MIRA
INFORM REPORT
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Report Date : |
20.01.2012 |
IDENTIFICATION DETAILS
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Name : |
GREEN DRAGON WOOD PRODUCTS CO. LTD. |
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Registered Office : |
Room 312, 3/F., New East Ocean Centre, 9 Science Museum Road, Tsimshatsui East, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
25.06.1998 |
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Com. Reg. No.: |
30837433 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer and Wholesaler of all kinds of wood, timber, log, etc. |
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No. of Employees : |
7 |
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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Maximum Credit Limit : |
US$250,000 |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong |
A2 |
A2 |
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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 |
Company name and address
GREEN DRAGON
WOOD PRODUCTS CO.
LTD.
Room 312, 3/F., New East Ocean Centre, 9 Science Museum Road,
Tsimshatsui East, Kowloon, Hong Kong.
PHONE: 2482 5168, 2482 7438
FAX: 2482 5268
E-MAIL: info@greendragon.com.hk
greendragon@greendragon.com.hk
enquiry@greendragonglobal.com
MANAGEMENT
Group President & Managing Director:
Mr. Lee Kwok Leung, Stephen
SUMMARY
Establishment: 25th June, 1998.
Incorporated on: 20th March, 2000.
Organization: Private
Limited Company.
Capital: Nominal: HK$5,000,000.00
Issued: HK$5,000,000.00
Business Category: Wood and Timber Merchant.
Group Net Revenue: US$20,286,870 (Year ended 31-03-2011)
Employees:
7.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Credit Border Line
Good for credit of US$250,000 or less.
ADDRESS
Registered Head Office:-
Room 312, 3/F., New East Ocean Centre, 9 Science Museum Road,
Tsimshatsui East, Kowloon, Hong Kong.
Holding Company:-
Green Dragon Industrial Inc., British Virgin Islands.
Ultimate Holding Company:-
Green Dragon Wood Products Inc., USA.
BUSINESS REGISTRATION NUMBER
30837433
COMPANY FILE NUMBER
0709009
MANAGEMENT
Group President & Managing Director:
Mr. Lee Kwok Leung, Stephen
CAPITAL
Nominal Share Capital: HK$5,000,000.00 (Divided into 5,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
SHAREHOLDERS
(As per registry dated 20-03-2011)
|
Name |
|
No. of shares |
|
LEE Kwok Leung |
|
4,000,000 |
|
LAW Mei Ling |
|
1,000,000 |
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|
|
–––––––– |
|
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Total: |
5,000,000 ======= |
DIRECTORS
(As per registry dated 20-03-2011)
|
Name (Nationality) |
Address |
|
LEE Kwok Leung |
Room 3502, 35/F., Kwai Fung House, Kwai Chun Court, Kwai Tsing, New Territories,
Hong Kong. |
|
LAW Mei Ling |
Room 3502, 35/F., Kwai Fung House, Kwai Chun Court, Kwai Tsing, New
Territories, Hong Kong. |
SECRETARY
LEE Kwok Leung (As per registry
dated 20-03-2011)
HISTORY
The predecessor, Green Dragon Wood Products Company, was originally
established on 25th June, 1998 as a sole proprietorship concern owned by
Mr. Lee Kwok Leung under the Hong Kong Business Registration
Regulations. It was reorganized and
incorporated on 20th March, 2000 as a private limited liability company under
the Hong Kong Companies Ordinance.
When the subject was founded, the sole proprietor used his residential
address as the subject’s office which was located at Room 229, Ching Chung
House, Cheung Ching Estate, Tsing Yi, New Territories, Hong Kong. The subject moved to Room 629, 6/F., Central
Building, 21-27 Queen’s Road Central, Hong Kong in October 1998, to Room 602,
Empress Plaza, 17-19 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong in
April 1999, and further to Room 1801, 18/F., Star House, 3 Salisbury Road,
Tsimshatsui, Kowloon, Hong Kong in May 2001. The subject moved to the present address in
February 2009.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Importer
and Wholesaler.
Lines: All
kinds of wood, timber, log, etc.
Employees: 7.
Commodities Imported: Imported from Europe, Indonesia, etc.
Markets: Hong
Kong and China.
Group Net Revenue: US$13,771,472 (Year
ended 31-03-2009)
US$12,287,234 (Year ended
31-03-2010)
US$20,286,870 (Year ended
31-03-2011)
Terms/Sales:
L/C or T/T.
Terms/Buying: L/C.
