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MIRA INFORM REPORT
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Report No. : |
493811 |
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Report Date : |
22.02.2018 |
IDENTIFICATION DETAILS
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Name : |
COVESTRO (HONG KONG) LIMITED |
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Formerly Known As : |
KING LION CORPORATION LTD |
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Registered Office : |
43/F., Hopewell Center, 183 Queen’s Road
East, Wanchai |
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Country : |
Hong Kong |
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Date of Incorporation : |
11.02.1998 |
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Com. Reg. No.: |
21927744 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, exporter and wholesaler of all
kinds of plastic raw materials. |
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No. of Employees : |
180 |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Excellent |
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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 (30.06.2017) |
Current Rating (30.09.2017) |
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Hong Kong |
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 |
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 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
COVESTRO (HONG
KONG) LIMITED
ADDRESS: 43/F., Hopewell
Center, 183 Queen’s Road East, Wanchai, Hong Kong.
PHONE: 852-2895
5888, 2158 2467
FAX: 852-3526
4505, 3526 4730, 2576 8862
E-MAIL: dirk.lang@bayermaterialscience.com
athena.lee@covestro.com
MANAGEMENT
Managing Director: Ms.
Li Pui Yee, Neomi
SUMMARY
Incorporated on: 11th
February, 1998.
Organization:
Private
Limited Company.
Issued Share Capital: HK$3,917,786.00
Business Category: Plastic Material Trader.
Covestro Group Net Sales: €11,904
million (Year ended 31-12-2016)
Company Employees: 180. (Hong Kong) - Including associates
Group Employees: 15,960. (As
at 30-06-2017)
Main Dealing Banker: Deutsche Bank AG, Hong Kong Branch.
Banking Relation: Very
Good.
ADDRESS
Registered Head Office:-
43/F., Hopewell Center, 183 Queen’s Road
East, Wanchai, Hong Kong.
China Factory:-
Covestro Polymers (China) Co. Ltd., China.
Holding Company:-
Covestro Far East (Hong Kong) Ltd., Hong Kong
Intermediate Holding Company:-
Covestro AG, Germany.
Ultimate Holding Company:-
Bayer AG, Germany.
Associated/Affiliated Companies:-
Bayer Group of Companies
Bayer Pearl Polyurethane Systems FZCO, U.A.E.
Bayer Pearl Polyurethane Systems LLC, U.A.E.
CleanTech NRW GmbH, Germany.
Covestro (France) S.N.C., France.
Covestro (India) Private Ltd., India.
Covestro (Shanghai) Management Co. Ltd.,
China.
Covestro (Taiwan) Ltd., Taiwan.
Covestro (Thailand) Co. Ltd., Thailand.
Covestro (Tielt) NV, Belgium.
Covestro (Vietnam) Co. Ltd., Vietnam.
Covestro A/S, Denmark.
Covestro Brunsbuttel Energie GmbH, Germany.
Covestro Darmstadt GmbH, Germany.
Covestro Deutschland AG, Germany.
Covestro Elastomers S.A.S., France.
Covestro First Real Estate GmbH, Germany.
Covestro GmbH, Germany.
Covestro Industria e Comercio de Polimeros
Ltda., Brazil.
Covestro International SA, Switzerland.
Covestro Japan Ltd., Japan.
Covestro Korea Corporation, South Korea.
Covestro LLC, U.S.
Covestro NV, Belgium.
Covestro Oldenburg GmbH & Co. KG, Germany.
Covestro PO LLC, U.S.
Covestro Polimer Anonim Sirketi, Turkey.
Covestro Polymers (Qingdao) Co. Ltd., China.
Covestro Polymers (Shenzhen) Co. Ltd., China.
Covestro Polymers (Tianjin) Co. Ltd., China.
Covestro Polyurethanes B.V., Netherlands.
Covestro Pty. Ltd., Australia.
Covestro S.A. de C.V., Mexico.
Covestro S.L., Spain.
Covestro S.p.A., Italy.
Covestro S.r.l., Italy.
Covestro Second Real Estate GmbH, Germany.
Covestro UK Ltd., UK.
Covestro Verwaltungs GmbH Oldenburg, Germany.
