MIRA INFORM REPORT

 

 

Report Date :

06.09.2014              

 

IDENTIFICATION DETAILS

 

Name :

GOLD EAST TRADING (HONG KONG) CO. LTD.

 

 

Registered Office :

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

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

14.06.2007

 

 

Com. Reg. No.:

38159647

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of paper.

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

GOLD  EAST  TRADING  (HONG  KONG)  CO.  LTD.

 

 

Company 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

cs@goldeastpaper.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Chu Wing Hong, Park

 

 

SUMMARY

 

Incorporated on:             14th June, 2007.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$3,097,939,200.00

Issued:                          HK$2,555,171,200.00

 

Business Category:        Paper Trader.

 

Employees:                   15.  (Including associates)

 

Main Dealing Banker:     CITIC Bank International Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


Company name

 

GOLD  EAST  TRADING  (HONG  KONG)  CO.  LTD.

 

 

Company ADDRESS

 

Registered Head Office:-

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

 

Holding Company:-

Ever Dragon Investments Group Ltd., Hong Kong.

 

Associated/Affiliated Companies:-

Sinar Mas Group of Companies

APP (Hong Kong) Ltd., Hong Kong.

APP China Trading 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 (Macao Commercial Offshore) Co. Ltd., Macau.

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 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.

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 (Hong Kong) Co Ltd., Hong Kong.

Ningbo Zhonghua Paper Co. Ltd., China.

P.T. Purinusa Ekapersada, Indonesia.

P.T. Smart Tbk., Indonesia.

P.T. Wirakarya Sakti, Indonesia.

Richwood Group Ltd., British Virgin Islands.

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.

Tricell (HK) Trading 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.

 

 

BUSINESS REGISTRATION NUMBER 

 

38159647

 

 

COMPANY FILE NUMBER 

 

1141342

 

 

MANAGEMENT

 

Managing Director:  Mr. Chu Wing Hong, Park

Contact Person:  Ms. Viona Shek

 

 

CAPITAL

 

Nominal Share Capital: HK$3,097,939,200.00 (Divided into 3,097,939,200 shares of HK$1.00 each)

 

Issued Share Capital: HK$2,555,171,200.00

 

 

SHAREHOLDERS

(As per registry dated 14-06-2014)

Name

 

No. of shares

Gold East Paper (Jiangsu) Co. Ltd.

8 Xing Gang Dong Road, Dagang, Zhenjiang, Jiangsu 212132, China.

 

429,274,534

Ever Dragon Investments Group Ltd., Hong Kong.

 

2,125,896,666

 

 

––––––––––––

 

Total:

2,555,171,200

===========

 

 

DIRECTORS

(As per registry dated 21-08-2014)

Name

(Nationality)

 

Address

CHU Wing Hong, Park

Room 3814, 38/F., Un Shing House, Un Chau Estate, Kowloon, Hong Kong.

 

QI Hezhai

8, Xing Gang Dong Road, Dagang, Zhenjiang, Jiangsu, China.

 

LEE Cha Ming

5F, No. 21, LN. 136, Sec. 3, Zhongshan Road, Changhua City, Changhua County 500, Taiwan.

 

Erwin ISKANDAR

Plaza Bill Tower 2, 9/F, Jalan M. H. Thamrin 51, Jakarta 10350, Indonesia.

 

Ah Lek TEI

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

 

 

SECRETARY

                           

CHU Wing Hong, Park  (As per registry dated 14-06-2014)

 

 

HISTORY

 

The subject was incorporated on 14th June, 2007 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:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of paper.

 

Employees:                   15.  (Including associates)

 

Commodities Imported:   Southeast Asia, China, etc.

 

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

 

Terms/Sales:                 L/C or as per contracted.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$3,097,939,200.00 (Divided into 3,097,939,200 shares of HK$1.00 each)

 

Issued Share Capital:     HK$2,555,171,200.00

 

Increases of Nominal Capital:-

From

HK$    1,000,000.00

to

HK$   120,000,000.00

on

18-11-2008

From

HK$120,000,000.00

to

HK$   769,309,200.00

on

19-09-2010

From

HK$769,309,200.00

to

HK$3,097,939,200.00

on

25-10-2010

 

Alternation of Issued Capital:-

Initially

paid up

HK$      1,000,000.00

30-12-2008

paid up

HK$      115,267,771.00

19-08-2010

paid up

HK$      170,957,600.00

01-09-2010

paid up

HK$      77,708,000.00

25-10-2010

paid up

HK$      1,568,690,829.00

December 2011

paid up

HK$      233,442,000.00

27-12-2012

paid up

HK$      388,105,000.00

 

 

––––––––––––––––––

Total:

paid up

HK$2,555,171,200.00

================

 

Mortgage or Charge (since 2011):  (See attachment)

 

Profit or Loss:                            Making a small profit in the past four years.

