MIRA
INFORM REPORT
|
Report Date : |
08.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HIGHSCENE LTD. |
|
|
|
|
Registered Office : |
Block A, 6/F. - 7/F., Eastern Sea Industrial Building, 29-39
Kwai Cheong Road, Kwai Chung, New Territories |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
01.02.1985 |
|
|
|
|
Com. Reg. No.: |
9561257 |
|
|
|
|
Legal Form : |
Private Limited Company. |
|
|
|
|
Line of Business : |
Importer and Wholesaler of Raw yarns. |
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 : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exists |
name of the company
HIGHSCENE LTD.
ADDRESS
Block A, 6/F. - 7/F., Eastern Sea Industrial Building, 29-39 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.
PHONE: 2421 9368, 2619 1776, 2426 2180
FAX: 2481 1497, 2619 1567
E-MAIL: sales@fshl.com
hs_sales@hs_fshl.com
(Your enquiry given as: HIGH SCENE LTD of the same address.)
MANAGEMENT
Group Chairman & Managing Director: Mr. Ha Chung Fong
SUMMARY
Incorporated on: 1st February, 1985.
Organization: Private Limited Company.
Capital: Nominal: HK$3,000,000.00
Issued: HK$3,000,000.00
Business Category: Yarn Trader.
Group Revenue: HK$7,022,991,000 (Year ended 31-08-2007)
Group Employees: Approx. 21,500. (As at 29-02-2008)
Main Dealing Bankers: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Bank of China (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
ADDRESS
Registered Office:-
Block A, 7/F., Eastern Sea Industrial Building, 29-39 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.
Head Office:-
Block A, 6/F., Eastern Sea Industrial Building, 29-39 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.
Holding Company:-
King Wave Ltd., Hong Kong.
Ultimate Holding
Company:-
Fountain Set (Holdings) Ltd., Hong Kong.
Affiliated
Companies:-
Fountain Set Group
of Companies
Dongguan Fuan Textiles Ltd., PRC.
Dongguan Fuquan Garment Co. Ltd., PRC.
Dongguan Fuyuen Garment Ltd., PRC.
Dongguan Shatin Lake Side Textiles Printing & Dyeing Co. Ltd., PRC.
Folktune Ltd., Hong Kong.
Fountain Set Ltd., Hong Kong.
Fountain Set Textiles (B.C.) Ltd., Canada.
Fountain Set Textiles (Ontario) Ltd., Canada.
Goldlink Thread Ltd., Hong Kong.
Hiway Textiles Ltd., Hong Kong.
Hoopeston Ltd., Hong Kong.
Jiangyin Fuhui Textiles Ltd., PRC.
Jiangyin Jintian Machinery Ltd., PRC.
Kaiping Hui Hua Textiles Ltd., PRC.
Lake Side Printing Factory Ltd., Hong Kong.
Ocean Lanka (Private) Ltd., Sri Lanka.
Ocean Yam Dyeing Factory Ltd., Hong Kong.
Prosperlink (Macao Commercial Offshore) Ltd., Macao.
Simking Development Ltd., Hong Kong.
Triumph Luck Ltd., Hong Kong.
etc.
BUSINESS REGISTRATION NUMBER
9561257
COMPANY FILE NUMBER
146739
MANAGEMENT
Group Chairman & Managing Director: Mr. Ha Chung Fong
Director & Group General Manager: Mr. Lau Hong Yon
CAPITAL
Nominal Share Capital: HK$3,000,000.00 (Divided into 3,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,000,000.00
SHAREHOLDERS
(As per registry
dated 01-02-2008)
|
Name |
|
No. of shares |
|
King Wave Ltd., Hong Kong. |
|
2,999,999 |
|
Fountain Set Ltd., Hong Kong. |
|
1 |
|
|
|
–––––––– |
|
|
Total: |
3,000,000 ======= |
DIRECTORS
(As per registry
dated 16-06-2008)
|
Name (Nationality) |
Address |
|
Gordon YEN |
6B, La Clare Mansion, 92 Pok Fu Lam Road, Hong Kong. |
|
LAU Hong Yon (British) |
Flat F2, 27/F., Block F, Beverly Hill, 6 Broadwood Road, Happy Valley, Hong Kong. |
|
HA Chung Fong (British HK) |
7 Stafford Road, Kowloon Tong, Kowloon, Hong Kong. |
SECRETARY
(As per registry
dated 01-02-2008)
|
Name |
Address |
|
WONG Kin Man |
Room G, 45/F., Block 9, Ocean Shores, Tseung Kwan O, New Territories, Hong Kong. |
HISTORY
The subject was incorporated on 1st February, 1985 as a private limited liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer and Wholesaler.
Lines: Raw yarns.
