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MIRA INFORM REPORT
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Report No. : |
485462 |
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Report Date : |
10.01.2018 |
IDENTIFICATION DETAILS
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Name : |
ONESTEEL RECYCLING HONG KONG LIMITED |
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Registered Office : |
Level 16, 28 Hennessy Road, Wanchai, Hong Kong |
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Country : |
Hongkong |
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Date of Incorporation : |
13.06.2003 |
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Com. Reg. No.: |
33692228 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler, all kinds of Metal Scraps. |
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No. of Employees : |
15 |
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 : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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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, effective 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 4.4% in 2014, but slowed to 2.9% in 2015. 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.
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Source
: CIA |
Company
name and address
ONESTEEL RECYCLING
HONG KONG LIMITED
ADDRESS: Level 16, 28 Hennessy Road,
Wanchai, Hong Kong.
PHONE: 852-2517 0920
FAX: 852-2583 9659
E-MAIL: info@onesteelasia.com
MANAGEMENT
Managing
Director: Mr. Sanjeev Gupta
SUMMARY
Incorporated on: 13th June, 2003.
Organization: Private Limited Company.
Issued Share Capital: HK$100.00
Business Category: Importer, Exporter and Wholesaler.
Employees: 15.
Main Dealing Banker: Australia & New Zealand Banking Group Ltd., Hong Kong Branch.
Banking Relation: Good.
ADDRESS
Registered Head
Office:-
Level 16, 28 Hennessy Road, Wanchai, Hong Kong.
Holding Company:-
OneSteel Recycling Pty Ltd., Australia.
Ultimate Holding
Company:-
GFG Alliance, United Kingdom.
Associated/Affiliated
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., Mexico.
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.
etc.
BUSINESS
REGISTRATION NUMBER
33692228
COMPANY
FILE NUMBER
0849675
MANAGEMENT
Managing
Director: Mr. Sanjeev Gupta
ISSUED
SHARE CAPITAL
HK$100.00
SHAREHOLDERS
(As per registry dated 13-06-2017)
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Name |
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No.
of shares |
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OneSteel Recycling Pty Ltd. KordaMentha, Level 5, Chifley Tower, 2 Chifley Square, Sydney, New
South Wales, Australia. |
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100 === |
DIRECTORS
(As per registry
dated 31-08-2017)
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Name (Nationality) |
Address |
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Sanjeev
GUPTA |
Wyelands Est, Pwllmeyric, Chepstow, NP16
6LA, U.K. |
SECRETARY
(As per registry
dated 13-06-2017)
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Name |
Address |
Co.
No. |
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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.
The subject changed hands in June 2017.
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: 15.
Commodities
Imported: India, other Asian countries,
etc.
Markets: China, Japan, other Asian countries,
Middle East, North America, Western Europe, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, etc.
FINANCIAL
INFORMATION
Issued Share
Capital: HK$100.00
Mortgage
or Charge:-
Date: 11-03-2016
Description of Instrument: Charge Over Deposit with the Bank
(Limited Company)
(Unlimited Amount)
Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong.
Profit or Loss:
Group made losses in FY 2013 & FY 2015 & FY2016
Condition: Business
is fairly active.
Facilities: Adequate
for current running.
Payment: Met
trade commitments as contracted.
Commercial
Morality: Satisfactory.
Bankers:-
Australia &
New Zealand Banking Group Ltd., Hong Kong Branch.
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
GENERAL
Formerly OneSteel Recycling Hong Kong Limited was a wholly-owned
subsidiary of OneSteel Recycling Asia Ltd., a Hong Kong-registered firm located
at the operating address of the subject.
On 28th June, 2017 the old holding company transferred all its shares to
OneSteel Recycling Pty Ltd. which is an Australia-based company.
The ultimate holding company of the subject is GFG Alliance which is
controlled by Sanjeev Gupta who seems to be an India merchant residing in the
United Kingdom. Sanjeev Gupta is a
UK-passport holder. Appointed on 31st
August, 2017, he is also the only director of the subject.
The subject formerly belonged to the Recycling Segment of the Arrium
Group. Since the Group has been
suffering from losses, it sold the business of the subject to GFG Alliance
which is in the United Kingdom.
After the acquisition, the name of ‘Arrium Mining’ was changed to SIMEC Mining and ‘OneSteel’ will be changed to ‘Liberty OneSteel’ step by step. ‘Liberty OneSteel’ belongs to the Liberty House Group which is under GFG Alliance.
On 4th July, 2017, Sanjeev Gupta’s GFG Alliance, the international industrial, energy, natural resources and financial services group, signed a binding agreement to acquire Arrium, the integrated Australian mining and steel business, out of administration.
The acquisition is able to secure the jobs of over 5,500 Australian workers, and includes the following OneSteel steel and steel-related businesses.
- OneSteel Scrap Recycling – A steel scrap and recycling business with a national network of collection and processing facilities handling around 2 million tonnes per annum of ferrous scrap and around 250,000 tonnes per annum of non-ferrous scrap for export and internal supply.
- OneSteel Secondary Steelworks – 4 million tonnes per annum from two electric arc furnaces with three bar and rod rolling mills (Sydney, Melbourne, and Newcastle). The business is Australia’s only producer of rod, bar and wire products.
The subject 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.
The subject’s major associated 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.
The subject’s associated company 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 its products are used in the construction, manufacturing, housing, mining and agricultural industries.
The subject is fully supported by GFG Alliance. History in Hong Kong is over 14 years and five months.
On the whole, consider it good for normal business engagements in moderate credit amounts.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.47 |
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1 |
INR 86.15 |
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Euro |
1 |
INR 75.92 |
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HKD |
1 |
INR 8.14 |
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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VIV |
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Report Prepared
by : |
NIT |
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
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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.