Covestroo B.V., Netherlands.
Dic Covestro Polymer Ltd., Japan.
Epurex Films Geschaftsfuhrungs-GmbH, Germany.
Epurex Films GmbH & Co. KG, Germany.
Guangzhou Covestro Polymers Co. Ltd., China.
LyondellBasell Covestro Manufacturing
Maasviakte V.O.F., Netherlands.
MS Global AG, Switzerland.
MS Holding B.V., Netherlands.
OOO Covestro, Russia.
Paltough Industries (1998) Ltd., Israel.
PO JV LP, U.S.
PT Covestro Polymers Indonesia, Indonesia.
Pure Salt Baytown LLC, U.S.
Shanghai Baule Polyurethane Technology Co.
Ltd., China.
Sumika Covestro Urethane Co. Ltd., Japan.
Technology JV LP, U.S.
Thermoplast Composite GmbH, Germany.
BUSINESS
REGISTRATION NUMBER
21927744
COMPANY
FILE NUMBER
0636023
MANAGEMENT
Managing Director: Ms. Li Pui Yee, Neomi
ISSUED
SHARE CAPITAL
HK$3,917,786.00 (100,000 fully paid ordinary shares)
SHAREHOLDER
(As per registry dated 11-02-2017)
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Name |
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No. of shares |
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Covestro Far East (Hong Kong) Ltd., Hong
Kong. |
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100,000 ====== |
DIRECTORS
(As per registry dated 04-07-2017)
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Name (Nationality) |
Address |
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Steffan HUBER |
Egger Weg 12, 51299 Burscheid, Germany. |
|
LI Pui Yee, Neomi |
Flat D, 18/F., Court A Tower 1, Dragons
Range, 33 Lai Ping Road, Kau To Shan, Shatin, New Territories, Hong Kong. |
SECRETARY
(As per registry dated 11-02-2017)
|
Name |
Address |
|
LEE Yuk Kwan |
43/F., Hopewell Centre, 183 Queen’s Road
East, Wanchai, Hong Kong. |
HISTORY
The subject was incorporated on 11th February, 1998 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of King Lion
Corporation Ltd., name changed to Sybron Chemicals (Hong Kong) Ltd. on 31st July,
1998; changed to Bayer Polymers Co. Ltd. on 26th September, 2001; to Bayer
MaterialScience Ltd. on 1st September, 2004, and further changed to the present
style on 24th August, 2015.
Formerly the subject was located at 77/F., The Center, 99 Queen’s
Road Central, Hong Kong, moved to the present address with effect from
18th June, 2012.
The subject changed its directors in February 2016.
Apart from these, neither material change nor amendment has been
ever traced and noted.
OPERATIONS
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of plastic raw materials.
Company Employees: 180. (Hong Kong) - Including associates
Group Employees: 15,960. (As
at 30-06-2017)
Commodities Imported: Germany, other European countries, India, etc.
Markets: Worldwide.
Covestro Group Net Sales: €11,761 million (Year ended 31-12-2014)
€12,082
million (Year ended 31-12-2015)
€11,904
million (Year ended 31-12-2016)
€ 5,865 million
(6 months ended 30-06-2016)
€ 7,084 million
(6 months ended 30-06-2017)
Terms/Sales:
L/C or
as per contracted.
Terms/Buying:
L/C, D/P,
etc.
MEMBERSHIP: The Hong Kong General
Chamber of Commerce, Hong Kong.
[Membership No. HKC1098]
FINANCIAL
INFORMATION
Issued Share Capital: HK$3,917,786.00 (100,000 fully paid ordinary shares)
Covestro Group Net Income: €272 million (Year ended 31-12-2014)
€343
million (Year ended 31-12-2015)
€795
million (Year ended 31-12-2016)
€412
million (6 months ended 30-06-2016)
€952
million (6 months ended 30-06-2017)
Equity Attributable to Shareholders:-
€1,770
million (Year ended 31-12-2014)
€3,596
million (Year ended 31-12-2015)
€4,189
million (Year ended 31-12-2016)
€3,390
million (6 months ended 30-06-2016)
€4,718
million (6 months ended 30-06-2017)
Profit or Loss: Business is profitable.
