|
Report Date : |
27.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHANGRIL
LA ULAANBAATAR HOTEL LLC |
|
|
|
|
Registered Office : |
Central Tower, Room 907-908, Great Chinggis
Khaan’s Squire 2, Sukhbaatar District 8, Ulaanbaatar 14200 |
|
|
|
|
Country : |
Mongolia |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Year of Establishment : |
2008 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Subject is involved in the following
activities : Operators of a
hotel styled “Shangril La Ulaanbaatar Hotel”. Subject include the following Services : - Facilities for physically-challenged people;
- Wi-Fi enabled limousine service; - Laundry and valet service; - Complimentary shoeshine service; - Express check-in and check-out; - IT butler; - Foreign exchange. |
|
|
|
|
No. of Employees : |
50 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Not yet commenced operation |
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|
|
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Payment Behaviour : |
Unknown |
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|
|
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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) |
|
Mongolia |
C1 |
B2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
MONGOLIA - ECONOMIC OVERVIEW
Mongolia's extensive mineral
deposits and attendant growth in mining-sector activities have transformed
Mongolia's economy, which traditionally has been dependent on herding and agriculture.
Mongolia's copper, gold, coal, molybdenum, fluorspar, uranium, tin, and
tungsten deposits, among others, have attracted foreign direct investment.
Soviet assistance, at its height one-third of GDP, disappeared almost overnight
in 1990 and 1991 at the time of the dismantlement of the USSR. The following
decade saw Mongolia endure both deep recession, because of political inaction
and natural disasters, as well as economic growth, because of reform-embracing,
free-market economics and extensive privatization of the formerly state-run
economy. The country opened a fledgling stock exchange in 1991. Mongolia joined
the World Trade Organization in 1997 and seeks to expand its participation in
regional economic and trade regimes. Growth averaged nearly 9% per year in
2004-08 largely because of high copper prices globally and new gold production.
By late 2008, Mongolia was hit hard by the global financial crisis. Slower
global economic growth hurt the country's exports, notably copper, and slashed
government revenues. As a result, Mongolia's real economy contracted 1.3% in
2009. In early 2009, the International Monetary Fund reached a $236 million
Stand-by Arrangement with Mongolia and the country has largely emerged from the
crisis with better regulations and closer supervision. The banking sector
strengthened but weaknesses remain. In October 2009, Mongolia passed
long-awaited legislation on an investment agreement to develop the Oyu Tolgoi
mine, considered to be among the world's largest untapped copper-gold deposits.
Mongolia's ongoing dispute with a foreign investor over Oyu Tolgoi, however,
has called into question the attractiveness of Mongolia as a destination for
foreign direct investment. Negotiations to develop the massive Tavan Tolgoi
coal field also have stalled. The economy has grown more than 10% per year
since 2010, largely on the strength of commodity exports to nearby countries
and high government spending domestically. Mongolia's economy, however, faces
near-term economic risks from the government's loose fiscal and monetary
policies, which are contributing to high inflation, and from uncertainties in
foreign demand for Mongolian exports. Trade with China represents more than
half of Mongolia's total external trade - China receives more than 90% of
Mongolia's exports and is Mongolia's largest supplier. Mongolia has relied on
Russia for energy supplies, leaving it vulnerable to price increases; in the
first 11 months of 2013, Mongolia purchased 76% of its gasoline and diesel fuel
and a substantial amount of electric power from Russia. A drop in foreign
direct investment and a decrease in Chinese demand for Mongolia's mineral
exports are putting pressure on Mongolia's balance of payments. Remittances
from Mongolians working abroad, particularly in South Korea, are significant.
|
Source
: CIA |
Shangril La
Ulaanbaatar Hotel LLC
Building :
Central Tower, Room 907-908
Area
: Great
Chinggis Khaan’s Squire 2, Sukhbaatar District 8
Town
: Ulaanbaatar 14200
Country
: Mongolia
Telephone :
(976 77) 118 801 / 110 288 (General Manager) / 110 289
(Director of Sale) /
Mobile (976 88) 005 222 (Mrs Oyunaa)
Fax
: (976 77) 110 285
E-Mail
: gari.biondo@shangri-la.com
/ laifong.yip@shangri-la.com / slub@shangri-la.com
Website
: www.shangri-la.com
Also Known As :
Shangril La Ulaanbaatar Hotel XXK / Shangril La Ulaanbaatar Hotel Co. Ltd
Name Position
1. Gari Biondo General Manager
2. Laifong Yip Director of Sale
3. Mrs Oyunaa Administrative Manager
Total
Employees : 50 plus (subject)
7,700 (MCS Group)
27,100 (Shangri-la Group)
Payments: Unknown
Subject is a newly established company
incorporated in 2008 and has not yet commenced operations.
