MIRA
INFORM REPORT
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Report Date : |
5th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
AMOY FOOD LTD. |
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Registered Office : |
11-15 Dai Fu Street, Tai Po Industrial Estate, Tai Po, N.T., Hong
Kong. |
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Country : |
Hong Kong |
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Date of Incorporation : |
14.08.1981 |
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Com. Reg. No.: |
101604 |
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Legal Form : |
Private Company |
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Line of Business : |
Engaged in manufacturing & distribution of Asian sauce &
frozen food. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aaa |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
AMOY FOOD LTD.
11-15 DAI FU
STREET, TAI PO INDUSTRIAL ESTATE, TAI PO, N.T., HONG KONG.
TEL : 852 26656633 / 26666013
FAX : 852 26656838 / 26804075
EXECUTIVE SUMMARY
INCORPORATION DATE :
14-8-1981
REGISTRATION NO. :
101604
REGISTERED LEGAL FORM : PRIVATE
CHIEF EXECUTIVE : KAHO HIROSHI (DIRECTOR)
STAFF STRENGTH :
300 (IN HONG KONG)
AUTHORIZED CAPITAL :
HK$10,000 = 10,000 SHARES @ HK$1.-
PAID-UP
CAPITAL : HK$1,000
BUSINESS LINE :
MANUFACTURE & DISTRIBUTION OF ASIAN SAUCE & FROZEN FOOD
TURNOVER :
JPY 1,106,807M (GROUP, YEAR ENDED 31-3-2006)
EQUITIES :
N/A (GROUP, YEAR ENDED 31-3-2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : LARGE
AMOUNT
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : GOOD
EXCHANGE RATE :
HKD 7.81339= USD1 AS OF 2007-3-5
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
M - million
HKD – Hong Kong Dollars
SC is a private limited company registered under incorporation file no.
101604 on 14-8-1981.
SC's shareholders & directors are shown to be as follows:
Shareholders (as at 14-8-2006) Number
of shares held
Ajinomoto Co., Inc. 532
Ajinomoto Frozen Foods Co., Inc. 468
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1,000
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Directors (as at 14-8-2006)
Ito Masatoshi / TH0234431
Kaho Hiroshi / TG7457596
Shindo Daiji / TF2818973
The above registration information is based on SC's annual return filed
at Companies Registry within the last 2 years.
Our current search revealed certain material change or amendment of SC
has been recorded within the last 2 years & noted as follows:
Shares allotments on 9-5-2006:
Allottee(s) No.
of share(s)
Ajinomoto Co., Inc. 998
Partial change in SC's directorship as follows:
Name(s) of resigned director(s) Resignation
date
Israel Simon Claude 5-9-2005
Qin Peng 12-1-2006
Roger Francois-Xavier 12-1-2006
Miura Tsuyoshi 1-8-2006
Name(s) of newly appointed director(s) Appointment
date
Kaho Hiroshi 12-1-2006
Miura Tsuyoshi 12-1-2006
Shindo Daiji 12-1-2006
Ito Masatoshi 1-8-2006
Roger Francois-Xavier 5-9-2005
In Jan 2006, Ajinomoto Co., Inc., acquired SC and its group companies
from Danone Asia Pte. Ltd., a subsidiary of Group Danone S.A.
Total number of employees: 300 (in Hong Kong).
Location: Maintaining its
office, warehouse & factory at the heading business address which occupies
the whole block of building (with 4 storeys) at an industrial building in an
industrial area.
Condition inside the premises during our
visit : Normal.
Office/factory layout : Standard.
Property ownership : Current land search indicates the ownership details
of the captioned premises as follows:
- Owner(s) : SC
- Date of purchase & consideration : 14-12-1995 / HK$43,070,249
- Date of mortgage & secured amount : NA
- Mortgagee : NA
This section will contain the civil litigations & winding-up
petitions filed against SC for the last 6 years (as stored in our database),
and the mortgage/charge filed by SC for the last 2 years. In Hong Kong, creation of such
mortgages/charges by an unlimited co is not required to be registered in the
public records.
Civil litigation/winding-up petitions : (X) see below ( ) see attached sheet
Date :
11-12-2006
Defendant(s) : SC + Choi Chun Tak
Plaintiff(s) : Yu Sing Lung
Cause of claim : Motor claims
Claimed amount : ANS
Mortgage/charge record(s) : (X) see below ( ) see per attached
Creation date : 20-1-2006
Charger(s) :
SC
Chargee(s) :
Standard Chartered Bank (HK) Ltd.
Secured amount : ANS
Charge particulars : Charge Over Deposits
(Deposit: $1M)
Mortgage Index:
Year(s) in which mortgage registration(s) are filed: 2006
Year(s) in which mortgage satisfaction record(s) are filed: Nil
SC is a subsidiary of Ajinomoto Co., Inc., a public co. listed on TSE
with stock code 2802, whose partial information is as follows:
Year established : 1909
Registered/business
address : 15-1 Kyobashi, 1-chome, Chuo-ku,
Tokyo 104-8315, Japan.
Business line : As a holding co. with
diverse interests in manufacturing & supply of food products, amino acid
& pharmaceuticals.
No. of employees : 4,002 (as at 31-3-2006)
Civil litigation & winding-up petition records: None in our database
Turnover :
JPY 1,106,807M (year ended 31-3-2006)
Partial financial data of the said company:
Items Fiscal
yr 31-3-2006 Fiscal yr 31-3-2005
Current assets : JPY425,991M JPY414,415M
Current
liabilities : JPY237,840M JPY230,810M
Fixed assets &
non-current assets : JPY571,414M JPY489,127M
Tangible
worth/(net deficit) : JPY759,565M JPY672,732M
Turnover : JPY1,106,807M JPY1,073,010M
Net income/(net
loss) : JPY34,912M JPY44,817M
JPY = Japanese Yen
JPY1 = HK$0.066
Kaho Hiroshi, director:
- He is by Japanese nationality
- Embarked upon his career to present field as an executive trainee in his mid 20's
Currently active in SC's day-to-day operations & is responsible for
its management.
