MIRA INFORM REPORT

 

 

Report Date :

17.09.2013

 

IDENTIFICATION DETAILS

 

Name :

APP  CHINA  TRADING  LTD.

 

 

Registered Office :

c/o Focus Corporate Services Ltd.

Room 1203, 12/F., Inter-Continental Plaza, 94 Granville Road, Tsimshatsui East, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

10.08.1995

 

 

Com. Reg. No.:

19424649

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of paper products especially toilet tissue, facial tissue, kitchen tissue and wet tissue, etc.

 

 

No. of Employees :

15

 

 

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 and address

 

APP  CHINA  TRADING  LTD.

 

Address:           Room 501-504A, 5/F., Empire Centre,

                        68 Mody Road, Tsimshatsui East,

                        Kowloon, Hong Kong.

                        (Head Office)

 

And

 

c/o Focus Corporate Services Ltd.

Room 1203, 12/F., Inter-Continental Plaza,

94 Granville Road, Tsimshatsui East,

Kowloon, Hong Kong.

(Registered Office)

 

 

Note:                Please be advised that there is no such a firm known as APP Lching Trading Limited registered with the Companies Registry of Hong Kong.  There is a firm known as APP China Trading Ltd. located at your given address.  It seems that the second word of your given name is a mistake.

 

 

ADDRESS:            

 

Room 501-504A, 5/F., Empire Centre, 68 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.

 

PHONE:                  852-2733 0488;  2733 0074

 

FAX:                       852-2732 2202

 

E-MAIL:                  sales@goldeastpaper.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Lai Rong Ren

 

 


SUMMARY

 

Incorporated on:            10th August, 1995.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$77,800,000.00

Issued:                         HK$77,800,000.00

 

Business Category:       Paper Trader.

 

Employees:                  15.  (Including associates)

 

Main Dealing Banker:     Wing Lung Bank Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.

 


Company name

 

APP  CHINA  TRADING  LTD.

 

 

Company ADDRESS

 

Registered Office:-

c/o Focus Corporate Services Ltd.

Room 1203, 12/F., Inter-Continental Plaza, 94 Granville Road, Tsimshatsui East, Kowloon, Hong Kong.

 

Head Office:-

Room 501-504A, 5/F., Empire Centre, 68 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.

 

Holding Company:-

Pyro Success Ltd., British Virgin Islands.

 

Associated/Affiliated Companies:-

Sinar Mas Group of Companies

APP (Hong Kong) Ltd., Hong Kong.

APP International Trading (China) Ltd., British Virgin Islands.

APP Printing Pte. Ltd., Singapore.

Asia Paper (Shanghai) Co. Ltd., China.

Asia Pulp & Paper Co. Ltd., Indonesia.

China Union International Trading Ltd., Hong Kong.

Gold Daio (Suzhou Industrial Park) Hygiene Products Co. Ltd., China.

Gold East Paper (Jiangsu) Co. Ltd., China.

Gold East Trading (Hong Kong) Co. Ltd., Hong Kong.  (Same address)

Gold Hai Paper Products (Kun Shan) Co. Ltd., China.

Gold Hong Ye Paper (Suzhou Industrial Park) Co. Ltd., China.

Gold Hong Ye Trading (Hong Kong) Co. Ltd., Hong Kong.

Gold Huasheng Paper (Suzhou Industrial Park) Co. Ltd., China.

Gold Huasheng Trading (Hong Kong) Co. Ltd., Hong Kong.

Gold Shengpu Paper Products (Suzhou Industrial Park) Co. Ltd., China.

Guangxi Jingui Pulp & Paper Co. Ltd., China.

Hainan Jinhai Pulp & Paper Co. Ltd., China.

Hainan Jinhai Trading (Hong Kong) Co. Ltd., Hong Kong.

Jin Feng Yuan Paper Industry (Shanghai) Co. Ltd., China.

Jinxin (Qingyuan) Paper Industry Pte. Ltd., China.

