MIRA INFORM REPORT

 

 

Report Date :

22.12.2012

 

IDENTIFICATION DETAILS

 

Name :

MILLIONFULL  CO.  LTD.

 

 

Registered Office :

25-26/F., China United Plaza, 1008 Tai Nan West Street, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

01.02.1980

 

 

Com. Reg. No.:

06589127

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trader of Textile Product

 

 

No. of Employees :

35

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

HONG KONG - ECONOMIC OVERVIEW

 

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Source : CIA


Company name and address

 

MILLIONFULL  CO.  LTD.

 

 

ADDRESS:       25-26/F., China United Plaza, 1008 Tai Nan West Street, Kowloon, Hong Kong.

 

PHONE:            2741 3103

 

FAX:                 2785 1324,  2785 3115

 

E-MAIL:            albert@millionfull.com

mlf@millionfull.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Ngan Kam Wai (alias Albert Ngan)

 

 

SUMMARY

 

Incorporated on:            1st February, 1980.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:HK$30,000,000.00

Issued: HK$30,000,000.00

 

Business Category:       Textile Product Trader.

 

Employees:                  35.

 

Main Dealing Banker:     Bank of China (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:          Very Good.


ADDRESS

 

Registered Head Office:-

25-26/F., China United Plaza, 1008 Tai Nan West Street, Kowloon, Hong Kong.

 

Retail Shop:-

G/F., 135, Kilung Street, Kowloon, Hong Kong.

 

Associated Companies:-

Kingdom Holdings Ltd., Cayman Islands/Hong Kong.

Millionfull International Co. Ltd., British Virgin Islands.

Padlot Investments Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

06589127

 

 

COMPANY FILE NUMBER

 

0078111

 

 

MANAGEMENT

 

Managing Director:  Mr. Ngan Kam Wai (alias Albert Ngan)

 

 

CAPITAL

 

Nominal Share Capital: HK$30,000,000.00 (Divided into 3,000,000 shares of HK$10.00 each)

 

Issued Share Capital: HK$30,000,000.00

 

 

SHAREHOLDERS

(As per registry dated 01-02-2012)

 

            Name

 

No. of shares

CHOI Po King

 

10,000

NGAN Kam Wai, Albert

 

1,506,600

NGAN CHAN Sau Kat, Kattie

 

670,000

YEN Yuk Mui

 

227,400

NGAN Lai Yuen

 

508,000

[to be continued]

 

[continued]

LEUNG Suk Kou

 

45,000

NGAN Sau Yuen

 

33,000

 

 

––––––––

 

Total:

3,000,000

=======

 

 

DIRECTORS

(As per registry dated 01-02-2012)

 

            Name

            (Nationality)

 

Address

NGAN CHAN Sau Kat, Kattie

Flat A & B, 9/F., Skylodge 3, Dynasty Heights, 2-8 Yip Ping Road, Beacon Hill, Kowloon, Hong Kong.

 

NGAN Lai Yuen

25/F., China United Plaza, 1008 Tai Nan West Street, Kowloon, Hong Kong.

 

NGAN Kam Wai, Albert

Flat A & B, 9/F., Skylodge 3, Dynasty Heights, 2-8 Yip Ping Road, Beacon Hill, Kowloon, Hong Kong.

 

 

SECRETARY

 

NGAN CHAN Sau Kat, Kattie (As per registry dated 01-02-2012)

 

 

HISTORY

 

The subject was incorporated on 1st February, 1980 as a private limited liability company under the Hong Kong Companies Ordinance.

Last time it was located at 18/F., China United Plaza, 1008 Tai Nan West Street, Kowloon, Hong Kong, moved to 25-26/F. of the same building with effect from February 2008.

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

 

 

OPERATIONS

 

Activities:                      Textile Product Trader.

 

Lines:                           Ramie/linen/cotton piecegoods & yarns.

 

Employees:                  35.

 

Commodities Imported: China, other Asian countries, etc.

 

Markets:                        Hong Kong, other Asian countries, Europe, North America, etc.

 

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

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

MEMBERSHIP

 

The Chinese General Chamber of Commerce, Hong Kong.

The Chinese Manufacturers’ Association of Hong Kong, Hong Kong.  [Member No. 010389]

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$30,000,000.00 (Divided into 3,000,000 shares of HK$10.00 each)

 

Issued Share Capital:     HK$30,000,000.00

 

Mortgage or Charge (since 2009):  (See attachment)

 

Profit or Loss:               Making a small profit every year.

 

Condition:                     Keeping in a satisfactory manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

Bank of China (Hong Kong) Ltd., Hong Kong.

Hang Seng Bank Ltd., Hong Kong.

The Bank of East Asia Ltd., Hong Kong.

 

Standing:                      Very Good.

 

 

GENERAL

 

Having issued 3 million ordinary shares of HK$10.00 each, Millionfull Co. Ltd. is chiefly owned by the Ngan family.  Two of the main shareholders are Mr. Ngan Kam Wai, Albert, holding 50.22% interests, and Mrs. Ngan Chan Sau Kat, Kattie, holding 22.33%.

