MIRA INFORM REPORT

 

 

Report Date :

06.12.2014

 

IDENTIFICATION DETAILS

 

Name :

CHENMING  (HK)  LTD.

 

 

Registered Office :

c/o One Nominees Ltd.

Flat C, 16/F., Chinaweal Centre, 414-424 Jaffe Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

13.11.2006 

 

 

Com. Reg. No.:

37349273

 

 

Legal Form :

Public and Non-listed

 

 

Line of Business :

Trader of all kinds of paper products

 

 

No of Employees :

2

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hong Kong

A1

A1

 

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 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'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, 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 12% of total system deposits in Hong Kong by the end of 2013. 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 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 

 

 

 


Company name & address

           

CHENMING  (HK)  LTD.

 

 

ADDRESS:                   c/o One Nominees Ltd.

Flat C, 16/F., Chinaweal Centre, 414-424 Jaffe Road, Wanchai, Hong Kong.

 

PHONE:                        852-2535 8828,  2535 7211

 

FAX:                             852-2513 8466

 

 

MANAGEMENT

 

Managing Director:         Mr. Xiao Peng

 

 

SUMMARY

 

Incorporated on:             13th November, 2006.

 

Organization:                 Public and Non-listed.

 

Capital: Nominal:           US$29,900,000.00

 

Business Category:        Paper trader.

 

Annual Turnover:            US$836,254,555.00  (Year ended 31-12-2013)

 

Employees:                   2.

 

Main Dealing Banker:     Industrial and Commercial Bank of China (Asia) Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


ADDRESS

 

Registered Office:-

c/o One Nominees Ltd.

Flat C, 16/F., Chinaweal Centre, 414-424 Jaffe Road, Wanchai, Hong Kong.

 

Operating Address:-

Flat F, 27/F., Banyan Mansion, Taikooshing, Hong Kong.

 

Holding Company:-

Shandong Chenming Paper Holdings Ltd., China.

 

Associated Companies:-

Arjo Wiggins Chenming Specialty Paper Co. Ltd., China.

Chenming GmbH, Germany.

Chenming International Co. Ltd., US.

Fuyu Chenming Paper Co. Ltd., China.

Guangdong Huirui Investment Co. Ltd., China.

Haicheng Haiming Mining Co. Ltd., China.

Hailaer Chenming Paper Co. Ltd., China.

Huanggang Chenming Arboriculture Co. Ltd., China.

Huanggang Chenming Pulp & Paper Co. Ltd., China.

Japan Chenming Paper Co. Ltd., Japan.

Jiangxi Chenming Paper Co. Ltd., China.

Jiangxi Jiangbao Media Colour Printing Co. Ltd., China.

Jilin Chenming Machinery Manufacturing Co Ltd., China.

Jilin Chenming Paper Co. Ltd., China.

Nanchang Chenming Arboriculture Co. Ltd., China.

Qingzhou Chenming Denaturation Amylum Co. Ltd., China.

Shandong Chenming Panels Co. Ltd., China.

Shandong Chenming Paper Group (Fuyu) Sales Co. Ltd., China.

Shandong Chenming Power Supply Holdings Co. Ltd., China.

Shandong Chenming Xinli Power Co. Ltd., China.

Shandong Grand View Hotel Co. Ltd., China.

Shouguang Cheming Paper Sales Co. Ltd., China.

Shouguang Chenming Art Paper Co. Ltd., China.

Shouguang Chenming Cement Co. Ltd., China.

Shouguang Chenming Floor Board Co. Ltd., China.

Shouguang Chenming Hongxin Packaging Co. Ltd., China.

Shouguang Chenming Import and Export Trade Co. Ltd., China.

Shouguang Chenming Industrial Logistics Co. Ltd., China.

Shouguang Chenming Jiatai Property Management Co. Ltd., China.

Shouguang Chenming Modern Logistic Co. Ltd., China.

Shouguang Chenming Papermaking Machine Co. Ltd., China.

Shouguang Chenming Tianyuan Arboriculture Co. Ltd., China.

Shouguang Hengfeng Storage Co. Ltd., China.