Group Employees: Approx. 21,500. (As at 29-02-2008)
Commodities Handled: Imported from China, India, Pakistan, Taiwan, Korea, etc.
Markets: Hong Kong, China and Southeast Asia.
Group Revenue:-
HK$5,546,447,000 (Year ended 31-08-2003)
HK$6,773,986,000 (Year ended 31-08-2004)
HK$6,636,298,000 (Year ended 31-08-2005)
HK$7,134,788,000 (Year ended 31-08-2006)
HK$7,022,991,000 (Year ended 31-08-2007)
HK$2,976,417,000 (6 months ended 28-02-2007) – Unaudited
HK$3,074,168,000 (6 months ended 29-02-2008) – Unaudited
Terms/Sales: 30-60 days credit, COD or L/C.
Terms/Buying: As per contracted.
FINANCIAL INFORMATION
Nominal Share Capital: HK$3,000,000.00 (Divided into 3,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,000,000.00
Alternation of Capital:-
|
01-02-1985 |
paid up |
HK$ 2.00 |
|
23-03-1985 |
paid up |
HK$ 2,999,998.00 |
|
|
|
––––––––––––––– |
|
Total: |
paid up |
HK$ 3,000,000.00 ============== |
Increase of Nominal Capital:-
|
From |
HK$10,000.00 |
to |
HK$3,000,000.00 |
on |
23-03-1985 |
Group Net Profit/(Loss):-
HK$380,099,000 (Year ended 31-08-2003)
HK$217,693,000 (Year ended 31-08-2004)
HK$200,087,000 (Year ended 31-08-2005)
HK$347,088,000 (Year ended 31-08-2006)
HK$212,310,000 (Year ended 31-08-2007)
HK$ 78,620,000 (6 months ended 28-02-2007) – Unaudited
(HK$382,489,000) (6 months ended 29-02-2008) – Unaudited
Group Net Worth: HK$2,398,112,000 (As at 31-08-2003)
HK$2,499,971,000 (As at 31-08-2004)
HK$2,585,803,000 (As at 31-08-2005)
HK$2,798,315,000 (As at 31-08-2006)
HK$2,865,660,000 (As at 31-08-2007)
HK$2,441,273,000 (As at 29-02-2008) – Unaudited
Profit & Loss: Group made a loss in 2008.
Condition: Keeping in an active and satisfactory manner.
Facilities: Making active use of banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Bank of China (Hong Kong) Ltd., Hong Kong.
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Good.
GENERAL
Highscene Ltd. [Highscene] is a wholly-owned subsidiary of King Wave Ltd. which is in turn a subsidiary of Fountain Set (Holdings) Ltd. [Fountain Set], a listed company which is the holding company of a leading textile finishing group in Hong Kong.
The Fountain Set Group is principally engaged in the manufacturing and sales of finished knitted fabrics, sewing threads and dyed yarns. It also provides knitting, dyeing, printing and finishing services and is engaged in the trading of raw yarns and garments. Fountain Set is one of the world’s largest circular knit manufacturers with highly vertically-integrated operations, encompassing yarn spinning fabric, knitting yarn and fabric, dyeing, and fabric printing. The Group has operation facilities in Hong Kong, China, Sri Lanka, Canada and Malaysia.
The Group is a major fabric supplier to garment manufacturers in over 20 countries with the United States, Europe and Japan as the major markets. The Group was founded in 1969 as a commission dye house founded in 1969 by Mr. Ha Chung Fong and his partners in Hong Kong with just over twenty workers and an annual fabric dyeing and finishing capacity of less than 2 million pounds. The Group has since grown into one of the leading manufacturers and suppliers of knitted fabrics in the world. The shares of Fountain Set were listed on The Stock Exchange of Hong Kong Ltd. in 1988.
Highscene, a member of the Fountain Set Group, is responsible for the sourcing and trading of raw yarns.
In December 1995, ex-Vice Chairman and Deputy Managing Director Mr. Choi Kin Chung sold all his shares at HK$1.50 to the Chairman, Mr. Ha Chung Fong and associated companies of SHK Hong Kong Industries Ltd., Value Partners Ltd. and The Goldman Sachs Group, L.P. in order that a restructuring could proceed. The transaction triggered a general offer to minority shareholders. As a result, Mr. Ha Chung Fong increased his stake from 25.6% to about 40% of Fountain Set. In 1996, SHK Industries sold out its entire holding in Fountain Set.
Under the new structure, Value Partners Ltd. and Goldman Sachs became new shareholders of Fountain Set. These two institutional investors have extensive connections and are experts in the financial market. Their involvement is clear evidence of their confidence in out long term growth prospects.
