MIRA INFORM REPORT

 

 

Report No. :

327751

Report Date :

22.06.2015

 

IDENTIFICATION DETAILS

 

Name :

MINMETALS CHEERGLORY LTD.

 

 

Registered Office :

11/F., China Minmetals Tower, 79 Chatham Road South, Tsimshatsui, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

03.11.1981

 

 

Com. Reg. No.:

07514800

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importers and Re-exporters; Investment of Steel products, non-ferrous metals, minerals, pig iron, cement, hardware, vessels, electric equipment and products.

 

 

No. of Employees :

22

 

 

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

 

MINMETALS CHEERGLORY  LTD.

 

ADDRESS:                   11/F., China Minmetals Tower, 79 Chatham Road South, Tsimshatsui, Kowloon,  Hong Kong.

 

PHONE:                        852-2613 6000, 2613 6009, 2613 6392

 

FAX:                             852-2810 6187, 2845 9478, 2613 6333

 

E-MAIL:                        public@cheerglory.com

 

 

MANAGEMENT

 

Managing Director:        Mr. Liu Qingchun

 

 

SUMMARY

 

Incorporated on:            3rd November, 1981.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$107,000,000.00

 

Business Category:       Importers and Re-exporters; Investment.

 

Annual Turnover:           HK$2.0-2.5 billion.

 

Employees:                  22.

 

Main Dealing Banker:     Bank of China (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:          Good.

 

 

ADDRESS

 

Registered Head Office:-

11/F., China Minmetals Tower, 79 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

 

Immediate Holding Company:-

Minmetals International Trading Company Pte. Ltd., Singapore.

 

Ultimate Holding Company:-

China Minmetals Corporation,

Minmetals Building, No. 5, Sanlihe Road, Haidian District, Beijing, China 100044.

 

Subsidiary/Associated Companies:-

* Asiatic Steel Ltd., Hong Kong.

* Conspring Ltd., Hong Kong.

Cheerglory Shipping Ltd., Hong Kong.

China Expand Development Ltd., Hong Kong.

China Mimet Investment Ltd., Hong Kong.

China Minmetals H.K. (Holdings) Ltd., Hong Kong.

China Minmetals NZ Ltd., New Zealand.

* International Non-Ferrous Ltd., Hong Kong.

Janfair Pty. Ltd., Australia.

Minmetals Capital (Hong Kong) Ltd., Hong Kong.

Minmetals Hong Kong Ltd., Hong Kong.

Minmetals Japan Corp., Japan.

Minmetals Korea Co. Ltd., Korea.

Minmetals Land Ltd., Hong Kong/Bermuda.

Minmetals Shipping (Singapore) Pte. Ltd., Singapore.

Minmetals South-East Asia Corp. Pte. Ltd., Singapore.

Minmetals Tianwei Steel Co. Ltd., China.

MMG Ltd., Hong Kong.

Newglory International Ltd., China.

Oriental Resources Development Ltd., Hong Kong.

* Spring Tree Investment Ltd., Hong Kong.

* Super Jack Electric Motor (Hong Kong) Co. Ltd., Hong Kong.

etc.

 

* Dissolved

 

 

BUSINESS REGISTRATION NUMBER

 

07514800

 

 

COMPANY FILE NUMBER

 

0104982

 

 

MANAGEMENT

 

Managing Director:        Mr. Liu Qingchun

Contact Person:            Mr. Liang Qing

 

 

ISSUED SHARE CAPITAL

 

HK$107,000,000.00

 

 

SHAREHOLDER  

(As per registry dated 03-11-2014)

 

Name

 

No. of shares

Minmetals International Trading Company Pte. Ltd.,

24 Raffles Place, #19-04 Clifford Centre, Singapore 048621.

 

107,000,000

=========

 

 

DIRECTORS

(As per registry dated 24-03-2015)

 

Name

(Nationality)

 

Address

LIU Qingchun

Flat A, 11/F., King’s Court, 11 Man Fuk Road, Ho Man Tin, Kowloon, Hong Kong.

 

GAO Mingzheng

Flat H, 27/F., Block 2, Coastal Skyline, 12 Waterfront Road, Tung Chung, Lantau Island, Hong Kong.

