MIRA INFORM REPORT

 

 

Report Date :

03.04.2012

 

IDENTIFICATION DETAILS

 

Name :

L.K.  MACHINERY  INTERNATIONAL  LTD.

 

 

Registered Office :

Unit A, 8/F., Mai Wah Industrial Building, 1-7 Wah Sing Street, Kwai Chung, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

03.11.2004

 

 

Com. Reg. No.:

37649596

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer and Exporter of Microprocessor controlled hot chamber die-casting machines, microprocessor controlled cold chamber die-casting machines, plastic injection moulding machines, plastic processing machinery and equipment, metal working machinery and equipment.

 

 

No. of Employees :

4,100 Approximately

 

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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 and address

 

L.K.  MACHINERY  INTERNATIONAL  LTD.

 

 

ADDRESS:       Unit A, 8/F., Mai Wah Industrial Building, 1-7 Wah Sing Street, Kwai Chung, New Territories, Hong Kong.

 

PHONE:            3412 5500,  3412 5592

 

FAX:                 3412 5511

 

E-MAIL:                        sales@lkmachinery.com.hk

inquiry@lktechnolgy.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Chung Yuk Ming

 

 

SUMMARY

 

Incorporated on:             3rd November, 2004.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$20,000,000.00

Issued:              HK$10,000,000.00

 

Business Category:        Sale of Die-Casting Machines and Plastic Injection Moulding Machines.

 

Group Revenue:             HK$2,602,564,000  (Year ended 31-03-2011)

 

Group Employees:         Approx. 4,100.  (As at 30-09-2011)

 

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

 

Banking Relation:           Good.


ADDRESS

 

Registered Head Office:-

Unit A, 8/F., Mai Wah Industrial Building, 1-7 Wah Sing Street, Kwai Chung, New Territories, Hong Kong.

 

Immediate Holding Company:-

Sky River International Ltd., British Virgin Islands.

 

Intermediate Holding Company:-

L.K. Technology Holdings Ltd., Cayman Islands/Hong Kong.

 

Ultimate Holding Company:-

Girgio Industries Ltd., British Virgin Islands.

 

Associated & Affiliated Companies:-

LK Group of Companies

Best Truth Enterprises Ltd., British Virgin Islands.

Chongqing L.K. Machinery Co. Ltd., China.

Cyberbay Pte. Ltd., Singapore.

Fuxin L.K. Northern Machinery Co. Ltd., China.

Fuxin Lida Steel Casting Co. Ltd., China.

Gold Millennium Ltd., British Virgin Islands.

Gold Progress Ltd., Hong Kong.

Idra S.r.l., Italy.

L.K. Machinery (Shenzhen) Co. Ltd., China.

L.K. Machinery Co. Ltd., Hong Kong.

L.K. Machinery Corporation, Taiwan.

L.K. Machinery Inc., USA.

L.K. Precision Machinery (Kunshan) Co. Ltd., China.

L.K. Tech (Tianjin) Co. Ltd., China.

Lucky Prosper Ltd., Hong Kong.

Ningbo L.K. Machinery Co. Ltd., China.

Ningbo L.K. Technology Co. Ltd., China.

Power Excel International Ltd., Hong Kong.

Shanghai Atech Machinery Co. Ltd., China.

Shenzhen Leadwell Technology Co. Ltd., China.

Zhongshan L.K. Machinery Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

37649596

 

 

COMPANY FILE NUMBER

 

0931438

MANAGEMENT

 

Group Chairperson:  Ms. Chong Siw Yin

Managing Director:  Mr. Chung Yuk Ming

 

 

CAPITAL

 

Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$10,000,000.00

 

 

SHAREHOLDER  

(As per registry dated 03-11-2011)

 

Name

 

No. of shares

Sky River International Ltd.

P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

 

10,000,000

========

 

 

DIRECTORS

(As per registry dated 01-03-2012)

 

Name

(Nationality)

 

Address

CHONG Siw Yin

House K, Lakeview Garden, 21 Yau On Street, Shatin, New Territories, Hong Kong.

 

CHUNG Yuk Ming

Flat E, 46/F., Block 8, East Point City, Tseung Kwan O, New Territories, Hong Kong.

 

CHAN Kwok Keung

Room 11, 5/F., Southern Garden, 2 O’Brien Road, Wanchai, Hong Kong.

 

FUNG Chi Yuen

Flat E, 22/F., Tower 2, Tierra Verde, Tsing Yi, New Territories, Hong Kong.

 

LIU Zhuo Ming

House K, Lakeview Garden, 21 Yau On Street, Shatin, New Territories, Hong Kong.

