MIRA INFORM REPORT

 

 

Report No. :

328105

Report Date :

24.06.2015

 

IDENTIFICATION DETAILS

 

Name :

MARUBENI HONG KONG & SOUTH CHINA LTD.

 

 

Registered Office :

20/F., Tower I, Admiralty Centre, 18 Harcourt Road

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

22.06.1974

 

 

Com. Reg. No.:

04970964

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

General Importer, Exporter, Distributor and Agent of Textiles, cotton & rayon yarn and fibre raw materials for non-ferrous & ferrous metals, walkie-talkies, colour TVs, medical equipment, production line equipment, semiconductor, foodstuffs, fertilizer and sundry goods.

 

 

No of Employees :

150.  (Including 25 Japanese staff)

 

 

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 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 12.5% 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 & address

 

MARUBENI  HONG  KONG  &  SOUTH  CHINA  LTD.

 

 

ADDRESS:       20/F., Tower I, Admiralty Centre, 18 Harcourt Road, Hong Kong.

 

PHONE:            852-2861 2922

 

FAX:                 852-2529 8319,  2865 6486

 

 

MANAGEMENT

 

Managing Director:  Mr. Koki Kitagawa

 

 

SUMMARY

 

Incorporated on:            22nd June, 1974.

 

Organization:                 Public & Non-Listed Company.

 

Issued Share Capital:     HK$204,340,856.00

 

Business Category:       General Merchant.

 

Revenue:                      US$448,125,123.00  (Year ended 31-03-2014)

 

Employees:                  150.  (Including 25 Japanese staff)

 

Main Dealing Banker:     Mizuho Corporate Bank Ltd., Hong Kong Branch.

 

Banking Relation:          Excellent.

 


Company name

 

 MARUBENI  HONG  KONG  &  SOUTH  CHINA  LTD.

 

 

ADDRESS

 

Registered Head Office:-

20/F., Tower I, Admiralty Centre, 18 Harcourt Road, Hong Kong.

 

China Offices:-

Beijing, Shanghai, Guangzhou, Dalian, Qingdao, Tianjin, Nanjing, Fuzhou, Xiamen, Shenyang, Haikou, Chongqing, Shenzhen SEZ.

 

Parent Company:-

Marubeni Corporation

4-2, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8088, Japan.

[Tel: 81-3-3282 2111]

 

Subsidiary:-

Shoes & More Ltd., Hong Kong.  [Dissolved]

 

Associated Companies:-

Argo Marine Shipping S.A., Panama.

Kenova Ltd., Hong Kong.

Marnix Insurance Agency Ltd., Hong Kong.

Marubeni Chikusan Corporation, Japan.

Marubeni Footwear Resources Ltd., Hong Kong.

Marubeni Guangzhou Co. Ltd., China.

Marubeni International Commodities (Singapore) Pte. Ltd., Singapore.

Marubeni International Petroleum Co. Ltd., Hong Kong.  [Dissolved]

Marubeni Intex Co. Ltd., Japan.

Marubeni Nisshin Feed Co. Ltd., Japan.

Marubeni Textile Asia Co. Ltd., Hong Kong.  [Dissolved]

Passport Fashion Co. Ltd., Hong Kong.

Polyglory (Hong Kong) Ltd., Hong Kong.  [Dissolved]

United Fashion Co. Ltd., China.

West Pacific Salt Ltd., Hong Kong.  [Dissolved]

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

04970964

 

 

COMPANY FILE NUMBER

 

0039039

 

 

MANAGEMENT

 

Managing Director:  Mr. Koki Kitagawa

 

 

ISSUED SHARE CAPITAL 

 

HK$204,340,856.00

 

 

SHAREHOLDER  

 

(As per registry dated 23-06-2014)

Name

 

No. of shares

Marubeni Corporation

4-2, 1-chome, Ohtemachi, Chiyoda-ku, Tokyo, Japan.

 

204,340,856

=========

 

 

DIRECTORS

 

(As per registry dated 13-04-2015)

Name

(Nationality)

 

Address

Masato KIMATA

Room 1801, Block A4, Xinghui Yunjin, No. 3 Huacheng Road, Tianhe District, Guangzhou, Guangdong Provicne, China.

 

Koki KITAGAWA

Flat 57, 11/F., Tower 9, Hong Kong Parkview, 88 Tai Tam Reservoir Road, Hong Kong.

 

Kenichi YAMAGUCHI

Apartment 14B, Shama Tsim Sha Tsui, 74-78 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

 

Kazuaki TANAKA

Unit 1805, 18/F., Tower 23, Central Park, 6 Chaoyangmenwai Avenue, Chaoyang District, Beijing, China.

 

Hiroyuki TANAKA

Flat A, 41/F., Tower 1, The Orchards, 3 Greig Road, Hong Kong.

 

SECRETARY 

 

(As per registry dated 23-06-2014)

Name

Address

Co. No.

Deodand (Nominees) Ltd.

Room 701, 7/F., World-Wide House, 19 Des Voeux Road Central, Hong Kong.

0016756

 

 

HISTORY

 

The subject was firstly registered in Hong Kong on 15th March, 1955 as a Hong Kong branch office with head office in Japan.  Incorporated on 22nd June, 1974 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Marubeni Hong Kong Ltd., name changed to the present style on 2nd April, 2001.

 

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

 

 

OPERATIONS

 

Activities:          General Importer, Exporter, Distributor and Agent.

 

Lines:               Textiles, cotton & rayon yarn and fibre raw materials for non-ferrous & ferrous metals, walkie-talkies, colour TVs, medical equipment, production line equipment, semiconductor, foodstuffs, fertilizer and sundry goods.