Subject is a member of the MCS Group of
Companies - one of the largest private sector. The Group has more than 32
subsidiaries covering diversified business activities including: energy &
infrastructure, general manufacturing & services, information &
communications, property development, and - food, beverage & alcohol. The
Group had annual sales turnover TUGRIK 628.6 Billion in 2013.
Subject also is a member of Shangri-La Asia
Limited, an investment holding company, owns and operates hotels and associated
properties worldwide. It operates through three segments: Hotel Operations,
Hotel Management, and Property Rentals. The company also provides hotel
management, marketing, consultancy, reservation, and related services; and owns
and leases office properties, commercial properties, and serviced
apartments/residences. In addition, it is involved in real estate development
and operation activities; operation of staff training academy; ownership and
operation of golf clubs; and property investment and office management
activities. The company operates hotels under the Shangri-La, Traders, Rasa,
Summer Palace, Kerry, and Shang Palace brand names. As of December 31, 2013, it
had equity interest in 62 operating hotels comprising 28,392 guest rooms. The
company was founded in 1971 and is headquartered in Quarry Bay, Hong Kong.
In view of the association, we consider it is
acceptable to deal with subject for MEDIUM amounts. However, at this rather
early stage, international suppliers in large or protracted dealings should
seek the comfort of assurances or guarantees from the shareholders. Future
development will be watched with interest.
Opinion on maximum credit : TUGRIK 450,000,000 (due attention will
be given to the above remarks)
Trade risk assessment : Normal
SHANGRI LA HOTEL ULAANBAATAR CHANGES PLANS TO
BUILD 22 FLOORS
July 19, 2011 (mad-mongolia.com): The MCS
Group of Mongolia is working in co-operation with Shangri-La hotels and resorts
to build Mongolia's first true 5 star hotel in the capital Ulaanbaatar. The
plans for the Shangri La Hotel Ulaanbaatar, located in the Central Park of the
city has just changed to go from a 17 floors building to a 22 floors building.
The 1st phase of the construction (the hotel tower) will probably be open in
the 3rd quarter of 2013 while the second phase (Apartment tower and
conferencing facilities) are expected to open in late 2014. Below is the press
release from Shangri-La hotels: Shangri-La Hotels and Resorts, Asia Pacific’s
leading luxury hotel group, will open a new hotel in Ulaanbaatar, the capital
of Mongolia, in 2013. It will be Shangri-La’s
first hotel in Mongolia. A joint venture between Shangri-La Asia Limited and
MCS Holding, Mongolia, the 280-room hotel will be part of an office, retail and
hotel complex located on the east side of the Sukhe-Bahor Square, between the
City Theatre and Peace Avenue, in the centre of Ulaanbaatar city. Guestrooms
will start at 42 square metres and offer contemporary interiors with design
touches reflecting the local cultural heritage. The modern hotel will feature
various dining and entertainment options including an all-day dining restaurant,
a specialty restaurant and bar, a Chinese restaurant and a lobby lounge. The meeting and banqueting facilities will
include a 1100-square-metre grand ballroom, and a variety of function rooms. Recreational facilities such as a 25-metre
indoor swimming pool, health club and spa, will also be available. Ulaanbaatar
lies to the north of the Tuul River at an elevation of 1,310 metres. The city
is the cultural, industrial, and financial heart of Mongolia with significant
mining industries and cashmere production. Ulaanbaatar is the gateway to
Mongolia and a good base of travel for those wishing to explore the country’s
grasslands, Gobi Desert, and national parks. The city’s Chinggis Khaan
International Airport is 18 km from the city and has regular domestic flights
and international flights from China, Japan, Russia, Korea, and Germany. A land
transportation hub, Mongolia’s road network, the Trans-Siberian Railway, and
the Chinese rail system converge in Ulaanbaatar. Hong Kong-based Shangri-La
Hotels and Resorts, one of the world’s premier hotel companies, currently owns
and/or manages 72 hotels under the Shangri-La, Kerry and Traders brands, with a
rooms inventory of over 30,000. Over
almost four decades the group has established its brand hallmark of ‘hospitality
from the heart.’ The group has a
substantial development pipeline with projects in Canada, mainland China,
India, Malaysia, Philippines, Mongolia,
Russia, Qatar, Sri Lanka, Turkey and United Kingdom.
