MIRA INFORM REPORT

 

 

Report Date :

12.09.2013

 

IDENTIFICATION DETAILS

 

Name :

SUP RETAIL (HONG KONG) LTD.

 

 

Registered Office :

2/F., C & C Building, 36 Ting Lai Road, Tai Po, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

08.02.2005

 

 

Com. Reg. No.:

35335606

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Book, Magazine and Artwork Retailer of Books, Magazines, Electronic Media, Calligraphy, Art.

 

 

No. of Employees :

25

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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 re-exports, is about four times GDP. Hong Kong levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous year. 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 exports 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 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

 

Source : CIA

 


Company name

 

SUP RETAIL (HONG KONG) LTD.

 

 

ADDRESS

 

2/F., C & C Building, 36 Ting Lai Road, Tai Po, New Territories, Hong Kong.

 

PHONE:            852-2150 2100,  2159 36981

 

FAX:                 852-2356 0735

 

 

MANAGEMENT

 

Vice Chairman & Managing Director:  Mr. Chan Man Hung

 

 

SUMMARY

 

Incorporated on:             8th February, 2005.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$500,000.00

            Issued:              HK$500,000.00

 

Business Category:        Book, Magazine and Artwork Retailer.

 

Employees:                   25.

 

Main Dealing Banker:     Bank of China (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:           Good.


Company name

 

SUP RETAIL (HONG KONG) LTD.

 

 

ADDRESS

 

Registered Head Office:-

2/F., C & C Building, 36 Ting Lai Road, Tai Po, New Territories, Hong Kong.

 

Holding Company:-

Sino United Publishing (Holdings) Ltd., Hong Kong.

 

Ultimate Holding Company:-

Xin Wenhau (Hong Kong) Development Co. Ltd., Hong Kong.

 

Associates Companies:-

Bailey Record Co. Ltd., Hong Kong.

Beijing Silverpeong Printing Co. Ltd., China.

Bisenet.com Co. (Beijing) Ltd., China.

Bisenet.com Co. (H.K.) Ltd., Hong Kong.

C & C Joint Printing Co. (Beijing) Ltd., China.

C & C Joint Printing Co. (Guangdong) Ltd., China.

C & C Joint Printing Co. (H.K.) Ltd., Hong Kong.

C & C Joint Printing Co. (Shanghai) Ltd., China.

C & C Offset Printing Co. (Chicago) Inc., USA.

C & C Offset Printing Co. (NY) Inc., USA.

C & C Offset Printing Co. (UK) Ltd., UK.

C & C Offset Printing Co. (USA) Inc., USA.

C & C Offset Printing Co. Ltd., Hong Kong.

C & C Printing Japan Co. Ltd., Japan.

C & C RFID (Shanghai) Co. Ltd., China.

C & C Security Printing (Macau) Co. Ltd., Macau.

C & C Security Printing Co. (Shenzhen) Ltd., China.

C & C Security Printing Co. Ltd., Hong Kong.

Chung Hwa Book Co. (Hong Kong) Ltd., Hong Kong.

Chung Hwa Book Co. (S) Pte. Ltd., Singapore.

Eastwind Books & Arts Inc., USA.

Guangdong Sino United Publishing Co. Ltd., China.

Hong Kong Open Page Publishing Co. Ltd., Hong Kong.

Joint Publishing (Hong Kong) Co. Ltd., Hong Kong.

K L Commercial Book Co. (M) Sdn. Bhd., Malaysia.

Kiu Sheung Investment Co. Ltd., Hong Kong.

Lee Yuen Subscription Agencies Ltd., Hong Kong.

Oriental Culture Enterprises Co. Inc., USA.

Plaza Cultural Macau Limitada, Macau.

Pok Art House Ltd., Hong Kong.

Shanghai Anji Anti-Counterfeiring Technology Service Ltd., China.

Shanghai Security Printing Co. Ltd., China.

Shenxhen Vision Paper Art Co. Ltd., China.

Shenzhen C & C Joint Printing Co. Ltd., China.

Shenzhen Pok Art Co. Ltd., China.

Sinminchu Publishing Co. Ltd., Hong Kong.

Sino United Digital Publishing Service Ltd., China.

Sino United Electronic Publishing Ltd., Hong Kong.

Sino United Publishing (Canada) Ltd., Canada.

Sino United Publishing (LA) Inc., USA.

Sino United Publishing (Toronto) Ltd., Canada.

Sino United Publishing (U.K.) Ltd., UK.

Sino United Publishing (U.S.) Inc., USA.

Sino-Commercial Trading Corporation, China.

Spring Cultural Innovation Development (Shenzhen) Co. Ltd., China.

Spring Innovative Workshop Co. Ltd., Hong Kong.

Sun Ya Publications (Hong Kong) Ltd., Hong Kong.

SUP Publishing Logistics (HK) Ltd., Hong Kong.

The Commercial Press (Hong Kong) Ltd., Hong Kong.

