MIRA INFORM REPORT

 

 

Report Date :

31.10.2014

 

IDENTIFICATION DETAILS

 

Name :

SANY INTERNATIONAL DEVELOPMENT LTD.

 

 

Registered Office :

Room 2022-2023, 22/F., Landmark North, 39 Lung Sum Avenue, Sheung Shui, New Territories,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

20.06.2007

 

 

Com. Reg. No.:

38264325

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is engaged in construction machinery industry with a vast product range of construction machinery, road machinery, excavating machinery, pile driving machinery, hoisting machinery, port machinery, coal mining machinery and wind turbines.

 

 

No. of Employees

15

 

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)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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


note

 

[Formerly located at:-

Room 1001, 10/F., Landmark North,

39 Lung Sum Avenue, Sheung Shui, New Territories, Hong Kong.]

 

 

Company name and address

 

SANY  INTERNATIONAL  DEVELOPMENT  LTD.

 

 

ADDRESS:       Room 2022-2023, 22/F., Landmark North, 39 Lung Sum Avenue, Sheung Shui, New Territories, Hong Kong.

 

PHONE:            852-2578 1318

 

FAX:                 852-2488 3766

 

 

MANAGEMENT

 

Managing Director:  Mr. Zhou Fugui

 

SUMMARY

 

Incorporated on:            20th June, 2007.

 

Organization:                  Private Limited Company.

 

Capital:                         Nominal:US$215,800,000.00

Issued: US$215,800,000.00

 

Business Category:       Machinery Trader.

 

Group Turnover:            RMB37,327.9 million Yuan  (Year ended 31-12-2013)

 

Employees:                  15.  (Including associated companies)

 

Main Dealing Banker:     China Development Bank Corporation Hong Kong Branch.

 

Banking Relation:          Good.

 

 

 

ADDRESS

 

Registered Head Office:-

Room 2022-2023, 22/F., Landmark North, 39 Lung Sum Avenue, Sheung Shui, New Territories, Hong Kong.

 

Holding Company:-

Sany Heavy Industry Co. Ltd., China.

 

Ultimate Holding Company:-

Sany Group Co. Ltd., China.

 

Associated Companies:-

Sany Group of Companies

Changde Sany Machinery Co. Ltd., China.

China Wealth (Asia) Machine Ltd., Hong Kong.  (Same address)

China Wealth (Macau) Machine Ltd., Macau.

China Wealth (Vietnam) Machine Ltd., Vietnam.

China Wealth Hua Yue Machine Co. Ltd., Vietnam.

China Wealth Middle East Machinery LLC, UAE.

China Wealth Singapore Machinery Pte. Ltd., Singapore.

Hongkong Winternity International Trade Co. Ltd., Hong Kong.

Hunan Automobile Manufacturing Co. Ltd., China.

Hunan Sany Pump Machinery Co. Ltd., China.

Hunan Sany Repair Services Co. Ltd., China.

Hunan Sany Road Machinery Co. Ltd., China.

Hunan Sany Zhongyang Machinery Co. Ltd., China.

Intermix GmbH, Germany.

Kunshan Sany Machinery Co. Ltd., China.

Kunshan Synnium Machinery Co. Ltd., China.

Loudi Zhongxing Hydraulic Parts Co. Ltd., China.

P.T. Sany Indonesia Machinery, Indonesia.

Putzmeister Holding GmbH, Germany.

Sany (Vietnam) Machine Co. Ltd., Vietnam.

Sany American Inc., USA.

Sany Australia Pty. Ltd., Australia.

Sany Automotive Manufacturing Co. Ltd., China.

Sany Belgium Financial Corporation, Belgium.

Sany Belgium Holding S.A., Belgium.

Sany East Asia Co. Ltd., South Korea.

Sany Egypt Machinery LLC, Egypt.

Sany European Machinery Co. Ltd., Spain.

Sany France S.A.R.L., France.

Sany Germany GmbH, Germany.

Sany Heavy Equipment International Holdings Co. Ltd., Cayman Islands/ Hong Kong.

