MIRA INFORM REPORT

 

 

Report Date :           

06.09.2011

 

IDENTIFICATION DETAILS

 

Name :

H.D.LEE APPAREL LTD.

 

 

Registered Office :

No. 1 Sanba Industrial Development Zone, Baisha Town, Taishan City, Jiangmen, Guangdong Province 529200 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

20.10.1994

 

 

Com. Reg. No.:

440700400016510

 

 

Legal Form :

Wholly Foreign-Owned Enterprise

 

 

Line of Business :

manufacturing and selling various clothing, bags, shoes, caps, etc.

 

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

 

Maximum Credit Limit :

USD 1,000,000

Status :

Satisfactory

Payment Behaviour :

Usually Correct

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)

China

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name & address 

 Bottom of Form

 

H.D.Lee Apparel Ltd.

no. 1 sanba industrial development zone, baisha town

taishan city, jiangmen, guangdong province 529200 PR CHINA

TEL: 86 (0) 750-5866381

FAX: 86 (0) 750-5867815

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : october 20, 1994

REGISTRATION NO.                  : 440700400016510

LEGAL FORM                           : Wholly foreign-owned enterprise

CHIEF EXECUTIVE       : RYAN KIRK SMITH (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : usd 11,000,000

staff                                      : 900

BUSINESS CATEGORY             : manufacturing

Revenue                                : CNY 709,500,000 (AS OF DEC. 31, 2010)

EQUITIES                                 : CNY 237,320,000 (AS OF DEC. 31, 2010)

WEBSITE                                 : N/A

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

Recommended Credit Limit: UP TO USD 1,000,000

MARKET CONDITION                : COMPETITIVE

FINANCIAL CONDITION             : FAIRly good

OPERATIONAL TREND              : STEADY

GENERAL REPUTATION           : fairly good

EXCHANGE RATE                     : CNY 6.39 = USD 1

 

 

Adopted abbreviations

(as follows)

 

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

 

 

OPERATIONAL TREND & GENERAL REPUTATION

 

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

 

Operational Trend:-                                             General Reputation:-

Upward                                                             Excellent

Steady                                                              Good

Fairly Steady                                                     Fairly Good

Ordinary                                                            Average

Fair                                                                   Fair

Stagnant                                                           Detrimental

Downward                                                         Not known

Not known                                                         Not yet be determined

Not yet be determined

 

 

LEGAL STATUS & HISTORY

 

***Note: SC’s headquarters’ address should be the heading one, while SC’s Guangzhou Branch locates in the given address (22/F, East Tower, Yuexiu Neo-Metropolis, No. 232, Zhongshan Liu Road, Yuexiu District, Guangzhou, Guangdong)

 

SC was established as a wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 440700400016510 on October 20, 1994.

 

SC’s Organization Code Certificate No.: 61769109-1

SC’s registered capital: usd 11,000,000

 

SC’s paid-in capital: usd 11,000,000

 

SC’s Tax No.: 440781617691091

 

SC’s Customs Registration No.: 4407948241

 

Registration Change Record:

Date

Change of Contents

Before the change

After the change

2011

Shareholder’s Name

LEE FAR EAST LIMITED

VF Asia Pacific Jeanswear Limited

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

VF Asia Pacific Jeanswear Limited (Hong Kong)

100

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative and Chairman

RYAN KIRK SMITH

General Manager

Katie Wu

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                      % of Shareholding

 

VF Asia Pacific Jeanswear Limited (Hong Kong)                                       100

===================================

Date of Registration: March 22, 1994

Registration No.: 0470738

Legal Form: Private

Status: Live

 

 

MANAGEMENT

 

RYAN KIRK SMITH, Legal Representative and Chairman

-----------------------------------------------------------------------

Ø         Gender: M

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as legal representative and chairman

 

 

Katie Wu, General Manager

----------------------------------------

Ø         Gender: M

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as general manager

 

 

 

 

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing and selling various clothing, bags, shoes, caps, plastic doll, sunglasses, watches, headphones, belt, wallet and other leather products, and sports products, wholesale, retail and import and export business of various clothing, bags, shoes, caps, plastic doll, sunglasses, watches, belts, wallets, headphones.