 

Condition:                                  Business is active.

 

Facilities:                                  Making active use of general banking facilities.

 

Payment:                                  Met trade commitments as contracted.

 

Commercial Morality:                 Good.

 

Bankers:-

China CITIC Bank International Ltd., Hong Kong.

Bank of Communications Co. Ltd., Hong Kong Branch.

Bank SinoPac, Hong Kong Branch.

Cathay United Bank Co. Ltd., Hong Kong Branch.

China Development Bank Corporation, Hong Kong Branch.

China Development Industrial Bank Co. Ltd., Taiwan.

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

Industrial & Commercial Bank of China Ltd., Hong Kong Branch

Taishin International Bank Co. Ltd., Hong Kong Branch.

 

Standing:                                  Very Good.

 

 

GENERAL

 

Having issued 2,555,171,200 ordinary shares of HK$1.00 each in total, Gold East Trading (Hong Kong) Co. Ltd. is jointly-owned by Gold East Paper (Jiangsu) Co. Ltd. [GEP] which is a China-based firm holding 16.8% interests, and Ever Dragon Investments Group Ltd., holding 83.2%.  The equities of the holding companies changed in late December 2012.

GEP is a member of the Sinar Mas Group of Companies.  Formerly, the subject was wholly-owned by GEP.

The subject is trading in GEP’s products and is responsible for sourcing raw materials for it.  The subject offers a wide range of paper and board for printing and writing, packaging board, photocopy paper and consumer tissue, which are suitable for high speed and duplex printing; annual report, catalogue and periodical; paper shopping bag, greeting card and playing card; and packaging and gift box, etc.

The subject 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.  The subject provides various types of PEFC-CoC certified paper, recycled paper, coated and uncoated digital paper.

GEP was established on 18th May, 1997 as a joint venture between Asia Pulp & Paper Co. Ltd. [APP], an Indonesia-based firm holding 80% interests, and the Zhenjiang Bureau of Light Industry, holding 20%.  The total investment of GEP was US$1.823 billion.  GEP is situated on a 5.6 million sq.m. site in the Dagang Economic Zone located near Zhenjiang City, Jiangsu Province, China.  Now, APP has had companies both in Hong Kong and Southern China.

GEP has started-up two paper machines manufactured by Voith Sulzer Paper  Technology in Germany.  PM1 and PM2 are identical machines, each with a capacity of 450 000 tonnes per year [tpy] of uncoated freesheet.  The mill also has an estimated capacity to convert 100 000 tpy of uncoated freesheet into cut-sized photocopier paper and an off-machine coater [OMC] which will have a capacity to convert uncoated freesheet into 600 000 tpy of coated freesheet.

GEP adopts the most advanced technology and biggest paper machines and coater in the world.  Wood-free paper line and coating base paper line are imported completely from Voith-Sulzer/Germany.  OMC is ordered from Valmet/Finland.  Whole process takes world leading control system, including but not limit to DCS and QCS.  GEP has become the largest modern paper mill in China, which is able to supply high quality paper and services to printing and publishing industries.

GHP, located in Suzhou Industry Park in Jiangsu Province, was founded in 1996 with an area of 2.8 million sq.m.  It was solely invested by the Sinar-Mars Group with a total investment of US$1.4 billion and currently has over 2,500 employees.  GHP is the largest carbonless paper producer in China and has an annual production capacity of 600,000 tons.  GHP has a complete production line of fine paper.  Major product lines: Specialty Paper (Carbonless, thermal paper), Uncoated Woodfree Paper (Offset Paper, Office Paper) and Artboard.  Three major brands are Record, Gold Ball, and Glod Butterfly.

All these paper mills offer a series of eco-friendly products with recycled content and have got “PEFC-COC” certification.  They have got the certifications of ISO9001 Quality Management System, ISO9002 Quality Management System, ISO14001 Environment Management System and OHSAS18001 Occupation Health and Safety Management System and PEFC-CoC certification.

According to GEP, it is currently the single largest Art Paper Mill in the world.

GEP was incorporated on 18th May, 1997 with a total investment of US$3.23 billion and an annual production capacity of over 2.2 million MT.  It has 3 wood-free coated paper production lines from Voith and Metso.  In China, GEP possess a power station, a Ground Calcium Carbonate Plant, and a Precipitated Calcium Carbonate Plant in addition to a pier.