 

Office Space:  20,318 sq.ft. - self-owned.

 

Employees:      150.  (Including 25 Japanese staff)

 

Commodities Imported:-

Paper - Japan and South Korea.

Copy machine, cable, wheat flour, steel sheet and synthetic rubber - Japan.

Plastic resin - Japan and US.

Textile fabric and yarn - Japan, South Korea, Pakistan and Taiwan.

Shoes - Italy.

White cement - Indonesia.

 

Markets:            Hong Kong, China, Europe, US, etc.

 

Revenue:          US$520,427,590.00  (Year ended 31-12-2010)

US$553,585,516.00  (Year ended 31-12-2011)

US$583,150,891.00  (From 01-01-2012 to 31-03-2013)

US$448,125,123.00  (Year ended 31-03-2014)

 

Terms/Sales:     Various terms.

 

Terms/Buying:  As per contracted.

 

 

GOVERNMENT CONTRACTS AWARDED SINCE 1990

 

Date

GN No.

Particulars

Amount

Under the name of “Marubeni Corporation”

25-05-1990

GN1912

Supply of 4 Nos. of 316 Litres/Second Electrically Driven Pumpsets
Country of Origin: Japan/Germany

YEN94,185,000

28-03-1991

GN1118

Supply of 4 Nos. of 2,580 Litres/Second Electrically Driven Pumpsets
Country of Origin: Japan

YEN     170,602,800            +
FF        3,847,100

Under the name of “Marubeni Hong Kong Ltd.”

26-08-1994

GN3237

Supply of Spares for Kubota 2800 L/S Pump
Country of Origin: Japan

HK$998,012

28-10-1994

GN4093

Supply of Spare Parts for Kubota Main Pumps
Country of Origin: Japan

HK$675,225

 

 

MEMBERSHIP

 

The Hong Kong General Chamber of Commerce, Hong Kong.

The Hong Kong Japanese Chamber of Commerce & Industry, Hong Kong.

The Hongkong Japanese Club, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Issued Capital:                          HK$204,340,856.00

 

Net Profit:                     US$5,995,644.00  (Year ended 31-12-2010)

US$2,629,754.00  (Year ended 31-12-2011)

US$3,337,654.00  (From 01-01-2012 to 31-03-2013)

US$2,383,779.00  (Year ended 31-03-2014)

 

Profit or Loss:               Business is profitable.

 

Condition:                     Keeping in an active manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Reliable.

 

Commercial Morality:     Very Good.

 

Bankers:-

Mizuho Corporate Bank Ltd., Hong Kong Branch.

Fortis Bank, Hong Kong Branch.

Sumitomo Mitsui Banking Corporation, Hong Kong Branch.

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

Wing Lung Bank Ltd., Hong Kong.

etc.

 

Standing:                      Very Good.

 

 

GENERAL

 

Marubeni Hong Kong & South China Ltd. is a wholly-owned subsidiary of Marubeni Corporation [Marubeni] of Japan, the 5th largest trading company in Japan with shares listed on the stock exchanges in Tokyo, Osaka, Nagoya, Dusseldorf and Frankfurt.

 

The subject although incorporated on 22nd June, 1974, it has not been in operation until 1st April, 1977 when it officially took over all the business of Marubeni Corporation, Hong Kong Branch.  It is the most active Japanese company in Hong Kong.

 

The subject is one of the overseas corporate subsidiaries of Marubeni, which is one of Japan’s largest general trading companies (Sogo Shosha).

 

The new president of the subject is Mr. Koki Kitagawa.

 

The subject’s core business activity is domestic and international trading (export, import and intermediary trade), handling a wide range of products including natural resources, chemical & plastic products, foodstuffs, metals, machinery, plants, paper, general merchandise and so on.  Not only these trading business, the subject is also engaged in logistic support, direct investment and financial arrangement for trade and projects.

 

The subject has set up the following five departments:-

 

  • Lifestyle & Forest Products Department;
  • Chemicals Development Department;
  • Metal & Mineral Resources Department;
  • IT Project Department; &
  • Food Department.

 

Entry to WTO, the Chinese Government has been developing the western part of China, and the 11th 5-year plan starting from 2006 may have a huge impact on and boost the speed of the change in the industrial environment.  In order to catch up with this industrial revolution, the subject, itself, is also changing and expanding its business scope in the same direction as the market does, such as IT, Bio-chemical and Environmental related field, in addition to the traditional business.

 

Through this more than 50 years long business history, the subject has expanded its business to Southeast Asian countries apart from Hong Kong and China.  Its service lines have expanded from traditional trading to the value added supports for different customers.

 

When the Branch started business in Hong Kong, there were only 8 staff.  Now, as a result of business expansion, the subject has set up its own subsidiary company (Marubeni Guangzhou Trading Co. Ltd.) and 2 liaison offices (Xiamen and Kunming) in China, and has more than 150 staff under its management.

 

The subject has established strong networks among numerous business partners in various industries over the years.  Its business will keep on improving.

 

For the year ended 31st March, 2014, the revenue of the subject amounted to US$448.1 million (revenue during the period from 01-01-2012 to 31-03-2013: US$583.2 million); profit for the year was US$2.4 million (during the period from 01-01-2012 to 31-03-2013: US$3.3 million).  Overall business was good in the past years.

 

The subject has changed it fiscal year since 2013.

 

The history of the subject in Hong Kong is over 40 years.

 

The subject has got more directors appointed on 1st April, 2015.

 

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

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 63.64

UK Pound

1

Rs. 100.41

Euro

1

Rs. 71.62

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

Report Prepared by :

DPT

 

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.