NAME
: GOLOMT BANK OF MONGOLIA
Branch
: Bodi Tower, Sukhbaatar
Square
Town
: Ulaanbaatar
Telephone :
(976 11) 311 530
Fax
: (976 11) 312 307
The company also has an account with the
following banks :
1. Trade and Development Bank Mongolia Ltd
Juulnchny Gudamj 7
Ulaanbaatar 210646
Telephone : (976 11) 312 362 /
331 133
Fax : (976 11) 325 449
2. Khan Bank of Mongolia
Peace Avenue
Ulaanbaatar
Telephone : (976 11) 457 880
Fax : (976 11) 457 880
As the Company has not yet commenced
operations, relevant financial
information is not available.
Invested Capital : US DLRS 500,000,000
The following audited consolidated balance sheets as at
31 December of 2013 showed, applies to Shangri-la Asia Limited :
31/12/2013 31/12/2012
31/12/2011
(In thousands
HKD)
ASSETS
Current Assets
Cash And Cash Equivalents 1,135,000 839,000 839,000
Net Receivables 295,000
228,000 160,000
Inventory 48,000
50,000 49,000
Total Current Assets 1,584,000 1,293,000 1,187,000
Long Term Investments 3,403,000
2,961,000
2,386,000
Goodwill 85,000 85,000
85,000
Deferred Long Term Asset Charges 1,000
3,000 2,000
Total Assets 12,898,000 11,919,000 9,973,000
LIABILITIES
& SHAREHOLDERS EQUITY
Current Liabilities
Accounts Payable 95,000 103,000 97,000
Short/Current Long Term Debt 4,890,000 4,404,000 2,984,000
Other Current Liabilities 693,000 635,000 629,000
Total Current Liabilities 1,270,000 1,278,000 1,290,000
Long Term Debt 4,476,000 3,863,000
2,420,000
Total Liabilities 6,031,000 5,392,000 3,945,000
Stockholders' Equity
Common Stock 2,944,000 2,943,000 2,942,000
Retained Earnings 1,855,000 1,549,000 1,273,000
Treasury Stock 1,513,000 1,533,000 1,392,000
INCOME
STATEMENT
Total Revenue 2,081,000
2,057,000 1,912,000
Cost of Revenue 907,000 881,000 840,000
Gross Profit 1,174,000 1,176,000 1,072,000
Total Operating Expenses
1,875,000 1,809,000 1,707,000
Operating Income or Loss
206,000 248,000
205,000
Income from Continuing Operations
Earnings Before Interest And Taxes 206,000
248,000 205,000
Interest Expense (111,000) (97,000)
(76,000)
Income Tax Expense 110,000 102,000 77,000
Minority Interest (49,000) (23,000) (31,000)
Net Income From Continuing Ops 441,000
382,000 284,000
Non-recurring Events
Net Income 392,000 359,000 253,000
Financial year ends 31 December.
The following audited consolidated balance sheets as at
31 December of 2013 showed, applies to Mongolian Mining Corporation (MMC):
31/12/2013 31/12/2012
31/12/2011
(in thousands
HKD)
ASSETS
Current Assets
Cash And Cash Equivalents 77,000 284,000 228,000
Net Receivables 145,000 131,000 92,000
Inventory 106,000 90,000 58,000
Other Current Assets 58,000 12,000 -
Total Current Assets 449,000 583,000 395,000
Long Term Investments 2,000 4,000 4,000
Deferred Long Term Asset Charges 22,000 19,000 10,000
Total Assets 1,899,000 2,177,000 1,628,000
LIABILITES
& EQUITY
Liabilities
Current Liabilities
Accounts Payable 93,000 46,000 19,000
Short/Current Long Term Debt 991,000 1,114,000 562,000
Other Current Liabilities 72,000 81,000 94,000
Total Current Liabilities 433,000 418,000 554,000
Long Term Debt 744,000 842,000 145,000
Total Liabilities 1,338,000 1,425,000 859,000
Common Stock 646,000 646,000 646,000
Retained Earnings 120,000 177,000 180,000
Treasury Stock (205,000) (71,000) ((57,000)
INCOME
STATEMENT
Total Revenue 437,000 474,000 543,000
Cost of Revenue 335,000 386,000 288,000
Gross Profit 102,000 89,000 254,000
Total Operating Expenses
414,000 463,000 397,000
Operating Income or Loss
23,000 11,000 146,000
Earnings Before Interest & Taxes 23,000 11,000 146,000
Interest Expense (61,000) (49,000) (13,000)
Income Tax Expense 3,000 3,000
36,000
Net Income From Continuing Ops (58,000) (3,000) 119,000
Net Income (58,000) (3,000) 119,000
Financial year ends 31 December.