Condition:
Keeping
in an active condition.
Facilities:
Making
active use of general banking facilities.
Payment:
Regular
Commercial Morality: Very
good.
Banker:
Deutsche
Bank AG, Hong Kong Branch.
Standing:
Very
Good.
GENERAL
Covestro (Hong Kong) Limited is a wholly-owned subsidiary of
Covestro Far East (Hong Kong) Co. Ltd. [Covestro FE], a Hong Kong-registered
firm located at the subject’s operating address. In turn, Covestro FE is a subsidiary of
Covestro AG [Covestro], a Germany-based company. The ultimate holding company of the subject
is Bayer AG [Bayer], a world famous Germany-based firm which is the holding
company of the Bayer Group.
Covestro was established on 20th August, 2015.
Bayer had spun off its Bayer MaterialScience and offered the
public a new IPO. The new holding
company is Covestro which was listed on Frankfurt Stock Exchange on 6th
October, 2015.
As of 1st March, 2017, Bayer AG held around 41% of the shares in
Covestro AG and the free float was about 59%.
Covestro has a presence at 30 sites worldwide. The Group has eight large production sites
are in Germany (4 sites), Belgium (1 site), Thailand (1 site), China (1 site)
and the United States (1 site).
On December 24, 2015, Bayer MaterialScience (China) Company
Limited changed its name to Covestro Polymers (China) Company Limited. This is the China production factory of
Covestro in China.
As of 30th June, 2017, Covestro had the following three segments:-
Polyurethanes Segment;
Polycarbonates Segment;
Coatings, Adhesives, Specialties Segment.
The subject is trading in the products of the Covestro Group.
The Group is principally engaged in supplying plastics, basic and
fine chemicals flavours, fragrances and aromatic chemicals, polyurethanes,
synthetic rubbers and rubber chemicals, coating and colorants, specialty
products, fibres, pharmaceuticals, diagnostics, consumer care, crop protection
and animal-health products to the Chinese market and importing finished and semi-finished
raw materials and other intermediates and native products from the People’s
Republic of China.
The subject carries the following brands:-
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Brand Name |
Brand Product/Service |
Brand Remarks |
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Bayer (Brand Owner) |
Pharmaceutical Preparation |
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Veterinary Medicine |
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Agro-Chemicals |
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Pesticide For Agricultural Use |
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Insecticide |
Insecticides |
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Industrial Chemicals |
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Dyeing, Tanning and Colouring Materials |
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Plastic Materials (including Resins and
Sheet) |
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Haarmann And Reimer (Official Agent) |
Industrial Chemicals |
SPICE |
Covestro is an independent, globally operating company within the
Bayer Group. The former name Bayer
MaterialScience stood for the materials that the company develops and produces.
Covestro is a renowned supplier of high-tech polymers and develops
innovative product solutions for a wide variety of everyday uses.
Covestro’s famous products are coating raw materials bearing the
brandnames of “Bayhydrol®” and “Bayhydur®”. High-grade “Makrolon®”, “Makrofol®”
and “Apec®” polycarbonates,
together with the “Bayblend®” and “Makroblend®” polycarbonate blends,
rank among Covestro’s best-sellers.
In FY 2016, the net sales of Covestro was €11,904 million (FY
2015: €12,082 million), decreased by 1.5%; net income for the year was €795
million (FY 2015: €343 million), grew by 131.8%.
For the 6 months ended 30th June, 2017, the net sales of Covestro
was €7,084 million (same period of FY 2016: €5,865 million), increased by
20.8%; net income for the period was €952 million (same period of FY 2016:
€412 million), grew by 131.1%. Overall
business was good. It seems that the
business of Covestro keeps on improving.
As of 30th June, 2017, Covestro had 15,960 employees worldwide
(31st December, 2016: 15,579 employees).
The subject is fully supported by Covestro and ultimately by
Bayer. History in Hong Kong is over nineteen
years and eight months.
On the whole, in view of the parentage and background of the
subject, consider it good for normal business engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.81 |
|
|
1 |
INR 90.66 |
|
Euro |
1 |
INR 79.94 |
|
HKD |
1 |
INR 8.31 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
|
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 |
|
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.