The subject has been supplying linen fabrics and linen mixture fabrics worldwide since 1978.  It was the first firm to introduce such fabrics from China to be used in garment manufacturing.  For over 30 years, its dedication and experience helped it build its business successfully.

The subject also has spinning and weaving mills in Mainland China.  It also works with dyeing mills with distinct areas of expertise in China.

The subject’s retailing outlet and warehouse in Hong Kong are selling and displaying, stocking its products.  It also offers customers with complete services for the development of customised fabrics.  Since its establishment, it has been engaged in the production of fabrics with different constructions, yarn counts, finishing, solid-dyes, yarn-dyes and prints.

The subject’s products have been exported to the United States, Europe, Japan, Australia and New Zealand.

The subject is one of the shareholders of Kingdom Holdings Ltd. [KHL/Group] which is a listed firm in Hong Kong.  The subject is holding 10.8% interests of KHL which is also registered in the Cayman Islands.

The Vice-Chairman of KHL is Mr. Ngan Kam Wai, Albert.

For the year ended 31st December 2011, the Group’s turnover increased by 13.1% to RMB710,960,000 Yuan (2010: RMB628,718,000 Yuan); gross profit rose by 37.5% year-on-year to RMB228,003,000 Yuan (2010: RMB165,842,000 Yuan) with an increase in profit attributable to owners of the parent of 51.8% year-on-year to RMB103,139,000 Yuan (2010: RMB67,931,000 Yuan).

Being the largest linen yarn manufacturer in China, the Group has not only actively consolidated its domestic market, but also increased its investment in overseas expansion such as establishing sale agents in Turkey and Spain in 2011.  In furtherance of its global marketing strategy, the Group’s export sales network has been extended to over 20 different countries across the world so as to capitalize on the continually feverish linen market and achieve sustainable profit growth during the year.

During the year ended 31st December 2011, the Group’s total sales of linen yarn amounted to approximately RMB710,960,000 Yuan, representing an increase of approximately 13.1% as compared with last year, of which approximately RMB274,939,000 Yuan was derived from domestic sales, which accounted for approximately 38.7% of the total sales and was up by approximately 3.3% year-on-year, and RMB436,021,000 Yuan was derived from export sales, which was up approximately 20.2% year-on-year and accounted for approximately 61.3% of the total sales.  The Group’s export sales have risen substantially and accounted for approximately 32.7% of the total export value of linen yarn of China, thereby helping the Group to maintain its leading position of being the largest linen yarn exporter in China.

The revenue of the Group decreased by 8.1% to approximately RMB294.3 million for the six months ended 30th June 2012 from approximately RMB320.2 million for the six months ended 30th June 2011.

Profit attributable to the owners of KHL decreased by 25.6% to approximately RMB43.1 million Yuan for the six months ended 30th June 2012 from approximately RMB57.9 million Yuan for the six months ended 30th June 2011.

In the first half of 2012, the slowdown of China’s economy and the deteriorating European sovereign debt crisis had been adversely affecting the linen yarn industry.  Both domestic and international market demands for linen yarn during the six months ended 30th June 2012 shrank from those in the corresponding period of 2011.

Cotton yarn spinning, chemical fibers and textile industry all have suffered under the prevailing market environment.  Linen fabric has the characteristic as being eco-friendly with good air permeability, as such linen fabric has been increasingly popular, especially in the high-end apparel market.  With the well recognized brand and flexible marketing strategies of KHL.

The Group managed to record growth in external sales for the period under review as compared with the same period of previous year.

On the whole, in view of the background and history of the subject, consider it good for normal business engagements.

 


MORTGAGE OR CHARGE

 

Since 2009

 

Date

Particulars

Amount

28-08-2009

Instrument:        Assignment of Insurance Policy (Two Party)

Property:

All the rights, title, benefits & interest of the Borrower in and to the Policy and the Proceeds, whether in existence at the date of the Assignment or after the date of the Assignment

Name of the Insured:  Ngan Chan Sau Kat, Kattie

Policy No.:  28000846

Effective date of the Policy:  28th August, 2009

Mortgagee:        Hang Seng Bank Ltd., Hong Kong.

To secure all sums of money, debt & liabilities whether certain or contingent, Maximum liabilities HK$2,385,000.00

30-04-2010

Instrument:        Mortgage

Property:

8/8,781 part or shares of and in New Kowloon Inland Lot No. 5924 [Unit C, 9/F., Block 3, (Skylodge 3) and Car Parking Space No. 35, 2/F. underneath Block 1-6 (Skylodge 1-6), Dynasty Heights, Kowloon, Hong Kong.]

Mortgagee:        Hang Seng Bank Ltd., Hong Kong.

All Moneys

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.08

UK Pound

1

Rs.89.53

Euro

1

Rs.72.77

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.