The following financial information applies
to MCS Holding Group :
Sales Turnover :
TUGRIK 514,600,000,000 - 2010 -
exact
: TUGRIK
412,100,000,000 - 2011 - exact
: TUGRIK
519,300,000,000 - 2012 - exact
: TUGRIK 628,600,000,000
- 2013 - exact
Net Profit :
Not given but stated to be 10% of the sales
Financial year ends 31 December.
Date Started : 2008
History : The subject was established in
Ulaanbaatar in 2008 and plans to commence operations in 2015.
Tax No.: 5149037 (issue date : 1 August 2008)
Capital : not given
Limited Liability Company with the following
director and shareholders :
Director
Gari Biondo
Shareholders Percentage
1. Shangri-la Asia Limited 51%
28/F
Kerry Centre
683
King's Road
Quarry Bay
Hong
Kong
Telephone : (852) 2525 9146
Fax : (852) 2523 8842
2. MCS Properties Holding LLC 49%
Central Tower
Chinggis Square 2, SBD 8
Ulaanbaatar 14200
Telephone : (976 11) 312 625
Fax : (976 11) 312 175
Profile on Shangri-La Asia Limited :
The name Shangri-La was inspired by James
Hilton's legendary novel Lost Horizon. A tranquil haven in the mountains of
Tibet, Shangri-La casts a spell on all who resided there. Today, Shangri-La
stands as a synonym for paradise. And even though mythical in origin, the name
perfectly encapsulates the genuine serenity and service for which Shangri-La
Hotels and Resorts have come to be recognized.
Key Dates:
1971: Robert Kuok extends interests into
property and hotel development, building his first hotel in Singapore.
1981: Kuok establishes a second hotel in Kowloon,
launching the Shangri-La brand, and entering direct hotel management.
1982: The company incorporates as Shangri-La
Hotels & Resorts.
1984: The company opens its first Shangri-La
hotel in Hangzhou, China.
1989: The mid-range Traders Hotel brand is
launched, with the first site in Beijing.
1995: The company establishes publicly listed
Shangri-La Asia, which acquires the Kuok-owned hotel properties, and then goes
public on the Singapore and Hong Kong Stock Exchanges.
1996: Shangri-La Asia buys 15 hotel sites
under development in China from the Kuok-owned companies.
1997: Shangri-La Asia acquires Shangri-La
Hotels & Resorts, creating an integrated hotel ownership and management
group.
2005: Shangri-La Asia announces plans to add
15 new hotels in China, five hotels in Europe, and hotels in North America, in
order to reach a total of 100 hotels by 2010.
Company History :
Shangri-La Asia Ltd. is the Asian region's
leading and fastest-growing luxury hotel group. The company, part of Malaysia's
Kuok Group, operates 45 hotels throughout Asia. In 2005, the company also began
a drive into the European and North American markets, including the launch of
construction on its first European hotel, in London, expected to be completed
in 2009. The company also has opened its first hotel in the Middle East, in
Dubai, and in the Maldives. Mainland China, however, forms the heart of the
company's empire, with more than 20 hotels in operation, and at least 15 more
expected to open before 2010. Shangri-La is unusual among international hotel
companies in that it owns a significant proportion of its hotels; of the hotels
under the group's management not wholly owned by the company, most are owned by
other companies in the Kuok Group, and especially by Shangri-La's own major
shareholder, Kerry Properties Ltd. Shangri-La hotels primarily operate under
the luxury, five-star Shangri-La brand. The company also operates a smaller
number of mid-range, business-oriented Traders hotels. Listed on the Hong Kong
and Singapore Stock Exchanges, Shangri-La remains a tiny part of the Kuok
business empire. Nonetheless, founder Robert Kuok holds an active interest in
the group, and has stated his desire to see Shangri-La reach 100 hotels in his
lifetime. In 2004, the company posted revenues of $726 million.
