MIRA INFORM REPORT

Report Date :

15.09.2014

Tel. No.:

0085227646495

IDENTIFICATION DETAILS

Name :	LI HANG STAINLESS STEEL LTD.
Registered Office :	Room 712, 7/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong
Country :	Hong Kong
Date of Incorporation :	19.10.1995
Com. Reg. No.:	19429005
Legal Form :	Private Limited Liability Company
LINE OF BUSINESS :	IMPORTER AND EXPORTER OF ALL KINDS OF IRON AND STEEL MATERIALS.
No. of Employees :	12

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 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Hong Kong	A1	A1

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

HONG KONG - ECONOMIC OVERVIEW

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 12% of total system deposits in Hong Kong by the end of 2013. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's total trade by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies

Source : CIA

Company name

LI HANG STAINLESS STEEL LTD.

Company ADDRESS

Room 712, 7/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.

PHONE: 852-2764 6495

FAX: 852-2764 6468

E-MAIL: info@lhss.com.hk

MANAGEMENT

Managing Director: Mr. Lam Ngai Wah

SUMMARY

Incorporated on: 19th October, 1995.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,000.00

Issued: HK$500,000.00

Business Category: Stainless Steel Trader.

Annual Turnover: US$25~35 million.

Employees: 12.

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

Banking Relation: Satisfactory.

Company name

LI HANG STAINLESS STEEL LTD.

Company ADDRESS

Registered Head Office:-

Room 712, 7/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.

BUSINESS REGISTRATION NUMBER

19429005

COMPANY FILE NUMBER

0528540

MANAGEMENT

Managing Director: Mr. Lam Ngai Wah

Contact Person: Mr. Wu Wing Sum

CAPITAL

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$500,000.00

SHAREHOLDERS

(As per registry dated 19-10-2013)

Name		No. of shares
WU Wing Sum		250,000
LAM Ngai Wah		249,999
WU Hoi Shan		1
		–––––––
	Total:	500,000 ======

DIRECTORS

(As per registry dated 19-10-2013)

Name (Nationality)	Address
LAM Ngai Wah	Flat A on Penthouse of Tower 18, Laguna Grande, Laguna Verde, 8 Laguna Verde Avenue, Kowloon, Hong Kong.
WU Wing Sum	Flat A on Penthouse of Tower 18, Laguna Grande, Laguna Verde, 8 Laguna Verde Avenue, Kowloon, Hong Kong.

SECRETARY

LAM Ngai Wah (As per registry dated 19-10-2013)

HISTORY

The subject was incorporated on 19th October, 1995 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Room 903A, 9/F., Mirror Tower, 61 Mody Road, Tsimshatsui East, Kowloon, Hong Kong, moved to the present address in July 2013.

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

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of iron and steel materials.

Employees: 12.

Commodities Imported: China, Taiwan, etc.

Markets: North America, South America, Eastern Europe, Southeast Asia, Africa, Oceania, Middle East, Eastern Asia, Western Europe, etc.

Annual Turnover: US$25~35 million.

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$500,000.00

Mortgage or Charge:-

Date of Assignment of

Documentary Credits

Proceeds: 02-08-2007

Amount: As a continuing security for the due and punctual payment of the Secured Indebtedness and due perfomance and observance of all Liabilities

Property: (a) all monies in any currency representing proceeds payable or to be paid to the Company under the Documentary Credits, (b) all the Company’s right, title, benefit and interest in the Documentary Credits and (c) the benefit of all powers and remedies for enfourcing the Documentary Credits

Mortgagee: Nanyang Commercial Bank Ltd., Hong Kong.

Profit or Loss: Business is profitable.

Condition: Keeping in an active condition.

Facilities: Making very active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

Bankers:-

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

Nanyang Commercial Bank Ltd., Hong Kong.

Standing: Good.

GENERAL

Li Hang Stainless Steel Ltd. is almost equally owned by Mr. Wu Wing Sum and Mr. Lam Ngai Wah. Wu and Lam are also directors of the subject.

The subject is trading in iron and steel materials. It is the appointed agent of Yieh United Steel Corporation [YUSCO] located in Taiwan and Lianzhong Stainless Steel Corporation [LISCO] located in Guangzhou for domestic sale and the sole agent for exporting wide stainless steel coils. Furthermore, it has got strong direct connections with many stainless steel mills in Southeast Asia.

The subject is a major stock holder of various kinds of stainless steel products including 200, 300, 400 series mainly in hot rolled and cold rolled stainless steel coils, a new invention for the sizes of HR can be as thin as 1.5 mm and up X (300-1500 mm X Coil) and for CR is from (0.3-3.0 mm) X (300-1500 mm) X Coil with the surface finish in No. 1, 2B, 2D, BA. Beside, the subject also supplies the markets with stainless steel plates, steel pipes, steel sheets, precision coils, billets, slabs, wire rods, pipes/tubes, bright bars, channel bars, flat bars, angle bars, etc.

The followings are the subject’s main products:-

1.Flat Products

· Stainless Steel Sheet in Coil;

· Stainless Steel Strips;

· Stainless Precision Coil; &

· Stainless Steel Plates.

2.Long Products

· Stainless Slab & Billet;

· Stainless & Carbon Steel Wire Rod; &

· Difference Type of Bars.

3.Others

· Scrap & Raw Materials; &

· Machinery.

The subject now has a wide supply channel from Taiwan, mainland China, Japan, South Korea, and India; while its customer-base includes companies from around the world ranging from China with main markets in Eastern and Southern regions, to different countries in Southeast Asia, the Middle East, Europe and Australia. Business is rather active.

The annual sales turnover of the subject ranges from US$25 to 35 million. Making a small profit every year.

As the history of the subject in Hong Kong is about nineteen years, on the whole, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.84
UK Pound	1	Rs.98.72
Euro	1	Rs.78.64

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	PDT

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.