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Report Date : |
03.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
VF HONG KONG LTD. |
|
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Registered Office : |
27/F., C-Bons International Centre, |
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Country : |
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Date of Incorporation : |
15.11.1974 |
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Com. Reg. No.: |
04312453 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter, Wholesaler and Retailer of Garments, textile products, etc. |
|
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No. of Employees : |
60 |
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 |
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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 |
VF HONG
KONG LTD.
Address: 27/F., C-Bons
International Centre,
108 Wai Yip
Street, Kwun Tong,
Kowloon,
Hong Kong.
(Formerly located at:
Flat B, 10/F., Kader Building,
22 Kai Cheung Road,
Kowloon Bay, Kowloon, Hong Kong.)
PHONE: 2265 8922
FAX: 2390 9250
Managing Director: Mr. Thomas
Allen Nelson
Incorporated on: 15th
November, 1974.
Organization: Private
Limited Company.
Capital: Nominal: HK$5,000,000.00
Issued: HK$5,000,000.00
Business Category: Importer, Exporter, Wholesaler and Retailer.
Group Net Sales: US$9,365,477,000 (Year ended 31-12-2011)
Employees:
60.
Group Employees: Approx.
58,000. (As at 31-12-2011)
Main Dealing Banker: The Hongkong and Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Registered Head Office:-
27/F., C-Bons International Centre, 108 Wai Yip Street, Kwun Tong,
Kowloon, Hong Kong.
Holding Company:-
V F Asia Ltd., Hong Kong. (Same
address)
Ultimate Holding Company:-
V. F. Corporation, USA.
Associated/Affiliated Companies:-
VF Group of Companies
Eagle Creek Inc., USA.
H. D. Lee Apparel Ltd., China.
Imagewear Apparel Corporation, USA.
JanSport Apparel Corporation, USA.
Jeanswear Ventures LLC, USA.
John Varvatos Apparel Corporation, USA.
John Varvatos Enterprises Inc., USA.
Kipling Apparel Corporation, USA.
Lee Bell Inc., USA.
lucy apparel LLC, USA.
Mo Industries LLC, USA.
Nautica Apparel Inc., USA.
Nautica Retail USA Inc., USA.
Ring Company, USA.
Seven For All Mankind LLC, USA.
Smartwool Consumer Direct LLC, USA.
Smartwool LLC, USA.
South Cone Inc., USA.
TBL Licensing LLC, USA.
The H. D. Lee Co. Inc., USA.
The North Face Apparel Corporation, USA.
The North Face Italy S.r.l., Italy.
Timberland (Gibraltar) Holding Ltd., Gibraltar.
Timberland Espana SL, Spain.
Timberland Europe B.V., Netherlands.
Timberland Europe Services Ltd., UK.
Timberland HK Ltd., Hong Kong.
Timberland HK Trading Ltd., Hong Kong.
Timberland Investments Holding, Switzerland.
Timberland Italy S.r.l., Italy.
Timberland Japan Inc., Japan.
Timberland LLC, Delaware.
Timberland Management Services GmbH, USA.
Timberland Recreational Footware Company, Cayman Islands.
Timberland Retail LLC, USA.
Timberland SAS, France.
Timberland Switzerland GmbH, Switzerland.
Timberland Taiwan Ltd., Taiwan.
Timberland Trading (Shanghai) Ltd., China.
Timberland UK Ltd., UK.
Timberland World Trading GmbH, Germany.
Vans Inc., USA.
Vans Madeira S.L., Portugal.
VF (J) France S.A., France.
VF Apparel (Shenzhen) Co. Ltd., China.
VF Brands India Private Ltd., India.
VF Canada Inc., Canada.
VF Comercializadora Ltda., Chile.
VF Contemporary Brands Canada Corporation, Canada.
VF Contemporary Brands Inc., USA.
VF de Argentina S.A., Argentina.
VF do Brasil Ltda., Brazil.
VF Ege Soke Giyim Sanayi ve Ticaret A.S., Turkey.