Kuok Family Origins in the 1970s
The Kuok family immigrated to Malaysia, then
under British control, from the Fujian province in China in the first decade of
the 20th century. Under patriarch Kuok Keng Kang the family entered the trading
business, dealing in rice, flour, and sugar. Kuok, like many successful Chinese
emigrés, sent his children overseas to study. Son Robert, born in 1927, went to
the Raffles school in Singapore, where he became good friends with Tun Abdul
Razak and Tun Hussein Onn, both of whom later became Malaysian prime ministers,
and Lee Kuan Yew, who became the first prime minister of Singapore after its
independence.
Although his education was cut short by World
War II, Robert Kuok's friendships were to play an important role in his later
career. Kuok's use of "guanxi" (which in Chinese refers to having a
network of prominent allies) enabled him to build his empire rapidly both
during and after the war. Kuok also was gifted with the ability to spot opportunity,
and especially to see into the long term. During the Japanese occupation of
Malaysia and Singapore during the war, Kuok went to work for Mitsubishi, where
he learned Japanese. This enabled him to emerge as an important supplier of
basic foodstuffs.
Following the war, Kuok recognized that heavy
competition and low margins had made the rice trade unattractive. Instead, Kuok
switched his efforts to the sugar trade, and moved to England, where he learned
his way around the commodities markets before returning to Malaysia. Following
Malaysia's independence in 1957, Kuok's guanxi enabled him to build a true
sugar empire, developing significant plantations. In 1959, Kuok entered sugar
refining as well. Before long, Kuok had established a reputation as the
"Sugar King," controlling as much as 10 present of the world's sugar
supply.
Despite remaining a minority in Malaysia, the
ethnic Chinese community had long dominated the country's economy. Growing
demands for a more equitable distribution of wealth in the country led Kuok to
transfer his business empire to Singapore in the late 1960s and early 1970s.
Nonetheless, Kuok supported the need to establish a more equitable distribution
of wealth, if only to ensure the country's political and economic stability.
At the same time, Kuok had begun to expand
his business interests into other areas. In the mid-1960s, for example, Kuok
entered flour milling and trading. The Kuok Group, as Kuok's business empire
came to be known, also added interests in palm oil (PPB Oil Palms Bhd.), tanker
operations (Malaysian Bulk Carries Bhd.), and even media interests,
particularly the South China Morning Post. Yet among Kuok's most significant
and most successful ventures was his entry into the real estate and property
development sector in the early 1970s. Kuok's Kerry Properties became his real
estate flagship, emerging as one of the leading property groups in Hong Kong,
with significant real estate holdings and developments throughout the Asian
region, including the Chinese mainland, as well as Australia and elsewhere.
Among Kuok's early real estate purchases was
a hotel property in Singapore. Built in 1971, this property became the starting
point for the later Shangri-La luxury hotel chain. Initially, the Kuok group
turned over the management of its hotel property to Westin Hotels. In 1981,
however, the company added its second hotel, in Kowloon. The new hotel marked
Kuok's entry into direct hotel management, as well as ownership. Launching the
Shangri-La brand, Kuok founded a new company for its hotel interests,
Shangri-La Hotels & Resorts, in 1982. An important factor behind
Shangri-La's later success was Kuok's willingness to turn over its direction to
hotel industry professionals David Hayden and Robert Hutchinson, both of whom
had worked for Westin.
Claiming the Chinese Mainland in the 1990s
The combination of Kuok's guanxi and the
market experience of Hayden and Hutchinson enabled the company to make a
significant move in the mid-1980s. In 1984, the company opened its first hotel
on the Chinese mainland, in Hangzhou, on the eastern coast, becoming a pioneer
in the country's virtually non-existent luxury hotel market. The company's
choice of that market also revealed its ability to plan for the long term.