 

LI Linhu

Flat G, 24/F., Begonia Mansion, Taikoo Shing, Hong Kong.

 

 

 

SECRETARY

(As per registry dated 03-11-2014)

 

Name

Address

YIN Liang

11/F., China Minmetals Tower, 79 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 3rd November, 1981 as a private limited liability company under the Hong Kong Companies Ordinance.

 

It was originally registered under the name of Cheerglory Ltd., name changed to Cheerglory Traders Ltd. on 29th December, 1981, and further to the present style on 2nd May, 2012.

 

Formerly the subject was located at 16/F., Euro Trade Centre, 21-23 Des Voeux Road Central, Hong Kong, moved to the present address with effect from 1st February, 1999.

 

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

 

 

OPERATIONS

 

Activities:                      Importers and Re-exporters; Investment.

 

Lines:                           Steel products, non-ferrous metals, minerals, pig iron, cement, hardware, vessels,  electric  equipment and products.

 

Office Space:  (Rented under a Tenancy Agreement)

Date of Tenancy Agreement:  13th December, 2007

Premises:         11th Floor, China Minmetals Tower, 79 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong

Period: Two years ending 31st December, 2009 with an option to renew for a further Term of one year at open market rent of the premises exclusive of rates, service, management and air-conditioning charges but otherwise subject to the same terms

Rental:  HK$133,239 per calendar month (exclusive of government rates and service, management and air-conditioning charges)

Other Charges:  HK$24,331 per calendar month (being the tenant’s share of service, management and air-conditioning charges

 

Employees:                  22.

 

Commodities Imported:-

Metals – China.

Minerals – China.

Aluminium – Canada and US.

Steel products – Japan and Europe.

 

Markets:                        China, Japan, US, Europe, India, Africa, Southeast Asia, Taiwan, etc.

 

Annual Turnover:           HK$2.0-2.5 billion.

 

Terms/Sales:                 L/C, T/T, D/P etc.

 

Terms/Buying:               As per contracted.

 

 

MAIN JAPANESE COMPANIES TRADED WITH

 

Mitsui & Co. Ltd., Japan.

Marubeni Corporation, Japan.

etc.

 

 

MEMBERSHIP

 

The Hong Kong Chinese Enterprises Association, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$107,000,000.00

 

Total Assets:                 HK$2.5 billion.

 

Profit or Loss:               Business is profitable.

 

Condition:                     Keeping in an active and good manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met as contracted.

 

Commercial Morality:     Good.

 

Bankers:-

Bank of China (Hong Kong) Ltd., Hong Kong.

Bank of Communications Co. Ltd., Hong Kong Branch.

BNP Paribas, Hong Kong Branch.

Calyon, Hong Kong Branch.

China Merchants Bank Co. Ltd., China.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

JPMorgan Chase Bank, N.A., Hong Kong Branch.

Mizuho Corporate Bank Ltd., Hong Kong Branch.

Nanyang Commercial Bank Ltd., Hong Kong.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

The Bank of Tokyo-Mitsubishi UFJ Ltd., Hong Kong Branch.

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

etc.

 

Banking:-

One bank source reports subject has maintained a well conducted current account in the books of them since November 1981.  Moderate overdraft facilities have been granted to them.  They have handled their L/C with satisfactory results.

 

Standing:                      Sound.

 

 


GENERAL

 

Minmetals Cheerglory Ltd. [MCL] was 100% directly owned by China Minmetals Corporation [CMC], formerly known as China National Metals & Minerals Import & Export Corporation [MINMETALS] which was a very significant China-based firm.

 

In October 1996, all the shares owned by MINMETALS were transferred to China Minmetals H.K. (Holdings) Ltd. [CMHK] which was incorporated in April 1996.  CMHK is a subsidiary of CMC formed on 27th March, 2012.  However, CMHK transferred all its shares to Minmetals International Trading Co. Pte. Ltd., the present holding company of MCL, which is a Singapore-based firm.

 

MCL was officially founded in November 1981 and engaged in the business of non‑ferrous metals, minerals, steel products, pig iron, cement and metallic products.