Jinyu (Qingyuan) Tissue Paper Co. Ltd., China.

Lucky Ever Ltd., Hong Kong.  [Compulsory winding up]

Ningbo Asia Paper Converting Co. Ltd., China.

Ningbo Asia Paper Tube & Carton Box Co. Ltd., China.

Ningbo Asia Pulp & Paper Co. Ltd., China.

Ningbo Asia Unpolluted Paper Products Co. Ltd., China.

Ningbo Yajiang Trading (Hong Kong) Co. Ltd., Hong Kong.

Ningbo Zhonghua Paper Co. Ltd., China.

P.T. Smart Tbk., Indonesia.

Sinar Mas Paper (China) Investment Co. Ltd., China.

Sinar Mas Paper (Shenzhen) Co. Ltd., China.

Sinar Mas Pulp & Paper (India) Ltd., India.

Top Harvest Asia Ltd., Hong Kong.

Xinyang Golden Sun Woodwork Co. Ltd., China.

Yalong Paper Products (Kun Shan) Co. Ltd., China.

Zhenjiang Dadong Pulp & Paper Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

19424649

 

 

COMPANY FILE NUMBER 

 

0522702

 

 

MANAGEMENT

 

Managing Director:  Mr. Lai Rong Ren

 

 

CAPITAL

 

Nominal Share Capital: HK$77,800,000.00 (Divided into 77,800,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$77,800,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 10-08-2013)

Name

 

No. of shares

Pyro Success Ltd.

Vanterpool Plaza, Wickhams Cay I, 2nd FL, Road Town, Tortola, British, Virgin Islands.

 

77,799,999

Risewell Holdings Ltd.

P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

 

1

 

 

–––––––––

 

Total:

77,800,000

========

 

 

DIRECTORS

 

(As per registry dated 10-08-2013)

Name

(Nationality)

 

Address

LAI Rong Ren

7/F., No. 1, LN, 162, Section 4, Nanjing E. Road., Songshan Disrict., Taipei City 105, Taiwan.

 

TEI Ah Lek

8/F., No. 222 Yan An Road East, Shanghai, China.

 

 

SECRETARY

 

(As per registry dated 10-08-2013)

Name

Address

Co. No.

Focus Corporate Services Ltd.

Room 1203, 12/F., Inter-Continental Plaza, 94 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

0867959

 

 

HISTORY

 

The subject was incorporated on 10th August, 1995 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Bright Century Engineering Ltd., name changed to APP International Trading (Hong Kong) Ltd. on 15th February, 1999; and further to the present style on 25th February, 2000.

Formerly the subject’s registered office was located at Room 508B, 5/F., Empire Centre, 68 Mody Road, Tsimshatsui East, Kowloon, Hong Kong where was the operating office of Focus Corporate Services Ltd.  As Focus Corporate Services Ltd. moved to the present address with effect from 17th February, 2010, so did the subject.  Now, the subject shares its office with its associate Gold East Trading (Hong Kong) Co. Ltd. which is also a Hong Kong-registered firm.

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

 


OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of paper products especially toilet tissue, facial tissue, kitchen tissue and wet tissue, etc.

 

Employees:                  15.  (Including associates)

 

Commodities Imported: Provided by inter-group companies in China and Southeast Asia.

 

Markets:                        Hong Kong, Macau, other Asian countries, etc.

 

Terms/Sales:                 COD or as per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$77,800,000.00 (Divided into 77,800,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$77,800,000.00

 

Mortgage or Charge:     (See attachment)

 

Profit or Loss:               Group made a small profits every year.

 

Condition:                     Keeping in an active condition.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments on time.

 

Commercial Morality:     Satisfactory.

 

Bankers:

Wing Lung Bank Ltd., Hong Kong.

CITIC Bank International Ltd., Hong Kong.

 

Standing:                      Normal.

