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MIRA
INFORM REPORT
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Report No. : |
509161 |
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Report Date : |
12.05.2018 |
IDENTIFICATION DETAILS
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Name : |
EKMAN PULP AND PAPER LIMITED |
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Registered Office : |
Room 4024-39, 40/F., Sun Hung Kai Centre, 30 Harbour
Road, Wanchai |
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Country : |
Hong Kong |
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Date of Incorporation : |
23.02.1982 |
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Com. Reg. No.: |
08536079 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Wholesaler and Re-exporter of Pulp and paper |
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No. of Employees : |
30. (Including
Associates) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. 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, which took effect in 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.
Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 2.6% in 2016, but slowed to 2.0% in 2017. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.
Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities. In 2017, Chief Executive Lam announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.
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Source
: CIA |
Company name and address
EKMAN PULP
AND PAPER LIMITED
ADDRESS: Room
4024-39, 40/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong.
PHONE: 852-2542
1268, 2827 1010
FAX: 852-2542 1626, 2827 7711
E-MAIL: ekman.hk@ekman-co.se
gustav.appelgren@ekmangroup.com
MANAGEMENT:
Managing Director:
Mr. Michael James Flynn
SUMMARY
Incorporated on: 23rd February, 1982.
Organization: Private Limited Company.
Issued Share Capital: HK$100,000.00
Business Category: Importer,
Wholesaler and Re-exporter.
Employees: 30. (Including Associates)
Main Dealing Banker: Skandinaviska
Enskilda Banken AB (publ), Hong Kong Branch.
Banking Relation: Satisfactory.
ADDRESS
Registered Head Office:-
Room 4024-39, 40/F., Sun Hung Kai Centre, 30 Harbour
Road, Wanchai, Hong Kong.
China Offices:-
Suite 5-2010, Guanghua Xuan Guang An Men Wai, Xuan Wu
District, Beijing, China 100055.
[Tel: 86 10 6343 5411,
Fax: 86 10 6343 5412]
Room 2313, Nan Zheng Building, No. 580 West Nanjing Road,
Shanghai, China 200041.
[Tel: 86 21 5234 0543/4/5, Fax: 86 21 5234 0546]
6/F., New Yield Fast Commercial Building, 63 Jida Road,
Zhuhai SEZ, China 519015.
[Tel: 86 756 3221 671/72/73, Fax: 86 756 3221 670]
Holding Company:-
Ekman & Co. AB
Ekelundsgatan 1, SE-401 23, Goteborg, Sweden.
[Tel: 46 31 750 55 00,
Fax: 46 31 750 56 80]
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. GmbH, Germany.
Ekman & Co. Inc., USA.
Ekman Africa (Pty) Ltd., South Africa.
Ekman AG, Switzerland.
Ekman Asia Pte. Ltd., Singapore.
Ekman Converting SA, Morocco.
Ekman Denmark Aps, Denmark.
Ekman Dis Ticaret Ltd. Sti, Turkey.
Ekman do Brasil Comercial Ltda., Brazil.
Ekman Iberica S.A., Spain.
Ekman Italia S.r.l., Italy.
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 Pvt. Ltd., India.
Ekman Recycling Inc., USA.
Ekman UK Ltd., UK.
Kwok Fung (Sino H.K.) Enterprise Ltd., Hong Kong.
Percy Von Schoulta & Co. AB, Sweden.
Rappresentanza Ekman SRL, Italy.
Reliance Fibres Ltd., United Kingdom.
Secondary Pulp & Paper Inc., Canada.
Taipei Ekman & Co., Taiwan.
etc.
BUSINESS REGISTRATION NUMBER
08536079
COMPANY FILE NUMBER
0109142
MANAGEMENT
CEO: Mr. Jan Olof Svensson
Managing Director:
Mr. Michael James Flynn
ISSUED SHARE CAPITAL
HK$100,000.00 (50,000 fully paid “A” ordinary shares and
50,000 fully paid “B” ordinary shares)
SHAREHOLDER
(As per registry dated 23-02-2018)
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Name |
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No. of shares |
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“A” Ordinary |
“B” Ordinary |
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Ekman & Co. AB Ekelundsgatan 1, SE-401 23, Goteborg, Sweden. |
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50,000 ===== |
50,000 ===== |
DIRECTORS
(As per registry dated 23-02-2018)
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Name (Nationality) |
Address |
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Jan Olof SVENSSON |
Ronnbacken 7751, 409 37 Onsala, Sweden. |
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Hans TIDEBRANT |
Utlandagatan 10, SE-412 61, Gothenburg, Sweden. |
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Michael James FLYNN |
8 Mountain Lane, Holmdel, NJ 07733, U.S.A. |
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Annie Elisabeth EDVARDSEN |
Baverstigen 3, S-448 34 Floda, Sweden. |
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Kiyokazu UEDA |
1-5-4 Mukaihara, Asao-ku, Kawasaki-city, Kanagawa,
Japan. |
SECRETARY
(As per registry dated 23-02-2018)
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Name |
Address |
Co. No. |
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Macfarlance Ltd. |
Room 1701, 17/F., Tai Yau Building, 181 Johnston
Road, Wanchai, Hong Kong. |
0562735 |
HISTORY
The subject was incorporated on 23rd February, 1982 as a
private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Suite 4702, 47/F.,
Central Plaza, 18 Harbour Road, Wanchai, Hong Kong, moved to the
present address in October 2011.
