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MIRA INFORM REPORT
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Report No. : |
501879 |
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Report Date : |
04.04.2018 |
IDENTIFICATION DETAILS
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Name : |
SIMS METAL MANAGEMENT ASIA LIMITED |
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Registered Office : |
Room 1709-1711, 17/F., Chubb Tower, Windsor House, 311 Gloucester
Road, Causeway Bay |
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Country : |
Hongkong |
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Date of Incorporation : |
17.11.1972 |
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Com. Reg. No.: |
04958631 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of Stainless Steel
Materials. |
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No. of Employees : |
20 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Hongkong |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. 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, which took effect in 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.
Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 2.6% in 2016, but slowed to 2.0% in 2017. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.
Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities. In 2017, Chief Executive Lam announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.
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Source
: CIA |
COMPANY NAME AND ADDRESS
SIMS METAL MANAGEMENT
ASIA LIMITED
ADDRESS: Room 1709-1711, 17/F., Chubb
Tower, Windsor House, 311 Gloucester Road, Causeway Bay, Hong Kong.
PHONE: 852-3657 9000
FAX: 852-3657 9098
MANAGEMENT
Managing Director:
Mr. Amit Patel
SUMMARY
Incorporated on: 17th November, 1972.
Organization: Private Limited Company.
Issued Share Capital: HK$369,253,864.77
Business Category: Importer,
Exporter and Wholesaler.
Group Revenue: A$5,089.6 million (Year ended
30-06-2017)
Company Employees:
20.
Group Employees: 4,561.
(As at 30-06-2017)
Main Dealing Banker: Bank
of America N.A., Hong Kong Branch.
Banking Relation: Satisfactory.
ADDRESS
Registered Head
Office:-
Room 1709-1711, 17/F., Chubb Tower, Windsor House, 311
Gloucester Road, Causeway Bay, Hong Kong.
Holding Company:-
Sims Metal Management Ltd., US.
Ultimate Holding
Company:-
Sims Metal Management Ltd., Australia.
Associated/Affiliated
Companies:-
Sims Group of Companies
All Metal Recovery Cradley Heath Ltd., UK.
All Metal Recovery Ltd., UK.
C Herring & Son Ltd., UK.
CIM Trucking Inc., US.
Converage Engineering LLC, US.
Cooper Metal Recycling Ltd., UK.
Deane Wood Export Ltd., UK.
Dover Barge Co., US.
Dunn Brothers (1995) Ltd., UK.
Electronic Product Stewardship Australasia Pty. Ltd.,
Australia.
Gaukara Co. No. 2 Ltd., PNG.
LMS Energy Pty. Ltd., Australia.
Metal Dynamics Detroit LLC, US.
Metal Management Inc., US.
Metal Management Indiana Inc., US.
Metal Management Memphis Inc., US.
Metal Management Midwest Inc., US.
Metal Management Northeast Inc., US.
Metal Management Ohio Inc., US.
Metal Management Pittsburgh Inc., US.
Mirec BV, The Netherlands.
Naporano Iron & Metal Inc., US.
New York Recycling Ventures Inc., US.
PNG Recycling Ltd., PNG.
Port Albany Ventures LLC, US.
Proler Southwest Corporation, US.
Richmond Steel Recycling Ltd., Canada.
Rondout Iron & Metal Co. LLC, US.
SA Recycling LLC, US.
Schiabo Larovo Corporation, US.
Sims Aluminium Pty. Ltd., Australia.
Sims E – Recycling (NZ) Ltd., New Zealand.
Sims E-Recycling Pty. Ltd., Australia.
Sims FE Mottram Ltd., UK.
Sims Group Australia Holdings Ltd., Australia.
Sims Group Canada Holdings Ltd., Canada.
Sims Group German Holdings GmbH, Germany.
Sims Group Global Trade Corporation, US.
Sims Group Holdings 1 Pty. Ltd., Australia.
Sims Group Holdings 2 Pty. Ltd., Australia.
Sims Group Holdings 3 Pty. Ltd., Australia.
Sims Group Recycling Solutions Canada Ltd., Canada.
Sims Group UK Holdings Ltd., UK.
Sims Group UK Intermediate Holdings Ltd., UK.
Sims Group UK Ltd., UK.
Sims Group UK Pension Trustees Ltd., UK.
Sims Group USA Corporation, US.
Sims Group USA Holdings Corporation, US.
Sims Industrial Pty. Ltd., Australia.
Sims Lifecycle Services BV, The Netherlands.
Sims Lifecycle Services GmbH, Germany.
Sims M+R GmbH, Germany.
Sims Metal Management China Holdings Ltd., Hong Kong.
Sims Metal Management Dragon Holdings Ltd., Hong Kong.
Sims Metal Management Finance Ltd., UK.
Sims Metal Management U.K. Ltd., UK.
(Formerly known as Cheque Swap Ltd.)
Sims Metal Management USA GP, US.
Sims Metrade GmbH, Austria.
Sims Municipal Recycling of New York LLC, US.
Sims Pacific Metals Ltd., New Zealand.
Sims Recycling Solutions A/S, Norway.
