europe, and Southeast Asia. Business has been active.
ASCL (formerly known as Angang New Steel Company Limited) was formally established on the 8th May 1997 as a joint-stock limited company.
ASCL was established as a joint-stock limited company under the Company Law of the People’s Republic of China (the “PRC”), with Anshan Iron & Steel Group Company (“Angang Holding”) as the sole promoter,
The Company issued 890,000,000 foreign invested ordinary shares (“H shares”) with a par value of RMB1.00 each on the 22nd July 1997 which were subsequently listed on The Stock Exchange of Hong Kong Limited on the 24th July 1997.
ASCL recorded a net profit attributable to shareholders of the Company of RMB770 million and basic earnings per share of RMB0.106 for the year ended 31st December 2013. The net loss attributable to shareholders of the Company for the year ended 31st December 2012 was RMB4,025 million.
The operating income of ASCL amounted to RMB75,329 million Yuan (2012: RMB78,214 million Yuan).
In 2013, the steel and iron industry of China remained sluggish. The contradictory relationship between supply and demand was still severe. The price of iron ore remained high but that of steel stayed low. Steel and iron enterprises were confronting enormous pressure. Faced with such difficult situation, ASCL focused on resolving constraints which hindered its development with focus on various aspects such as adjusting its operating model, reforming its internal systems, enhancing profitability of key areas and improving productivity. It has achieved the operation goal of conversion from losses to profitability for the year.
As at 31st December 2013, ASCL had 33,520 employees.
The subject is fully supported by the Angang Group.
On the whole, consider the subject good for normal business engagements.
REMARK:
Brief personal
profile of the principal director:-
Mr. Zhang Xiaogang, professor-level senior engineer
holding a PhD degree in engineering, is the Chairman of the ASCL and Angang
Holding, Chairman as well as General Manager of Angang Group Company. Mr. Zhang has obtained a bachelor’s
degree from Wuhan University, a master’s degree from North-eastern University
and a PhD degree from the Central Iron & Steel Research Institute. He has been working for Angang Group Company
over 30 years and has held various senior management positions in Angang Group
Company, including the Head of the Technology Department and the Deputy Chief
Engineer of Angang Holding, the General Manager of ANSI and the Standing Deputy
General Manager of Angang Holding. He is an alternate member of the Seventeenth
Central Committee of the Communist Party of China, a representative of the
Eleventh National People’s Congress and a member of the Eighteen Session of the
Central Committee for Discipline Inspection of the Communist Party of
China. Mr. Zhang is an expert in
metallurgical industry with extensive knowledge in the development and
innovation of metallurgical technology.
He was a member of the expert panel in the “State 863 and 973 Projects”,
Chairman of China Iron and Steel Association, and was awarded the First Prize
for Scientific and Technological Progress by the State. Mr. Zhang is currently the Chairman of World
Steel Association, a member
of the expert panel of the Standardization Administration of China, the
Director of the Steel Rolling Academic Committee, the Chairman of International
Organization for Standardization ISO/PC17/SC17 and the Director of Low Alloy
Steel Academic Committee of The Chinese Society for Metals.
Mr. Yu Wanyuan, Director of the Company, Deputy General Manager
and Chief accountant of Angang Group Company and a professor-level senior
accountant. Mr. Yu joined Angang Holding
in 1998. Mr. Yu graduated from
Northeastern Univesity with a bachelor’s degree in mechanical engineering. He studied at School of Economics of Xiamen
University in 1984. He obtained his
second bachelor’s degree in management engineering from Northeastern University
in 1990. Mr. Yu has held positions as Deputy
Director of financial Department of Northeastern University, the Accounting
Director of Shenyang Xinji Real Estate Development Company, Deputy Chief
Accountant of Northeastern University, the Assistant to General Manager, Deputy
Chief Accountant, Chief Accountant and the Head of the Department of Finance
and Accounting of Angang Holding.