 

 


GENERAL

 

Having issued 77.8 million ordinary shares of HK$1.00 each, APP China Trading Ltd. formerly was wholly-owned by P.T. Purinusa Ekapersada [PTPE] which was an Indonesia-based firm.  Now, it is almost wholly-owned by Pyro Success Ltd. which is a BVI-registered firm.

The directors of the subject are Mr. Tei Ah Lek, who is a Malaysia passport holder, and Mr. Lai Rong Ren, who is a Taiwan passport holder.

The subject’s registered address is in a commercial service firm located at “Room 1203, 12/F., Inter-Continental Plaza, 94 Granville Road, Tsimshatsui, Kowloon, Hong Kong” known as ‘Focus Corporate Services Ltd.” which is handling its correspondences and documents.  Focus Corporate Services Ltd. is also the corporate secretary of the subject.

The subject is a paper trading company.

In Hong Kong, the subject shares the office with its associated company Gold East Trading (Hong Kong) Co. Ltd. [Gold East].

Gold East is the sole agent of Asia Pulp and Paper in Hong Kong and Southern China.  It offers a wide range of art paper, art board, woodfree, brief card, ivory board, playing card board, carbonless paper, thermal paper, and photocopy paper, etc.

The subject has had other associated companies in Hong Kong which is located at a different address.

We do not know your given phone number 3153 5343 belongs to whom as nobody answered our phone calls.

The subject in fact is a member of Sinar Mas Group – a famous Indonesian consortium which was founded in 1962 by Mr. Eka Tjipta Wijaya (also known as Oei Ek Tjhong), a prominent Chinese entrepreneur from Asia.  The Sinar Mas Group started making investments in China in 1992.

The core businesses of the Group are pulp and paper, finance, real estate and agriculture and food processing.  Sinar Mas Group now has about 150,000 employees, with a total asset of over US$20 billion.  As a famous Indonesian consortium, it has invested broadly across Asia, Europe and America.

The Group’s paper industry is led by Asia Pulp & Paper Co. Ltd. [APP], Indonesia.

Incorporated in August 1995, the subject is trading in the Group’s products.  Currently, the Group operates 2 manufacturing facilities in West and Central Java.  It commenced commercial production in November 1995, converting containerboard into corrugated shipping containers.

APP is a vertically integrated group of seven pulp and paper companies (some of which having more than one mill location) inside Indonesia:-

P.T. Ekamas Fortuna

P.T. Indah Kiat Pulp & Paper Tbk.

P.T. Lontar Papyrus Pulp & Paper Industry

P.T. Pabrik Kertas Tjiwi Kimia Tbk.

P.T. Pindo Deli Pulp & Paper Mills

P.T. Purinusa Ekapersada [PTPE]

P.T. The Univenus

Among them, P.T. Indah Kiat Pulp & Paper Tbk. and P.T. Lontar Papyrus Pulp & Paper Industry produce pulp from mixed tropical hardwood [MTH] obtained from clear cutting of natural forests that include HCVFs in Riau Province and Jambi Province, both on the island of Sumatra, Indonesia.  Most of the pulp is consumed by the APP Group’s own paper mills.

APP produces small quantities of no-MTH paper (based on plantation wood, certified virgin pulp or recycled pulp).

APP also has set up a subsidiary company in Hong Kong known as APP (Hong Kong) Ltd. [APPHK] besides the subject.  The registered address of APPHK is also located at the office of Focus Corporate Services Ltd.

The other main associates of APP are the following firms:-

1.     APP International Trading (China) Ltd., British Virgin Islands;

2.     Lucky Ever Ltd., Hong Kong.

APP also has had associated company in China which is managed by Mr. Lai Rong Ren who is the Managing Director of the subject.

APP claims having an annual output of more than 9 million tons of pulp and paper and 750,000 hectares fast-growing forests.  With a total asset of more than US$10 billion, APP has been among Top 10 paper producers in the world.  Ever since it entered China market in 1992, APP has successively set up 18 pulp and paper enterprises and over 20 plantation farms in Yangtze River Delta and Pearl River Delta.  Nowadays, APP China can produce more than 5 million ton paper and paperboards every year.