Sims Recycling Solutions AB, Sweden.
Sims Recycling Solutions Africa Pty. Ltd., South Africa.
Sims Recycling Solutions Austrian Holding GmbH, Austria.
Sims Recycling Solutions Austrian Intermediate Holdings
GmbH, Austria.
Sims Recycling Solutions Cooperatief B.A., The
Netherlands.
Sims Recycling Solutions FZE, Dubai.
Sims Recycling Solutions Holdings Inc., US.
Sims Recycling Solutions Inc., US.
Sims Recycling Solutions India Private Ltd., India.
Sims Recycling Solutions Ireland Ltd., Ireland.
Sims Recycling Solutions Ltd., UK.
(Formerly known as S3 Interactive Ltd.)
Sims Recycling Solutions NV, Belgium.
Sims Recycling Solutions Pte. Ltd., Singapore.
Sims Recycling Solutions s.r.o., Czech Republic.
Sims Recycling Solutions Sp z.o.o., Poland.
Simsmetal East LLC, US.
Simsmetal Holdings Pty. Ltd., Australia.
Simsmetal Industries Ltd., New Zealand.
Simsmetal Properties NSW Pty. Ltd., Australia.
Simsmetal Properties Qld Pty. Ltd., Australia.
Simsmetal Services Pty Ltd., Australia.
Simsmetal West LLC, US.
Simstar Alloys Pty. Ltd., Australia.
SMM – North America Trade Corporation, US.
SMM Gulf Coast LLC, US.
SMM New England Corporation, US.
SMM South Corporation, US.
SMM Southeast LLC, US.
Trishyiraya Recycling India Private Ltd., India.
United Castings Ltd., UK.
Universal Inspection & Testing Co. Pty. Ltd.,
Australia.
Etc.
BUSINESS REGISTRATION NUMBER
04958631
COMPANY FILE NUMBER
0030512
MANAGEMENT
Group Chief Executive Officer: Mr.
Alistair Field
Managing Director:
Mr. Amit Patel
ISSUED SHARE CAPITAL
HK$369,253,864.77 (1,102,280,000 fully paid ordinary
shares)
SHAREHOLDER
(As per registry dated 17-11-2017)
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Name |
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No. of shares |
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Sims Metal
Management Ltd. 110 Fifth Avenus,
7/F., NY 10011, New York. |
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1,102,280,000 ========== |
DIRECTORS
(As per registry dated 17-11-2017)
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Name (Nationality) |
Address |
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Amit PATEL |
1620 Marion Street,
Roselle, IL 60172-5003, U.S. |
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Alistair FIELD |
62 Norholt Drive,
New Canaan, CT 06840, U.S. |
SECRETARY
(As per registry dated 17-11-2017)
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Name |
Address |
Co. No. |
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Fair Wind
Secretarial Services Ltd. |
25/F., Jardine
House, 1 Connaught Place, Central, Hong Kong. |
0032181 |
HISTORY
The subject was
incorporated on 17th November, 1972 as a private limited liability company
under the Hong Kong Companies Ordinance.
Originally the
subject was registered under the name of Cableton Ltd., name changed to Sims
Asia Holdings Ltd. on 27th January, 1973 and further changed to the present
style on 10th March, 2009.
Formerly the subject
was located at Room 5407-5408, 54/F., Hopewell Centre, 183 Queen’s Road East,
Wanchai, Hong Kong, moved to Room 5501-5503 of the same building in
September 2009. The subject moved to
‘Room 1709-1711, 17/F., ACE Tower, Windsor House, 311 Gloucester Road,
Causeway Bay, Hong Kong’ in November 2015.
The name of ACE Tower changed to Chubb Tower with effect from 1st
September, 2016.
The subject changed
its directors in 2015.
Apart from these,
neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of stainless
steel materials.
Company Employees: 20.
Group Employees: 4,561.
(As at 30-06-2017)
Commodities Imported: Europe,
Asian countries, etc.
Markets: China, Europe, US, etc.
Group Sales Revenue from continuing operations:-
A$7,203.1 million
(Year ended 30-06-2013)
A$7,036.4 million
(Year ended 30-06-2014)
A$6,328.1 million
(Year ended 30-06-2015)
A$4,663.9 million
(Year ended 30-06-2016)
A$5,089.6 million
(Year ended 30-06-2017)
A$2,384.7 million
(First half of FY 2017)
A$2,977.0 million
(First half of FY 2018)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, D/P, O/A, etc.
FINANCIAL INFORMATION
Issued Share Capital: HK$369,253,864.77
(1,102,280,000 fully paid ordinary shares)
Group Profit/(Loss) Attributable to Shareholders:-
(A$466.1)
million (Year ended 30-06-2013)
(A$ 88.9) million
(Year ended 30-06-2014)
A$109.9 million
(Year ended 30-06-2015)
(A$216.5)
million (Year ended 30-06-2016)
A$203.6 million
(Year ended 30-06-2017)
A$ 80.1
million (First half of FY 2017)
A$ 91.5
million (First half of FY 2018)
Profit or Loss: Group made profits in 2017 and first
half of 2018.
Condition: Business is normal.