The Commercial Press (S) Pte. Ltd., Singapore.

Tianjin Yunxing Printing Ink Co. Ltd., China.

Tsi Ku Chai Co. Ltd., Hong Kong.

Wan Li Book Co. Ltd., Hong Kong.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

35335606

 

 

COMPANY FILE NUMBER

 

0950986

 

 

MANAGEMENT

 

Vice Chairman & Managing Director:  Mr. Chan Man Hung

 

 

CAPITAL

 

Nominal Share Capital:   HK$500,000.00 (Divided into 5,000 shares of HK$100.00 each)

 

Issued Share Capital:     HK$500,000.00

 

 

SHAREHOLDER  

 

(As per registry dated 08-02-2013)

Name

 

No. of shares

Sino United Publishing (Holdings) Ltd., Hong Kong.

 

5,000

====

 

 

DIRECTORS  

 

(As per registry dated 08-02-2013)

Name

(Nationality)

 

Address

LEE Wai Sum

Flat D, 17/F., Block 5, Ravana Garden, Shatin, New Territories, Hong Kong.

 

YIP Pui Chu

Flat 6, 12/F., Block A, Plover Cove Garden, Taipo, New Territories, Hong Kong.

 

LI Jiping

Room 401A, 4/F., Chung Hwa Building, 5 Ma Hang Chung Road, Tokwawan, Kowloon, Hong Kong.

 

LUK Steven Kwok

Flat B, 6/F., Block 10, Villa Athena, 600 Sai Sha Road, Ma On Shan, New Territories, Hong Kong.

 

NG Ching Yee

Flat C, 5/F., Jade Garden, 6 Ede Road, Kowloon Tong, Kowloon, Hong Kong.

 

CHAN Kam Cho

Flat A3, 5/F., 25 Electric Road, Causeway Bay, Hong Kong.

 

LUI Sze Ah

Room C, 18/F., 42-48 Java Road, North Point, Hong Kong.

 

LI Ka Ming

Flat 7, 5/F., Block F, 15-17 On King Street, Garden Vista, Shatin, New Territories, Hong Kong.

 

CHEUNG Kwok Wah

Flat C, 37/F., Tower 2, 18 Yeung Uk Road, The Dynasty, Tsuen Wan, New Territories, Hong Kong.

 

CHAN Man Hung

Flat C, 25/F., Tower 1, Central Park, 18 Hoi Ting Road, Kowloon, Hong Kong.

 

 

SECRETARY 

 

(As per registry dated 08-02-2013)

Name

Address

Co. No.

FT Secretarial Services Ltd.

Unit G, 10/F., Seabright Plaza, 9-23 Shell Street, North Point, Hong Kong.

0312831

 

 

HISTORY

 

The subject was incorporated on 8th February, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Book, Magazine and Artwork Retailer.

 

Lines:                           Books, Magazines, Electronic Media, Calligraphy, Art.

 

Employees:                   25.

 

Commodities Imported:   China, bought in Hong Kong, other Asian countries, etc.

 

Markets:                       Hong Kong, China, Macau, Malaysia, Singapore, Europe, US and Canada.

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$500,000.00 (Divided into 5,000 shares of HK$100.00 each)

 

Issued Share Capital:     HK$500,000.00

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in a satisfactory manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Banker:                         Bank of China (Hong Kong) Ltd., Hong Kong.

 

Standing:                      Normal.

 

 

GENERAL

 

Having issued 5,000 ordinary shares of HK$100.00 each, SUP Retail (Hong Kong) Ltd. is a wholly-owned subsidiary of Sino United Publishing (Holdings) Ltd. [SUPHL] which is a Hong Kong-based company.  SUPHL is a significant book publisher and distributor in Hong Kong.

SUPHL was established in 1988.  Its predecessor was the Hong Kong General Administration Office for Joint Publishing Company, Chung Hwa Book Company and the Commercial Press.

The subject is engaged in retailing all kinds of books and magazines published by SUPHL and its associates.  It is also engaged in retailing electronic media, calligraphy, art, stationery, office equipment, etc.

The subject is a member of the SUP Group of Companies.

The subject has had a main associated company SUP Publishing Logistics (HK) Ltd. [SUPPL], a Hong Kong-registered firm located at the same building.

In order to keep pace with its business development and enhance its competitiveness, the Group set up the SUPPL in 2004.  It takes up all the logistics of wholesaling and warehouses originally done by five publishing houses, thus acting as a platform centralizing logistics of the Group’s business. SUPPL connects with over 300 publishing houses and close to 1,000 bookstores from Hong Kong as well as various places around the world.  It is a book wholesaler in Hong Kong having a wide-reaching wholesaling network and possessing a workplace with an area of over 100,000 sq.ft. accommodating modernized logistics operating systems and logistics work teams.