Rather than simply target China's major and most well-known markets, such as
Beijing and Shanghai, Shangri-La saw potential in developing its position in
lesser-known and smaller cities. In this way, the company's properties became
the first--and often only--luxury hotel in a given area. Many of these cities
nonetheless had populations of five million or more, and represented important
industrial growth areas.
Shangri-La launched a second hotel brand in
1989, with a first site in Beijing. Called Traders, the new hotel chain gave
the company a mid-range brand, with sparser accommodations. Nonetheless, the
company installed the same level of luxury services at the new Traders hotel,
as a part of its creation of a bridge level between the four-star and five-star
hotel grades. Traders represented part of the group's long-term strategy as
well, targeting locations with no luxury hotels. By introducing the Traders
brand, the company hoped to develop a market for luxury hotel services, paving
the way for the entry of its Shangri-La brand as well.
Shangri-La grew only slowly during the 1980s,
however. By the beginning of the 1990s, the group counted just six hotels. Yet
the company had developed a strong foundation for growth into the new decade.
In the early 1990s, the company doubled the number of hotels, owned by Kerry
Properties and other Kuok companies, adding sites in Hong Kong, the
Philippines, and Fiji. In the meantime, the Kuok Group began expanding its
property interests in mainland China, launching 12 new developments, including
hotels, in the early 1990s.
In the mid-1990s, Kuok set up a second
property ownership vehicle, Shangri-La Asia Ltd., which paid the Kuok group HKD
$4.2 billion to acquire the existing Shangri-La properties in 1995. Shangri-La
Asia was then listed on the Hong Kong and Singapore Stock Exchanges, reducing
Kuok's stake to less than 63 present. The following year, Shangri-La Asia paid
another HKD 2.5 billion ($321 million) to buy up the 12 Kuok hotel properties
under development in China. Then, in 1997, property-owning Shangri-La Asia took
over hotel management company Shangri-La Hotels & Resorts, becoming an
integrated hotel management and ownership group.
By the end of the decade, Shangri-La's
portfolio had grown to 39 properties, including 17 hotels in operation or under
development in China alone. Indeed, the company's early focus on the mainland
Chinese market helped shield it from the worst of the Asian economic crisis in
the later half of the 1990s, from which China emerged relatively unscathed. The
company's strategy of investing in relatively unknown areas of the mainland
also had placed it in a strong position to profit from the surge in China's
industrial sector and from the country's fast-growing economy in general at the
dawn of the 21st century.
Shangri-La also had begun developing its
interests beyond the Asian region. At the beginning of the century, the company
added its first hotel in the Middle East, in Dubai. The company also acquired
its first North American property, the Pacific Palisades in Vancouver, Canada.
Global Luxury Hotel Empire in the New Century
The early 2000s proved a difficult period for
the company, however. The global drop-off in tourist and business travel
following the terrorist attacks against the United States in 2001 was further
exacerbated by the SARS epidemic in much of Asia in 2002 and 2003. Backed by
the Kuok Group's deep pockets, Shangri-La nonetheless continued its ambitious
development program, led by the desire of Robert Kuok, then in his 70s, to see
Shangri-La build its portfolio to more than 100 hotels in his lifetime.
China remained central to Shangri-La's growth
plans. In 2005, for example, the company announced that it planned to build 15
new hotels in that country before 2010. At the same time, Shangri-La, by then
the largest luxury hotel operator based in the Asian region, had set its sights
on building a global brand, announcing plans to enter Europe and North America
during the decade as well. In February 2005, the company announced its first
European property, a 30-year lease contract for a hotel in the London Bridge
Tower development, scheduled for completion in 2009. The company also announced
its interest in establishing hotels in Paris, Frankfurt, and other European
cities. Meanwhile, the company was scouting out properties in the United
States, targeting at least one property in that country by the end of 2005.
Profile on MCS Holding :
MCS Holding Co Ltd, founded in 1993 as the
first Mongolian private
consulting company in the energy sector, the
MCS Group has
successfully expanded its business operations
in such diversified
fields, as energy and infrastructure,
information and communication
technology, beverage manufacturing and
distribution, wholesale and
retail, property development, construction
and printing. The MCS
Group has 4,000 employees and has been ranked
as one of the top five
taxpayers for the last consecutive years.
