MIRA INFORM REPORT

 

 

Report Date :           

04.10.2011

 

IDENTIFICATION DETAILS

 

Name :

KAM  HING  PIECE  WORKS  LTD.

 

 

Registered Office :

 Unit 1-9, 8/F., Lucida Industrial Building, 43-47 Wang Lung Street, Tsuen Wan, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

21.08.1998

 

 

Com. Reg. No.:

21876814

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Fabric Trader

 

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 :

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 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Hong Kong

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

KAM  HING  PIECE  WORKS  LTD.

 

 

Company ADDRESS

 

Unit 1-9, 8/F., Lucida Industrial Building, 43-47 Wang Lung Street, Tsuen Wan, New Territories, Hong Kong.

PHONE:            2406 0080

FAX:                 2408 1891

E-MAIL:                        info@kamhingintl.com

cc-tai@kam-hing.com.hk

 

 

MANAGEMENT

 

Group Chairman & Managing Director:  Mr. Tai Chin Chun

 

 

SUMMARY

 

Incorporated on:             21st August, 1998.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$1,000,100.00

Issued:              HK$1,000,012.00

 

Business Category:        Fabric Trader.

 

Group Revenue:             HK$3,267,785,000  (Year ended 31-12-2010)

 

Group Employees:         6,848.  (As at 30-06-2011)

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Good.

COMPANY ADDRESs

 

Registered Head Office:-

Unit 1-9, 8/F., Lucida Industrial Building, 43-47 Wang Lung Street, Tsuen Wan, New Territories, Hong Kong.

 

Shipping Department:-

Unit 1-3, 12/F., Lucida Industrial Building, 43-47 Wang Lung Street, Tsuen Wan, New Territories, Hong Kong.

 

China Factory:-

Panyu District, Guangzhou City, Guangdong Province, China.

 

Holding Company:-

Joint Result Holdings Ltd., British Virgin Islands.

 

Ultimate Holding Company:-

Kam Hing International Holdings Ltd., Cayman Islands/Hong Kong.

 

Associated Companies:-

Kam Hing International Group of Companies

·         En Ping Kam Hing Textile & Dyeing Co. Ltd., China.

·         En Ping Kam Lap Textile & Dyeing Co. Ltd., China.

·         Guangxi Kam Hing Mining Co. Ltd., China.  [Dormant]

·         Guangzhou Gong Zhan Plastic Products Ltd., China.

·         Guangzhou Kam Yam Garment Design Co. Ltd., China.

·         Guangzhou Kamhing Textile Dyeing Co. Ltd., China.

·         Guangzhou Kwok Hing Garment Ltd., China.

·         Highkeen Enterprises Ltd., British Virgin Islands.

·         Hong Kong Wisco Guangxin Kam Wah Resources Ltd., Hong Kong.

·         Honghu Xing Ye Textile Co. Ltd., China.

·         Jiangmen Ying Hing Garment Co. Ltd., China.

·         Kam Hing Garment Madagascar, Madagascar.

·         Kam Hing Global Garment Co. Ltd., Hong Kong.

·         Kam Hing International Ltd., British Virgin Islands.

·         Kam Hing Korea Ltd., Korea.

·         Kam Hing Madagascar, Madagascar.

·         Kam Hing Mining Madagascar, Madagascar.  [Dormant]

·         Kam Hing Piece Works (S) Pte. Ltd., Singapore.

·         Kam Hing Piece Works Ltd., Hong Kong.

·         Kam Hing Textile (International) Ltd., Hong Kong.

·         Kam Hing Textile Macao Commercial Offshore Co. Ltd., Macau.

·         Kam Sing Textile & Dyeing Co. Ltd., China.

·         Kam Wing International Textile Co. Ltd., Hong Kong.

·         Madagascar Wisco Guangxin Kam Wah Resources S.A., Madagascar.

·         Sparkle Logistics Ltd., Hong Kong.

·         Strong View International Ltd., British Virgin Islands/Hong Kong.

·         Wisco Kam Hing Resources Ltd., Hong Kong.

etc.

 

BUSINESS REGISTRATION NUMBER

 

21876814

 

 

COMPANY FILE NUMBER

 

0652927

 

 

MANAGEMENT

 

Group Chairman & Managing Director:  Mr. Tai Chin Chun

Group Chief Executive Officer & Director:  Mr. Tai Chin Wen

 

 

CAPITAL

 

Nominal Share Capital: HK$1,000,100.00 (Divided into 2 Ordinary shares and 1,000,010 Non-voting Deferred shares of HK$1.00 each)

 

Issued Share Capital: HK$1,000,012.00

 

 

SHAREHOLDERS

(As per registry dated 21-08-2011)

 

Name

 

No. of shares

 

 


Ordinary

Non-voting Deferred

TAI Chin Chun

 

1

-

Joint Result Holdings Ltd.