FINANCIAL INFORMATION
Nominal Share Capital: HK$5,000,000.00 (Divided
into 5,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
Alternation of Capital:-
|
20-03-2000 |
paid up |
HK$ 2.00 |
|
10-04-2000 |
paid up |
HK$ 2,999,998.00 |
|
26-07-2002 |
paid up |
HK$ 2,000,000.00 |
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––––––––––––––– |
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Total: |
paid up |
HK$ 5,000,000.00 ============== |
Increase of Nominal Capital:-
|
From |
HK$3,000,000.00 |
to |
HK$5,000,000.00 |
on |
26-07-2002 |
Mortgage or Charge (since 2008): (See attachment)
Group Net Income/(Loss):(US$140,805) (Year ended 31-03-2009)
US$ 52,566 (Year ended 31-03-2010)
US$332,079 (Year ended
31-03-2011)
Profit or Loss: Group made a profit in 2010 and 2011.
Condition: Keeping
in a normal manner.
Facilities: Sufficient
for current running.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Standing:
Normal.
GENERAL
Green Dragon Wood Products Co. Ltd. is a successor to Green Dragon Wood
Products Company which was originally established in June 1998 by Mr. Lee Kwok
Leung solely. To cope with further
expansion, it changed to a private limited company in March 2000 and adopted
the present style. The sole
proprietorship ceased business on 20th June, 2000. Now, the subject is jointly owned by Mr. Lee
Kwok Leung, holding 80% of the subject’s interests, and Ms. Law Mei Ling,
holding 20%.
The subject in fact is a subsidiary of Green Dragon Industrial Inc.
[GDI] (formerly Fit Sum Group Ltd.) which is a BVI-registered firm. Its ultimate holding company Green Dragon
Wood Products Inc. [Green Dragon] is a US‑based firm. Green Dragon was incorporated under the laws
of the State of Florida on 26th September, 2007.
The principal activity of the subject is trading in wood logs, wood
lumber, wood veneers and other wood products in Hong Kong.
Since inception, GDI has been engaged in the import/export of various
species of wood logs and veneers from the United States, West Africa, Southern
China and Europe. As a natural resource,
wood is available in many species. It
spends time researching the various species that will best fit the needs of its
customers and the availability of the raw wood.
Approximately 90% of its business is comprised of trading raw material
such as logs, lumber and veneer. It also
trades in semi-finished products, such as fancy plywood, to its customers. Green Dragon collects information from its
customers and their demands for wood and veneers. Its buyer then determines the best source to
obtain the wood. Since wood has
historically been susceptible to trends that may last up to a decade, it is
necessary for it to keep abreast of the current market trends in the demand for
wood.
The raw wood materials which Green Dragon imported/exported are used in
furniture, moulding, flooring, furnishings, doors, and musical
instruments. Green Dragon uses third
party manufacturers to produce final products to be shipped to its customers. It trades its products primarily to importers
or distributors and does not manufacture any of its semi-finished
products. All finished product is
manufactured by outside manufacturers.
Approximately 55% of the wood products it trades are various species of
logs, 25% are veneer, 15% are lumber, and 5% are fancy plywood.
The sale of its logs, lumber and plywood represents approximately 65% of
its total sales due to the higher profit margins. The remaining 35% of its sales are in its
veneer product line. Although it imports
veneer from all parts of the world to China, they are primarily derived from
African and European species of wood. It
also exports veneer produced in China to various regions including Europe, the
Middle East, South Korea, and India.
The primary delivery of its wood products is through its office location
in Hong Kong. Shipping and delivery of
its products to locations within geographical driving distance are shipped via
truck. Products that are shipped
internationally are shipped via maritime vessels.
Presently Green Dragon relies on two major customers in Southern
China. While currently approximately 65%
of its business is generated from these two distributors, these relationships
are long-term and have become mutually beneficial. One party without the other is harmful to not
only Green Dragon but the distributor.
It believes that in the future it will not have to rely on any one or a
limited number of customers for its business.
It expects to increase its customer base as it continue to grow its
business. Its target markets are not
limited geographically so it has been able to expand its customer base and
steadily increase its revenues.
For the years ended 31st March, 2011 and 2010, its principal customer,
which accounted for 56% and 45% of its revenue, respectively, was Rong Ze Wood
Company. Its other major customer, Bo
Tao Mu Ye Company, accounted for approximately 17% and 20% of its revenue for
the years ended 31st March, 2011 and 2010, respectively.
On 26th September, 2007, Green Dragon entered into a share exchange
transaction with the equity owners of GDI.
Pursuant to the share exchange transaction, GDI’s equity owners
transferred 100% of the equity interest in GDI in exchange for 200,000 shares
of common stock of Green Dragon. Upon
completion of the share exchange, GDI became a wholly-owned subsidiary of Green
Dragon, and the subject, through GDI, became an indirect wholly-owned operating
subsidiary of Green Dragon.