Personal Profile on Oyunbat Lkhagvatsend, MCS
Holding director :
Oyunbat Lkhagvatsend, aged 35, is the Vice
President and Chief Logistics Officer of the Mongolian Mining Corporation. On 8
February 2011, Mr. Lkhagvatsend was appointed as the Chief Executive Officer of
Energy Resources Rail LLC, Transgobi LLC, Tavan Tolgoi Airport LLC, Energy
Resources Road LLC and Gobi Road LLC. Mr. Lkhagvatsend has about 11 years of
experience in the business sector of Mongolia, holding senior positions in
various businesses in the country. From 2003 to 2005, Mr. Lkhagvatsend was the
chief executive officer of Newcom Group and was responsible for strategy
planning and business development. From May 2005 to December 2006, he was the
president and chief executive officer of Eznis Airways and was in charge of
strategy planning, project management and other corporate affairs. He joined
the Group in 2008 as the chief executive officer of Energy Resources Rail LLC
and was responsible for overall business strategy and planning. Mr.
Lkhagvatsend was awarded a bachelor’s degree in law from the National
University of Mongolia, Mongolia. He also underwent executive trainings held by
the Michigan Business School, United States, in 2004.
Subject is a member of the MCS group of
companies, Mongolia, which also includes the following companies :
1. Mongolian Mining Corporation
Central Tower, 16th Floor
Sukhbaatar District
Ulaanbaatar 14200
Telephone: (976 70) 122 279 / 132 279
Fax : (976 11) 322 279
E-Mail : contact@mmc.mn /
investor@mmc.mn / gantulga.bu@mmc.mn
Website : www.mmc.mn
Hong
Kong Stock Exchange Code No.: 975
UHG
mining license No.: MV-11952
2. Khangad Exploration LLC
Mongolia
(Holder of the mining license MV-14493 for the BN coking coal
deposit)
3. Mongolian Coal Corporation S.A.
Luxemburg
Capital : EURO 31,000
4. Baruun Naran Limited
Gibraltar
5. Energy Resources Corporation LLC
Mongolia
Capital : US DLRS 100,000
6. Baruun Naran S.A.
Luxemburg
7. Energy Resources Rail LLC
Central Tower, 16th Floor
2
Sukhbaatar Square, 8 Khoroo, Sukhbaatar District
Ulaanbaatar 14200
Telephone: (976 70) 122 279 / 132 279
Fax : (976 70) 111 399 / 132
279
Chief Executive Officer : Oyunbat Lkhagvatsend
Employees: 100
Est.: 8 July 2008
Tax
No.: 5241111
Capital : TUGRIK 10,700,000,000
Sole
shareholder : Energy Resources LLC
(Engages in management of railway project and responsible for the
implementation of the construction of the railway base
infrastructure)
8. Enrestechnology LLC
Central
Tower, 16th Floor, West Wing
2
Sukhbaatar Square, 8 Khoroo, Sukhbaatar District
Ulaanbaatar 210620a
Telephone: (976 70) 122 279
Fax : (976 70) 132 279
Chief Executive Officer : Davaakhuu Chultem
Est.: 25 June 2009
Tax
No.: 3614107
Capital : 3,466,163,000
9. Energy Resources Mining LLC
Central Tower, 15th Floor
2
Sukhbaatar Square, 8 Khoroo, Sukhbaatar District
Ulaanbaatar 210620a
Telephone: (976 70) 122 279
Fax : (976 70) 132 279
Est.: 23 December 2008
Capital : US DLRS 1,000
(Responsible for the mining and technical operations of the UHG
deposit)
10.Transgobi LLC
Mongolia
Capital : TUGRIK 9,122,641,836
11.Tavan Tolgoi Airport LLC
Mongolia
Capital
: TUGRIK 3,475,379,000
12.Energy Resources Road LLC
Mongolia
Capital : TUGRIK 1,000,000
13.International Medical Center LLC
Mongolia
14.International Technical College LLC
Mongolia
15.Ukhaa Khudag Water Supply LLC (frmly
United Water LLC)
Mongolia
Est.: 24 June 2009
Capital : TUGRIK 1,000,000
16.United Power LLC
Mongolia
Capital : TUGRIK 3,025,219,000
17.Gobi Road LLC
Mongolia
Capital : TUGRIK 1,000,000
18.Public Service LLC
Mongolia
Capital
: TUGRIK 20,000,000
19.Mongolian Coal Corporation Limited
Three Pacific Place, Level 28
1
Queen’s Road East
Hong
Kong
Capital : HK DLRS 1
Subject is a member of the Shangri-la Asia
Limited, Hong Kong, which also operates the following companies :