P.O. Box 987, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

 

1

1,000,010

 

 

––

––––––––

 

Total:

2

=

1,000,010

=======

 

DIRECTORS

(As per registry dated 21-08-2011)

 

Name

(Nationality)

 

Address

TAI Chin Wen

Flat A, 11/F., Tower 10, Parc Royale, 8 Hin Tai Street, Shatin, New Territories, Hong Kong.

 

TAI Chin Chun

Flat A & B, 9/F., Block 1, The Great Hill, 8 Tung Lo Wan Hill Road, Shatin, New Territories, Hong Kong.

 

 

SECRETARY 

(As per registry dated 21-08-2011)

 

Name

Address

LEI Heong Man

Flat A2, 11/F., Coral Court, 116 Tin Hau Temple Road, North Point, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 21st August, 1998 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:                      Fabric Trader.

 

Lines:                           All kinds of finished fabrics (including cotton knit fabric, Jersey, Interlock, Terry, Jacquard,

Mesh, Drop needle, Auto Stripe fabric, etc.).

 

Group Employees:         6,848.  (As at 30-06-2011)

 

Commodities Imported:   India, Europe, Japan, other Asian countries, etc.

 

Markets:                       Hong Kong, Taiwan, South Korea, Singapore, Malaysia, Africa and America.

 

Group Revenue:-

·         HK$2,013,889,000  (Year ended 31-12-2006)

·         HK$2,230,764,000  (Year ended 31-12-2007)

·         HK$2,586,617,000  (Year ended 31-12-2008)

·         HK$2,523,245,000  (Year ended 31-12-2009)

·         HK$3,267,785,000  (Year ended 31-12-2010)

·         HK$1,505,557,000  (6 months ended 30-06-2010) – Unaudited

·         HK$1,917,036,000  (6 months ended 30-06-2011) – Unaudited

 

Terms/Sales:     As per contracted.

 

Terms/Buying:  Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:               HK$1,000,100.00 (Divided into 2 Ordinary shares and 1,000,010 Non-voting

Deferred shares of HK$1.00 each)

 

Issued Share Capital:                 HK$1,000,012.00

 

Group Net Profit:-

·         HK$101,147,000  (Year ended 31-12-2006)

·         HK$109,918,000  (Year ended 31-12-2007)

·         HK$  80,641,000  (Year ended 31-12-2008)

·         HK$  80,675,000  (Year ended 31-12-2009)

·         HK$104,383,000  (Year ended 31-12-2010)

·         HK$  48,590,000  (6 months ended 30-06-2010) – Unaudited

·         HK$102,033,000  (6 months ended 30-06-2011) – Unaudited

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in an active manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Good.

GENERAL

 

Kam Hing Piece Works Ltd. is a subsidiary of Joint Result Holdings Ltd. which is a BVI-registered firm.

The subject actually is a member of the Kam Hing International Group.

The Group is principally engaged in the manufacture and sale of finished knitted fabrics.  The Group’s merchandise was sold to various garment manufacturers, many of whom are suppliers to international fashion apparel brand operators that sell garment products to the consumers in the US and other countries.  Many of the Group’s products have been made into garments bearing international brands carried by companies such as Gap Inc., Target Corporation, May Department Stores, Eddie Bauer Inc., Associated Merchandising Corporation and Sears.  Apart from knitting and dyeing fabrics for its own sale, the Group has occasionally provided knitting and dyeing services for other fabric manufacturers.  The Group has vertically integrated its operations, which include marketing and sales, research and development, production processes, including knitting, fabrics dyeing and yarn dyeing, and final processes, such as setting and pre-shrinking.

The investment holding company of the Group is Kam Hing International Holdings Ltd. [KHIH] is registered in the Cayman Islands.  It is a public listed company with shares traded on the Stock Exchange of Hong Kong Ltd. bearing stock code 2307.

The subject is responsible for part of the Group’s provision of knitting and dyeing services and trading of finished fabrics.  Many of the Group’s customers are based in or have set up representative offices in Singapore.