Sany Heavy Industry (Kenya) Co. Ltd., Kenya.

Sany Heavy Industry (Thailand) Co. Ltd., Thailand.

Sany Heavy Industry India Pvt. Ltd., India.

Sany Heavy Industry Pakistan (Pvt) Ltd., Pakistan.

Sany Heavy Industry Qatar W.L.L., Qatar.

Sany Heavy Machinery Co. Ltd., China.

Sany Hongkong Group Ltd., Hong Kong.

Sany LLC, Russia.

Sany Makina Ticaret Ltd. Sirketi, Turkey.

Sany Nigeria Ltd., Nigeria.

Sany Peru S.A., Peru.

Sany Port Machinery Co. Ltd., China.

Sany Russia (Euro) Co. Ltd., Russia.

Sany Scandinavia AB, Sweden.

Sany South East Asia Pte. Ltd., Singapore.

Sany Southern Africa Pty. Ltd., South Africa.

Sany U.K. Ltd., UK.

Sany-Angola Lda., Angola.

Shanghai Sany Heavy Machinery Ltd., China.

Shanghai Sany Technology Co. Ltd., China.

Shanghai Synnium Leasing Co. Ltd., China.

Suote Transmission Equipment Co. Ltd., China.

Synnium Machinery Ltd., Hong Kong.  (Same address)

Zhejiang Sany Casting Co. Ltd., China.

Zhejiang Sany Equipment Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

38264325

 

 

COMPANY FILE NUMBER

 

1142957

 

 

MANAGEMENT

 

Managing Director:  Mr. Zhou Fugui

 

 

CAPITAL

 

Nominal Share Capital: US$215,800,000.00 (Divided into 215,800,000 shares of US$1.00 each)

 

Issued Share Capital: US$215,800,000.00

 

SHAREHOLDER:          (As per registry dated 20-06-2013)

Name

 

No. of shares

Sany Heavy Industry Co. Ltd.

Chang Sha Shi Jing Ji Ji Shu, Kai Fa Qu, China.

 

215,800,000

=========

 

DIRECTOR:      (As per registry dated 20-06-2013)

Name

(Nationality)

 

Address

ZHOU Fugui

No. 30, Tong Zi Po Road, Yue Lu Qu Tong, Chang Sha Shi, China.

 

SECRETARY:   (As per registry dated 20-06-2013)

Name

Address

Co. No.

Tims Corporate Services Ltd.

Room A, 15/F., Fortis Tower, 77-76 Gloucester Road, Wanchai, Hong Kong.

0284320

 

 

HISTORY

 

The subject was incorporated on 20th June, 200720th June, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Room 1001, 10/F., Landmark North, 39 Lung Sum Avenue, Sheung Shui, New Territories, Hong Kong, moved to the present address with effect from 10th March, 2014.

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

 

 

OPERATIONS

 

Activities:                      Machinery Trader.

 

Lines:                           All kinds of construction machinery and equipment, etc.

 

Employees:                  15.  (Including associated companies)

 

Commodities Imported: Europe, Japan, China, etc.

 

Markets:                       Asian countries, Europe, North America, South America, etc.

 

Group Turnover:            RMB50,776.3 million Yuan  (Year ended 31-12-2011)

RMB46,830.5 million Yuan  (Year ended 31-12-2012)

RMB37,327.9 million Yuan  (Year ended 31-12-2013)

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.


 

FINANCIAL INFORMATION

 

Nominal Share Capital: US$215,800,000.00 (Divided into 215,800,000 shares of US$1.00 each)

 

Issued Share Capital: US$215,800,000.00

 

Mortgage or Charge:-

Date of Security Assignment:  16-04-2012

Amount:            All money and liabilities

Property:          The Assignor as beneficial owner and as continuing security for the irrevocable and unconditional payment or discharge of all the Secured Indebtedness assigns absolutely to the Assignee all its present and future rights, title, benefits and interest to or in the Intra-Group Loan and the Receivables.