1. Edsa Shangri-La Hotel & Resort, Inc.
(Philippines)
2. Fiji Mocambo Limited
3. Kerry Industrial Company Limited
4. Mactan Shangri-La Hotel & Resort, Inc.
(Philippines)
5. Makati Shangri-La Hotel & Resort, Inc.
(Philippines)
6. Shangri-La Asia Treasury Limited
7. Shangri-La Finance Limited
8. Shangri-La Hotel (Baotou) Co., Ltd.
9. Shangri-La Hotel (Chengdu) Co., Ltd.
10.Shangri-La Hotel (Guangzhou Pazhou) Co.,
Ltd.
11.Shangri-La Hotel (Guilin) Co., Ltd.
12.Shangri-La Hotel (Huhhot) Co., Ltd.
13.Shangri-La Hotel (Ningbo) Co., Ltd.
14.Shangri-La Hotel (Shenzhen Futian) Co.,
Ltd.
15.Shangri-La Hotel (Wenzhou) Co., Ltd.
16.Shangri-La Hotel (Xian) Co., Ltd.
17.Shangri-La Hotel Limited (Singapore)
18.Shangri-La Hotel Management Consultancy
(Shanghai) Co., Ltd.
19.Shangri-La Hotel Public Company Limited
(Thailand)
20.Shangri-La Hotels (Malaysia) Berhad
21.Shangri-La International Hotel Management
B.V.
(The
Netherlands)
22.Shangri-La International Hotel Management
Limited (Hong Kong)
23.SLIM International Limited
(Cook
Islands)
24.Traders Yangon Company (Myanmar) Limited
25.Yanuca Island Limited
(Fiji)
The Company is involved in the following
activities :
Operators of a
hotel styled “Shangril La Ulaanbaatar Hotel”, which is located right in the heart of the city centre. It is an
ideal base for both business and leisure travellers and within walking distance
of the famous Government House, Great Chinggis Khaan Square and main offices
and embassies. Chinggis Khan International Airport is just a 40-minute drive
away. The train station is only 20-minutes away by car. The hotel features 290 elegant and spacious
guestrooms with a minimum of 42 sq m and contemporary and indigenous fusion
design. All guest rooms and suites overlook either Nayramdal Park to the south
or Great Chinggis Khaan Square and panoramic vistas of the city to the north.
Subject include the following Services :
- Facilities for physically-challenged
people;
- Wi-Fi enabled limousine service;
- Laundry and valet service;
- Complimentary shoeshine service;
- Express check-in and check-out;
- IT butler;
- Foreign exchange.
NACE Code : 5510
Imports from Hong Kong.
Subject only sells locally and does not
engage in re-export business.
The Company has the following facilities :
Rented pre-opening administrative offices
located at the heading address.
The hotel's total function space of 2,643 sq.
m. can suit any occasion. The hotel's venues include the Shangri-La Ballroom
(1,300 sq. m.) and eight other function rooms on multiple floors. 275-room,
24-storey complex Phase 2 construction comprises of a 24-story office tower, a
Valley Wing 34-storey, 200-room luxury hotel and serviced apartments, a
5-storey shopping mall. The shopping mall will include an 8-hall cinema, an
arcade and video game hall, a fully-equipped modern fitness club, international
chain food & beverages outlets.
Facilities :
- Complimentary Wi-Fi Internet access
throughout the hotel;
- Non-smoking rooms;
- Business centre;
- Conference facilities;
- Well-equipped health club and gymnasium;
- Facilities for physically-challenged
people;
- Parking facilities;
- Safe deposit box.
Travel &
Transportation :
- Airport transfer;
- Taxi and limousine service.
Shop :
- Gift shop.
Food &
Beverage :
- 24-hour in-room dining;
- Lobby Lounge;
- Cafe Park;
- Naadam;
- Hutong.
The address given by you : ROOM 513, CENTRAL TOWER applies to the subject’s
affiliated address. Please note that the correct address is as per heading.
The city name given by you : ULAABAATAR is
misspelt. Please note that the correct spelling is as per heading.
Interviewed: Laifong Yip (Director of Sale).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.24 |
|
|
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.77.97 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.