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Report No. : |
342234 |
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Report Date : |
23.09.2015 |
IDENTIFICATION DETAILS
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Name : |
WUGANG TRADING CO. LTD. |
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Registered Office : |
Unit 8-11, 37/F., Tower 1, Lippo Centre, 89 Queensway |
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Country : |
Hongkong |
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Date of Incorporation : |
25.04.1997 |
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Com. Reg. No.: |
20928040 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of Iron & Steel
Materials and Products. |
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No. of Employees : |
15. (Including Associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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) |
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Hongkong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
WUGANG TRADING
CO. LTD.
ADDRESS: Unit
8-11, 37/F., Tower 1, Lippo Centre, 89 Queensway, Hong Kong.
PHONE: 852-2542
0288
FAX: 852-2530
2206
E-MAIL: wugang@netvigator.com
Managing Director:
Mr. Zhou Xueying
Incorporated on: 25th April, 1997.
Organization: Private Limited Company.
Issued Share Capital: HK$100,000.00
Business Category: Importer,
Exporter and Wholesaler.
Employees: 15. (Including associates)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Very Good.
Registered Head
Office:-
Unit 8-11, 37/F., Tower 1, Lippo Centre, 89 Queensway,
Hong Kong.
Holding Company:-
WISCO International Economic & Trading Co., Ltd.,
China.
Ultimate Holding
Company:-
Wuhan Iron & Steel (Group) Corporation, China.
Associated
Companies:-
Cheerwu Traders Ltd., Hong Kong.
Guangxi Iron & Steel Group Co. Ltd., China.
TWB Co. LLC, US.
Wisco (India) Pvt. Ltd., India.
Wisco America Co. Ltd., US.
Wisco Canada Co. Ltd., Canada.
Wisco Echeng Iron & Steel Co. Ltd., China.
Wisco Europe GmbH, Germany.
Wisco Global Inc., US.
Wisco Japan Corp. Ltd., Japan.
Wisco Korea Corporation Ltd., Korea.
Wisco Kunming Iron & Steel Co. Ltd., China.
Wisco Shipping Co. Ltd., Hong Kong.
Wugang (Australia) Pty. Ltd., Australia.
Wuhan Iron & Steel Co. Ltd., China.
etc.
20928040
0605529
Managing Director:
Mr. Zhou Xueying
HK$100,000.00
(As per registry
dated 25-04-2015)
|
Name |
|
No. of shares |
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WISCO International Economic & Trading Co. Ltd. 741-1 Heping Street, Qingshan, Wuhan (420081), China. |
|
100,000 ====== |
(As per registry dated 25-04-2015)
|
Name (Nationality) |
Address |
|
DONG Weiping |
Room 7, Block 22, 120 Ganghua Village,
Qingshan District, Wuhan, China. |
|
LIU Xinhua |
Building 3, Flat 1.,#502, Industrial#2 Road,
Qingshan District, Wuhan, China. |
|
WU Shengbiao |
No.7, Entrance 144, Apartment Block 126,
Gangdu Huayuan, Qingshan District, Wuhan, China. |
|
ZHOU Xue Ying |
Flat F, 4/F., Yat Tien Mansion, 18B Taikoo Shing Road,
Taikoo Shing, Hong Kong. |
|
TANG Jun |
No. 11, Door 20, Biyuan Garden, Yejin, Qingshan
District, China. |
(As per registry dated 25-04-2015)
|
Name |
Address |
Co. No. |
|
Tricor Secretaries Ltd. |
Level 54, Hopewell Centre, 183 Queen’s Road East,
Hong Kong. |
0014900 |
The subject was
incorporated on 25th April, 1997 as a private limited liability company under
the Hong Kong Companies Ordinance.
Apart from these,
neither material change nor amendment has been ever traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of iron & steel materials and products
Employees: 15. (Including associates)
Commodities Imported: China,
Asian countries, Russia, India.
Markets: China,
Asian countries, Europe.
Terms/Sales: As per contracted.
Terms/Buying: Various terms.
Issued Share Capital: HK$100,000.00
Indebtedness: US$292,171,980.62 (Total amount outstanding on all mortgages
and charges as per last Annual Return
dated 25-04-2015)
Mortgage or Charge (since 2013): (See attachment)
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.
Bankers:-
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong.