 

SC is mainly engaged in manufacturing and selling various clothing, bags, shoes, caps, etc.

 

Brands: Lee, Wrangler, Hero.

 

SC’s products mainly include: Cowboy clothing, etc.

 

SC sources its materials 90% from domestic market, and 10% from overseas market, mainly Japan. SC sells 99% of its products in domestic market, and 1% to overseas market, mainly USA.

 

The import & export status of SC in 2010 is as follows,

Country

Amount of Exports (USD)

Amount of Imports (USD)

USA

40,000

--

Japan

--

41,000

 

-------------------

-------------------

Total Amount

40,000

41,000

 

The buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.

 

Staff & Office:

--------------------

SC is known to have approx. 900 staff at present.

 

SC owns an area as its operating office and factory, but the detailed information is unknown.

 

 

RELATED COMPANY

 

SC is known to have 19 branches at present:

=================================

¨     H.D.Lee Apparel Ltd. Beijing Branch

¨     H.D.Lee Apparel Ltd. Beijing No. 2 Branch

¨                       H.D.Lee Apparel Ltd. Beijing No. 3 Branch

¨     H.D.Lee Apparel Ltd. Beijing No. 4 Branch

¨     H.D.Lee Apparel Ltd. Beijing No. 5 Branch

¨     H.D.Lee Apparel Ltd. Beijing No. 6 Branch

¨                       H.D.Lee Apparel Ltd. Guangzhou Branch

Address: 22/F, East Tower, Yuexiu Neo-Metropolis, No. 232, Zhongshan Liu Road, Yuexiu District, Guangzhou, Guangdong (the given address)

¨     H.D.Lee Apparel Ltd. Shanghai Branch

¨     H.D.Lee Apparel Ltd. Shanghai No. 4 Branch

¨     H.D.Lee Apparel Ltd. Shanghai No. 6 Branch

¨                       H.D.Lee Apparel Ltd. Shanghai No. 7 Branch

¨                       H.D.Lee Apparel Ltd. Shanghai No. 8 Branch

¨                       H.D.Lee Apparel Ltd. Shanghai No. 9 Branch

¨     H.D.Lee Apparel Ltd. Shanghai No. 10 Branch

¨     H.D.Lee Apparel Ltd. Shenzhen Branch

¨     H.D.Lee Apparel Ltd. Zhongxin Branch

¨     H.D.Lee Apparel Ltd. Shenzhen Shopping Park Branch

¨     H.D.Lee Apparel Ltd. Shenzhen Hai’ancheng Branch

¨     H.D.Lee Apparel Ltd. Shunde Branch Factory

 

 

PAYMENT

 

Overall payment appraisal:

( ) Excellent      ( ) Good      (X) Average      ( ) Fair      ( ) Poor      ( ) Not yet be 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 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

 

The bank information of SC is not filed in SAIC.

 

 

FINANCIALS

 

Financial Summary

Unit: CNY’000

As of Dec. 31, 2010

Long term investment

0

Total assets

484,798

 

-------------

Long term liabilities

0

Total liabilities

247,478

Equities

237,320

 

-------------

Revenue

709,500

Profit before tax

152,972

Less: profit tax

37,011

Profits

115,961

 

Note: The detailed financials for Y2010 of SC are not available.

 

Important Ratios

=============

 

As of Dec. 31, 2010

*Liabilities to assets

0.51

*Net profit margin (%)

16.34

*Return on total assets (%)

23.92

* Revenue/Total assets

1.46

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIRLY GOOD

l         The turnover of SC appears fairly good.

l         SC’s net profit margin is fairly good.

l         SC’s return on total assets is fairly good.

 

LIQUIDITY: AVERAGE

l         SC’s revenue is in an average level, comparing with the size of its total assets.

 

LEVERAGE: AVERAGE

l         The debt ratio of SC is average.

l         The risk for SC to go bankrupt is average.

 

Overall financial condition of the SC: Fairly good.

 

 

CONCLUSIONS

 

SC is considered large-sized in its line with fairly good financial conditions. We consider a credit line at the above amount appears to be within SC’s capacities, and up to USD 1,000,000 is recommended.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.94

UK Pound

1

Rs.74.28

Euro

1

Rs.64.97

 

 

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.