MIRA
INFORM REPORT
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Report Date : |
12.09.2014 |
IDENTIFICATION DETAILS
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Name : |
SAPPI TRADING HONG KONG LTD. |
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Registered Office : |
41/F., |
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Country : |
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Date of Incorporation : |
18.09.1986 |
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Com. Reg. No.: |
10529707 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of Wood pulp, paper and related
products |
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No. of Employees |
13,665 |
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 compliants |
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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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Hong Kong |
A1 |
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 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
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Source
: CIA |
Note
1. Your given enquiry Sappi Papier Holding GmbH is an Austria-based company which has not registered in Hong Kong. Sappi Papier Holding GmbH is the holding company of the captioned firm.
2. Wrong spelling of ‘Papier’ submitted.
Company name and address
SAPPI TRADING HONG
KONG LTD.
ADDRESS: 28/F., One Pacific Centre, 414 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong.
PHONE: 852-2219 1062, 2219 1000
FAX: 852-2877 3523, 2877 4699
E-MAIL: sales.trading@sappi.com
wayne.rau@sappi.com
MANAGEMENT
Managing Director: Ms. Law Wing Sze, Vince
SUMMARY
Incorporated on: 18th September, 1986.
Organization: Private Limited Company.
Capital: Nominal:HK$10,000.00
Issued: HK$10,000.00
Business Category: Paper and Pulp Trader.
Group Turnover: US$5,925 million (Year ended 30-09-2013)
Group Employees: 13,665. (As at 30-09-2013)
Main Dealing Banker: Union Bank of Switzerland, Hong Kong Branch.
Banking Relation: Good.
ADDRESS
Registered Head
Office:-
41/F., AIA Tower, 183 Electric Road, North Point, Hong Kong.
Immediate Holding
Company:-
Sappi Papier Holding GmbH, Austria.
Ultimate Holding
Company:-
Sappi Ltd., South Africa.
Sister/Associated
Companies:-
Sappi Group of Companies
Lignin Insurance Co. Ltd., USA.
PE Paper Escrow GmbH, Austria.
S.D. Warren Co., USA.
Sappi Alfeld GmbH, Germany.
Sappi Austria Produktions-GmbH & Co. KG, Austria.
Sappi Cloquet LLC, USA.
Sappi Deutschland GmbH, Germany.
Sappi Ehingen GmbH, Germany.
Sappi Europe S.A., Belgium.
Sappi Finland Oy, Finland.
Sappi Holding GmbH, Austria.
Sappi International S.A., Belgium.
Sappi Lanaken NV, Belgium.
Sappi Lanaken Press Paper NV, Belgium.
Sappi Maastricht B.V., the Netherlands.
Sappi Nijmegen B.V., the Netherlands.
Sappi Paper Hong Kong Ltd., Hong Kong.
Sappi Property Co. (Pty.) Ltd., South Africa.
Sappi Share Faciliation Co. (Pty) Ltd., South Africa.
Sappi Southern Africa Ltd., South Africa.
Sappi Stockstadt GmbH, Germany.
Sappi Trading Pulp AG, Switzerland.
Umkomaas Lignin (Pty.) Ltd., South Africa.
Usutu Forest roducts Co. Ltd., South Africa.
etc.
BUSINESS REGISTRATION NUMBER
10529707
COMPANY FILE NUMBER
0175198
MANAGEMENT
Chief Executive Officer: Mr. Wayne Rau
Managing Director: Ms. Law Wing Sze, Vince
CAPITAL
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
SHAREHOLDERS: (As per registry dated 18-09-2013)
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Name |
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No. of shares |
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Donfix Ltd., Hong Kong. |
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1 |
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Sappi Papier Holding GmbH Brucker Strasse 21, 8101 Gratkorn, Austria. |
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9,999 |
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–––––– |
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Total: |
10,000 ===== |
DIRECTORS: (As per registry dated 16-12-2013)
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Name (Nationality) |
Address |
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John Paul Huntly SHAW |
94 Hillcrest Avenue, Blairgowrie, 2194, South Africa. |
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LAW Wing Sze, Vince |
Flat B, 24/F., Block 1, Ravana Garden, Shatin, New Territories, Hong Kong. |
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Stephen Robert BINNIE |
98 Waterfall Equestrian Estate (Stand 678), Maxwell Drive, Sunninghill Johannesburg, South Afraica. |
SECRETARY: LAW Wing Sze, Vince (As per registry dated 01-10-2013)
HISTORY
The subject was incorporated on 18th September, 1986 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Croggan Co. Ltd., name changed to Speciality Pulp Services Ltd. on 4th November, 1986 and further to the present style on 28th September, 2004.