GDI was incorporated as a limited liability company in the British
Virgin Islands on 30th May, 2007, for the purpose of holding 100% equity
interest in the subject. On 30th May,
2007, GDI entered into an exchange agreement with the equity owners of the subject,
whereby GDI transferred 37,500 shares of its common stock to the shareholders
of the subject in exchange for 5,000,000 ordinary shares of the subject. Upon the completion of the share exchange,
the subject became a wholly-owned subsidiary of GDI.
Green Dragon, through its subsidiaries, mainly engages in the re-sale
and trading in wood logs, wood lumber, wood veneer and other wood products in
Hong Kong.
Most of the Group’s export sales are by Letter of Credit terms and
Telegraphic Transfer basis from its clients.
In FY 2011, the net revenue of the Group amounted to US$20.3 million
(2010: US$12.3 million), net income for the year was US$0.3 million (2010:
US$52,556). Business is just fair.
Mr. Lee Kwok Leung is also the President of the Group.
On the whole, consider the subject good for normal business engagements.
REMARKS
Brief personal
information of directors:-
Mr. LEE Kwok Leung, Stephen (Managing Director), aged 43, has served as
the Group’s President, Secretary, Treasurer and Chairman of the Board of
Directors since September 1998. Mr. Lee,
also known as Stephen Lee, is a graduate of Michigan State University with a
Bachelors degree in Social Sciences. He
received a Master of Science in Management from Shiga University in Japan in
1993 with a specialization in management and economics. Mr. Lee is fluent in Chinese, Japanese and
English. Mr. Lee has travelled
extensively worldwide for Green Dragon handling purchasing, negotiations with
client companies, logistics, and administration and finance. He has more than twelve years of diverse
product knowledge and global experience in wood products ranging from softwood
to hardwood, log to lumber to veneer.
His experience extends to furniture, flooring, interior decoration,
musical instruments, and sports equipment.
Ms. LAW Mei Ling, aged 65, has served as a Director since the
Group’s original formation in 1998. She
is also the mother of the President, Mr. Lee. Ms. Law has been in the wood business for
more than 10 years and is mainly responsible for the internal affairs of Green
Dragon. Ms. Law has been an
entrepreneur for more than 30 years, has good connections in China, and
possesses profound China trade experience as well as joint ventures in China.
MORTGAGE OR CHARGE
(Since 2008)
|
Date |
Particulars |
Amount |
|
06-01-2010 |
Instrument: Assignment of DC Proceeds re export
bills restricted to other banks for negotiation/payment Property: By way of assignment or agreement to assign in each case as beneficial
owner. All monies in any currency
representing proceeds payable or to be paid to the Customer under the
Documentary Credits, all the Customer’s right, title and interest in the said
Documentary Credits and the benefit of all powers and remedies for enforcing
the Documentary Credits Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
All loans or other advances made or to be made by the Bank to the
Customer against documents submitted under a Documentary Credit, all monies
and liabilities in any currency owing by the Customer to the Bank at any
time, whether separately or jointly, actually or contingently, present or
future, interest on all loans and advances and such monies and all expenses
of the Bank in perfecting or enforcing the Assignment |
|
06-01-2010 |
Instrument: Assignment of Export DC Proceeds Property: The Customer as beneficial owner and by way of security for the
payment of the Secured Monies has assigned or agreed to assign to the Bank
(a) all monies in any currency representing proceeds payable or to paid to
the Customer under the Export Documentary Credits, (b) all the Customer’s
rights, title, benefit and interest in the Export Documentary Credits and (c)
the benefit of all powers and remedies for enforcing the Export Documentary Credits Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
All monies and liabilities |
|
16-03-2010 |
Instrument: Security Over Deposits Property: The deposit with chargee in the amount of €240,000 under Deposit No. 181-738386
whatever currency it may subsequently be denominated in, any renewal of such
deposit and the interest thereon together with any further monies in any
deposit account with the chargee at any of its offices Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
Amount secured – (i) all monies in any currency owing by the Company
to the chargee at any time, actually or contingently, in any capacity, alone
or jointly with any other person; (ii) interest on such monies, to the date
on which the chargee receives payment, at the rates payable by the Company or
which would have been payable but for any circumstance which restricts
payment and (iii) all expenses of the chargee in perfecting or enforcing this
Charge |
|
29-07-2011 |
Instrument: Assignment of Life Insurance Property: Property Charged: (i) all the Assignor’s claims, options, privileges,
right, title, interest and benefit in and under the Insurance; and (ii) all
the Assignor’s claims and rights against the issuer of the Policy (No. 28004004)
in respect of the Policy upon the terms Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
Secured Monies |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.29 |
|
|
1 |
Rs.77.60 |
|
Euro |
1 |
Rs.64.67 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
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.