Sumitomo Mitsui
Banking Corporation, Hong Kong Branch.
Société Générale,
Hong Kong Branch.
Standing: Good.
Wugang Trading Co.,
Ltd. is a wholly-owned subsidiary of WISCO International Economic & Trading
Co., Ltd. [IETC], a China-based company.
The ultimate holding company of the subject is Wuhan Iron & Steel
(Group) Corporation, also a China-based company.
The Group has had a
main associated company known as Wuhan Iron & Steel Co. Ltd. [Wisco] which
is a listed company in China. Wisco was
listed on Shanghai Stock Exchange bearing stock code 600005.
IETC was set up on
31st December, 1993. It is trading in
the following commodities: Iron & steel products, minerals, iron ore, coal
and coke, alloy, metal materials, cables and wires, building materials,
refectories, machinery & equipment, instruments & metres, chemicals,
LPG, etc.
The subject also
trades in the same commodities, more or less.
The general manager
of IETC Wu Shengbiao is also one of the directors of the subject. He is also the purchasing director of the
Wugang Group.
Now, IETC has set up
representative offices or associated companies in Germany, Japan, Australia,
India, South Korea, the United States, Canada, etc.
Wisco was founded in
1955. So far, it has become a main
state-owned enterprise under the State Council and the State-owned Assets
Supervision and Administration Commission (SASAC) of the PRC.
After merging and
reorganizing Ezhou Iron & Steel Co., Ltd., Liuzhou Iron & Steel Co.,
Ltd., and Kunming Iron & Steel Co., Ltd., Wisco has grown into a giant
enterprise group with annual output exceeding 40 million tons of iron and
steel, and ranked 4th among its counterparts around the world. In 2010, WISCO realized total operating
income of RMB190.7 billion Yuan and total assets of RMB203.8 billion Yuan,
ranking the 340th among the Fortune 500 companies.
Nowadays, Wisco
mainly is engaged in three industries including iron and steel, hi-tech
industries, and international trade. Its
iron and steel products comprise hundreds of varieties such as hot-rolled coil,
hot-rolled section steel, hot-rolled heavy rail, plate of moderate thickness,
cold-rolled coil, galvanized plate, cold-rolled oriented and non-oriented
silicon steel sheet, colour coated plate, and high-speed wire rod, etc.
The Group’s “Wugang
Brand” has been recognized as a well-known brand in China. According to the report issued by the World
Brand Lab, the “Wugang Brand”, with a total brand value of RMB17.052 billion
Yuan, ranks the 56th among famous brands in the world.
The Group now has a
main subsidiary in the United States known as TWB Company, LLC. [TWB]. TWB was formed in 1992 as a joint venture
between Worthington Industries and Thyssen Stahl AG. ThyssenKrupp sold their shares to Wuhan Iron
and Steel Company [Wisco] in July 2013.
TWB has developed the tailor welded blank market in North America and is
currently the leading manufacturer of tailor welded products in the NAFTA region.
The following table
shows the revenues and net profit attributable to equity owners of the Wisco
Group:
Unit: RMB’ million Yuan
|
FY |
2014 |
2013 |
2012 |
|
Operating Revenue |
99,373.1 |
101,489.3 |
106,866.7 |
|
Net Profit |
1,257.4 |
561.0 |
210.0 |
The subject is fully
supported by IETC and ultimately by Wugang Group.
As the history of the
subject is over 18 years and four months in Hong Kong, on the whole, consider
it good for normal business engagements.
(Since 2013)
|
Date |
Description of Instrument |
Mortgagee |
|
14-03-2013 |
Trade Finance Security Assignment (All Moneys)
(Own Obligations) |
Standard Chartered Bank (Hong Kong) Ltd.,
Hong Kong. |
|
18-07-2013 |
Trade Finance Security Assignment |
The Hongkong & Shanghai Banking Corp. Ltd., Hong
Kong. |
|
27-05-2014 |
Trade Finance Security Deed |
Sumitomo Mitsui Banking Corporation, Hong Kong
Branch. |
|
14-07-2014 |
HK Account Charge |
Société Générale, |
|
14-07-2014 |
Trade Finance Security Assignment |
Société Générale, Hong Kong Branch. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.63 |
|
|
1 |
Rs.101.73 |
|
Euro |
1 |
Rs.73.26 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.