MIRA INFORM REPORT

 

 

Report No. :

305985

Report Date :

09.02.2015

 

IDENTIFICATION DETAILS

 

Name :

XYLEM WATER SOLUTIONS (HONG KONG) LTD.

 

 

Registered Office :

Room E & F1, 12/F., CDW Building, 382-392 Castle Peak Road, Tsuen Wan, New Territories

 

 

Country :

Hongkong

 

 

Date of Incorporation :

07.05.1999

 

 

Com. Reg. No.:

30077675

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter and Wholesaler of Water Motor Pump, Water Motor Mixer, Water Technologies.

 

 

No. of Employees :

15. (Including associates)

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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% 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:  Your given Room No. is D which is not correct.]

 

 

Company Name and address

 

XYLEM  WATER  SOLUTIONS  (HONG  KONG)  LTD.

 

ADDRESS:                   Room E & F1, 12/F., CDW Building, 382-392 Castle Peak Road, Tsuen Wan,

                                    New Territories, Hong Kong.

 

PHONE:                        852-8192 5711,  2845 0189

 

FAX:                             852-2741 6605

 

 

MANAGEMENT

 

Managing Director:         Mr. Liu Tsin Kuen

 

 

SUMMARY

 

Incorporated on:             7th May, 1999.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$2,300,000.00

 

Business Category:        Importer, Exporter and Wholesaler.

 

Group Revenue:             US$3,916 million  (Year ended 31-12-2014)

 

Employees:                   15.  (Including associates)

 

Main Dealing Banker:     Citi Bank, Hong Kong.

 

Banking Relation:           Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

Room E & F1, 12/F., CDW Building, 382-392 Castle Peak Road, Tsuen Wan, New Territories, Hong Kong.

 

Holding Company:-

Xylem Global S.a.r.l., Luxembourg.

 

Ultimate Holding Company:-

Xylem Inc., US.

 

Associated/Affiliated Companies:-

Xylem Group of Companies

138197 Canada Ltd., Canada.

Aanderaa Data Instruments AS, Norway.

Anadolu Flygt Pompa Pazarlama Ve Ticaret AS, Turkey.

Arrow Rental Ltd., Ireland.

ASE AS, Norway.

Bellingham & Stanley Ltd., U.K.

Bombas Flygt de Venezuela S.A., Venezuela.

Brightbanner Ltd., U.K.

BS Pumps Ltd., Northern Ireland.

Clean Drains Ltd., U.K.

Cleghorn Wareing & Co. (Pumps) Ltd., U.K.

CMS Research Corporation, U.S.A.

Comet Pump & Engineering Ltd., U.K.

Conrad Pollmann Pumpenbau GmbH, Germany.

Design Analysis Associates Inc., U.S.A.

Evolutionary Concepts Inc., U.S.A.

Faradyne Motors (Suzhou) Co. Ltd., China.

Faradyne Motors LLC, U.S.A.

Flow Control LLC, U.S.A.

Flowtronex PSI LLC, U.S.A.

Fluid Handling LLC, U.S.A.

FLYGT (Hong Kong) Ltd., Hong Kong.

FLYGT AS, Norway.

Godwin Holdings Ltd., U.K.

Goulds Water Technology Philippines Inc., Philippines.

Grindex AB, Sweden.

Grindex Pumps LLC, U.S.A.

Heartland Pump Rental & Sales Inc., U.S.A.

Jabsco Marine Italia s.r.l., Italy.

Jabsco S. de R.L. de C.V., Mexico.

Laing Futstechnika Korltolt Felelossgu Trsasg (LFK), Hungary.

Lowara s.r.l., Italy.

Lowara UK Ltd., U.K.

Lowara Vogel Polska SP ZOO, Poland.

MJK Automation A/S, Denmark.

MJK Automation AS, Norway.

MJK Automation B.V., Netherlands.

MultiTrode Inc., U.S.A.

Multitrode Pty. Ltd., Australia.

Multitrode UK Ltd., U.K.

NHK Jabsco Co. Ltd., Japan.

Nova Analytics Europe LLC, U.S.A.

O.I. Corporation, U.S.A.

PCI Membrane Systems Inc., U.S.A.

Pension Trustee Management Ltd., U.K.

Pims (Services) Holdings Ltd., U.K.

Pims (Services) Ltd., U.K.

Pims Environmental Services (Holdings) Ltd., U.K.

Pims Environmental Services Ltd., U.K.

Pims Group Ltd., U.K.

Pims Pumps Ltd., U.K.

Pollmann Pumpenbau Landsberg GmbH, Germany.

Portacel Inc., U.S.A.

Secomam S.A.S., France.