VF Enterprises S.a.r.l., Luxembourg.
VF Europe B.V.B.A., Belgium.
VF Germany Textil-Handels GmbH, Germany.
VF Global Investments S.a.r.l., Luxembourg.
VF Imagewear (Canada) Inc., Canada.
VF Imagewear Inc., USA.
VF International Italy S.a.g.l., Italy.
VF International S.a.g.l., Switzerland.
VF Investments S.à.r.l., Luxembourg.
VF Italia S.r.l., Italy.
VF Italy Services S.r.l., Italy.
VF Jeanswear Argentina, Argentina.
VF Jeanswear de Mexico S.A. de C.V., Mexico.
VF Jeanswear Espana S.L., Spain.
VF Jeanswear Ltd. Partnership, USA.
VF Luxembourg S.à.r.l., Luxembourg.
VF Mauritius Ltd., Mauritius.
VF Northern Europe Ltd., UK.
VF Northern Europe Services Ltd., UK.
VF Outdoor (Canada) Inc., Canada.
VF Outdoor Inc., USA.
VF Outdoor Mexico S.A. de C.V., Mexico.
VF Outlet Inc., USA.
VF Receivables Services LLC, USA.
VF ReceivablesLP, USA.
VF Scandinavia A/S, Denmark.
VF Services Inc., USA.
VF Sourcing (Thailand) Ltd., Thailand.
VF Sourcing Asia S.a.r.l., Luxembourg.
VF Sourcing Latin America S.a.r.l., Luxembourg.
VF Sportswear Inc., USA.
VF Treasury Services LLC, USA.
VFJ Ventures LLC, USA.
Wrangler Apparel Corporation, USA.
etc.
04312453
0040808
Managing Director: Mr. Thomas
Allen Nelson
Nominal Share Capital: HK$5,000,000.00 (Divided into 2,500,000 Ordinary
A shares and 2,500,000 Ordinary B shares of HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
(As per registry dated 15-11-2011)
|
Name |
|
No. of shares |
|
|
|
|
Ordinary A |
Ordinary B |
|
V F Asia Ltd., Hong Kong. |
|
2,500,000 ======= |
2,500,000 ======= |
(As per registry dated 15-11-2011)
|
Name (Nationality) |
Address |
|
Aidan James O’MEARA |
Room B37, Regalia Bay, 88 Wong Ma Kok Road, Stanley, Hong Kong. |
|
Patrick Joseph GUIDO |
3955 Old Atlanta Stn Ct, Smyrna, GA 30080-7386, USA. |
|
Karlheinz SALZBURGER |
Via Tesserete 69, 6942 Savosa, Switzerland. |
|
Robert Marcel WOLFF |
Flat A, 2/F., Belgravia, 57 South Bay Road, Repulse Bay, Hong Kong. |
|
Thomas Allen NELSON |
Block J, 3/F., 33 Tai Tam Road, Hong Kong. |
(As per registry dated 05-12-2011)
|
Name |
Address |
|
NGAI Mann Jong, Grace |
Flat C, 9/F., Block 4, Balwin Court, 154-164 Argyle Street, Kowloon
Tong, Kowloon, Hong Kong. |
The subject was incorporated on 15th November, 1974 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of H. D. Lee
(Hong Kong) Ltd., name changed to the present style on 14th February,
2006.
Formerly the subject was located at Flat B, 10/F., Kader Building, 22
Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong, moved to the present address
with effect from 5th December, 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter, Wholesaler and Retailer.
Lines: Garments,
textile products, etc.
Employees: 60.
Group Employees: Approx. 58,000. (As
at 31-12-2011)
Commodities Imported: Europe, US, etc.
Markets: Hong
Kong, Europe, North America, etc.
Group Net Sales: US$7,140,811,000
(Year ended 31-12-2007)
US$7,561,621,000 (Year ended 31-12-2008)
US$7,143,074,000 (Year ended 31-12-2009)
US$7,624,599,000 (Year ended 31-12-2010)
US$9,365,477,000 (Year ended 31-12-2011)
Terms/Sales: COD or as per contracted.