 

All the directors of MCL are China merchants but each has got a HK ID and has got the right to reside in Hong Kong permanently.  The current managing director is Mr. Liu Qingchun.  The newly appointed director is Mr. Li Linhu.

 

MCL now has established extensive business links in Hong Kong, Macau and Southeast Asian countries and other countries.  Its business range has been widely expanded from trading to production.  The items handled by it include metals and minerals.  It is trading in the following products chiefly:-

·         Minerals (iron ore, coal, pellet, chrome ore, manganese ore to China mainland, coke to Taiwan, the United States, Japan, India, Europe)

·         Steel (to China mainland, Taiwan, South Korea, Europe, other Asian countries)

 

Its products are exported to Australia, Central & South America, Japan, North America, Southeast Asia, Taiwan, Europe, etc. besides marketing in China.

·         MCL has set up the following main divisions:-

·         Development Division;

·         Enterprises Management Division;

·         Finance Division;

·         First Export Division of Metals and Minerals;

·         Non-Ferrous Metals Import Division;

·         Second Export Division;

·         Steel Import Division; &

·         Transportation Division.

 

Besides, MCL has established subsidiary companies or joint ventures in Japan, Germany, Mauritius, and in large cities of China such as Shanghai, Shenzhen SEZ and Jilin.

 

Founded in 1950, CMC is one of the largest state-owned conglomerates that operates globally with core businesses in exploration, mining, smelting, processing and trading in metals and minerals, and is also engaged in finance, real estate, and mining and metallurgic technology.

 

The revenue of CMC for the year of 2014 was approximately RMB322.8 billion Yuan (2013: RMB402.8 billion Yuan), decreased by 19.9% as compared with previous year.

 

CMC has also actively participated in commercial estate development, construction and installation business in recent years since it established the residential development and industrial estates.

 

CMC through its Hong Kong subsidiary, Minmetals HK, holds approximately 62.05% equity interest in Minmetals Land.  Having approved by the State‑owned Assets Supervision and Administration Commission of the State Council to include property development and operation as one of its core businesses, CMC announced its intention to transform Minmetals Land into its sole listed real estate flagship.  Through gradual asset injection and consolidation of its real estate resources, CMC aims at achieving the listing of all of its real estate businesses and turning Minmetals Land eventually into a leading and influential real estate development corporation, which creates better returns to its shareholders, employees and the society.

 

The revenue of CMC for the year of 2014 was approximately RMB322.8 billion Yuan (2013: RMB402.8 billion Yuan), decreased by 19.9% as compared with previous year.

 

In 2014, CMC ranked the 133rd among the Fortune Global 500 and the Second among metal companies.  Now, CMC has about 177,000 employees and controls 7 listed companies in China and overseas.

 

MCL owns a number of premises in Hong Kong.  Its annual turnover ranges from HK$2.0 to 2.5 billion.  Business is profitable.

 

MCL is fully supported by CMC.  History in Hong Kong is over 33 years.

 

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

 

 

REMARKS

 

Property information of the company:-

 

Property Location

Owner

Date of Purchase

Purchased
Price

16/F., Euro Trade Centre, 21‑23 Des Voeux Road Central, Hong Kong.

Cheerglory Traders Ltd.

20-11-1984

HK$7,681,060

Flat A on 11/F., Flat G on 7/F., 10/F., 11/F., 12/F. & 27/F., Flat H on 7/F., 10/F., 11/F. & 14/F., Pak Hoi Mansion, Kwun Hoi Terrace, Taikoo Shing, Hong Kong.

Cheerglory Traders Ltd.

09-08-1985

HK$7,137,000

Flat G on 22/F., Pak Hoi Mansion, Kwun Hoi Terrace, Taikoo Shing, Hong Kong.

Cheerglory Traders Ltd.

26-07-1985

HK$   665,000

Flat F on 23/F., Pak Hoi Mansion, Kwun Hoi Terrace, Taikoo Shing, Hong Kong.

Cheerglory Traders Ltd.

19-04-1990

HK$1,310,000

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.82

UK Pound

1

Rs.101.26

Euro

1

Rs.72.36

 

INFORMATION DETAILS

 

Analysis Done by :

SAN

 

 

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.