Sensortechnik Meinsberg GmbH, Germany.

SI Analytics GmbH, Germany.

TEC Electrical Componets, U.K.

Texas Turbine LLC, U.S.A.

Totton Holdings Ltd., U.K.

Totton Pumps Ltd., U.K.

Water Asset Management Inc., U.S.A.

Water Co. Ltd., U.K.

Water Process Ltd., U.K.

Wedeco Ltd., U.K.

Wissenschaftich Technische Werkstaetten GmbH, Germany.

Xylem (China) Co. Ltd., China.

Xylem (Hong Kong) Ltd., Hong Kong.

Xylem (Nanjing) Co. Ltd., China.

Xylem (Wuxi) Flow Control Equipment Co. Ltd., China.

Xylem Analytics Australia Pty. Ltd., Australia.

Xylem Analytics Germany GmbH, Germany.

Xylem Analytics LLC, U.S.A.

Xylem Analytics UK Ltd., U.K.

Xylem ATI LLC, U.S.A.

Xylem Australia Holdings Pty. Ltd., Australia.

Xylem Brasil Soluçőes para Água Ltda., Brazil.

Xylem Canada Company, Canada.

Xylem Delaware Inc., U.S.A.

Xylem Denmark Holdings ApS, Denmark.

Xylem Dewatering Canada Ltd., Canada.

Xylem Dewatering Solutions Inc., U.S.A.

Xylem Dewatering Solutions UK Ltd., U.K.

Xylem Europe GmbH, Switzerland.

Xylem Financing S.ŕ.r.l., Luxembourg.

Xylem Flow Control Ltd., U.K.

Xylem Germany GmbH, Germany.

Xylem Holdings S.a.r.l., Luxembourg.

Xylem Industriebeteiligungen GmbH, Germany.

Xylem Industries S.a.r.l., Luxembourg.

Xylem Interim Kft, Hungary.

Xylem International S.a.r.l., Luxembourg.

Xylem IP Holdings LLC, U.S.A.

Xylem IP Management s.a.r.l., Luxembourg.

Xylem IP Management UK LP, U.K.

Xylem Jabsco Ltd., U.K.

Xylem Lowara Ltd., U.K.

Xylem Luxembourg S.a.r.l., Luxembourg.

Xylem Management GmbH, Germany.

Xylem Manufacturing Austria GmbH, Austria.

Xylem PCI Membranes Polska S.P. Z.O.O., Poland.

Xylem Russia LLC, Russia.

Xylem Sanitaire Ltd., U.K.

Xylem Service Hungary Kft, Hungary.

Xylem Services Austria GmbH, Austria.

Xylem Services GmbH, Germany.

Xylem Services Italia Srl, Italy.

Xylem Technologies Austria GmbH, Austria.

Xylem Technologies GmbH, Germany.

Xylem Water Holdings Ltd., U.K.

Xylem Water Ltd., U.K.

Xylem Water Services Ltd., U.K.

Xylem Water Solutions Argentina S.A., Argentina.

Xylem Water Solutions Australia Ltd., Australia.

Xylem Water Solutions Austria GmbH, Austria.

Xylem Water Solutions Belgium, Belgium.

Xylem Water Solutions Chile S.A., Chile.

Xylem Water Solutions Colombia Ltda., Colombia.

Xylem Water Solutions Denmark ApS, Denmark.

Xylem Water Solutions Deutschland GmbH, Germany.

Xylem Water Solutions Espańa S.A., Spain.

Xylem Water Solutions Florida LLC, U.S.A.

Xylem Water Solutions France SAS, France.

Xylem Water Solutions Global Services AB, Sweden.

Xylem Water Solutions Herford GmbH, Germany.

Xylem Water Solutions Holdings France SAS, France.

Xylem Water Solutions India Pvt. Ltd., India.

Xylem Water Solutions Ireland Ltd., Ireland.

Xylem Water Solutions Italia S.R.L., Italy.

Xylem Water Solutions Korea Co. Ltd., South Korea.

Xylem Water Solutions Lietuva UAB, Lithuania.

Xylem Water Solutions Magyarorszag KRT, Hungary.

Xylem Water Solutions Malyasia Sdn. Bhd., Malaysia.

Xylem Water Solutions Manufacturing AB, Sweden.

Xylem Water Solutions Metz SAS, France.

Xylem Water Solutions Mexico S. de R.L. de C.V., Mexico.

Xylem Water Solutions Middle East Region FZCO, U.A.E.

Xylem Water Solutions Muscat LLC, Oman.

Xylem Water Solutions Nederland BV, Netherlands.

Xylem Water Solutions New Zealand Ltd., New Zealand.