Terms/Buying: Various terms.
Nominal Share Capital: HK$5,000,000.00 (Divided into 2,500,000
Ordinary A shares and 2,500,000 Ordinary B shares of HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
Group Net Income: US$591,621,000 (Year
ended 31-12-2007)
US$602,748,000 (Year ended 31-12-2008)
US$461,271,000 (Year ended 31-12-2009)
US$571,362,000 (Year ended 31-12-2010)
US$888,089,000 (Year ended 31-12-2011)
Profit or Loss: Making a profit every year.
Condition:
Keeping in a
satisfactory and active manner.
Facilities:
Making very
active use of general banking facilities.
Payment:
Met as
required.
Commercial Morality: Good.
Banker:
The Hongkong
and Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Good.
VF Hong Kong Ltd. is a wholly owned subsidiary of V F Asia Ltd. which is
a Hong Kong-registered firm located at the operating address of the
subject. The ultimate holding company is
V. F. Corporation [VF], a US-based and listed firm. VF is the holding company of the VF Group.
VF, organized in 1899, is a worldwide leader in branded lifestyle
apparel and related products. The
subject is trading in the same commodities as its holding company.
For over 100 years, VF has grown by offering consumers high quality,
high value branded apparel and related products. Since 2004, it has been implementing a growth
plan that is transforming VF’s mix of business to include more lifestyle
brands. Accordingly, this transformation
has included the acquisitions of several growing lifestyle brands, such as “Vans®”,
“Reef®”, “Kipling®”, “Napapijri®”, “7 For All Mankind®”
and “lucy®”. At the same time, it
has continued to invest in its other businesses, including extending “The
North Face®” brand to new product categories and new markets, enhancing
product development and marketing strategy in its “Nautica®” men’s
sportswear business, and expanding “Lee®”, “Wrangler®”, “The
North Face®” and several other brands into Asian and Eastern European
markets.
VF’s businesses are organized primarily into product categories, and by
brands within those categories, for both management and internal financial
reporting purposes. These groupings of
businesses are called “coalitions” and consist of the following: Outdoor and
Action Sports, Jeanswear, Imagewear, Sportswear and Contemporary Brands.
VF considers its Outdoor and Action Sports, Sportswear and Contemporary
Brands coalitions to be its lifestyle coalitions.
The following table summarizes VF’s primary owned and licensed brands by
coalition:-
|
Coalition |
Primary Brands |
Primary Products |
|
Outdoor and Action Sports |
The North Face® |
Performance-oriented apparel, footwear, outdoor gear |
|
|
Vans® |
Skateboard-inspired footwear, apparel |
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JanSport® |
Backpacks, luggage, apparel |
|
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Eastpak® |
Backpacks, apparel |
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Kipling® |
Handbags, backpacks, luggage, accessories (except in North America) |
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Napapijri® |
Premium outdoor apparel |
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Reef® |
Surf-inspired footwear, apparel |
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Eagle Creek® |
Luggage, packs, travel accessories |
|
Jeanswear |
Wrangler® |
Denim and casual bottoms, tops |
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|
Wrangler Hero® |
Denim bottoms |
|
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Lee® |
Denim and casual bottoms, tops |
|
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Riders® |
Denim and casual bottoms, tops |
|
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Rustler® |
Denim and casual bottoms, tops |
|
|
Timber Creek by Wrangler® |
Casual bottoms, tops |
|
Imagewear |
Red Kap® |
Occupational apparel |
|
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Bulwark® |
Occupational apparel |
|
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Majestic® |
Athletic apparel |
|
|
MLB® (licensed) |
Licensed athletic apparel |
|
|
NFL® (licensed) |
Licensed athletic apparel |
|
|
Harley-Davidson® (licensed) |
Licensed apparel |
|
Sportswear |
Nautica® |
Fashion sportswear, denim bottoms, sleepwear, accessories |
|
|
John Varvatos® |
Luxury men’s apparel, footwear, accessories |
|
|
Kipling® |
Handbags, backpacks, luggage, accessories (in North America) |
|
Contemporary Brands |
7 For All Mankind® |
Premium denim bottoms, sportswear |
|
|
lucy® |
Women’s activewear |
VF’s centralized global supply chain organization sources product and is
responsible for delivering products to its customers. VF is highly skilled in managing the
complexities associated with its global supply chain. On an annual basis, VF
sources or produces over 400 million units spread across 36 brands. VF operates 29 manufacturing facilities and
typically utilizes about 2,100 contractor manufacturing facilities in over 60
countries. It operates approximately 30
distribution centers and 1,053 retail stores.
