MIRA INFORM REPORT

 

 

Report No. :

344943

Report Date :

14.10.2015

 

IDENTIFICATION DETAILS

 

Name :

ONESTEEL  RECYCLING  HONG  KONG  LTD.

 

 

Registered Office :

Level 16, 28 Hennessy Road, Wanchai,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

13.06.2003

 

 

Com. Reg. No.:

33692228

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is importer, exporter and wholesaler of all kinds of metal scraps

 

 

No. of Employee :

20, Group 8,662. (As at 30-06-2015)

 

 

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 :

Slow but correct

 

 

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 name     

 

ONESTEEL  RECYCLING  HONG  KONG  LTD.

 

 

Address

 

Level 16, 28 Hennessy Road, Wanchai, Hong Kong.

 

(Your enquiry given as: ONE STEEL RECYCLING HONG KONG LTD.)

 

PHONE:                  852-2517 0920

 

FAX:                       852-2583 9659

 

E-MAIL:                  info@onesteelasia.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Greg Bradley Armstrong

 

 

SUMMARY

 

Incorporated on:                        13th June, 2003.

 

Organization:                             Private Limited Company.

 

Issued Share Capital:                 HK$100.00

 

Business

Category:                                   Importer, Exporter and Wholesaler.

 

Group Sales Revenue:               A$6,085.6 million  (Year ended 30-06-2015)

 

Employees:                                20.

 

Group Employees:                    8,662.  (As at 30-06-2015)

 

Main Dealing Banker:                Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

 

Banking Relation:                      Good.

Registered Head Office:-

 

Level 16, 28 Hennessy Road, Wanchai, Hong Kong.

 

Holding Company:-

 

OneSteel Recycling Asia Ltd., Hong Kong.  (Same address)

 

Ultimate Holding Company:-

Arrium Ltd., Australia.

[Formerly Known as OneSteel Ltd.]

 

 

Associated/Affiliated Companies:-

Arrium Group of Companies

 

AltaSteel Ltd., Canada.

Arrium Finance Pty. Ltd., Australia.

Arrium Iron Ore Holdings Pty Ltd., Australia.

Arrium Mining Services Asia Ltd., Hong Kong.

Austube Mills Holdings Pty. Ltd., Australia.
[Formerly known as Australian Tube Mills Pty. Ltd.]

Austube Mills Pty. Ltd., Australia.
[Formerly known as OneSteel Australian Tube Mills Pty. Ltd.]

Central Iron Pty Ltd., Australia.

Commonwealth Steel Co. Pty. Ltd., Australia.

Coober Pedy Resources Pty Ltd., Australia.

Litesteel Technologies America LLC., US.

Litesteel Technologies Pty. Ltd., Australia.

Maple Leaf Metals (A Partnership), Canada.

Metpol Pty Ltd., Australia.

Moly-Cop Adesur S.A., Peru.

Moly-Cop Canada (A Partnership), Canada.

Moly-Cop Chile S.A., Chile.

Moly-Cop Mexico S.A. de C.V., Mixico.

Moly-Cop Steel Inc., Canada.

Moly-Cop USA LLC., US.

OneSteel Americas Holdings Pty. Ltd., Australia.

OneSteel Coil Coaters Pty. Ltd., Australia.

OneSteel Group (US Holdings) Inc., US.

OneSteel Manufacturing Pty. Ltd., Australia.

OneSteel MBS Pty. Ltd., Australia.

OneSteel NSW Pty. Ltd., Australia.

OneSteel Recycling Holdings Pty. Ltd., Australia.

OneSteel Recycling Inc., USA.

OneSteel Recycling Overseas Pty. Ltd., Australia.

OneSteel Recycling Pty. Ltd., Australia.

OneSteel Reinforcing Pty. Ltd., Australia.

Onesteel Stainless Australia Pty. Ltd., Australia.
[Formerly known as Fagersta Australia Pty. Ltd.]

Onesteel Stainless Pty. Ltd., Australia.
[Formerly known as Fagersta Steels Pty. Ltd.]

OneSteel Trading Pty. Ltd., Australia.

OneSteel US Investments 1 Pty. Ltd., Australia.

OneSteel US Investments 2 Pty. Ltd., Australia.

OneSteel US Investments, US.

