MIRA INFORM REPORT

 

 

Report No. :

302939

Report Date :

16.01.2015

 

IDENTIFICATION DETAILS

 

Name :

KWOK  FUNG  (SINO  H.K.)  ENTERPRISE  LTD.

 

 

Registered Office :

Room 4024-39, 40/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

01.10.1992

 

 

Com. Reg. No.:

16152469

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Wholesaler and Re-exporter of all kinds of paper

 

 

No. of Employees :

38

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 and address

 

KWOK  FUNG  (SINO  H.K.)  ENTERPRISE  LTD.

 

 

ADDRESS:       Room 4024-39, 40/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong.

 

PHONE:            852-2542 1268

 

FAX:                 852-2542 1626

 

 

MANAGEMENT

 

Managing Director:  Mr. Yeung Yuk Ching

 

 

SUMMARY

 

Incorporated on:            1st October, 1992.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$35,000,000.00

 

Business Category:       Paper Trader.

 

Employees:                  38.

 

Main Dealing Banker:     Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.


 

ADDRESS

 

Registered Head Office:-

Room 4024-39, 40/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong.

 

Holding Company:-

Kwok Fung Holding Ltd., Hong Kong.

 

Associated Companies:-

AB Jan Liebig Ltd., Sweden.

Costal Pulp & Paper LLC, USA.

Costal Pulp & Paper Ltd., Hong Kong.

Ekman & Co. (Korea) Ltd., Korea.

Ekman & Co. AB, Sweden.

Ekman & Co. China Ltd., China.

Ekman & Co. Inc., USA.

Ekman AG, Switzerland.

Ekman Asia Pte. Ltd., Singapore.

Ekman Converting SA, Morocco.

Ekman do Brasil Comercial Ltda., Brazil.

Ekman Iberica S.A., Spain.

Ekman Middle East (FZC), UAE.

Ekman Polska Sp. z.o.o., Poland.

Ekman Pty. Ltd., Australia.

Ekman Pulp & Paper Co. Ltd., Japan.

Ekman Pulp & Paper Ltd., Hong Kong.

Ekman Pulp & Paper Pvt. Ltd., India.

Ekman Recycling Inc., USA.

Ekman UK Ltd., UK.

Percy Von Schoulta & Co. AB, Sweden.

Rappresentanza Ekman SRL, Italy.

Secondary Pulp & Paper Inc., Canada.

Taipei Ekman & Co., Taiwan.

etc.

 

 

BUSINESS REGISTRATION NUMBER 

 

16152469

 

 

COMPANY FILE NUMBER 

 

0382579

 


MANAGEMENT

 

Managing Director:  Mr. Yeung Yuk Ching

Director & Sales Contact:  Mr. Ng. Chi Leung, Danny

 

 

ISSUED SHARE CAPITAL:  HK$35,000,000.00

 

SHAREHOLDER:          (As per registry dated 01-10-2014)

Name

 

No. of shares

Kwok Fung Holding Ltd., Hong Kong.

 

3,500,000

=======

 

DIRECTORS:    (As per registry dated 01-10-2014)

Name

(Nationality)

 

Address

YEUNG Yuk Ching

            (Chinese)

Flat B, 9/F., Amber Garden 70-72 Kennedy Road, Wanchai, Hong Kong.

 

NG Chi Leung, Danny

            (Chinese)

Flat C, 28/F., Amber Garden, 70-72 Kennedy Road, Wanchai, Hong Kong.

 

Jan Olof SVENSSON

8750 NW 36th Street, Suite 400, Miami FL 33178, USA.

 

Per Hans TIDEBRANT

Ut Landa Gatan 10, SE-412 61, Gothenburg, Sweden.

 

Annie Elisabeth EDVARDSEN

Baverstigen 3, 4Y8 3Y Floda, Sweden.

 

SECRETARY:   (As per registry dated 01-10-2014)

Name

Address

Co. No.

Macfarlance Ltd.

Unit 1701, 17/F., Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong.

0562735

 

 

HISTORY

 

The subject was incorporated on 1st October, 1992 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Room 1702, 17/F., Workington Tower, 78 Bonham Strand East, Sheung Wan, Hong Kong, moved to Room 1309, 13/F., West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong in May, 2004.  The subject moved to the present address in January 2012.

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


 

OPERATIONS

 

Activities:                      Importer, Wholesaler and Re-exporter.

