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MIRA
INFORM REPORT
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Report No. : |
492416 |
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Report Date : |
26.02.2018 |
IDENTIFICATION DETAILS
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Name : |
DOW CORNING ASIA |
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Registered Office : |
47/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai |
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Country : |
Hong Kong |
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Date of Incorporation : |
01.12.1986 |
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Com. Reg. No.: |
10682519-001-12 |
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Legal Form : |
Sole Ownership |
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Line of Business : |
Importer, Exporter and Wholesaler of Lubricant, Sealant |
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No. of Employees : |
20. (Hong Kong) |
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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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
DOW CORNING
ASIA
ADDRESS: 47/F., Sun Hung Kai Centre, 30 Harbour
Road, Wanchai, Hong Kong.
PHONE: 852-2835 0350
FAX: 852-2836
6650
MANAGEMENT:
Group Chief Executive Officer: Mr. Edward D. Breen
SUMMARY
Establishment: 1st
December, 1986.
Organization:
Sole Ownership.
Capital:
Provided by
Sole Owner.
Business Category: Importer, Exporter and Wholesaler.
Group Net Sales: US$62,484
million (Year ended 31-12-2017)
Employees: 20. (Hong Kong)
Main Dealing Banker: Citibank N.A., Hong Kong Branch.
Banking Relation: Satisfactory.
ADDRESS
Head Office:-
47/F., Sun Hung Kai Centre, 30 Harbour Road,
Wanchai, Hong Kong.
Affiliated Companies:-
DowDuPont Group of Companies.
BUSINESS REGISTRATION NUMBER
10682519-001-12
MANAGEMENT:
Group Chief Executive Officer: Mr. Edward D. Breen
SOLE OWNER
DowDuPont Inc., US.
HISTORY
The subject was established on 1st December, 1986 as a sole
ownership firm with Dow Corning Corporation, Hong Kong Branch as the proprietor
under the Hong Kong Business Registration Regulations.
Now, it is a sole ownership of DowDuPont Inc. of the United
States.
Initially the subject was located at Room 802-806, 8/F.,
Gloucester Tower, The Landmark, 11-19 Queen’s Road Central, Hong Kong, moved to
19/F., East Point Centre, 533 Hennessy Road, Causeway Bay, Hong Kong in August
1994. The name of building was changed
to East Point Centre (New Wing) at 529-555 Hennessy Road in December
1998. Moved to Room 2702, 27/F.,
Sunning Plaza, 10 Hysan Avenue, Causeway Bay, Hong Kong in April 2003; to
21/F., AIA Plaza, 18 Hysan Avenue, Causeway Bay, Hong Kong in March
2006. The subject moved to the present
address in March 2017.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: Lubricant, Sealant, etc.
Brand Names: DOW
CORNING and XIAMETER.
Employees: 20. (Hong Kong)
Commodities Imported: Imported from Europe, US, Japan, etc.
Markets: China, Hong Kong, India,
Sri-Lanka, Pakistan, Bangladesh, other Asian countries, Europe, etc.
Group Net Sales:-
US$48,778 million (Year ended 31-12-2015)
US$48,158 million (Year ended 31-12-2016)
US$62,484 million (Year ended 31-12-2017)
Terms/Sales:
L/C or as per
contracted.
Terms/Buying:
As per contracted.
MEMBERSHIP
Hong Kong FACADE Association, Hong Kong.
The American Chamber of Commerce in Hong Kong.
The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKD0073]
FINANCIAL INFORMATION
Capital: Provided by Sole Owner.
Group Net Income Attributable to DowDuPont
Shareholders:-
US$7,685 million (Year ended 31-12-2015)
US$4,318 million (Year ended 31-12-2016)
US$1,460 million (Year ended 31-12-2017)
Profit or Loss: Made small
profits in the past years.
Condition: Keeping
in an active state.
Facilities:
Making rather
active use of general banking facilities.
Payment:
Regular.
Commercial Morality: Good.
Banker:
Citibank
N.A., Hong Kong Branch.
Standing:
Normal.