Shouguang Hongxiang Printing & Packaging Co. Ltd., China.

Shouguang Hongyi Decorative Packaging Co. Ltd., China.

Shouguang Meilun Paper Co. Ltd., China.

Shouguang Runsheng Waste Paper Recycle Co. Ltd., China.

Shouguang Shun Da Customs Declaration Co. Ltd., China.

Shouguang Wei Yuan Logistics Co. Ltd., China.

Shouguang Xinyuan Coal Co. Ltd., China.

Wuhan Chenming Hanyang Paper Holdings Co. Ltd., China.

Wuhan Chenming Qianneng Electric Power Co. Ltd., China.

Wuhan Chenming Wan Xing Real Estate Co. Ltd., China.

Wuxi Songling Paper Co. Ltd., China.

Yangjiang Chenming Arboriculture Co. Ltd., China.

Zhanjiang Chenming Arboriculture Co. Ltd., China.

Zhanjiang Chenming New-Style Wall Materials Co. Ltd., China.

Zhanjiang Chenming Pulp & Paper Co. Ltd., China.

Zhanjiang Meilun Pulp & Paper Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

37349273

 

 

COMPANY FILE NUMBER

 

1087196

 

 

MANAGEMENT

 

Managing Director:  Mr. Xiao Peng

Contact Person:  Mr. Kent Kan

(Hong Kong Mobile Phone No.: 852-6498 6403

E-mail:  kentkan@chenmingpaper.com    )

 

 

ISSUED SHARE CAPITAL

 

US$29,900,000.00

 

 

SHAREHOLDER  

 

(As per registry dated 30-06-2014)

Name

 

No. of shares

Shandong Chenming Paper Holdings Ltd.

No. 595 Shengcheng Street, Shouguang City, Shandong Province, China.

 

29,900,000

========

 

 

DIRECTORS  

 

(As per registry dated 30-06-2014)

Name

(Nationality)

 

Address

XIAO Peng

Room 601, Unit 1, Block 4, 313 Limin Street, Changle Town, Shandong, China.

 

JIA Guanlei

Flat C, 13/F., Banyan Mansion, Taikoo Shing, Hong Kong.

 

LI Feng

No. 402, 2 Danyuan, No. 9 Building, No. 347 Chenming Road, Shouguang City, Shandong Province, China.

 

 

SECRETARY

 

(As per registry dated 30-06-2014)

Name

Address

Co. No.

One Nominees Ltd.

No. C, 16/F., Chinaweal Centre, 414-424 Jaffe Road, Wanchai, Hong Kong.

0359753

 

 

HISTORY

 

The subject was incorporated on 13th November, 2006 as a public and non-listed 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:                      Paper trader.

 

Lines:                           All kinds of paper products

 

Employees:                   2.

 

Commodities Imported:   China, etc.

 

Markets:                       China, Hong Kong, other Asian countries, Europe, etc.

 

Turnover:                       US$284,168,693.00  (Year ended 31-12-2010)

US$401,591,701.00  (Year ended 31-12-2011)

US$443,939,332.00  (Year ended 31-12-2012)

US$836,254,555.00  (Year ended 31-12-2013)

 

Terms/Sales:                 CAD or as per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     US$29,900,000.00

 

Mortgage or Charge:       (See attachment)

 

Net Profit/(Loss):            US$  1,741,434.00   (Year ended 31-12-2010)

(US$  1,650,414.00)  (Year ended 31-12-2011)

US$  1,318,610.00   (Year ended 31-12-2012)

US$38,464,607.00   (Year ended 31-12-2013)

 

Net Assets:                   US$     209,927.00  (Year ended 31-12-2011)

                                    US$  1,528,537.00  (Year ended 31-12-2012)

                                    US$49,993,144.00  (Year ended 31-12-2013)

 

Profit or Loss:                Made a good profit in 2013.

 

Condition:                      Keeping in an active manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

Industrial and Commercial Bank of China (Asia) Ltd., Hong Kong.

China CITIC Bank International Ltd., Hong Kong.

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Good.

 

 

GENERAL

 

Chenming (HK) Ltd. is a wholly-owned subsidiary of Shandong Chenming Paper Holdings Ltd. [Shandong Chenming] which is a China-based firm.

