MIRA INFORM REPORT

 

 

 

Report Date :

13.08.2008

 

IDENTIFICATION DETAILS

 

Name :

STELLA FOOTWEAR COMPANY LTD

 

 

Registered Office :

Room 1303, 13/F, Union Park Centre, 771-775 Nathan Road, Mongkok, Kowloon

 

 

Country :

Hong Kong 

 

 

Date of Incorporation :

28.12.1990

 

 

Com. Reg. No.:

0294981

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer of Footwear

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 10,000.00

 

 

Status :

Small Company

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

Name of the Company

 

 

STELLA FOOTWEAR COMPANY LIMITED

 

Business Address


Room 1303-1305, 13/F, Union Park Centre
771-775 Nathan Road
Mongkok
Kowloon
Hong Kong
Tel: +852-23808918
Fax: +852-23808767

 

 

 

 

 

 

CREDIT RECOMMENDATION

                               

Credit requested: USD 500,000.00
Credit limit: USD 10,000.00

Opinion: Requires guarantees

 

 

 

 

 

SUMMARY

 

Founded:                       1990

Legal form:                    Private Limited Company

Registration date:           28.12.1990

ACTIVITY:                     Services

Main Products:              Shoes for men & ladies

Staff:                             819 (19 in Hong Kong, 800 in PR China)

Paid-up capital:              HKD 10,000.00

Financial situation:         Modest but ordered

Turnover:                       HKD 35.00 Mio.

Payments:                    Payments are made according to terms

Litigation:          clear

 

 

 

Registration status: 1990 - Registered company
Activity status: 1990 - Active company

 

 

IDENTIFICATION

 

                               

Name:                       Stella Footwear Company Limited

 

Telephone:                 +852-23808918

 

Fax:                          +852-23808767

 

Business Address:          

Room 1303-1305, 13/F, Union Park Centre
771-775 Nathan Road
Mongkok
Kowloon
Hong Kong
Tel: +852-23808918
Fax: +852-23808767

                                      

Registered Address:       

Room 1303, 13/F, Union Park Centre
771-775 Nathan Road
Mongkok
Kowloon
Hong Kong

 

 

 

Contact information:      Telephone number:         23808918          ext - 22 (Ms. Sandy Cheung)

 

 

 

 

HISTORY AND REGISTRATION

 

 

Founded:                                  1990

 

Legal form:                               Private Limited Company

 

Registration date:                      28.12.1990

 

Company registry number:         0294981

 

BR Number:                              14179651

 

Annual return date:                    28.12.2007

 

Annual return filed on:                29.07.2008

 

 

 

SHARE CAPITAL

 

Nominal capital:                                                          HKD 10,000.00

Number of Ordinary shares:                                            10,000                       

Value per share of Ordinary shares:                                 HKD 1.00                   

 

Paid-up capital:                                                           HKD 10,000.00         

of which paid in cash:                                                     HKD 10,000.00         

 

 

 

 

SHAREHOLDERS     

 

CHAO Ming Cheng
Nationality: TW
13/F
No. 43, Hsin Hai Road
Taipei
Taiwan

Shareholder
Equity: 30%
3,000 Ordinary shares
CHEN Jiann Min
Nationality: TW
17/F, No. 5, Lane 669
Tun Hwa S. Road
Taipei
Taiwan

Shareholder
Equity: 30%
3,000 Ordinary shares
CHEN Li Ming
Nationality: TW
2/F
No. 31, Hseong Yang Road
Taipei
Taiwan

Shareholder
Equity: 40%
4,000 Ordinary shares
Total number of shareholder: 3

 

 

MANAGEMENT   

 

Sinko Management Services Ltd - Corporate Secretary
Room 902, Beverly House
93-107 Lockhart Road East
Wanchai
H.K
Hong Kong

CHAO Ming Cheng - Director
Nationality: Taiwan
13/F
No. 43, Hsin Hai Road
Taipei
Taiwan
Passport ID: 212248009

CHEN Li Ming - Director
Nationality: Taiwan
2/F
No. 31, Hseong Yang Road
Taipei
Taiwan
Personal ID: P154805(4)

CHEN Jiann Min - Former Director
Nationality: Taiwan
17/F, No. 5, Lane 669
Tun Hwa S. Road
Taipei
Taiwan
Passport ID: M9646663
09.04.2008 (due to resignation)

Mr. Chen, Li Ming, Managing Director
Mr. Chen has over 20 years of experience in technology development and management in the footwear industry. He holda a Bachelor of Electrophysics degree from the National Chiao Tung Universtiy in Taiwan.He is responsible for overall and stations in Taiwan.

