MIRA INFORM REPORT

 

 

Report No. :

351961

Report Date :

30.11.2015

 

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  (Including Associates)

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA


Company name & address

 

GOLD EAST TRADING (HONG KONG) CO. LTD.

 

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.

 

Issued Share Capital:     HK$8,143,279,370.00

 

Business Category:       Paper Trader.

 

Employees:                   15.  (Including associates)

 

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

 

Banking Relation:          Satisfactory.

 

 

Name

 

GOLD  EAST  TRADING  (HONG  KONG)  CO.  LTD.

 

 

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

 

 

ISSUED SHARE CAPITAL

 

HK$8,143,279,370.00

 

 

SHAREHOLDERS

 

(As per registry dated 30-09-2015)

Name

 

No. of shares

Gold East Paper (Jiangsu) Co. Ltd.

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

 

1,591,764,534

Ever Dragon Investments Group Ltd., Hong Kong.

 

6,551,514,836

 

 

––––––––––––

 

Total:

8,143,279,370

===========

 

 

DIRECTORS

 

(As per registry dated 02-07-2015)

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

31/F., Tower II, Shanghai Arch, No. 533 Loushanguan Road, Changning District, Shanghai 200051, China.

 

 

SECRETARY

 

CHU Wing Hong, Park  (As per registry dated 14-06-2015)

 

 

HISTORY

 

The subject was incorporated on 14th June, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.

 

The subject increased its ordinary shares to 8,143,279,370 in September 2015.

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.

 

Markets:                        Hong Kong, China, other Asian countries.

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:                             HK$8,143,279,370.00

 

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

 

Profit or Loss:                                       Making small profits in the past 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.

East West Bank, Hong Kong Branch.

 

Standing:                                              Very Good.

 

 

GENERAL

 

Having issued 8,143,279,370 ordinary shares of HK$1.00 each in total as at October 2015, 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 19.5% interests, and Ever Dragon Investments Group Ltd., holding 80.5%.  The equities of the holding companies changed in September 2015.  The equities changed last time was in late December 2012.

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

 

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.

 

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%.

 

GEP is was officially established on 18 May, 1997.  It occupies an area of 5.33 square kilometers and has more than 5,300 employees at present.  Its total investment amounts to US$3.51 billion and the annual production capacity is more than 2 million tons of art board, ranking it one of the top art board manufacturers in the world in terms of the size of a single factory.

 

GEP is the flagship enterprise of APP China.

GEP has started-up two paper machines manufactured by Voith Sulzer Paper Technology in Germany.  The paper machines are PM1 and PM2 of which 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 advanced technology and the biggest paper machines and coater in the world.  Wood-free paper line and coating base paper line are imported completely from Voith-Sulzer/Germany.  Its OMC was ordered from Valmet/Finland.  The whole process is a state of the art leading control system, including but not limit to DCS and QCS.

 

GEP is able to offer a series of eco-friendly products with recycled content and have got “PEFC-COC” certification.  It also has 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.

 

GEP possess a power station, a Ground Calcium Carbonate Plant, and a Precipitated Calcium Carbonate Plant in addition to a pier.

 

Since its incorporation, GEP has established 60 branches and liaison offices all over the world.

 

GEP’s major products include C2S Art Paper, C1S Art Paper, Art Paper/Matt, HSWO Gloss Art Paper, Digital Paper, and Handbag and packaging paper.

 

GEP’s brands include Space Shuttle, XPLORE, Nireus, Art-tech, Sunbrite, and Nevia.  Among other things, Space Shuttle was rated as a prominent trademark in China in 2007.  Its notoriety, satisfaction and market share ranks the top in the industry in China.  It was also selected as the 2011-2013 Internationally Prominent Brand Nurtured and Developed in Jiangsu Province.

 

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.  It offers a wide range of art paper, art board, woodfree board, brief card, ivory board, playing card board, carbonless paper, thermal paper, and photocopy paper which are traded by APP.

 

By the end of 2014, APP-China owned over 20 pulp and paper mills as wholly owned subsidiaries and holding companies, along with 19 forestry companies, with total assets valued about RMB147.1 billion Yuan.  Total production volume of its mills reached 11 million tons, with sales revenues amounted to RMB42.2 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.  Its associated company 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 is supported by GEP and ultimately by Sinar Mas Group.  History in Hong Kong is over eight years and five months.  Business is active and steady.

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.

12-01-2015

Charge Over Depsot to Secure Liabilities of the Depositors

East West Bank, Hong Kong Branch.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.75

UK Pound

1

Rs.100.67

Euro

1

Rs.70.87

HKD

1

Rs.8.60

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

TPT

 


               

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.