MIRA INFORM REPORT

 

 

Report No. :

351647

Report Date :

02.12.2015

 

IDENTIFICATION DETAILS

 

Name :

POSCO ASIA CO. LTD.

 

 

Registered Office :

Room 5508, 55/F., Central Plaza, 18 Harbour Road, Wanchai

 

 

Country :

Hongkong

 

 

Date of Incorporation :

29.10.1985

 

 

Com. Reg. No.:

09963671

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and Exporters; Transhipment Agent of all kinds of steel and steel materials, industrial materials and natural resources.

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

HONGKONG - 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 name and address

 

POSCO ASIA CO. LTD.

 

ADDRESS:                   Room 5508, 55/F., Central Plaza, 18 Harbour Road, Wanchai, Hong Kong.

 

PHONE:                        852-2827 8787,  2827 3500

 

FAX:                             852-2827 5005,  2827 6006

 

 

MANAGEMENT

 

Managing Director:        Mr. Kim Woo Poong

 

 

SUMMARY

 

Incorporated on:            29th October, 1985.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$9,861,333.00

 

Business Category:       Importers and Exporters; Transhipment Agent.

 

Group Revenue:            KRW 64,758,625 million  (Year ended 31-12-2014)

 

Company Employees:  15.

 

Group Employees:        37,225.  (As at 31-12-2014)

 

Main dealing banker:      Citibank N.A., Hong Kong Branch.

 

Banking Relation:          Good.

 

 

ADDRESS

 

Registered Head Office:-

Room 5508, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong.

 

Holding Company:-

POSCO, Korea.

 

Associated Companies:-

Daewoo (China) Co. Ltd., China.

Daewoo Cement (Shandong) Co. Ltd., China.

Daewoo International Corporation, Korea.

Dalian POSCO Steel Co. Ltd., China.

Dalian POSCON Dongbang Automatic Co. Ltd., China.

Deawoo Paper Manufacturing Co. Ltd., China.

Guangdong Pohang Coated Steel Co. Ltd., China.

Hong Kong POSCO E&C (China) Investment Co. Ltd., Hong Kong.

POSCO (Chongqing) Automotive Processing Center Co. Ltd., China.

POSCO (Liaoning) Automotive Processing Center Co. Ltd., China.

POSCO (Suzhou) Automotive Processing Center Co. Ltd., China.

POSCO (Wuhu) Automotive Processing Center Co. Ltd., China.

POSCO America Corporation, US.

POSCO Canada Ltd., Canada.

POSCO China Dalian Plate Processing Center Co. Ltd., China.

POSCO E&C (China) Co. Ltd., China.

POSCO E&C Co. Ltd., Korea.

POSCO Energy Co. Ltd., Korea.

POSCO Engineering Co., Korea.

POSCO ICT Co. Ltd., Korea.

POSCO ICT-China, China.

POSCO Investment Co. Ltd., Hong Kong.

POSCO Specialty Steel Co. Ltd., Korea.

POSCO-China Holding Corp., China.

POSCO-CTPC Co. Ltd., China.

POSCO-Foshan Steel Processing Center Co. Ltd., China.

POSCO-JKPC Co. Ltd., Japan.

POSCO-Mexico Co. Ltd., Mexico.

POSCO-South Asia Co. Ltd., Thailand.

POSCO-Vietnam Co. Ltd., Vietnam.

POS-Qingdao Coil Center Co. Ltd., China.

Qingdao Pohang Stainless Steel Co. Ltd., China.

Sanpu Trading Co. Ltd., China.

Suzhou POS-CORE Technology Co. Ltd., China.

Zhangjiagang BLZ Pohang International Trading Co. Ltd., China.

Zhangjiagang Pohang Stainless Steel Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

09963671

 

 

COMPANY FILE NUMBER

 

0160790

 

 

MANAGEMENT

 

Managing Director:  Mr. Kim Woo Poong

 

 

ISSUED SHARE CAPITAL

 

HK$9,861,333.00

 

 

SHAREHOLDER

(As per registry dated 29-10-2015)

 

Name

 

No. of shares

POSCO

1 Goedong-dong, Pohang-City 790-785, Gyongsangbuk-do, Korea.

 

9,360,000

========

 

 

DIRECTORS

(As per registry dated 29-10-2015)

 

Name

(Nationality)

 

Address

KIM Woo Poong

Flat C, 35/F., Tower 3, The Harbourside, 1 Austin Road West, Kowloon, Hong Kong.

 

KWON Suk Chul

Unit 525-603, Daxiyangxincheng Apt. Nanhunan Road, No. 10 Chaoyang District, Beijing 100102, China.

 

CHOI Eun Ju

Parkrio 314-302, 435 Olympic-ro, Songpa-gu, Seoul Metropolitan, Korea.

 

KIM Won Hee

Jukong Apt 312-302, 1340 Yangjae-daero, Guangdong-gu, Seoul Metropolitan, Korea.

 

 

SECRETARY

(As per registry dated 29-10-2015)

 

Name

Address

Co. No.

Secreco Ltd.

36/F., Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong.

0139490

 

 

HISTORY

 

The subject was incorporated on 29th October, 1985 as a private limited liability company under the Hongkong Companies Ordinance.

 

It was originally registered under the name of Puya Co. Ltd., name changed to the present style on 14th May, 1991.

 

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

 

 

OPERATIONS

 

Activities:                     Importers and Exporters; Transhipment Agent.

 

Lines:                           All kinds of steel and steel materials, industrial materials and natural resources.

 

Company Employees:  15.

 

Group Employees:        37,225.  (As at 31-12-2014)

 

Commodities Imported: Mainly imported from South Korea and China.