Ms. Cheung, Sandy, Manager
Ms. Cheung is active in subject's daily operation.

Management Assessment

Subject is a relatively small entity. There is simple division of management functions and responsibilities. One or two key figures are responsible for overall management.

 

 

 

ACTIVITY

 

NATURE OF BUSINESS:          Services

 

NACE:                                     1520 Manufacture of footwear

 

Main products:                          Shoes for men & ladies

 

 

Manufacturing:                          no own manufacturing in Hong Kong

 

 

 

Activity comment:                     Subject provides the documentary services to subject's group. Subject's group is a manufacturer and exporter of shoes for men's and ladies’. Materials are sourced from the United States, Italy, South East Asia, Korea, as well as PR China. The finished goods are exported to the United States and Europe.

Subject is a related company but not the subsidiary of the Stella International Holdings Ltd, which is a listed company in SEHK at 06.07.2007 with stock number 1836.


Basic traffic of phone calls, deliveries of documents, visitor indicates that subject is performing barely adequate level of daily business activities with little functional divisions and business structures. Operations are observed to be simply organized with minimal number of staff.

 

 

                                               

Manufacturing in PR China:

Number of staff:800
Location:Dongguan
Type:own

 

 

 

MARKETS

                               
United States, Europe
Payment terms:
L/C (letter of credit)
T/T
O/A (open account) 30-60 days

 

 

 

 

PURCHASES


PR China
Payment terms:
L/C (letter of credit)
O/A (open account)

United States, Korea, Republic of, South East Asia, Italy
Payment terms:
L/C (letter of credit)
T/T
O/A (open account) 30 days

 

 

 

 

PREMISES

 

Address:                        Room 1303-1305, 13/F, Union Park Centre
771-775 Nathan Road
Mongkok
Hong Kong

Type of premises:            office premises

Type of ownership:          Premises are rented

Area:                              Commercial

Condition:                       reasonable

Equipment:                     Properly equipped and maintained

Note:                              premises are shared with related concern

 

 

 

STAFF:

Total staff: 819

Staff in Hong Kong: 19

Staff in PR China: 800

Staff in group: 25,306

 

 

 

IMPORTANCE:          Small Company

 

 

 

 

AFFILIATION

 

Related company:      

Stella International Holdings Ltd
Rm 1301-1305, 13/F, Union Park Centre
771-775 Nathan Rd
Mong Kok
Hong Kong

Founded: 11.05.2007
Legal form: Overseas company
Comp.Reg.Num: F0015266
HK StockExchange (SEHK) Num: 1836

                                  

Related company:      

Stella International Ltd
Room 1303-05, Union Park Centre
771-775 Nathan Road
Mongkok
Kowloon
Hong Kong

Founded: 1963
Legal form: Private Limited Company
Comp.Reg.Num: 008873
Bus.Reg.Cert.Num: 01896856
Registration date: 29.05.1963
ACTIVITY: Manufacturer & Exporter
Main Products: Shoes (for men's and ladies)
Staff: 12 in Hong Kong
Paid-up capital: HKD 20,000.00
Financial situation: In liqidation
Payments: Few isolated complaints
Litigation records: not clear, but irrelevant
CREDIT SCORE: 0 (as of 21.02.2007)

 

 

 

 

FINANCE

 

 

Financial situation:     Modest but ordered

 

Status of company:    Properly run

 

Business trends:        Stagnant

 

 

Direct interview:          Ms Sandy Cheung, Accountant, 13.08.2008

 

 

 

Financial data source:   Declined to disclose any information

 

 

 

 

Financial data

 

Amounts shown in Hong Kong Dollar (HKD) Thousand 

                                

                                 31.03.2003                31.03.2002                31.03.2001                31.03.2000

Turnover                     35,000.00                  34,000.00                  37,000.00                  38,000.00

Gross Profit               7,000.00                   7,000.00                                                    

Stocks                      100.00                      100.00                      150.00                      100.00

Accounts receivable    2,200.00                   2,000.00                   2,000.00                   1,500.00

Trade creditors           1,500.00                   1,500.00                                                    


Ms Cheung declined to disclose any information according to their company policy set up by their directors. According to the litigation record, subject should has no problem concerning payments with vendors and supplies.

The total production costs increase substantially due to rise in labour cost, materials and components price which resulted from high oil prices and a buoyant Chinese economy together with the continuous appreciation of Renminbi during 2007. These entire factors combined to exert considerable pressure on the production costs and therefore undermining profit margins.