Xylem Water Solutions Norge AS, Norway.

Xylem Water Solutions Panama s.r.l., Panama.

Xylem Water Solutions Peru S.A., Peru.

Xylem Water Solutions Polska Sp.z.o.o., Poland.

Xylem Water Solutions Portugal Unipessoal Lda., Portugal.

Xylem Water Solutions Rugby Ltd., U.K.

Xylem Water Solutions Schweiz GmbH, Switzerland

Xylem Water Solutions Singapore Pte. Ltd., Singapore.

Xylem Water Solutions South Africa (Pty) Ltd., South Africa.

Xylem Water Solutions South Africa Holdings LLC, U.S.A.

Xylem Water Solutions Suomi Oy, Finland.

Xylem Water Solutions Sweden AB, Sweden.

Xylem Water Solutions U.S.A Inc., U.S.A.

Xylem Water Solutions UK Holdings Ltd., U.K.

Xylem Water Solutions UK Ltd., U.K.

Xylem Water Solutions Zelienople LLC, U.S.A.

Xylem Water Solutions(Shenyang) Co. Ltd., China.

Xylem Water Systems (California) Inc., U.S.A.

Xylem Water Systems Australia Pty. Ltd., Australia.

Xylem Water Systems Hungary Kft, Hungary.

Xylem Water Systems International Inc., U.S.A.

Xylem Water Systems Japan Corporation, Japan.

Xylem Water Systems Mexico S. de R.L. de C.V., Mexico.

Xylem Water Systems Philippines Holding Inc., U.S.A.

Xylem Water Systems Texas Holdings LLC, U.S.A.

Xylem Water Systems U.S.A. LLC, U.S.A.

Yellow Springs Instrument Ltd., Japan.

YSI (Beijing) Co. Ltd., China.

YSI (China) Ltd., Hong Kong.

YSI (Hong Kong) Ltd., Hong Kong.

YSI (UK) Ltd., U.K.

YSI Environmental South Asia Pvt. Ltd., India.

YSI Incorporated, U.S.A.

YSI Instrumentos E Servicos Ambientais Ltda., Brazil.

YSI International Inc., U.S.A.

YSI Nanotech Ltd., Japan.

YSI Trading (Shanghai) Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

30077675

 

 

COMPANY FILE NUMBER

 

0674940

 

 

MANAGEMENT

 

Managing Director:                     Mr. Liu Tsin Kuen

Contact Person:                         Mr. Norman Cheng

 

 

ISSUED SHARE CAPITAL

 

HK$2,300,000.00

 

 

SHAREHOLDER

(As per registry dated 07-05-2014)

 

Name

 

No. of shares

Xylem Global S.a.r.l

11, Breedewues, L-1259 Senningerberg, R.C.S. Luxembourg: B 172 763

 

2,300

====

 

 

DIRECTORS

(As per registry dated 01-10-2014)

 

Name

(Nationality)

 

Address

LIU Tsin Kuen

Flat D7, 24/F., Block D, Garden Vista, 15 On King Street, Shatin, New Territories, Hong Kong.

 

Allan William HENDRY

105 Garboard St. Jamestown Newport, RI 02835, U.S.A.

 

FENG Hua

Room 1704, No. 1, Alley 140 Hutai Road, Shanghai, China 200070.

 

Patrick Anthony BAKER

23 Bredon Drive, Hereford, HR4 0TN U.K.

 

Shashank PATEL

21979 Snow Creek Drive, Walnut, Los Angeles, California 91789, U.S.A.

 

 

SECRETARY

(As per registry dated 07-05-2014)

 

Name

Address

Co. No.

Global Consulting Management Ltd.

Room 1906, 19/F., China Insurance Group Building, 141 Des Voeux Road Central, Hong Kong.

1785691

 

 


HISTORY

 

The subject was incorporated on 7th May, 1999 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of ITT Flygt (Hong Kong) Ltd., name changed to ITT Water & Wastewater Hong Kong Ltd. on 26th March, 2008, and further to the present style on 15th November, 2011.

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           Water motor pump, water motor mixer, water technologies

 

Employees:                   15.  (Including associates)

 

Commodities Imported:   China, Europe, US, etc.

 

Markets:                       Asian countries, etc.

 

Group Turnover: US$3,202 million  (Year ended 31-12-2010)

US$3,803 million  (Year ended 31-12-2011)

US$3,791 million  (Year ended 31-12-2012)

US$3,837 million  (Year ended 31-12-2013)

US$3,916 million  (Year ended 31-12-2014)

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

GOVERNMENT CONTRACTS AWARDED SINCE 2000:

Date

GN No.