Registered residential address: Flat B, 12/F, Tower 1, 35-37 Cloud View Road,
Sky Horizon, North Point, HK.
Credit history
check : This refers to a check of our
database whether the said person has been involved in any of the following
records stored by us within the last 6 years:
Civil
litigation as defendants : None in our database
Bankruptcy/winding-up
petitions : None in our database
Delinquent
payment records : None in our database
Debt
collection records : No overdue amount owed by the said person was
placed to us for collection
Ito Masatoshi, director:
- He is by Japanese nationality
- Embarked upon his career to present field in his mid 20's
- Also currently president of Food Products Company of SC's group
Currently residing in Japan & only visits Hong Kong for business
occasionally.
Registered residential address: 2-75-7, Kotakecho, Nerima-Ku, Tokyo
1760004, Japan.
Credit history
check : This refers to a check of our
database whether the said person has been involved in any of the following
records stored by us within the last 6 years:
Civil
litigation as defendants : None in our database
Bankruptcy/winding-up
petitions : None in our database
Delinquent
payment records : None in our database
Debt
collection records : No overdue amount owed by the said person was
placed to us for collection
Ownership background appraisal:
Rating : 1 Obtained scores : 85 (see explanatory notes
below)
Keys : 1 : scores
81-100 : Excellent
2
: scores 61-80 : Good
3
: scores 46-60 : Average
4
: scores 21-45 : Fair
5
: scores 01-20 : Poor
The rating indicates the personal financial & operational strength
of SC's major principals. It is
calculated from a composite of scores obtained from the following 5 factors
which carry equal weight in our analysis:
Personal financial strength, credit history & trade reputation,
business experience & track record, market connection and management skill.
Business categories :
SC is engaged in manufacturing & distribution of Asian sauce &
frozen food.
Items of Asian sauce available include:
- soy sauce, oyster sauce, hoi sin sauce, chu hou sauce, barbecue sauce,
black bean & garlic sauce, satay sauce, sweet & sour sauce, Sichuan
spicy noodle soup mix & spicy eggplant sauce.
Items of frozen food available include:
- shaomai, beef ball, hargow, xiao long bao, dumpling, cheong fun,
wonton, char siu bun, lotus seed bun, spring roll, plain bun, prawn toast,
congee, egg custard bun & noodle.
All products are sold under its own brand `Amoy' .
SC has three production factories in HK & PR China (Shenzhen &
Shanghai).
- HK (sauce production)
Gross area: 6,000 sq.m.
Workforce: 200
- Shenzhen (frozen food production)
Name: Shenzhen Amoy Food Ltd.
Gross area: 9,700 sq.m.
Workforce: 800
- Shanghai (sauce production)
Name: Shanghai Amoy Food Ltd.
Gross area: 39,970 sq.m.
Workforce: 3,000
SC's achievement:
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An AC Nielsen survey indicates that most of SC's sauces are top sellers in
their categories, with SC's soy sauce being the No.1 selling soy sauce in HK
for 10 consecutive years since 1994 & in UK for 3 consecutive years since
1998; while SC's frozen food is the market leader for 5 consecutive years since
1999.
Principal purchases :
Major
types of sourcing : Raw
materials
Local--type
of suppliers : Importers &
distributors
Buying
terms : COD
& credit of 60 days
Overseas--supplying
countries : PR China, SE Asia &
Europe
Buying
terms : L/C,
D/P, D/A, T/T & open acocunt of 30 days
Principal market :
Local--type
of customers : Chained supermarkets,
restaurants & department stores
Selling
terms : COD &
credit of 14 to 30 days
Overseas--buying
countries : Europe (mainly UK), USA,
Canada, SE Asia, Japan, PR China & Australia
Selling
terms : T/T, L/C
& open account of 30 days
SC is not known to have any subsidiary at
present.
Overall payment appraisal:
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment
experience (through current enquiry with SC's suppliers), our delinquent
payment records and our debt collection record concerning SC.
Trade payment
experience: SC did not provide any name of
trade/service suppliers and we have no other sources to conduct the enquiry at
present.
Delinquent
payment record: None in our database.
Debt
collection record: No overdue amount owed by SC
was placed to us for collection within the last 6 years.
Banking relations are maintained principally with:
- HSBC
- Standard Chartered Bank (HK) Ltd.
During our report preparation,
the principals could not be contacted while the staff members hesitated to
release financial information without the principals' consent.
As per current co. search, total amount of indebtedness of SC in respect
of all mortgages and charges which are required to be registered with Companies
Registry as at 14-8-2006 was nil.
SC is well-known in its line with a good base to come into large amount
of credit dealings.
Ajinomoto Co., Inc.'s share price movements are as follows:
- Closed on 27-2-2007: JPY 1,482
- Year high / low: JPY 1,640/JPY 1,189
- Price earning ratio: 27.63
NOTE
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On 26-4-2005, the outcome of SC's false propaganda case was announced:
- Under a published advertisement, SC has declared that its sauces do not
contain monosodium glutamate ingredient. However, The Food & Environmental
Hygiene Dept. found out that SC's sauces contained the monosodium glutamate
ingredient, & prosecuted SC for false propaganda. After the interrogation, SC is declared guilty and has to pay a
fine of $30,000.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)