GEP offers customers with a wide range of products such as: C2S Art Paper/Gloss, C2S Art Paper/Matt, C1S Art Paper, HSWO (Heat Set Web Offset) Gloss/Matt, etc.

Mr. Teguh Ganda Wijaya is the Chairman of Sinar Mas Group.  The core businesses of the Group are pulp and paper, finance, real estate and agriculture and food processing.  Sinar Mas Group now has 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 subject is the sole agent of APP in Hong Kong and Southern China.  Its offers a wide range of art paper, art board, woodfree, brief card, ivory board, playing card board, carbonless paper, thermal paper, and photocopy paper which are traded by APP.

APP has over 20 pulp & paper subsidiaries and over 1 million hectares of fast-growing forests in Indonesia and China, with total assets over US$20 billion.  It is one of the three largest paper companies in the world, and the largest pulp & paper group in Asia outside of Japan.  Currently, APP has total assets of RMB120.3 billion Yuan in China.  It has built more than 20 large modern pulp & paper companies and tree farms in Jiangsu, Zhejiang, Guangdong and Hainan provinces, with an annual production capacity of 11 million tons.  2012 sales in China reached RMB36.8 billion Yuan.  Currently, APP employs nearly 40,000 full-time staff members in China.

APP-China has focused on operations in the Yangtze River and Pearl River Delta regions since 1992, and has invested in several large world-leading pulp & paper companies, including Gold East Paper (Jiangsu), Ningbo Zhonghua, Ningbo Asia, Gold Huasheng, Gold Hongye, Hainan Jinhai and Guangxi Jingui.  Gold East Paper  (Jiangsu) is the largest paper company in China, and the world’s largest coated paper producer.  Ningbo Zhonghua and Ningbo Asia are among the largest industrial paper companies in China.  Gold Huasheng is one of the largest diversified paper product companies in China. Gold Hongye is the largest household paper company in both China and also in Asia.  Hainan Jinhai is China’s largest pulping enterprise.  Guangxi Jingui is China’s largest chemi-mechanical pulp (CMP) enterprise, and Yalong—one of APP-China’s main subsidiaries—is China’s largest paper product processing enterprise.

The business of the subject keeps on improving as the demand of paper of the world market has been increasing as well.

The subject also trades in recycling papers.  Ningbo Zhonghua and Ningbo Asia Pulp & Paper are among China’s largest recycled industrial paper makers that use waste paper as raw materials, recycling more than 600,000 tons of waste paper respectively each year.  By recycling waste paper, they save around 17 million trees from being cut down in a year.

The subject has had an associated company Simar Mas Paper (Shenzhen) Co. Ltd. which is servicing the customers in Southern China.

The subject is supported by GEP and ultimately by Sinar Mas Group.  History in Hong Kong is over seven years and two months.  Business keeps on improving.

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

 


MORTGAGE OR CHARGE

(Since 2011)

 

Date

Description of Instrument

Mortgagee

12-01-2011

Deed of Indemnity, Charge Over Deposit and Set-Off

Bank of Communications Co. Ltd., Hong Kong Branch.

07-03-2011

Security Over Deposit in respect of Obligations of the Depositor

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

28-04-2011

Contract of Mortgage or Charge (Contract No.: Zhen Fa Li Gi Zhi OSCOZY0006NJ)

Shenzhen Development Bank, China.

21-05-2011

Charge on Cash Deposit(s)

Bank SinoPac, Hong Kong Branch.

26-09-2011

Charge over Bank Accounts

Cathay United Bank Co. Ltd., Hong Kong Branch.

26-09-2011

General Assignment

Cathay United Bank Co. Ltd., Hong Kong Branch.

28-11-2011

Master Agreement

Taishin International Bank Co. Ltd., Hong Kong Branch.

06-03-2012

Security Deed in Respect of Goods Receivables and Accounts.

China Development Bank Corporation, Hong Kong Branch.

30-04-2012

Trade Finance Security Assignment

Industrial & Commercial Bank of China Ltd., Hong Kong Branch

13-08-2012

Special Account Pledge Agreement

China Development Industrial Bank Co., Ltd.
125 Section 5, Nanjing East Road, Taipei, Taiwan.

26-06-2013

Account Charge

China Development Bank Corporation, Hong Kong Branch.

23-06-2014

Security Deed

Bank of Communications Co. Ltd., Hong Kong Branch.

30-06-2014

Debenture

China CITIC Bank International Ltd., Hong Kong.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.43

UK Pound

1

Rs.98.64

Euro

1

Rs.78.19

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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.