Formerly the subject was located at 53/F., Bank of China Tower, 1 Garden Road, Central, Hong Kong, moved to ‘41/F., AIA Tower, 183 Electric Road, North Point, Hong Kong’ in February 1999 and further moved to the present address in February 2014.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer and Exporter.
Lines: Wood pulp, paper and related products.
Employees:- (As at 30-09-2013)
130. (Sappi Trading Segment)
13,665. (Whole Group)
Commodities Imported: Taiwan, Southeast Asia, North America, etc.
Markets: Europe, North America, etc.
Group Turnover: US$5,369 million (Year ended 30-09-2009)
US$6,572 million (Year ended 30-09-2010)
US$7,286 million (Year ended 30-09-2011)
US$6,347 million (Year ended 30-09-2012)
US$5,925 million (Year ended 30-09-2013)
Terms/Sales: L/C, T/T, etc
Terms/Buying: L/C, D/P, O/A, etc.
GOVERNMENT CONTRACTS
AWARDED SINCE 1990:
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Date |
GN No. |
Particulars |
Amount |
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25-02-1994 |
GN685 |
Carbonless Paper, 55
gsm, CFB White, in reel |
US$48,690 |
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27-10-1995 |
GN4492 |
Woodfree Printing
Paper, Creamwove, 90 gsm, SRA1, Long Grain |
GBP43,380 |
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27-10-1995 |
GN4492 |
Woodfree Printing
Paper, Creamwove, 100 gsm, 297 mm width in reel |
GBP54,900 |
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26-04-1996 |
GN1926 |
Woodfree Printing
Paper, 80 gsm, SRA1, Long Grain |
HK$1,121,380 |
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30-08-1996 |
GN4013 |
Carbonless Paper, Black
Image, 55 gsm, in reel of 432 mm width (1) CB White, (2) CFB White and (3) CF
White |
HK$959,050 |
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25-10-1996 |
GN4977 |
Woodfree Printing Paper
Creamwove, 100 gsm, in reel of 297 mm Width |
HK$439,600 |
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25-07-1997 |
GN406 |
Ledger Paper,
Azurelaid, 100 gsm, SRA1, Long Grain |
HK$551,577 |
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29-05-1998 |
GN2670 |
Supply of Woodfree Printing
Paper, White, 80 gsm, in reel of 311 mm Width |
HK$292,500 |
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30-09-1998 |
GN4811 |
Supply of Continuous
Stationery Carbonless Printing Paper, Black Image, 65 gsm, in reel of 489 mm
Width |
HK$226,200 |
FINANCIAL INFORMATION
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Alternation of Capital:-
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18-09-1986 |
paid up |
HK$ 2.00 |
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29-10-1986 |
paid up |
HK$ 9,998.00 |
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––––––––––––– |
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Total: |
paid up |
HK$ 10,000.00 ============ |
Group Net Profit/(Loss): US$177 million) (Year ended 30-09-2009)
US$ 66 million (Year ended 30-09-2010)
(US$232 million) (Year ended 30-09-2011)
US$104 million (Year ended 30-09-2012)
(US$177 million) (Year ended 30-09-2013)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
Union Bank of Switzerland, Hong Kong Branch.
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Standing: Normal.
GENERAL
Sappi Trading Hong Kong Ltd. is a wholly-owned subsidiary of Sappi Papier Holding GmbH which is an Austria-based firm. Its ultimate holding company Sappi Ltd. [Sappi] is a South Africa-based firm. In fact, the subject is a member of the Sappi Group in the Asia Pacific region.