KHIH was founded in 1996.  The manufacturing base is located in the Panyu district of Guangzhou City, Guangdong Province, China, with a facilities area of 226,000 sq.m.  To cope with the rising market demand, KHIH established a second fabric factory in Enping, Guangdong Province in China.  The Group also has established garment factories in Madagascar.  In 2008, a new spinning factory has been set up in Hubei Province in the PRC which further strengthen the vertically-integrated operations.  KHIH has several subsidiaries located in China, Hong Kong, Macau, Singapore, Madagascar and Korea.  Its finished products are distributed in Hong Kong, Macau, Southeast Asia, Europe, Japan, South Korea, Africa, the Americas, the South Pacific, South Asia, China and other countries.

KHIH was accredited with ISO 9001:2008 by the TUV Rhein CERT Certification Body in 2009.

2010 represented a focal development year, as the Group’s overall sales revenue and net profit exceeded HK$3,267.8 million and HK$104.4 million respectively in spite of challenges brought forth by the industry’s changing market sentiment and continuous cost pressures.  The increase of profit results was particularly encouraging as it acknowledged the Group’s ability to overcome external challenges whilst upholding its overall competitiveness in the market.

During the Year, the Group diligently safeguarded its strong business foundations and proactively adjusted its internal and external strategies to fortify its leadership status.  Recognizing the importance of a healthy financial position during times of uncertainty, the Group focused on sustaining stringent internal control and a well-managed cash flow system, as such preemptive preparations will assist it in achieving faster growth rebound during times of recovery and ultimately capture further market share in the long-run.

For the 6 months ended 30th June, 2011, the Group’s overall sales turnover increased by approximately 27.3% to HK$1,917.0 million (six months ended 30th June, 2010: HK$1,505.6 million).  Gross profit increased by approximately 33.5% to HK$331.2 million (six months ended 30th June, 2010: HK$248.0 million) and net profit after tax (before deduction of any non-controlling interests) jumped to approximately HK$102.0 million (six months ended 30th June, 2010: HK$48.6 million), representing a significant increase of approximately 109.9%.  Net profit attributable to ordinary equity holders of KHIH recorded a substantial increase of 92.7% to HK$95.4 million (six months ended 30th June, 2010: HK$49.5 million).  The impressive growth was mainly attributable to the effectiveness of the Group’s fabric business due to (i) the focused development and expansion of the Group’s distribution channel and network; and (ii) the lifting of the Group’s fabrics’ average selling prices.

The Group had 6,848 (31st December, 2010: 6,351) employees in the PRC, 3,751 (31st December, 2010: 2,344) employees in Madagascar and 180 (31st December, 2010: 171) employees in Hong Kong, Macau, Singapore and Korea as at 30th June, 2011.

The subject is fully supported by the Kam Hing International Group.

On the whole, consider the subject good for normal business engagements.

 

REMARKS:

 

Brief personal profile of the directors:-

Mr. TAI Chin Chun, aged 49, is the Chairman of the Board, an executive Director and founder of the Group.  He is in charge of the Group’s corporate strategy, planning and overall development.  He has more than 25 years of experience in the textile industry.  Mr. Tai conferred an Honorary Consulate of The Republic of Mauritius in Hong Kong Special Administration Region in January 2010.  Mr. Tai obtained the “World Outstanding Chinese Award 2008” from United World Chinese Association and conferred an Honorary Doctor Degree by The University of West Alabama (Regional University), USA.  Mr. Tai is an Executive Director of Guangdong Chamber of Foreign Investors, a member of Guangdong Committee of CPPCC and Panyu District Committee of CPPCC.  He is also a Vice Chairman and life honorary president of Pan Yue Industrial and Commercial Fellowship Association Ltd.  He has also been awarded honorary citizenship of Guangzhou Municipal, life honorary president of Fujian Tai’s Clan Hong Kong Association, Panyu Charity Federation, Guangzhou Municipal.  Mr. Tai is the younger brother of Mr. Tai Chin Wen.

Mr. TAI Chin Wen, aged 55, is an executive Director, the Chief Executive Officer and founder of the Group.  He is in charge of the Group’s day-to-day management.  He has over 25 years of management experience in the manufacturing industry.  Mr. Tai is a standing member of Hubei Committee of CPPCC and Guangdong Enping Committee of CPPCC, a member of the Fujian Nan An Committee of CPPCC and Jiangmen Committee of CPPCC.  He is a Vice Chairman of Hubei-Africa Business Council, Executive Director of Hubei Chinese Overseas Friendship Association, Vice Chairman of Guangdong Jiangmen City Association of Foreign Investment and President of Fujian Tai’s Clan Hong Kong Association.  He has also been awarded honorary citizenship of Guangzhou Municipal and Jiangmen, life honorary president of Hong Kong Fujian Nan An Association.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.42

UK Pound

1

Rs.76.72

Euro

1

Rs.65.85

 

 

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%)

 

 

 

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

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