Subject has paid-up capital of HKD 10,000, which is considered to be minimal. This may indicates that management has limited commitment to subject.




Ratios

                                                                        31.03.2003      31.03.2002      31.03.2001      31.03.2000

Receivables turnover (times)

Turnover / Accounts Receivable                         15.91              17                   18.50              25.33

 

Gross Profit (%)                                                20                   20.59              -                     -

 

 

Charges:                      None in current years

 

 

 

Bankers:                   The Bank of Taiwan

 

 

Payments:                Payments are made according to terms

 

 

 

Litigation records:    clear on subject: clear

 

 

 

Insolvency Information:   According to available information sources the company is not in a insolvency/Preliminary/debt regulation proceeding.

 

 

 

Negative file check:    clear

 

 

 

Company comment:

Subject is considered good for limited credit. Normal business is carried out with necessary resources. Subject is capable of meeting usual daily commitments. But it is sensitive to unfavorable conditions which may cause financial difficulties. Unsecured credit should only be granted in small amount with regular monitoring

.

 

Company Assessment:

Medium risk

 

 

 

INDUSTRIAL STATISTICS

Industry Feature

Industry Data of Hong Kong Footwear Industry

Performance of Hong Kong's Exports of Footwear

(HK$ Billion)

2004

2005

2006

Value

Growth %

Value

Growth %

Value

Growth %

Domestic Exports

0.093

+6

0.039

-58

0.057

+47

Re-exports

44.297

-1

47.750

+8

46.737

-2

of China-origin

42.577

-1

46.060

+8

44.884

-3

Total Exports

44.390

-1

47.789

+8

46.794

-2

 

 

By Markets

2004

2005

2006

Share%

Growth%

Share%

Growth%

Share%

Growth%

US

49.3

-3

46.0

+1

45.2

-4

EU (15)

15.1

-3

20.6

+47

19.7

-6

United Kingdom

3.8

-1

5.1

+45

5.0

-5

Netherlands

2.9

-7

2.9

+7

2.8

-3

Germany

2.2

*

3.8

+84

2.9

-26

Italy

1.8

+12

2.8

+69

2.7

-8

Japan

12.0

-5

11.1

-1

10.7

-5

Canada

4.1

+8

3.7

-2

3.9

+4

Chinese Mainland

3.8

+30

3.8

+8

4.8

+22

Australia

2.5

+7

2.4

+2

2.6

+7

Taiwan

2.1

+9

1.8

-9

1.9

+3

 

 

 

 

 

Macro Economic Indicator - Hong Kong

(USD billions)

2003

2004

2005

2006

2007 (f)

2008 (f)

Economic growth (%)

3.2

8.6

7.5

6.9

5.6

5.3

Inflation (%)

-1.9

0.3

1.4

2.3

3.0

3.1

Public sector balance (%GDP)

-3.3

1.7

1.0

2.7

2.7

3.0

Exports

224.7

260.3

289.5

317.6

343.3

381.9

Imports

230.4

269.6

297.2

331.7

362.6

400.2

Trade balance

-5.8

-9.3

-7.6

-1.4

-2.0

-1.8

Current account balance

16.5

15.7

20.2

20.2

20.1

24.6

Current account balance (%GDP)

10.4%

9.5%

11.4%

10.6%

9.9%

11.1%

Foreign debt

37.8%

41.0%

40.7%

38.0%

36.3%

35.4%

Debt service (%Exports)

1.8%

2.1%

2.2%

2.3%

2.1%

2.0%

Currency reserves (import months)

4.8

4.2

3.7

3.4

3.2

3.0

(e)estimate (f)forecast

 

 


COUNTRY RATING (Hong Kong)

Rating : A1

The steady political and economic environment has positive effects on an
already good payment record of companies.Very weak default probability.

For further information of country rating and payment experience such as
Assets – weaknesses – risk outlook; Industries overview; Insolvency trend;
Means of payment and collection methods; and Non payment index,
please visit our group’s official homepage at www.cofacerating.com or go
directly to your interest at www.cofacerating.com/anglais/home/Country.html

 

 


Please contact our customer service at (852) 2378-8900 or customer_service@cofaceservices-gcn.com for any questions.

 

 


Strictly confidential - for your exclusive use. This report is furnished upon your request and is subject to the business terms of Coface Greater China Services Ltd. Its contents must be treated in the strictest confidence. Although the data has been obtained in good faith from sources deemed reliable as of this date, the correctness of these information cannot be guaranteed.

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.42.67

UK Pound

1

Rs.80.92

Euro

1

Rs.63.71

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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