MIRA INFORM REPORT

 

 

Report No. :

337864

Report Date :

24.08.2015

 

IDENTIFICATION DETAILS

 

Name :

PANSEN  CO.  LTD.

 

 

Registered Office :

Unit 1606, 16/F., Harcourt House, 39 Gloucester Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

17.01.2006

 

 

Com. Reg. No.:

36423808

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is trader of iron, steel, all kind of iron and steel product

 

 

No. of Employee :

8 (Including associate)

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hong Kong

A1

A1

 

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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 

Company

 

PANSEN  CO.  LTD.

 

 

Address

 

Unit 1606, 16/F., Harcourt House, 39 Gloucester Road, Wanchai, Hong Kong.

 

PHONE:                  852-2528 7933

 

FAX:                       852-2528 6222

 

E-MAIL:                  shrileylui@xtsteel.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Yuan Shizhen

 

 

SUMMARY

 

Incorporated on:  17th January, 2006.

 

Organization:  Private Limited Company.

 

Issued Share Capital:              HK$1.00

 

Business Category: Iron and Steel Trader.

 

Employees:  8 (Including associate)

 

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

 

Banking Relation:  Satisfactory.

 

Registered Head Office:-

Unit 1606, 16/F., Harcourt House, 39 Gloucester Road, Wanchai, Hong Kong.

 

Holding Company:-

China Special Steel Wire Rod Group Ltd., British West Indies.

 

Associated Companies:-

Xingtai Iron & Steel Corporation Ltd.

Gangtie South Road, Qiaoxi, Xingtai City, Hebei Province, China.

Xingtai Steel Precision Engineering Co. Ltd., China.

Xinggang Supplying Chain Shenzhen Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

36423808

 

 

COMPANY FILE NUMBER

 

1019941

 

 

MANAGEMENT

 

Managing Director:  Mr. Yuan Shizhen

Contact Person:  Ms. Lui Lai Ha, Shriley

 

 

ISSUED SHARE CAPITAL 

 

HK$1.00

 

 

SHAREHOLDER

 

(As per registry dated 17-01-2015)

Name

 

No. of share

China Special Steel Wire Rod Group Ltd.

Century Yard, Cricket Square, Hutchins Drive, P.O. Box 2681 GT, George Town, Grand Cayman, British West Indies.

 

1

=

 

 

DIRECTORS

 

(As per registry dated 31-07-2015)

Name

(Nationality)

 

Address

YUAN Shizhen

Room 1001, Tower 1, East Living District, Xingtai Iron & Steel Corporation Limited, Xingtai, Hebei Province, China.

 

YUAN Xixian

Room 901, Tower 1, East Living District, Xingtai Iron & Steel Corporation Limited, Xingtai, Hebei Province, China.

 

 

SECRETARY

 

(As per registry dated 17-01-2015)

Name

Address

LUI Lai Ha

Flat G, 1/F., Block 3, Belair Monte, 3 Ma Sik Road, Fanling, New Territories, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 17th January, 2006 as a private limited liability company under the Hong Kong Companies Ordinance.

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

 

 

OPERATIONS

 

Activities:                Iron and Steel Trader.

 

Lines:                     All kinds of iron and steel products.

 

Employees:            8.  (Including associate)

 

Commodities Imported:                                    China, etc.

 

Markets:                  Hong Kong, other Asian countries, Europe, etc.

 

Terms/Sales:  As per contracted.

 

Terms/Buying:  As per contracted.

 

 

FINANCIAL INFORMATION:

 

Issued Share Capital: HK$1.00

 

Mortgage or Charge:  (See attachment)

 

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.

 

Bankers:-

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

ABN AMRO Bank N.V., Hong Kong Branch.

 

Standing:  Normal.

 

 

GENERAL

 

Pansen Co. Ltd. is a wholly-owned subsidiary of China Special Steel Wire Rod Group Ltd. [CSSWR] which is a BVI-registered company.

CSSWR is a large special steel wire rod producer in China.  The subject is engaged in importing iron ore for CSSWR and exporting the products of steel wire rods for its parent.

The subject and CSSWR are associated companies of Xingtai Iron & Steel Corporation Ltd. [XTI&S], a significant iron & steel manufacturing company in China.  The subject is the Hong Kong company of XTI&S.

The directors of the subject are Mr. Yuan Shizhen and Mr. Yuan Xixian.  Both are China merchants.  The President of XTI&S is also Mr. Yuan Shizhen while Mr. Yuan Xixian is the General Manager.

XTI&S produces and sells special steel wire rods in China.  Its products include stainless steel and 17 series of carbon steel, covering more than 300 steel grades and 1800 categories, such as cold heading steel, tyre cord steel, spring steel, bearing steel, pre-stress steel, welding steel, pure iron, etc.  In 2011, the stainless steel workshop was put into operation, which can produce stainless steel series 300 and series 400.  At present the total production capacity of stainless steel is over 200,000 tonnes.

The company’s products are used in automobile and motorbike, railway and express way construction, bridge building, mechanical hardware, home appliances, aerospace, electromagnetic, welding, screen, architecture, large mechanical, energy ocean, and photovoltaic applications.  It also exports its products to customers in Europe, America, and South-east Asia.

XTI&S was formerly known as Xingtai Iron and Steel Company and changed its name to Xingtai Iron and Steel Corp., Ltd. in December 1996.  The company was founded in 1958 and is based in Xingtai, Hebei Province, China.

XTI&S’ “Three Persons” brand was conferred the title of the Most Influence Brand of Metallurgical Industry, and the trademark of “Three Persons” was conferred the title of ‘Hebei Famous Trademark’.

XTI&S’ products are widely used in different fields.  The cold heading steel, approved already by some high-end customer, such as Honda, DFMC, Korea Bolt, is the material of producing high quality parts and fasteners, which are used in hardware making, home appliances field, automobile and motorbike industry, and even aerospace industry.  The cold forming products are applied by AUTOLIV, the largest air bag and safety belt producer in the world.  The tyre cord steel is approved as qualified material by Brcatel, and KIS WIRE.  The hard wire products are used to making high strength and low slackness steel wire and wire rope, meeting the demands of railway and express way construction, bridge building, and had played an important role in the construction of some National Key Projects, including Olympic stadiums, Jing-Hu high speed railway system and Nanxi Yangzi River Bridge.  Some high-tech products are exported to Europe, American and South-east Asia and established good reputation among the customers.

Based on the approval of ISO9001 (2000 version): International Quality System Certificate, XTI&S has become the first metallurgical enterprise in China which passed the integrated certificates of ISO/TS16949:2002: International Automobile Quality Management System, OHSAS18001:2001 the Occupational Health and Safety Management System Regulation and ISO14001:2004, the Environment Management System.

The subject and CSSWR are fully supported by XTI&S.  The contact person of the subject is Ms. Lui Lai Ha.

As the history of the subject is over nine years and seven months in Hong Kong, on the whole, consider it good for normal business engagements.

 

 

MORTGAGE OR CHARGE

 

 

Date

Description of Instrument

Mortgagee

04-11-2014

Security Memorandum (First Party)

ABN AMRO Bank N.V., Hong Kong Branch.

15-06-2015

Trade Finance Security Agreement

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.83

UK Pound

1

Rs.103.39

Euro

1

Rs.74.27

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ASH

 

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.