|
Date |
Particulars |
Amount |
|
24-10-2000 |
Instrument: Charge Over Deposits – CD 1(89) Property: 1) By fixed Charge: all the Company’s rights in respect of (i) Time deposit of US$780,000; and (ii) all other sums in any currency from time to time standing to the credit of the Company or the credit of any other person for the Company’s benefit on any deposit account with the Bank, Standard Chartered Asia Ltd. or Standard Chartered Finance Ltd., including additions to or renewals or replacements of such sum; and all interest thereon 2) By assignment: all Deposits held with Standard Chartered Asia Ltd. or Standard Chartered Finance Ltd. Mortgagee: Standard Chartered Bank, Hong Kong Branch. [Now known as Standard Chartered Bank (HK)
Ltd.] |
To secure the payment or discharge of all moneys,
obligations and liabilities, actual or contingent, now or at any time due,
owing or incurred by the Company to the Bank whether alone or jointly and
whether as principal or as surety |
|
29-10-2001 |
Instrument: Deed of Charge on Deposit Property: The Charged Moneys as defined in the Deed of Charge on Deposit Account No. 00001-065406-141-59 Mortgagee: BNP Paribas, Hong Kong Branch. |
The Liabilities as defined in the Deed of Charge on
Deposit |
|
24-04-2002 |
Instrument: Charge on Cash Deposit Property: A first fixed charge on a deposit dated 24-04-2002 of variable amount covering outstanding obligations Mortgagee: Fortis Bank Asia HK, Hong Kong Branch. [Name changed to Belgian Bank but the
business was taken over by Industrial & Commercial Bank of China (Asia)
Ltd.] |
To secure all obligations and liabilities |
|
12-08-2004 |
Instrument: Assignment of DC Proceeds re export bills restricted to other
banks for negotiation/payment Property: By way of assignment or agreement to assign in each case as beneficial owner. All monies in any currency representing proceeds payable or to be paid to the Customer under the Documentary Credits, all the Customer’s right, title and interest in the said Documentary Credits and the benefit of all powers and remedies for enforcing the Documentary Credits Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
All loans or other advances made or to be made by the
Bank to the Customer against documents submitted under a Documentary Credit, all
monies and liabilities in any currency owing by the Customer to the Bank at
any time, whether separately or jointly, actually or contingently, present or
future, interest on all loans and advances and such monies and all expenses
of the Bank in perfecting or enforcing the Assignment |
|
31-08-2011 |
Instrument: Subordination & Assignment Deed made between the company,
China Niobium Investment Holdings Ltd and the Lender Property: By way of Clause 3.1 (Assignment) 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 rights, title and interest and benefit from time to time in respect of:- A) All of its Shareholder Loan Rights; B) Each Subordinated Instrument to which the Subordinated Lender is a party. Mortgagee: China Development Bank Corporation, Hong Kong Branch. |
To Senior liabilities, as per the facility Agreement
dated 31st August, 2011 |
|
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 as per Facility Agreement dated
31st August, 2011. |
|
21-12-2011 |
Instrument: Account Chargee dated 21st December 2011 Property: 1) General (a) All the security created under the Deed:- i) Is created in favour of the Lender; ii) Is created over present and future assets of the Chargor; and iii) Is security for the payment and discharge of all the Secured Liabilities 2) Credit balances The Chargor, agrees to charge by way of a first fixed charge all of its rights in respect of any amount standing to the credit of each Security Account and the debt represented by it in favour of the Lender Mortgagee: Standard Chartered Bank (Hong Kong) Ltd.,
Hong Kong. |
All
present and future obligations and liabilities of the Chargor to the Lender
under each Finance Document:- a) The US$125,000,000 term loan facilities agreement dated 21st December 2011; b) An AUD Repayment Election Notice; c) A Fee Letter; d) A Forex Forward Confirmation; e) The Letter of Comfort; f) A Security Document; g) A Spot Confirmation; h) A Utilisation Request; i) Any other document designated as such by the Lender and the
Chargor. |
|
21-12-2011 |
Instrument: Assignment of Intercompany Loan Property: 1) General (a) All the security created under the Deed:- i) Is created in favour of the Lender; ii) Is created over present and future assets of the Assignor; and iii) Is security for the payment, discharge and performance of all the Secured Liabilities 2) Intercompany Loan The Assignor, as beneficial owner and as security for the payment and discharge of all Secured Liabilities, assigns and agrees to assign absolutely, subject to a proviso for re-assignment on redemption, all of its rights in respect of the Intercompany Loan and Intercompany Loan Agreement in favour of the Lender Mortgagee: Standard Chartered Bank (Hong Kong) Ltd.,
Hong Kong. |
All present and future obligations and liabilities
under each Finance Document:- a) The US$125,000,000 term loan facility agreement 21st December, 2011; b) An AUD Repayment Election Notice; c) A Fee Letter; d) A Forex Forward Confirmation; e) The Letter Forward Comfort; f) A Security Document; g) A Spot Confirmation; h) A Utilisation Request; or i) Any other document designed as such by the
Lender and the Assignor |
|
29-04-2013 |
Instrument: Trade Finance Security Assignment Property: 1. By way of fixed charge all the Chargor’s right, title, interest and benefit from time to time in and to any amount standing to the credit of the Charged Account and the debt represented by it. 2. By way of assignment, all the Chargor’s right, title, interest and benefit from time to time in and to the Assigned Assets. Mortgagee: Standard Chartered Bank (Hong Kong) Ltd.,
Hong Kong. |
To secure the payment and satisfaction of all present and
future obligations and liabilities |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.75 |
|
|
1 |
Rs.100.07 |
|
Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.