Apart from these, neither material change nor amendment
has been ever traced and noted.
OPERATIONS
Activities: Importer, Wholesaler and
Re-exporter.
Lines: Pulp and paper.
Employees: 30.
Commodities Imported: Mainly
imported from Europe, Canada, etc.
Markets: China and other Asian countries.
Group Operating Revenue: US$2,310
million (2012)
US$2,510 million (2013)
US$2,341 million (2014)
US$2,097 million (2015)
US$1,981 million (2016)
US$2,000 million (2017) [Estimated]
Group Volume Traded: 4,400
tonnes (2012)
4,800 tonnes (2013)
4,600 tonnes (2014)
4,296 tonnes (2015)
4,266 tonnes (2016)
4,200 tonnes (2017) [Estimated]
Terms/Sales: As
per contracted.
Terms/Buying:
Various terms.
MEMBERSHIP
Swedish Chamber of
Commerce in Hong Kong, Hong Kong
FINANCIAL INFORMATION
Issued Share Capital: HK$100,000.00 (50,000 fully paid
“A” ordinary shares and 50,000 fully paid “B” ordinary shares)
Mortgage or Charge:-
Date of Charge Over Account Receivables: 26-04-2001
Amount: The
maximum aggregate principal amount of US$3,000,000 under Facility Letter dated
23-04-2001
Property: The
Company as beneficial owner thereby charged with the payment or discharge of
all monies and liabilities owing by the Company to the Lender in respect of the
Facility
Mortgagee: Skandinaviska
Enskilda Banken AB (publ), Singapore Branch.
Profit or Loss: Business is profitable.
Condition: Keeping in an active state.
Facilities: Making active use of general banking
facilities.
Payment: Regular.
Commercial Morality:
Satisfactory.
Banker: Skandinaviska Enskilda
Banken AB (publ), Hong Kong Branch.
Standing: Very Good.
GENERAL
Ekman Pulp and Paper Limited is a wholly-owned subsidiary
of Ekman & Co. AB [Ekman] which is a Sweden-based firm. The subject is one of the members of the
Ekman Group which is trading in pulp and paper.
It imports paper and pulp from Europe and Canada and re-exported to
China and the other Asian countries.
Business has been good and active.
The managing director of the subject Mr. Michael James
Flynn is a US passport holder.
The major activities of the subject are marketing,
selling, financing and distribution of forest products throughout Southeast
Asia with a special emphasis on the Chinese market. Main products include wood pulp, recycled
paper, paper and packaging grades as well as biofuels.
The subject also supports the sales activities of other
Ekman offices located throughout Asia.
The Ekman Group, incorporated in 1802 and headquartered
in Gothenburg, is one of the world’s leading international trading companies
focusing on the global forest products industry.
Ekman is one of the world’s leading trading houses,
working for the global forest industry.
Its mission is to facilitate and to add value to the process of
marketing, selling and distributing forest products worldwide.
The operations are coordinated from Ekman’s three hubs in
Gothenburg, Miami and Hong Kong. These
three offices are fully equipped trading houses, capable of providing all of
the different services it may offer to its customers.
Ekman was founded by Mr. Daniel Joensson Ekman in 1663
selling iron and timber.
Ekman is trading in the following products:
Pulp
Paper and Packaging
Recovered Materials
Bioenergy
Ekman has set up the following divisions:
The Ekman Pulp Division is the world’s largest
independent pulp trader, present in all major geographic areas.
The Ekman Paper and Packaging Division is active globally
in a wide spectrum of paper and packaging grades.
The Ekman Recovered Materials Division has the knowledge,
reputation and market leverage to ship over one million tons per year globally.
The Ekman Bioenergy Division has extensive forestry and
market expertise with an unrivalled knowledge of both the heating and power
markets.
The following table is the financial highlights of the
Ekman Group – Five years’ summary (Unit: US$ million):-
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2016 |
2015 |
2014 |
2013 |
2012 |
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Total sales |
1,981 |
2,097 |
2,341 |
2,510 |
2,301 |
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Income after financial items |
5.9 |
9.3 |
9.1 |
11.5 |
10.5 |
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Total assets |
243 |
244 |
319 |
324 |
296 |
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Equity |
43.9 |
46.2 |
44.7 |
53.3 |
51.7 |
The total sales of the Ekman Group have been declining
which was due to the sluggish markets.
Now, Ekman has set up subsidiaries in Australia, Belgium,
Brazil, Canada, China, Czech Republic, Dubai, India, Indonesia, Mexico, Italy,
Japan, Poland, Singapore, South Korea, Spain, Sweden, Taiwan, Turkey, the
United Kingdom and the United States.
Ekman has about 260 employees working at about 40
locations throughout the world. The
Group has laid off some of its employees in 2016.
The history of the subject in Hong Kong is over 36 years.
On the whole, in view of the history, parentage and
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 |
INR 67.22 |
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1 |
INR 90.87 |
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Euro |
1 |
INR 80.09 |
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HKD |
1 |
INR 8.58 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to business
in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.