 

Lines:                           All kinds of paper.

 

Employees:                  38.

 

Commodities Imported: Imported from Europe (Germany, Switzerland, Sweden, Finland, etc.), US, China, etc.

 

Markets:                        Hong Kong, Taiwan, Southeast Asia, etc.

 

Group Operating Revenue:         US$2,310 million (2012)

US$2,510 million (2013)

 

Group Volume Traded:  4,400 tonnes (2012)

4,800 tonnes (2013)

 

Terms/Sales:                 Various terms.

 

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

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$35,000,000.00

 

Profit or Loss:               Business is profitable.

 

Condition:                     Keeping in an active manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Regularly met.

 

Commercial Morality:     Satisfactory.


 

Bankers:-

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

DBS Bank (Hong Kong) Ltd., Hong Kong.

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

 

Standing:  Very good.

 

 

GENERAL

 

Originally Kwok Fung (Sino H.K.) Enterprise Ltd. just issued 1,000 ordinary shares of HK$10.00 each.  Increased to 100,000 shares by issuing 99,000 more shares on 31st December, 2003.  Now, its issued share capital has been increased to HK$35 million.

Formerly the subject was jointly owned by Rich Loyal International Enterprise Ltd., holding 60% interest; Mr. Danny Ng Chi Leung, holding 20%, and Mr. Yeung Yuk Ching, also 20%.  Now, it is a wholly-owned subsidiary of Kwok Fung Holding Ltd. [Kwok Fung] which is a Hong Kong-registered firm.  Kwok Fung is a subsidiary of Ekman AB & Co. [Ekman] which is a Sweden-based firm.  Ekman acquired Kwok Fung in 2011.

The business of the subject is chiefly handled by Yeung Yuk Ching and Danny Ng Chi Leung, both of whom are Hong Kong merchants.

 

The subject is a paper trader.

The subject imports, wholesales and re-exports all kinds of paper, pulp and paper board.  Commodities are imported from various sources such as the United States, Germany, Switzerland, Sweden, Finland, China, etc.  Prime markets are Hong Kong, China, Taiwan, Southeast Asia, etc.  Most of the subject’s customers are printing factories in Hong Kong or enterprises which have got affiliated printing factories in China.  Business has been active and satisfactory.

Ekman provides a complete range of services for the paper and pulp industries, covering market information and research, invoicing and documentation, logistics and warehouse administration, transportation and insurance, trade finance, credit risk coverage, payment administration, advance payments and financing, currency and interest rate hedging, and price risk hedging.

 

Ekman has 270 employees working at about 40 locations throughout the world.  Operations are coordinated from its hubs in Gothenburg, Miami and Hong Kong.  The Hong Kong hub is the subject.

Its own sales offices, in close cooperation with an international network of partners and representatives, ensure a strong presence throughout the world in all producing and consuming areas for the forest industry.

In FY 2013, the operating revenue of Ekman amounted to US$2,510 million (2012: US$2,310 million).  In the year, Ekman sold 4,800 tonnes of paper and pulp (2012: 4,400 tonnes).

The business of the Ekman Group keeps on improving.

Jan Svensson is the CEO of the Ekman Group while Hans Tidebrant is the senior vice president.  Both are also director of the subject.

The directors of the subject Ng and Yeung are veterans in the field of paper importing and marketing.

The subject has its own premises in Hong Kong.

The subject is fully supported by Ekman.

As the subject has a history of over twenty-two years and three months in Hong Kong, on the whole, consider it good for normal business engagements.

 


REMARKS

 

Court case record:-

Action Date

Case No.

Plaintiff

Defendant

Cause

Amount

May 2005

H977

Kwok Fung (Sino H.K.) Enterprise Ltd.

Kwok Fung (Sino H.K.) Enterprise Ltd.

Reinstate registration of company

Not stated

 

Property information of the company:-

Property Location:         Unit No. 1308 on 13/F. of West Tower, Shun Tak Centre,
168-200 Connaught Road Central, Hong Kong.

Owner:  Kwok Fung (Sino H.K.) Enterprise Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

 

Date of Mortgage

Amount Consideration

Mortgagee

Nature

30-04-2008

-

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

Mortgage to secure general banking facilities

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.76

UK Pound

1

Rs.94.02

Euro

1

Rs.72.63

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

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.