In 2011, 31% of its units were manufactured in VF-owned facilities and
69% were obtained from independent contractors, primarily in Asia. Products manufactured in VF facilities
generally have a lower cost and shorter lead times than contracted production. Products obtained from contractors in the
Western Hemisphere generally have a higher cost than products obtained from
contractors in Asia. But contracting in
the Western Hemisphere gives it greater flexibility, shorter lead times and
allows for lower inventory levels. This
combination of VF-owned and contracted production, along with different
geographic regions and cost structures, provides a well-balanced approach to
product sourcing. The Group will
continue to manage its supply chain from a global perspective and adjust as
needed to changes in the global production environment.
VF operates manufacturing facilities located in Mexico, Central and
South America, the Caribbean, Europe and the Middle East. A significant percentage of denim bottoms and
occupational apparel are manufactured in these plants, as well as a smaller
percentage of annual footwear requirements.
For these owned production facilities, it purchases raw materials from
numerous domestic and international suppliers to meet its production
needs. Raw materials include products
made from cotton, leather, rubber, wool, synthetics and blends of cotton and
synthetic yarn, as well as thread and trim (product identification, buttons,
zippers, snaps, eyelets and laces). In
some instances, the Group contracts the sewing of VF-owned raw materials into
finished product with independent contractors. Manufacturing in the United
States includes all Major League Baseball uniforms, along with screen printing
and embroidery of jerseys, T-shirts and fleece products. Fixed price commitments for fabric and
certain supplies are generally set on a quarterly basis for the next quarter’s
purchases. No single supplier represents
more than 5% of its total cost of sales.
VF products are primarily sold through its sales force and independent
sales agents and distributors. VF’s customers are specialty stores, department
stores, national chains and mass merchants in the United States and in
international markets. Of its Total
Revenues in 2011, 34% are in international markets, the majority of which are
in Europe, and 19% are direct-to-consumer through VF-operated stores and
e-commerce sites (including stores and internet sites in international
markets).
Sales to VF’s ten largest customers, all of which are retailers based in
the United States, amounted to 23% of Total Revenues in 2011, 26% in 2010 and
27% in 2009. These larger customers
included (in alphabetical order) Kohl’s Corporation, Macy’s Inc., J.C. Penney
Co. Inc., Sears Holdings Corporation, Target Corporation and Wal-Mart Stores
Inc. Sales to the five largest customers
amounted to approximately 18% of Total Revenues in 2011, and 21% of Total
Revenues in each of 2010 and 2009. Sales
to VF’s largest customer, Wal-Mart Stores Inc., totaled 9% of Total Revenues in
2011, 10% in 2010 and 11% in 2009, the majority of which were in the Jeanswear
coalition.
VF employed approximately 58,000 men and women at the end of 2011, of
which approximately 23,300 were located in the United States.
For the year ended 31st December, 2011, the sales of the Group amounted
to US$9,365.5 million, grew by 22.8% as compared with US$7,624.6 million in FY
2010; net income was US$888.1 million, grew by 55.4% as compared with US$571.4
million in FY 2010.
The subject is fully supported by VF.
History in Hong Kong is over thirty‑seven years and four months.
On the whole, consider the subject good for normal business engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.15 |
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.