 

Markets:                        China, South Korea, other Asian countries, Europe, etc.

 

Group Revenue:

KRW 47,887,255 million  (Year ended 31-12-2010)

KRW 68,938,725 million  (Year ended 31-12-2011)

KRW 63,345,258 million  (Year ended 31-12-2012) [restated]

KRW 61,765,743 million  (Year ended 31-12-2013) [restated]

KRW 64,758,625 million  (Year ended 31-12-2014)

 

Terms/Sales:                 Various terms.

 

Terms/Buying:               As per contracted.

 

 

MEMBERSHIP

 

The Hong Kong General Chamber of Commerce, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$9,861,333.00

 

Group Profit:    

KRW 4,185,651 million  (Year ended 31-12-2010)

KRW 3,714,286 million  (Year ended 31-12-2011)

KRW 2,357,846 million  (Year ended 31-12-2012) [restated]

KRW 1,349,016 million  (Year ended 31-12-2013) [restated]

KRW    564,039 million  (Year ended 31-12-2014)

 

Profit or Loss:               Business is profitable.

 

Condition:                     Keeping in an active and good manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Very Good.

 

Bankers:-

Citibank N.A., Hong Kong Branch.

Bank of America, Hong Kong Branch.

 

Standing:                      Very Good.

 

 

GENERAL

 

POSCO Asia Co. Ltd. formerly was a joint venture between Pohang Iron & Steel Co. Ltd. [PIS], a South Korea-based company holding 60% stake, and High & Mighty Co. Ltd., a Hong Kong-registered company holding 40%.  Now, the subject is a wholly-owned subsidiary of POSCO.  The full name of POSCO is Chusik Hoesa POSCO which is a South Korea-based company.

 

The subject is an iron and steel product trader.

 

Main line of business of the subject is to act as Asia regional management and marketing arm of PIS which is the largest iron and steel mill in South Korea.  It has firmly established their position in heavy industry in the country.

 

POSCO, a public-listed company in South Korea, is the world’s second-largest steel mill.  The subject is chiefly an iron & steel trader.

 

POSCO manufactures and sells a broad line of steel products, including the following:

·         Cold Rolled Products;

·         hot Rolled Products;

·         Plates;

·         Silicon Steel Sheets; &

·         Stainless Steel Products;

·         Wire Rods.

 

The principal trading market for POSCO’s common stock is the KRX KOSPI Market.  Its common stock, which is in registered form and has a par value of KRW 5,000 per share, has been listed on the first section of the KRX KOSPI Market since June 1988 under the identifying code 005490.  Its common stock is also listed on the New York Stock Exchange, the London Stock Exchange and the Tokyo Stock Exchange in the form of ADSs.

 

POSCO produced approximately 37.7 million tons of crude steel in 2014 and approximately 38.3 million tons in 2013, a substantial portion of which was produced at Pohang Works and Gwangyang Works.  As of December 31, 2014, Pohang Works had 17.4 million tons of annual crude steel and stainless steel production capacity, and Gwangyang Works had an annual crude steel production capacity of 20.8 million tons.  The Group believes Pohang Works and Gwangyang Works are two of the most technologically advanced integrated steel facilities in the world.  It manufactures and sells a diversified line of steel products, including cold rolled and hot rolled products, stainless steel products, plates, wire rods and silicon steel sheets, and it is able to meet a broad range of customer needs from manufacturing industries that consume steel, including automotive, shipbuilding, home appliance, engineering and machinery industries.

 

POSCO sells primarily to the Korean market.  Domestic sales accounted for 44.6% of its total revenue from steel products produced and sold by it in 2014 and 48.8% in 2013.  On a nonconsolidated basis, it believes that it had an overall market share of approximately 41% of the total sales volume of steel products sold in Korea in 2014 and approximately 43% in 2013.  Its export sales and overseas sales to customers abroad accounted for 55.4% of its total revenue from steel products produced and sold by us in 2014 and 51.2% in 2013.  Its major export market is Asia, with Asia other than China and Japan accounting for 28.3%, China accounting for 26.6%, and Japan accounting for 11.7% of its total steel export revenue from steel products produced and exported by it in 2014 and China accounting for 30.2%, Asia other than China and Japan accounting for 27.7%, and Japan accounting for 12.5% of its total steel export revenue from steel products produced and exported by it in 2013.

For the year ended 31st December, 2014, the revenue of POSCO amounted to KRW 64,758,625 million (2013: KRW 61,765,743 million); profit for the year was 564,039 KRW million (2013: KRW 1,349,016 million).  Its profit dropped substantially in the year.

 

As at late 2014, POSCO had 37,225 employees.

 

The subject is fully supported by POSCO.  History in Hong Kong is over 30 years.  Business is active.

 

On the whole, in view of the parentage and lines of business of the subject, consider it good for normal business engagements.

 

 

REMARKS

 

Property information of the company:-

Property Location

Owner

Date of Purchase

Purchased
Price

Block 7 (No. 28 Belleview Drive) on 8/F. and Car Port Space No. 182, Repulse Bay Garden, 18‑40 Belleview Drive, Hong Kong.

Puya Co. Ltd.  [Now known as Posco Asia Co. Ltd.]

25-09-89

HK$3,600,000

Flat E2 on 14/F. of Block E and Car Parking Space No. 24 on the Car Park Level 2, Beverly Hill, No. 6 Broadwood Road, Hong Kong.

Puya Co. Ltd.  [Now known as Posco Asia Co. Ltd.]

18-01-91

HK$3,230,000

 

(No mortgage record registered against the property)

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.52

UK Pound

1

Rs.100.44

Euro

1

Rs.70.44

HKD

1

Rs.8.60

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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%)

 

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.