Sappi, the holding company of the group, was formed in 1936 and is incorporated and domiciled in the Republic of South Africa. Sappi is a global company with operations in North America, Europe and Southern Africa and is focused on providing dissolving wood pulp, paper pulp and paper based solutions to its direct and indirect customer base across more than 100 countries. The group’s dissolving wood pulp products are used worldwide by converters to create viscose fibre for clothing and textiles, acetate tow, pharmaceutical products as well as a wide range of consumer products. The group’s market-leading range of paper products includes: coated fine papers used by printers, publishers and corporate end-users in the production of books, brochures, magazines, catalogues, direct mail and many other print applications; casting release papers used by suppliers to the fashion, textiles, automobile and household industries; and in the Southern African region newsprint, uncoated graphic and business papers and premium quality packaging papers and tissue products.
Sappi is a public company incorporated in the Republic of South Africa. Its principal executive offices are located at 48 Ameshoff Street, Braamfontein, Johannesburg, 2001, Republic of South Africa, its telephone number is 27‑11‑407-8111. It currently has its primary listing on the JSE Ltd. [JSE], formerly the Johannesburg Stock Exchange.
Sappi now conducts business as Sappi Fine Paper North America. In the late 1990’s, it acquired KNP Leykam, a leading European producer of coated woodfree paper. KNP Leykam now conducts business as Sappi Fine Paper Europe. In 2002, it acquired Potlatch Corporation’s coated woodfree paper business and have integrated it in Sappi Fine Paper North America. During August 2009, it permanently ceased operations at Muskegon mill in the United States. Customers were being served from its other North American operations. On 2nd November, 2009, it delisted from the London Stock Exchange. The London share register was closed on 23rd November, 2009 with all remaining shareholders on the United Kingdom share register being transferred to the South African share register.
On 19th April, 2010, Sappi announced the acquisition of 14,500 ha of forestry land in Mpumalanga, South Africa. The plantation will supply an additional 150,000 tons of fibre to its Ngodwana mill. During 2010, Sappi restructured its southern African Paper and Paper Packaging business to become more efficient and to improve its focus and service delivery to its end customers.
Sappi’s trading network, Sappi Trading, coordinates the international marketing and distribution of its woodfree and mechanical paper products outside its core regions. Sappi Trading operates in Hong Kong (China) which is the subject, Sydney (Australia), Sao Paulo (Brazil), Shanghai (China), Konstanz (Germany), Nairobi (Kenya), Mexico City (Mexico), Singapore, Johannesburg and Durban (South Africa), Zurich (Switzerland), Taipei (Taiwan) and New York (United States). It manages a network of agents around the world, handling exports to over 70 countries. Sappi Trading also manages the export logistics of the southern African operations. In total, Sappi Trading had 148 employees in 2010.
The sales of the Sappi Group for the year ended 30th September, 2013 amounted to US$5,925 million, decreased by 6.6% as compared with US$6,347 million in FY 2012. In FY 2013, the Group’s made a loss of US$177 million as compared with a net profit of US$104 million in FY 2012.
The loss was largely due to market conditions in the group’s graphic paper business, particularly in Europe, which were worse than expected, with significant demand declines in both the European local and export markets, and continued downward pressure on selling prices. As a result, significant asset impairments and restructuring charges were incurred which related to both our European and South African businesses of US$142 million and US$109 million respectively. In addition, although the group’s major dissolving wood pulp conversions at the group’s Cloquet and Ngodwana Mills were successfully completed and commissioned during the year with the speciality paper conversion at Alfeld Mill being completed shortly after year-end (in October 2013), these projects also negatively impacted the group’s result for the year.
On 9th September, 2013, Sappi announced its intention to voluntarily de-list from the New York Stock Exchange (NY SE) based on the low trading volume of its American Depositary Shares on the NY SE as well as the high costs and administrative complexity associated with maintaining its listing and registration in the United States. The delisting became effective on 30th September 2013.
In September 2013, Sappi announced that it had begun consultations regarding the future of its Nijmegen Mill in the Netherlands due to market conditions and a sustained increase in input costs.
In November 2013, investment plans were announced that over the next three years, approximately US$162 million (€120 million) would be invested in the group’s coated graphic paper mills at Kirkniemi and Gratkorn to significantly reduce the cost base and improve the profitability of these mills.
For the year ended 30th September, 2013, the Group had 13,665 employees (2012: 14,039).
The subject is fully supported by the Sappi Group.
On the whole, in view of the background of the subject, consider it good for normal business engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.19 |
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1 |
Rs.98.65 |
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Euro |
1 |
Rs.78.63 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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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 |
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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 |
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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 |
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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.