Particulars

Amount

29-08-2008

GN6086

Supply of ‘Mahr’ sprocket sets for mechanical raked bar screen

HK$2,764,088.00

F.I.S./Hong Kong

28-01-2011

GN804

Supply of dry pit pumps

HK$4,846,100.00

C.I.F./Hong Kong

30-06-2011

GN4208

Supply of 1 260 kW submersible sewage pump

HK$1,250,000.00

C.I.F./Hong Kong

25-11-2011

GN7767

Supply of spare parts for ultra-violet disinfection system of the ‘Wedeco’ brand

HK$5,233,701.20

F.I.S./Hong Kong

29-11-2013

GN7209

Supply of spare parts for the ultra-violet disinfection system of the ‘Wedeco’ brand to the Drainage Services Department

HK$2,299,643.00

F.I.S./Hong Kong

31-10-2014

GN6345

Supply of spare parts for the ultra-violet disinfection system of the ‘Wedeco’ brand to the Drainage Services Department

HK$4,920,576.00

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$2,300,000.00

 

Group Net Income:         US$329 million  (Year ended 31-12-2010)

US$279 million  (Year ended 31-12-2011)

US$297 million  (Year ended 31-12-2012)

US$228 million  (Year ended 31-12-2013)

US$337 million  (Year ended 31-12-2014)

 

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:                         Citi Bank, Hong Kong.

 

Standing:                      Normal.

 

 

GENERAL

 

Xylem Water Solutions (Hong Kong) Ltd. is a wholly-owned subsidiary of Xylem Global S.a.r.l., a Luxembourg-based company.  Its ultimate holding company Xylem Inc. [Xylem] is a US-based and listed company.

 

The subject and Xylem are trading in water pumps and engaged in technologies for the water industry.

 

The managing director of the subject Mr. Liu Tsin Kuen is a Hong Kong merchant.

 

Xylem, having more than 12,500 employees, is a world leader in the design, manufacturing, and application of highly engineered technologies for the water industry.  It is a leading equipment and service provider for water and wastewater applications with a broad portfolio of products and services addressing the full cycle of water, from collection, distribution and use to the return of water to the environment.  It has leading market positions among equipment and service providers in the core application areas of the water equipment industry: transport, treatment, test, building services, industrial processing and irrigation.  Xylem’s brands, such as Bell & Gossett and Flygt, are well known throughout the industry and have served the water market for many years.

 

The Group serves a global customer base across diverse end markets while offering localized expertise.  It sells its products in more than 150 countries through a balanced distribution network consisting of our direct sales force and independent channel partners.  In 2013, 62% of its revenue was generated outside the United States, with 36% of revenue generated in Europe.

 

The Group’s product and service offerings are organized into two segments: Water Infrastructure and Applied Water.  Its segments are aligned with each of the sectors in the cycle of water, water infrastructure and usage applications.  The Water Infrastructure segment focuses on the transportation, treatment and testing of water, offering a range of products including water and wastewater pumps, treatment and testing equipment, and controls and systems.  The Applied Water segment serves many of the primary uses of water and focuses on the residential, commercial, industrial and agricultural markets.  The segment’s major products include pumps, valves, heat exchangers, controls and dispensing equipment.

 

Water Infrastructure serves the water infrastructure sector with pump systems that transport water from aquifers, lakes, rivers and seas; with filtration, ultraviolet and ozone systems that provide treatment, making the water fit to use; and pumping solutions that move the wastewater to treatment facilities where our mixers, biological treatment, monitoring, and control systems provide the primary functions in the treatment process.

 

Applied Water serves the usage applications sector with water pressure boosting systems for heating, ventilation and air conditioning and for fire protection systems to the residential and commercial building services markets.  In addition, its pumps, heat exchangers, valves and controls provide cooling to power plants and manufacturing facilities, as well as circulation for food and beverage processing.  It also provides boosting systems for farming irrigation, pumps for dairy operations, and rainwater reuse systems for small scale crop and turf irrigation.

 

The revenue of the Xylem Group in FY 2014 was US$3,916 million, grew by 2.1% as compared with US$3,837 million in FY 2013.  The net income of the Group in FY 2014 was US$337 million (2013: US$228 million), grew by 47.8%.  Over the past six years, the net income for the year of FY2014 was the best.

 

The subject shares the office with its associated company Xylem (Hong Kong) Ltd. in Hong Kong.  Overall business is satisfactory.

 

The subject is fully supported by Xylem Group.

 

As the history of the subject is over 15 years and nine months in Hong Kong, on the whole, consider it good for normal business engagements.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.74

UK Pound

1

Rs.94.65

Euro

1

Rs.70.79

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.