GENERAL
Dow Corning Asia is a branch of Dow Corning Corporation [Dow
Corning] which is a US-based firm.
Dow Corning produces about 7,000 silicone-based products such as
adhesives, insulating materials, and lubricants for aerospace, automotive, and
electrical uses. Because silicone does
not conduct electricity, it is also used in its hard polycrystalline form
(silicon) as the material on which semiconductors are built. With plants worldwide, Dow Corning sells more
than half of its products outside the United States.
Products developed over the years include silicone sealants,
adhesives, silicone mold-making rubbers, lubricants, release agents for
cookware, sound‑absorbing silicone, leather treatment, skin care lotion,
preceramic polymers for high temperature applications, and silicone waxes.
Through its Dow Corning® and XIAMETER® brands, it provides
performance-enhancing products and solutions to meet the needs of customers in
virtually every major industry. More
than half of its annual sales are outside the United States.
Dow’s worldwide operations are managed through global businesses
which are reported in five operating segments: Agricultural Sciences, Consumer
Solutions, Infrastructure Solutions, Performance Materials & Chemicals and
Performance Plastics.
Dow Corning Asia belongs to Consumer Solutions. The Consumer Solutions segment consists of
four global businesses: Consumer Care, Dow Automotive Systems, Dow Electronic
Materials and Consumer Solutions - Silicones.
These global businesses develop and market customized materials using
advanced technology and unique chemistries for specialty applications including
semiconductors and organic light-emitting diodes ("OLEDs"), adhesives
and foams used by the transportation industry, cellulosics and other polymers
for innovative pharmaceutical formulations and food solutions, and silicone
solutions used in consumer goods and automotive applications. These businesses serve the needs of market
segments as diverse as: automotive; electronics and entertainment; food and
pharmaceuticals; and, personal and home care products. The segment's commitment to continuous
innovation and rapid new product development enables it to maximize
opportunities in emerging geographies and high-growth consumer market segments
in nearly 110 countries.
On 11th December, 2015, The Dow Chemical Company [Dow] and E. I.
du Pont de Nemours and Company [DuPont] entered into an Agreement and Plan of
Merger, as amended on 31st March, 2017, [the “Merger Agreement”] under which
the companies would combine in an all-stock merger of equals transaction [the
Merger]. Effective 31st August, 2017,
the Merger was completed and each of Dow and DuPont became subsidiaries of
DowDuPont (Dow and DuPont, and their respective subsidiaries, collectively
referred to as the ‘Subsidiaries’).
In connection with the 1st June, 2016 ownership restructure of Dow
Corning, Dow is indemnified by Corning for 50 percent of future losses
associated with certain pre-closing liabilities, including the Implant
Liability and Commercial Creditors matters described above, subject to certain
conditions and limits. The maximum
amount of indemnified losses which may be recovered are subject to a cap that
declines over time. Indemnified losses
are capped at (1) US$1.5 billion until 31st May, 2018, (2) US$1 billion between
31st May, 2018 and 31st May, 2023, and (3) no recoveries are permitted after
31st May, 2023. No indemnification
assets were recorded at 31st December, 2017 or 2016.
For the year ended 31st December, 2017, the net sales of the Group
amounted to US$62.5 billion, grew by 29.7% as compared with US$48.2 billion in
FY 2016; Group net income attributable to DowDuPont shareholders was US$1.5
billion, decreased substantially as compared with US$4.3 billion in 2016.
In 2017, 37 percent of the Group’s net sales were to customers in
the U.S. & Canada; 29 percent were in Europe, Middle East and Africa
("EMEA"); 22 percent were in Asia Pacific; and 12 percent were
in Latin America.
At 31st December, 2017, the Group permanently employed
approximately 98,000 people on a full-time basis.
The subject is fully supported by DowDuPont. History in Hong Kong is over 31 years and two
months.
On the whole, in view of the background and parentage of the
subject, consider it good for normal business engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.82 |
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1 |
INR 90.40 |
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Euro |
1 |
INR 79.76 |
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HKD |
1 |
INR 8.28 |
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 : |
TRU |
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
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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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.