OneSteel Wire Pty. Ltd., Australia.

P & T Tube Mills Pty. Ltd., Australia.

PT Commonwealth Steel Indonesia, Indonesia.

Southern Iron Pty. Ltd., Australia.

SSX Acquisitions Pty. Ltd., Australia.

SSX International Pty. Ltd., Australia.

SSX Pty. Ltd., Australia.

SSX Services Pty. Ltd., Australia.

The Australian Steel Co. (Operations) Pty. Ltd., Australia.

Tubemakers of Australia Pty. Ltd., Australia.

Whyalla Ports Pty. Ltd., Australia.

XMS Holdings Pty. Ltd., Australia.

 

 

BUSINESS REGISTRATION NUMBER

 

33692228

 

 

COMPANY FILE NUMBER

 

0849675

 

 

MANAGEMENT

 

Chief Executive:      Mr. Geoff Feurtado

Managing Director:  Mr. Greg Bradley Armstrong

 

 

ISSUED SHARE CAPITAL

 

HK$100.00

 

SHAREHOLDERS

 

(As per registry dated 13-06-2015)

Name

 

No. of shares

OneSteel Recycling Asia Ltd., Hong Kong.

 

100

===

 

 

DIRECTORS

 

(As per registry dated 13-06-2015)

Name

(Nationality)

 

Address

Greg Bradley ARMSTRONG

Apartment 34A, Birchwood Place, 96 MacDonnell Road, Mid Levels, Hong Kong.

 

Geoffrey Doyd Alexander FEURTADO

3 Seymour Close, Wahroonga, New South Wales 2076, Australia.

 

Barton Paul CHAMPNESS

22 Park Avenue, Concord, New South Wales 2137, Australia.

 

 

SECRETARY

 

(As per registry dated 13-06-2015)

Name

Address

Co. No.

B. & McK. Nominees Ltd.

Unit 1401,14/F.,  Hutchison House, 10 Harcourt Road, Hong Kong.

0054552

 

 

HISTORY

 

The subject was incorporated on 13th June, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Smorgon Hartwell Recycling (HK) Ltd., name changed to the present style on 9th May, 2008.

Formerly the subject was located at Room 2003 & 2005, 20/F., Yat Chau International Plaza, 118 Connaught Road West, Sai Ying Pun, Hong Kong, moved to the present address in January 2014.

 

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

 

 

OPERATIONS

 

Activities:                Importer, Exporter and Wholesaler.

 

Lines:                     All kinds of metal scraps.

 

Employees:            20.

 

Group Employees:  8,662.  (As at 30-06-2015)

 

Commodities

Imported:                India, other Asian countries, etc.

 

Markets:                  China, Japan, other Asian countries, Middle East, North America, Western

Europe

 

Group Sales Revenue:                                    A$7,133.0 million  (Year ended 30-06-2011)

                                                                     A$7,594.5 million  (Year ended 30-06-2012)

A$6,841.0 million  (Year ended 30-06-2013)

A$7,006.6 million  (Year ended 30-06-2014)

A$6,085.6 million  (Year ended 30-06-2015)

 

Terms/Sales:  L/C or as per contracted

.

Terms/Buying:  L/C, T/T, etc.

 

 

FINANCIAL INFORMATION:

 

Issued Share Capital: HK$100.00

 

Group Net Profit/(Loss) After Tax:-

A$  230.3 million      (Year ended 30-06-2011)

A$    57.7 million     (Year ended 30-06-2012)

(A$   701.1 million)   (Year ended 30-06-2013)

(A$   205.4 million    (Year ended 30-06-2014)

(A$1,918.2 million)   (Year ended 30-06-2015)

 

Profit or Loss:         Group made losses in FY 2013 & FY 2015.

 

Condition:               Keeping in a satisfactory condition.

 

Facilities:                Making rather active use of general banking facilities.

 

Payment:                Met trade commitments as contracted.

 

Commercial

Morality:                 Satisfactory.

 

Banker:                   Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

 

Standing:                Satisfactory.

 

 

GENERAL

 

OneSteel Recycling Hong Kong Ltd. is a wholly-owned subsidiary of OneSteel Recycling Asia Ltd., a Hong Kong-registered firm located at the operating address of the subject.  The ultimate holding company of the subject Arrium Ltd. [Arrium] (formerly known as OneSteel Ltd. [OneSteel]) is an Australia-based and listed firm.