The subject’s registered office is in a commercial service firm located at No. C, 16/F., Chinaweal Centre, 414-424 Jaffe Road, Wanchai, Hong Kong known as One Nominees Ltd. which is handling its correspondences and documents.  This firm is also the corporate secretary of the subject.  The subject’s operating address is located at Flat F, 27/F., Banyan Mansion, Taikooshing, Hong Kong which is in a private building.

Shandong Chenming’s operations are taken place at 595 Shengchen Street, Shougurng City, Shandong Province, China.

The subject is engaged in selling paper products for its holding company.  Shandong Chenming purchases materials in the name of the subject and carried out sub-contracting work to turn materials to the finished goods.

Shandong Chenming is a listed firm in China.  Its A and B stock code are 000488 and 200488 respectively.  Its A and B shares are traded in Shenzhen Stock Exchange.  Shandong Chenming’s H shares are traded in The Stock Exchange of Hong Kong Ltd. bearing stock Code 1812.

Now, the Group has set up offices in Eastern Europe, South Korea, Taiwan, Singapore, Taiwan, the United States, Brazil, Japan, India, the Middle East, Africa, etc.

For the year ended 31st December, 2013, the turnover of the subject amounted to US$836.3 million (2012: US$443.9 million), grew by 88.4% as compared with previous year.  The net profit of the subject was US$38.5 million in the year (2012: US$1.3 million), grew significantly as compared with previous year.

The subject is fully supported by Shandong Chenming.

On the whole, consider it good for normal business engagements.

 

 

REMARKS

 

Brief personal profile of the director:-

Mr. LI Feng, who joined Shandong Chenming in 1992, had held different positions including the chief officer of manufacturing section, assistant to the general manager, deputy general manager of Shandong Chenming Paper Group Qihe Paperboard Co., Ltd., deputy general manager, and chairman of Wuhan Chenming Hanyang Paper Holdings Co., Ltd.  He is currently the executive Director, deputy general manager of Shandong Chenming and deputy chief marketing officer in charge of the coated paper product sales companies. Mr.  Li Feng is the brother of Ms. Li Xueqin, a deputy general manager of Shandong Chenming.

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

15-08-2013

Instrument:        Trade Finance Security Assignment

Property:

The Borrower as beneficial owner and as security for the payment of all Secured Liabilities:-

Assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Export Credits; (ii) the Export Collection Bills; (iii) the Sales Contracts; (iv) the Export Invoice Receivables; (v) the Insurances; (vii) the Trade Documents and (vii) all claims, remedies and proceeds in connection;

Charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Goods together with their proceeds; (ii) the Pledged Goods; (iii) the Deposits; and (iv) to the extent any Security Assets

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 possession of the Bank

Mortgagee:        Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

All obligations and liabilities

06-09-2013

Instrument:        Security Over Deposit in respect of Obligations of the Depositor

Property:

By way of first fixed charge to the Chargee the account no.: 861530066465 and all deposits from time to time therein which expression includes all and every deposit and any currency into which such sums may from time to time be converted, any renewal or substitution of such deposits and all interest payable thereon and all the right, title, benefit and interest whatsoever, present and future, of the Borrower together with all deposit receipts in respect thereof, free from any lien, charge or encumbrance of any kind, to the intent that such charge shall operates as a continuing security over the Deposits to the Chargee until all such moneys, obligations and liabilities have been paid or discharged.

Mortgagee:        Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

All monies and liabilities

10-02-2014

Instrument:        Trade Finance Security Assignment

Property:

The Borrower as beneficial owner:-

Assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Export Credits; (ii) the Export Collection Bills; (iii) the Sales Contracts; (iv) the Invoice Receivables; (v) the Insurances; (vii) the Trade Documents and (vii) all claims, remedies and proceeds in connection;

Charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Goods together with their proceeds; (ii) the Deposits; and

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:        China CITIC Bank International Ltd., Hong Kong.

Any money and liabilities

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.85

UK Pound

1

Rs.96.73

Euro

1

Rs.76.53                                 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SMN

 

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.