APP is one of the world’s leading pulp and paper companies and is ranked one of the largest vertically integrated pulp and paper producer in Asia, excluding Japan.

Its combined pulp, paper and packaging capacities in Indonesia amount to about 7.5 million tonnes, using fibre from plantations and wood residues of plantation development.  APP currently has its principal operations located in Indonesia, and markets its products to more than 65 countries on six continents.

The subject was set up in Hong Kong as one of APP’s marketing arms.  It has a full range of paper products including printing paper, packaging board, converted packaging products, office supply, tissue, and hygiene products.  The subject is responsible for the sale of various kinds of paper products especially toilet tissue, facial tissue, kitchen tissue and wet tissue, etc.  Products are mainly sourced from its inter group factories in China and Southeast Asia countries.

The subject’s affiliate, Top Harvest Asia Ltd. [THAL] is also engaged in the same line of business.  THAL is also the registered trade mark holder of “VIR JOY APP”, “Sara Sara Silk”, “Breeze” tissues and toilet paper, napkins and related items.


The subject and APPHK are trading in the following commodities:-

Product/Service

Product/Service Remarks

Tableware – Disposable

Paper napkin from China and Indonesia

Napkin – Paper (Serviettes)

From China and Indonesia (Importer)

From China and Indonesia (Exporter)

Paper and Paper Products

Kraft/white top liner, medium/duplex/tripel and ivory board (Exporter)

Kraft/white top liner, medium/duplex/triple and ivory board (Importer)

Writing Pad and Memo Pad

Writing pads from China, Indonesia, Malaysia and India (Exporter)

Writing pads from China, Indonesia, Malaysia and India (Importer)

Paper, Others

Include woodfree print/inkjet/laser/photocopy/fancy paper and board (Exporter)

Include woodfree print/inkjet/laser/photocopy/fancy paper and board (Importer)

Paper Roll (For Printer Use)

Computer paper from China, Indonesia, Malaysia and India (Exporter)

Computer paper from China, Indonesia, Malaysia and India (Importer)

Exercise Book

Exercise/spiral/loose leaf/hard cover books (Exporter)

Exercise/spiral/loose leaf/hard cover books (Importer)

Toilet Paper and Facial Tissue

Pocket tissue, jumbo/tissue roll, facial box and tissue hand towels (Exporter)

Pocket tissue, jumbo/tissue roll, facial box and tissue hand towels (Importer)

Diary / Address Book / Organiser

Diary (Exporter)

Diary (Importer)

Envelope and Stationery

 

Bag – Paper, Printed

Shopping bag from China and Asia (Exporter)

Shopping bag from China and Asia (Importer)

Paper – Wrapping

Gift wrapping paper from China and Asia (Exporter)

Gift wrapping paper from China and Asia (Importer)

 

The business of the subject is normally operated.  Annual sales turnover is significant.  No derogatory data have been heard.

The subject is fully supported by APP and ultimately by Sinar Mas Group.  History in Hong Kong is over eighteen years.

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

 


MORTGAGE OR CHARGE

 

Date

Particulars

Amount

07-03-2011

Instrument:      Trade Finance Security Assignment

Property:

The Borriwer as beneficial owner:

A)  Assigns and agrees to assign absolutely to the Bank all the present and future right, title, interests and benefits f the Borrower in and in the following assets:-

1)   Export Credits,

2)   Export Collection Bills;

3)   Sales Contracts;

4)   Invoice Receivables;

5)   Trade Documents; and

6)   All claims, remedies and proceeds in connection with any of the foregoing, and

B)   Charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interest and benefits of the Borrower in and to the following assets:-

1)   The Goods together in and to the following assets:-

2)   The Deposit, and

C)   Pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the Bank’s possession

Mortgagee:      CITIC Bank International Ltd., Hong Kong.

As security for the payment of all Secured liabilities


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.48

UK Pound

1

Rs.99.66

Euro

1

Rs.83.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.