Facilities: Making active use of general
banking facilities.
Payment: Met trade commitments as
required.
Commercial Morality:
Satisfactory.
Banker: Bank of America N.A.,
Hong Kong Branch.
Standing: Normal.
GENERAL
Sims Metal Management
Asia Limited is a wholly-owned subsidiary of Sims Metal Management Ltd. which
is a US-based firm. The ultimate holding
company of the subject Sims Metal Management Ltd. [Sims] is also an
Australia-based firm.
The subject moved to
the present address in November 2015.
Sims was a listed
company in the United States of which shares are traded in New York Stock
Exchange.
However, it has been
delisted since October 2013.
In view of the
significant costs associated with maintaining a US listing, and the fact that
the vast majority of the trading of its shares occurs on the Australian
Securities Exchange, or ASX, it voluntarily delisted its shares from the New
York Stock Exchange, or NYSE, on 11th October, 2013. Following the NYSE delisting, its ADSs trade
in the US in the “over-the-counter” (OTC) market. The OTC market is a significantly more
limited market than the NYSE which may result in reduced trading volumes of its
ADSs potentially reducing liquidity in the market for its ADSs.
Sims’s ordinary
shares are quoted on the Australian Securities Exchange under the ASX Code
‘SGM’.
Sims is an Australian
domiciled corporation that is incorporated in the State of Victoria, Australia,
and operates under the Australian Corporations Act. Its principal place of business is located at
16 West 22nd, Street, 10th Floor, New York, NY 10010 and the telephone number
is (1 212) 604-0710.
It is a global,
unified full-service recycling company focused on providing efficient
end-of-life solutions for obsolete, post-consumer and post-industrial metal and
electronics products.
Sims is one of the
world’s largest metals recycling companies on the basis of its market
capitalization and the size and scope of its operations and marketing
capabilities. It operates a
geographically diverse metals recycling business with a network of processing
facilities, many with deep-water port access, supported by an extensive network
of feeder yards from which to source recyclable ferrous and non-ferrous
metals. It has significant positions in
the metals recycling markets of Australasia, the US and the UK. It also has a strategic network of trading
offices in Asia.
Through its SRS (Sims
Recycling Solutions) business, it has an e-recycling business with a global
reach and with established operations in the UK, Continental Europe, North
America, a developing presence in the Asia Pacific region, and South Africa,
India and the Middle East.
It buys ferrous metal
from metal dealers, peddlers (individuals that constitute our retail trade),
auto wreckers, demolition firms and others who generate obsolete metal and from
manufacturers who generate industrial metal.
It process ferrous metal for resale using a variety of methods, including
sorting, shredding, cutting, torching, baling or breaking. After processing, ferrous recycled metal is
sold to end users such as EAF mills, integrated steel mills, foundries and
brokers.
It sources
non-ferrous metals from manufacturers, known as production offcuts, and from
generators of electricity, telecommunication service providers and others who
generate obsolete metal. Peddlers and
metal dealers, who collect from a variety of sources, also deliver material
directly to its facilities.
Sims’ export and
import marketing activities are conducted through its international businesses
such as the subject.
The subject and Sims
Group Global Trade Corporation manage relationships with a large percentage of
its overseas client base in over 20 countries in various regions, including
Asia, Eastern Europe and South America.
For the year ended
30th June, 2017, the revenues of the Group from continuing operations amounted
to A$5,089.6 million (2016: A$4,663.9 million); made a profit of A$203.6
million (2016: made a loss of A$216.5 million).
For the six months
ended 31st December, 2018 (1H FY 2018), the revenues of the Group from
continuing operations amounted to A$2,977.0 million (1H FY 2017: A$2,384.7
million); made a net profit of A$91.5 million (1H FY 2017: made a profit of
A$80.1 million). The Group made great
improvement in 1H FY 2018 and in FY of 2017.
For the year ended
30th June, 2017, the Group had 4,561 employees (2016: 4,756 employees).
The subject is fully
supported by the Group. History in Hong
Kong is over 45 years and three months.
On the whole,
consider the subject good for normal business engagements.
REMARKS
Brief
personal profile of the principal directors:-
Mr. Alistair Field
(NHD) Mechanical Eng, MBA, Age 53, Group Chief Executive Officer and Managing
Director. Mr. Field was appointed Group
Chief Executive Officer and Managing Director of Sims on 3rd August, 2017. He is a member of the Safety, Health,
Environment, Community & Sustainability Committee, the
Nomination/Governance Committee and the Finance & Investment
Committee. Mr. Field joined Sims on 1st
October, 2015 as the Managing Director of ANZ Metals. He has more than 25 years of experience in
the mining and manufacturing industries.
He has held a number of senior leadership positions, including most
recently as Director of Patrick Terminasl & Logistics Division for Asciano
Ltd. and previously as Chief Operating Officer for Rio Tinto Alcan’s Bauxite
and Alumina Division. Mr. Field is a Mechanical
Engineer with a MBA from the Henley Management School, Brunel University.
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.02 |
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1 |
INR 91.45 |
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Euro |
1 |
INR 80.09 |
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HKD |
1 |
INR 8.29 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.