The SUP Group is a well-established publishing conglomerates in Hong Kong, but it is not confined to the Hong Kong market.  It has business entities in Macau, China, Singapore, Malaysia, the United States, Canada and the United Kingdom.  Core operations include publishing, wholesaling and retailing of books, newspapers and magazines.  Other areas are audio-visual products, Chinese arts, stationeries, stamps, etc.

Under the Group there are more than 60 retail shops worldwide, and more than 40 of which are located in Hong Kong and Macau, occupying a substantial share in the local market.  The group is enthusiastic about participating in the new technology in publishing.

The Group is retailing the following products: Books & Printed Matter Publishing, Accounting / Finance / Economics Title Publishing, Art / Design Title Publishing, Business / Management Title Publishing, Children Title Publishing, Dictionary / Encyclopaedia Publishing, Educational / Reference Book Publishing, Fiction / Biographies / Classics Literature Publishing, History / Geography Title Publishing, Language Title Publishing, Law / Politics Title Publishing, Medical Title Publishing, Science / Technology Title Publishing, Textbook Publishing, Cassette Tape Publishing, CD-ROM Publishing, Magazine Publishing, Video Tape Publishing, etc.

The board of the holding company is the superior decision-making body.  The Chairman is the chief executive officer of the Group.

With publishing as the core of its operations, the Group is also engaged in wholesaling and retailing books and magazines, engaged in printing, newspaper publishing and even property investment.

The six publishing companies of the Group - Joint Publishing, Chung Hwa, The Commercial Press, Wan Li, Sun Ya and Lee Man - jointly produce one‑third of the total output of Chinese books published in Hong Kong.  Many of their publications have been awarded Best Produced Books of the Year and Print Awards in local competitions organized by the Urban Council, Hong Kong Publishing Professionals Society, the Graphic Arts Association and the Hong Kong Trade Development Council.  A number of the publications also received trophies from similar events held in the United States, Germany and China.  With the advent of multi-media in the publishing industry, the Group set up its own electronic publishing company in early 1993 to produce and market a line of CD-ROM and CD-1 titles.

Each of the publishing companies has a strong sales force covering local distribution.  Additionally they have established a worldwide distribution network over the past several decades.  They are not only selling their own publications, but also acting as distribution agencies for a number of local and overseas publishers.  Joint Publishing Co. also serves as the sole agent of publications in the Chinese language by all publishers from the Chinese Mainland.

Retailing is one of the major operations of the Group, with around 20 bookshops all over the Hong Kong region.  In Macao, the Plaza Cultural Macau Limidada, with a sales area of over 10,000 sq. ft., is the largest bookshop in town.

Since the advent of the eighties, the group of companies has time and again helped organize book fairs in China.  As annual participants at the Frankfurt Book Fair, the Beijing International Book Fair and various other book fairs, the group members are actively involved in the copyright trade with their counterparts from around the world.

In Singapore, the subject and its subsidiary, The Commercial Press Ltd.  Singapore Branch, have in the past ten years acted as sponsors of the World Chinese Book Fair organized by the two local Chinese newspapers, Lianhe Zaobao and Lianhe Wanbao.

In Hong Kong, the Group has hosted a number of book fairs including the China Book Fair, Shanghai Book Fair, Sichuan Book Fair, Northeastern Book Fair, Gansu Book Fair, Hunan Book Fair, Chinese Cultural Publication Festival and the Grand Exhibition of Reference Books of China’s Universities.  It is also a sponsor of the Hong Kong Book Fair organized by the Hong Kong Trade Development Council.

C & C Joint Printing Co., the printing arm of the Group, ranks among one of the largest printers in Hong Kong, with eight subsidiaries and five joint ventures in many countries of the world.  The C & C Offset Printing Co. and the C & C Security Printing Co. have received wide recognition for their high quality and good services.  Among their clients are many well-known local and overseas publishers and business concerns, design firms, banks and financial institutions.

Apart from book and newspaper publishing, the Group is also engaged in the production and distribution of audio-visual products including musical CD’s and tapes, motion picture videotapes, as well as language tapes and DIY videos.

To sum up the Group’s business activities, one must add the trading of Chinese arts, especially old and contemporary Chinese paintings and calligraphic works through Tsi Ku Chai and Pok Art House, two prestigious art galleries well-known to most local and overseas collectors.

The Group’s real estate developer, Kiu Sheung Investment Co., plays a very important role in its operations.  Over ninety percent of the offices, warehouses, retail shops and factory buildings used by the Group is owned and managed by this company.  In recent years, the Group has joined forces with other developers to invest in commercial properties, the S U P Tower being its maiden venture which has turned out to be a tremendous success.

The Group has about 1,600 employees in Hong Kong while there are about 30 in its head office.

The annual sales turnover of the Group ranges from HK$2.8 to 3.0 billion.  Overall business is active.

The history of the subject in Hong Kong is over eight years.

On the whole, in view of the background of the subject, consider it good for normal business engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.90

UK Pound

1

Rs.100.47

Euro

1

Rs.84.65

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

RATING EXPLANATIONS

 

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

----

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.