 


SECRETARY

(As per registry dated 03-11-2011)

 

Name

Address

WONG Kin Ming

Flat D, 35/F., Tower 6, Sky Tower, 38 Sung Wong Toi Road, Tokwawan, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 3rd November, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of L.K. Technology Holdings Ltd., name changed to LKM (Hong Kong) Ltd. on 15th September, 2006 and further to the present style on 23rd January, 2007.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Manufacturer and Exporter.

 

Lines:                           Microprocessor controlled hot chamber die-casting machines, microprocessor controlled cold chamber die-casting machines, plastic injection moulding machines, plastic processing machinery and equipment, metal working machinery and equipment.

 

Trade Marks:                 L.K.” and “POTENZA

 

Total Floor Space:          1,300 sq.m. – owned by the company and the Group.

 

Group Employees:         Approx. 4,100.  (As at 30-09-2011)

 

Raw Materials:               Imported from Japan, Germany, Sweden, etc. and also bought in Hong Kong.

 

Markets:                       Europe, US, Canada, Australia, Hong Kong, China, Taiwan, Japan, Thailand, Indonesia, etc.

 

Group Revenue:-

HK$   969,375,000  (Year ended 31-03-2007)

HK$1,261,972,000  (Year ended 31-03-2008)

HK$1,192,487,000  (Year ended 31-03-2009)

HK$1,408,364,000  (Year ended 31-03-2010)

HK$2,602,564,000  (Year ended 31-03-2011)

HK$1,239,037,000  (6 months ended 30-09-2010) ‑ Unaudited

HK$1,675,963,000  (6 months ended 30-09-2011) ‑ Unaudited

 

Terms/Sales:                 L/C or as per contracted.

 

Terms/Buying:               Various terms.

 

MEMBERSHIP

 

Hong Kong Critical Components Manufacturers Association, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000,000.00

 

Alternation of Capital:-

03-11-2004

paid up

HK$      1.00

09-05-2011

paid up

HK$      9,999,999.00

 

 

––––––––––––––––

Total:

paid up

HK$      10,000,000.00

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

 

Increase of Nominal Capital:-

From

HK$10,000.00

to

HK$20,000,000.00

on

09-05-2011

 

Mortgage or Charge:-

 

Date of  Assignment of DC Proceeds:  23-12-2010

 

Amount:                        All loans or other advances made or to be made by the Bank to the Customer against documents submitted under a Documentary Credit, all monies and liabilities in any currency owing by the Customer to the Bank at any time, whether separately or jointly, actually or contingently, present or future, interest on all loans and advances and such monies and all expenses of the Bank in perfecting or enforcing the Assignment

 

Property:                       By way of assignment or agreement to assign in each case as beneficial owner.  All monies in any currency representing proceeds payable or to be paid to the Customer under the Documentary Credits, all the Customer’s right, title and interest in the said Documentary Credits and the benefit of all powers and remedies for enforcing the Documentary Credits

 

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

 

Group Net Profit/(Loss):-

HK$  60,275,000            (Year ended 31-03-2007)

HK$115,421,000            (Year ended 31-03-2008)

(HK$  52,213,000)          (Year ended 31-03-2009)

HK$    3,235,000            (Year ended 31-03-2010)

HK$259,138,000            (Year ended 31-03-2011)

HK$131,479,000            (6 months ended 30-09-2010) ‑ Unaudited

HK$146,588,000            (6 months ended 30-09-2011) ‑ Unaudited

 

Profit or Loss:                Operation is profitable since FY2010.

 

Condition:                      Business is active.

 

Facilities:                       Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

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

The Bank of East Asia Ltd., Hong Kong.

Hang Seng Bank Ltd., Hong Kong.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

The Bank of Tokyo-Mitsubishi UFJ Ltd., Hong Kong Branch.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

DBS Bank (Hong Kong) Ltd., Hong Kong.

Public Bank (Hong Kong) Ltd., Hong Kong.

 

Standing:                      Good.

 

 

GENERAL

 

L.K. Machinery International Ltd. is a wholly-owned subsidiary of Sky River International Ltd. [Sky River] which is a BVI-registered firm.  In turn, Sky River is a wholly-owned subsidiary of L.K. Technology Holdings Ltd. [LKTH], a Cayman Islands-registered firm.

LKTH is a listed firm in Hong Kong.  Its shares have been listed on The Stock Exchange of Hong Kong Ltd. bearing stock code 558 since 16th October, 2006.  LKTH is an investment holding company of the LK Group.

The LK Group is principally engaged in designing, manufacturing and marketing hot chamber and cold chamber die-casting machines and plastic injection moulding machines.  The products of the Group are sold mainly to the manufacturers of different industries in China.  The Group’s products featuring 80 different models in 15 series under three major product categories.  Die-casting machines are used for the die-casting of non-ferrous molten metals into different types of metallic consumer and industrial products such as automotive parts and components, computer, communication and consumer products, and household electrical products.

