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Report Date : |
07.02.2014 |
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 |
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No. of Employees : |
09 |
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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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, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Hong Kong |
A2 |
A1 |
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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 |
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
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Source
: CIA |
GREEN DRAGON WOOD
PRODUCTS CO. LTD.
ADDRESS: Room 312, 3/F., New East Ocean Centre, 9 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong.
PHONE: 852-2482 5168, 852-2482 7438
FAX: 852-2482 5268
E-MAIL: info@greendragon.com.hk
greendragon@greendragon.com.hk
enquiry@greendragonglobal.com
Group President & Managing Director: Mr. Lee Kwok Leung, Stephen
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 Revenues: US$14,204,148 (Year ended 31-03-2013)
Employees: 9.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
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., US.
30837433
0709009
Group President & Managing Director: Mr. Lee Kwok Leung, Stephen
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 20-03-2013)
|
Name |
|
No. of shares |
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LEE Kwok Leung |
|
4,000,000 |
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LAW Mei Ling |
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1,000,000 |
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|
–––––––– |
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Total: |
5,000,000 ======= |
DIRECTORS: (As per registry dated 20-03-2013)
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Name (Nationality) |
Address |
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LEE Kwok Leung |
Room 3502, 35/F., Kwai Fung House, Kwai Chun Court, Kwai Tsing, New Territories, Hong Kong. |
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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 20-03-2013)
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.
Activities: Importer and Wholesaler.
Lines: All kinds of wood, timber, log
Employees: 9.
Commodities Imported: Imported from Europe, Indonesia, etc.
Markets: Hong Kong, China, other Asian countries.
Group Net Revenues: 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)
US$16,717,288 (Year ended 31-03-2012)
US$14,204,148 (Year ended 31-03-2013)
Terms/Sales: L/C or T/T.
Terms/Buying: L/C, T/T, O/A, etc.
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 |
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)
US$112,016 (Year ended 31-03-2012)
(US$ 22,217) (Year ended 31-03-2013)
Profit or Loss: Made a small loss in FY 2013.
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.
Chinatrust Commercial Bank Ltd., Hong Kong.
Shanghai Commercial Bank Ltd., Hong Kong.
Standing: Good.
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%. Being Hong Kong merchants, Lee and Law are also directors of the subject.
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.
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.
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.
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.
The raw wood materials GDI imported/exported are used in furniture, moulding, flooring, furnishings, doors, and musical instruments. It uses third party manufacturers to produce final products to be shipped to its customers. It trades its products primarily to importers or distributors and do not manufacture any of its semi-finished products. All finished product is manufactured by outside manufacturers.
GDI imports wood logs and veneer from various countries and regions, including the United States, West Africa, Europe, and South China. These imports are used in wood products such as furniture, flooring, wooden doors and musical instruments. Currently it exports approximately 80% of its products to 2 wood distributors in Southern China, with the remaining 20% exported to approximately 26 customers located throughout the world, including India, Italy, and the United Arab Emirates.
Approximately 67% of the wood products it traded are various species of logs, 31% are veneer and 2% are lumber.
The sale of its logs, lumber and plywood represents approximately 69% of its total sales due to the higher profit margins. The remaining 31% 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.
For the years ended March 31, 2013 and 2012, its principal customer, which accounted for 58% and 57% of its revenue, respectively, was Rong Ze Wood Company. Its other major customer, Bo Tao Mu Ye Company, accounted for approximately 22% and 18% of its revenue for the years ended March 31, 2013 and 2012, respectively.
The subject is working with more than 50 different suppliers throughout the world. It has been maintaining a strong relationship with its suppliers.
For the years ended March 31, 2013 and 2012, its principal supplier, which accounted for 17% and 25% of its purchases, respectively, was Bo Tao Mu Ye Company.
For the year ended 31st March, 2013, the subject’s net revenues amounted to US$14.2 million (FY 2012: US$16.7 million), made a small loss of US$22,217 (FY 2012: made a profit of US$112,016).
Most of the subject’s export sales are by Letter of Credit terms and Telegraphic Transfer basis from its customers.
As of March 31, 2013, the subject had 9 regular paid full-time employees.
Mr. Lee Kwok Leung is also the President of the Group.
On the whole, consider the subject good for normal business engagements in moderate credit amounts.
Brief personal profile of directors:-
Mr. LEE Kwok Leung, Stephen (Managing Director), aged 45, 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 67, 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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.50 |
|
|
1 |
Rs.101.92 |
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Euro |
1 |
Rs.84.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>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 |
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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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.