 

The subject belongs to the Recycling Segment of the Arrium Group.  It is responsible for the recycling of scrap metals, zinc, aluminium, ferrous and non-ferrous metals, etc.  Commodities are provided to the subject’s affiliated mills in Australia and the other countries of the world for processing.  The subject has set up several scrap metal collecting centres in Hong Kong.  In Fanling, New Territories, the subject has had a recycling centre which is operated by HP Metal Recycling (HK) Ltd., a Hong Kong-based firm.

 

Arrium is a fully integrated, global manufacturer and distributor of steel and finished steel products, self-sufficient in both iron ore and scrap metal.  Arrium’s major manufacturing facilities are located in Whyalla, South Australia, Melbourne, Victoria, Western Sydney and Newcastle, New South Wales and Brisbane, Queensland.  Smaller manufacturing and distribution facilities are located throughout regional Australia.

 

Additionally, Arrium has more than 40 operating facilities overseas in North and South America, New Zealand and Asia.

During the year of FY2011, Arrium acquired and integrated the Moly-Cop Group mining consumables businesses in the Americas.  This represented another significant milestone in Arrium’s long-term growth strategy and transformation.  The acquisition positions Arrium as a global player in grinding media with participation in some of the world’s largest and most attractive mining consumables markets, as well as providing Arrium with a solid platform for further growth in mining consumables.

Following completion of the acquisition at the end of 2010, Arrium established a new Mining Consumables segment.

In total, Arrium services more than 30,000 customers, offers more than 40,000 products globally.

Arrium manufactures and distributes structural, rail, rod, merchant bar, cold finished bar, chrome plated bar, reinforcing, wire, tube, pipes, fittings, valves and actuation, rail wheels and axles, steel beam, grinding media and recycled metals.  The majority of Arrium’s products are used in the construction, manufacturing, housing, mining and agricultural industries.

Arrium is an integrated, global manufacturer and distributor of steel and finished steel products.  It is self-sufficient in iron ore and has the ability to be self-sufficient in scrap metal, providing significant flexibility to the integrated model that ranges from the mining, collection and supply of steel making raw materials through to steel production, manufacturing and distribution in Australia and overseas.  Arrium also makes external sales of hematite iron ore and scrap metal.

Arrium’s business segments include the following three:-

·         Arrium Mining Consumables supplies resource companies with a range of key mining consumables, including grinding media and rail wheels.  Through its MolyCop brand, it is the largest supplier of grinding media in the world with leading market positions in North America, South America and Australasia.

·         Arrium Mining includes the company’s export iron ore business and a wholly-owned port at Whyalla, both in South Australia.  The business was restructured during the financial year to focus on its lower cost Middleback Ranges operation.  Export sales of hematite iron ore for the year were 12.5 million tonnes.  In addition, Arrium Mining also supplies iron ore to the company’s integrated steelworks at Whyalla.

·         Arrium Steel includes both the Steel and Recycling businesses.  The Steel business is Australia’s only manufacturer of steel long products with steelmaking capacity of approximately 2.5 million tonnes per annum.  It is also Australia’s leading steel distributor and reinforcing steel supplier. The Recycling business has operations focused on the southern and eastern coasts of Australia, as well as non-ferrous operations in Asia.

For the Year ended 30th June, 2015, the sales of the Arrium Group amounted to A$6,085.6 million, decreased by 13.1% as compared with that of A$7,006.6 million in FY2014; net loss after tax was 1,918.2 million, as compared with a net profit of A$205.4 million in FY2014.

On a statutory basis, the loss was A$1,918.2 million after including asset impairments and restructuring costs of A$1,799 million, largely related to the impact of lower iron ore prices.  Also included is A$113 million of tax adjustments and other charges, including the write off of the MRRT deferred tax asset following repeal of the tax early in the financial year.

As at ended 30th June, 2015, the Group had 8,662 employees (2014: 9,269).

The subject is fully supported by Arrium.  History in Hong Kong is over twelve years and four months.

On the whole, consider it good for normal business engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.02

UK Pound

1

Rs.99.89

Euro

1

Rs.73.92

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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.