The subject is engaged in marketing die-casting machines and plastic injection moulding machines.  Prime markets are Hong Kong, China, and other Asian countries.

For the year ended 31st March, 2010, the sales of the LK Group amounted to HK$2,602.6 million, grew by 84.8% as compared with HK$1,408.4 million in FY 2010; profit for the year was HK$259.1 million, grew substantially as compared with HK$3.2 million in FY 2010.

During the FY 2011, with the continuing strong growth in macro economy in the PRC, the Group’s revenue from the PRC reached HK$2,000,000,000 for the first time to HK$2,065,388,000, demonstrating an increase of over 77% as compared to the corresponding period last year.  Although the overall recovery of European and the US economy remained slow, the performance of Idra S.r.l. [Idra] in the European market showed improvement, the delivery of General Motors’ order in the United States and the outstanding performance in the emerging market doubled the Group’s revenue among the European, North American and the emerging market.  The Group’s revenue from overseas markets for the year amounted to HK$537,176,000, representing a remarkable increase of approximately 123% as compared to HK$240,399,000 in the corresponding period previous year.

For the six months ended 30th September, 2011 [First Half Year], following the business growth momentum of last year, the Group achieved a new record in its revenue and profits.  Revenue was HK$1,675,963,000, representing an increase of approximately 35% as compared to HK$1,239,037,000 of the corresponding period of previous year.  Profit attributable to the owners of the Group amounted to HK$150,228,000, representing an increase of approximately 13% as compared to the profit of HK$132,905,000 of the corresponding period last year.  The smaller increase in net profit than revenue was mainly due to the change of product mix, and the rapid growth of the relatively low margin business of the computerised numerical controlled [CNC] machines which contributed a substantial rise in revenue.

During the First Half Year, to tackle the soaring inflation in China, the PRC government implemented tight monetary policies, as a result, many small-to-medium size companies are incapable to invest in equipment due to failure in securing bank facilities.  Meanwhile, the deteriorating European debt crisis and the prolonging weak US economy fetched another disaster to those export-oriented companies.  Despite the volatile external environment and the austerity macro-economic measures imposed by China, the Group implemented timely adjustment to its strategies and captured opportunities arising from the blooming development of the consumer goods like smart phones and tablet personal computers.  Besides, keeping abreast of the market trend of using automatic equipment by the manufacturers, the Group placed large effort in promoting its CNC machines, plastic injection moulding machines and large tonnage automatic diecasting machine cells, resulting to an increase in the revenue of these three core business sectors, namely die-casting machines, plastic injection moulding machines and CNC machines, and achieved a record performance.  The revenue of the Group burst the cap of HK$1,600,000,000 to HK$1,675,963,000 in the First Half Year, representing an increase of approximately 35% as compared to that of the corresponding period last year.  During the First Half Year, revenue from China realized the first-ever breakthrough of HK$1,400,000,000 to HK$1,444,160,000, up 38% as compared to that of corresponding period last year.  The improvement of Idra in both the European market and the emerging market albeit the overall sluggish recovery of the European economy, caused revenue from overseas market of the Group to reach HK$231,803,000, representing a growth of 19% over the corresponding period of previous year.

As at 30th September, 2011, the Group employed approximately 4,100 full time staff.

The subject is fully supported by the LK Group.

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

 

 

REMARKS

 

Brief information of directors:-

 

Ms. CHONG Siw Yin, aged 55, is the Chairperson of the Board and an Executive Director of LKTH.  Ms. Chong joined the Group in March 1988, and was appointed as an Executive Director in August 2004.  She is also a director of certain subsidiaries of LKTH.  Ms. Chong is responsible for the strategic planning, administration and human resources management of the Group and has over 23 years of management experience.

 

Mr. CHUNG Yuk Ming, aged 63, is an Executive Director of LKTH.  Mr. Chung joined the Group in February 2001 as a director of L.K. Machinery Co. Ltd.  He was appointed as an Executive Director in September 2004.  Mr. Chung is also a director of certain subsidiaries of LKTH.  He is responsible for the strategic planning, the finance and investment of the Group.  Mr. Chung has over 29 years of working experience in various sectors, including automobile, toys, electronics and telecommunication.  Before joining the Group, he was an executive director of Kader Holdings Co. Ltd., and Shougang Concord Grand (Group) Ltd. (previously known as Kader Investment Co. Ltd.), both of which are publicly listed companies in Hong Kong.  Mr. Chung holds a Master degree in Business Administration from the University of East Asia of Macau.  He is a fellow member of the Hong Kong Institute of Directors.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.15

UK Pound

1

Rs.81.80

Euro

1

Rs.68.34

 

 

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.