Since November 1996, the Group has further expanded its business to the sale of garments through the acquisition of a garment trading firm, K.L.W. Ltd. In 1997, the Group reached an agreement with Dongguan Cotton Textile Co. Ltd. to lease production facilities to manufacture yarn for the Group for a period of seven and a half years. This arrangement, together with the processing arrangement with Kai Ping Ping Da Cotton Spinning Enterprises Co. Ltd., Guangdong, would secure the Group a significant portion of yarn supply.
The Group decided to relocate the remaining production facilities for fabric dyeing, printing and yarn dyeing in Hong Kong by phases to Dongguan, Guangdong, China. A new factory was built in Shatian Town, Dongguan City, Guangdong Province, China. The Group has had relocated all the production lines from Hong Kong to Guangdong Province, China by December 1998.
Kai Ping Ping Da Cotton and Dongguan Cotton both received ISO 9002 certification in 1998.
The Group’s turnover for the year ended 31st August, 2007 was HK$7,023.0 million, representing a decrease of 1.6% as compared with HK$7,134.8 million of previous year. Of the total sales turnover in FY 2007, the sales of dyed fabrics, sewing threads and yarns accounted for HK$6,271.5 million, representing 89.3% of the total sales. The Group’s profit for the year was HK$212.3 million, representing a decrease of 38.8% as compared with HK$347.1 million of the previous year.
However, the Group will suffer from a great loss in FY 2008. In the 6 months ended 29th February, 2008, the Group’s loss was HK$382.5 million. The Group has been facing a difficult time in the years ahead.
On the whole, in view of Highscene’s parentage, consider it good for normal business engagements.
REMARKS
Brief information of the directors:-
Mr. HA Chung Fong (Chairman and Managing Director, Founder of the Group, Director of various subsidiaries of the Group Chairman of the Board), aged 69, has extensive experience in the dyeing and knitting industries. Mr. Ha is Honourary Life Chairman of Textiles and Clothing Industry Association of Kai Ping City and Honourable Chairman of The Hong Kong General Chamber of Textiles Ltd. He has been accredited as Honourary Citizen of Dongguan City, Kai Ping City, Enping City and Xinhui City in the PRC. In 2004, Mr. Ha was named as Honourable Professor by Xi’an University of Engineering Science & Technology, the PRC. He also served on various trade, industrial and educational advisory panels in Hong Kong. Mr. Ha is the father-in-law of Dr. Gordon Yen.
Mr. LAU Hong Yon (Executive Director, Director of various subsidiaries of the Group Board Member), aged 58, is responsible for the overall management and development of Ocean Lanka (Private) Ltd. Mr. Lau joined the Group’s accounting department in 1984 and was promoted to Group Financial Controller in 1990. He was then promoted to his current position in 1996, responsible for the Group’s financial management and general planning before taking up his current responsibility in 2006. Mr. Lau holds a Master degree in Business Analysis and a Bachelor of Science Degree in Economics from Lancaster University, UK and University of Salford, UK respectively. Mr. Lau held senior information technology and accounting positions in various companies in Hong Kong prior to joining the Group.
Dr. Gordon YEN (Executive Director, Director of various subsidiaries of the Group Board Member), aged 37, is responsible for business development and corporate planning of the Group. Dr. Yen joined the Group in 1999 as the Assistant to Chairman and was promoted to his current position in 2004. He is the Chairman of The Hong Kong Association of Textile Bleachers, Dyers, Printers and Finishers; a Vice Chairman of Textile Council of Hong Kong; an Executive Vice Chairman of The Hong Kong General Chamber of Textiles; a Vice Director General of China Knitting Industry Association; a Director of The Hong Kong Research Institute of Textiles and Apparel Limited; a Director of GS1 HK Ltd; a Director of Hong Kong Chiu Chow Chamber of Commerce; a member of the General Committee of The Chamber of Hong Kong Listed Companies; an Honorary Advisor of The Vocational Training Council and an Election Committee – Member (Textiles & Garment Subsector) of HKSAR Electoral Affairs Commission. Dr. Yen is also an Independent Non-executive Director of Hopewell Highway Infrastructure Ltd., a Hong Kong listed company. He holds a Bachelor degree in Manufacturing Engineering from Boston University, USA; a Master degree in Business Administration from McGill University, Canada and a Doctorate degree in Business Administration from The Hong Kong Polytechnic University. Prior to joining the Group, Dr. Yen has extensive infrastructure project development and financing experience.
Court case record of the Group:-
|
Date |
Plaintiff |
Defendant |
Cause |
Amount |
|
Nov. 1997 |
Spider Knitters Ltd. |
Fountain Set (Holdings) Ltd. and Fountain Set Ltd. |
Damages |
Not stated |
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.22 |
|
UK Pound |
1 |
Rs.75.03 |
|
Euro |
1 |
Rs.63.14 |
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%)