Mortgagee:       China Development Bank Corporation, Hong Kong Branch.

 

Group Profit Attributable to shareholders:-

RMB8,648.9 million Yuan  (Year ended 31-12-2011)

RMB5,686.1 million Yuan  (Year ended 31-12-2012)

RMB2,903.6 million Yuan  (Year ended 31-12-2013)

 

Profit or Loss:   Making a small profit every year.

 

Condition:         Keeping in a satisfactory manner.

 

Facilities:          Making rather active use of general banking facilities.

 

Payment:          Met trade commitments as required.

 

Commercial Morality:  Satisfactory.

 

Banker:              China Development Bank Corporation Hong Kong Branch.

 

Standing:           Good.

 

 

GENERAL

 

Sany International Development Ltd. [SIDL] is a wholly-owned subsidiary of Sany Heavy Industry Co. Ltd. [SHICL] which is a China-based and listed company.  In turn, SHICL is a subsidiary of Sany Group Co. Ltd. which is also a China-based firm.  SHICL is a listed firm in Shanghai, China.  It went public on the Shanghai Stock Exchange on 3rd July, 2003.

Incorporated in June 2007, SIDL is a member of the Sany Group of Companies.

Sany Group is a global company in the construction machinery industry with a vast product range of construction machinery, road machinery, excavating machinery, pile driving machinery, hoisting machinery, port machinery, coal mining machinery and wind turbines.

Invested by Sany Group, SHICL was founded in 1994, with its headquarters located in the Changsha Economic Technological Development Zone.  Since its founding, the output of SHICL grew at an annualised rate of 50%.

At present, SHICL is involved in all aspects of construction machinery manufacturing, with products as diversified as construction equipment, road construction equipment, crane, etc., totalling 25 categories and more than 120 kinds.  The leading products include the concrete pump, truck mounted concrete pump, concrete batching plant, asphalt batching plant, roller, asphalt paver, motor grader, truck crane, crawler crane, and so on.  Market shares of truck mounted concrete pumps, concrete pumps, and full hydraulic rollers stand first place in the domestic market and the production of pump truck tops the world.  So far, SHICL remains the producer of concrete pumps with the longest boom and largest volume of displacement.

Each year, SHICL would put 5% of sales revenue aside for its R&D.  It aims at upgrading its products to the world’s advanced level with the conviction that “quality changes the world”.  SHICL has its own post-doctoral research centers, which have become one of the country’s top technological development centers, obtaining more than 536 authorized patents and developing hundreds key technologies.  SHICL also has been honoured the second prize of “National Technology Progress”, “China Well-Known Trademark”, “Inspection-Free Product” of China, and “Benchmark Products of China’s Construction Machinery Industry”.

Sany Group has set up over 30 overseas affiliates covering more than 150 countries.  Its products have been exported to more than 110 countries and areas.  Currently Sany Group has invested in India and the United States and has established its manufacture and R&D bases.  On 1st January, 2009, Sany Group signed an agreement to invest €100 million to build a R&D centre and machinery manufacturing base in Bedburg of Germany.  The Chinese Premier Wen Jiabao and the German Chancellor Angela Merkel witnessed the contract-signing ceremony.

Sany Group has been certified ISO 9000 Quality System Certification, ISO 14001 Environment Management System Certification, OHSAS 18001 Occupational Health Safety System Certification, and the German TUV Certification, etc.

In 2013, the revenue of SHICL was RMB37,327.9 million Yuan, decreased by 20.3% as compared with RMB46,830.5 million Yuan in 2012.  Total profit attributable to shareholders was RMB2,903.6 million Yuan, decreased by 48.9% as compared with RMB5,686.1 million Yuan in FY 2012.

The total revenues and profits of the Group have been decreasing.

The total employees of the Group in 2013 was 28,414.

The subject is fully supported by SHICL and ultimately by the Sany Group.  History in Hong Kong is over seven years.

On the whole, consider the subject good for normal business engagements.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.46

UK Pound

1

Rs.98.21

Euro

1

Rs.77.45

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

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.