MIRA INFORM REPORT

 

 

Report Date :

18.06.2012

 

IDENTIFICATION DETAILS

 

Name :

THE  WING  ON  CO.  LTD.

 

 

Registered Office :

7/F., Wing On Centre, 211 Des Voeux Road Central

 

 

Country :

Hong Kong.

 

 

Date of Incorporation :

1907

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Investment Holding and Property Investment.

 

 

No. of Employees :

843.  (Group Employee)

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name and address

 

THE  WING  ON  CO.  LTD.

 

 

Address:           7/F., Wing On Centre,

                        211 Des Voeux Road Central,

                        Hong Kong.

 

 

(Your address given as:

1/F., Wing On Godown, 1 Wang Kee St,

Kowloon Bay.    )

 

PHONE:            2852 1888;  2318 2341

 

FAX:                 2541 2482;  2581 2639;  2850 8431

 

E-MAIL markkwok@wingonet.com;

cks@wingonet.com

 

 

MANAGEMENT

 

Group Chairman:  Mr. Kwok Chi Leung, Karl

 

 

SUMMARY

 

Establishment:                          1907.

 

Incorporated on:             28th January, 1915.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$800,000,000.00

Issued:              HK$592,200,000.00

 

Business Category:        Investment Holding and Property Investment.

 

Group Turnover:             HK$1,763,783,000  (Year ended 31-12-2011)

 

Group Employees:         843.  (As at 31-12-2011)

 

Main Dealing Bankers:   Hang Seng Bank Ltd., Hong Kong.

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

 

Banking Relation:           Good.


ADDRESS

 

Registered Head Office:-

7/F., Wing On Centre, 211 Des Voeux Road Central, Hong Kong.

 

G.P.O. Box 1508, Hong Kong.

 

Immediate Holding Company:-

Wing On Co. (BVI) Ltd.

Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, British Virgin Islands.

 

Ultimate Holding Company:-

Wing On Co. International Ltd., Bermuda/Hong Kong.

 

Associated/Affiliated Companies:-

The Wing On Group of Companies

333 Choice Properties Pty. Ltd., Australia.

Asmar Properties Ltd., British Virgin Islands.

Belair Properties Ltd., British Virgin Islands.

Bright Eastern Profits Ltd., British Virgin Islands.

Clever Choice Investments Ltd., British Virgin Islands.

Clever Choice Properties Pty. Ltd., Australia.

Cornerstone Assets Ltd., British Virgin Islands.

DCH North America Inc., U.S.A.

Fine Choice Investments Ltd., British Virgin Islands.

Fine Choice Properties Pty. Ltd., Australia.

Forever Famous Development Ltd., Hong Kong.

Fortuna Investments Inc., U.S.A.

Fortuna Properties Inc., U.S.A.   [Dormant]

Fortuna Yakitori Stall Ltd., Hong Kong.

Keen Choice Investments Ltd., British Virgin Islands.

Keen Choice Properties Pty. Ltd., Australia.

Mirassou Holdings Ltd., New Zealand.

Perfect Choice Investments Ltd., British Virgin Islands.

Perfect Choice Properties Pty. Ltd., Australia.

Saugan Ltd., Hong Kong.

Somhill Pty. Ltd., Australia.

The Wing On Catering & Amusement (Tianjin) Ltd., PRC.  [Dormant]

The Wing On Co. Inc., U.S.A.

The Wing On Department Stores (Bermuda) Ltd., Bermuda.

The Wing On Department Stores (Hong Kong) Ltd., Hong Kong.

The Wing On Department Stores (Tianjin FTZ) Ltd., PRC.  [Dormant]

The Wing On Property Management Co. Ltd., Hong Kong.

The Wing On Services Ltd., British Virgin Islands.

The Wing On Transport Co. Ltd., Hong Kong.

Tonnish Ltd., Hong Kong.

Well Planted Ltd., Hong Kong.

Wing On Computer Systems Ltd., Hong Kong.

WL Investments Inc., U.S.A.

WL Investments Ltd., British Virgin Islands.

Woco Inc., U.S.A.

WOCO Investment Corporation, U.S.A.

Wonder Choice Investments Ltd., British Virgin Islands.

Wonder Choice Properties Pty. Ltd., Australia.

etc.

 

 

COMPANY FILE NUMBER

 

0000155

 

 

MANAGEMENT

 

Group Chairman:  Mr. Kwok Chi Leung, Karl

Group Deputy Chairman:  Mr. Kwok Chi Hang, Lester

Director & Company Chief:  Mr. Kwok Chi Yat, Mark

 

 

CAPITAL

 

Nominal Share Capital: HK$800,000,000.00 (Divided into 400,000,000 shares of HK$2.00 each)

 

Issued Share Capital: HK$592,200,000.00

 

 

SHAREHOLDERS

(As per registry dated 28-01-2012)

 

            Name

 

No. of shares

Wing On Co. (BVI) Ltd.

Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, British Virgin Islands.

 

296,099,999

Wing On Co. International Ltd.

Canon’s Court, 22 Victoria Street, Hamilton HM12, Bermuda.

 

1

 

 

––––––––––

 

Total:

296,100,000

=========

 

 


DIRECTORS

(As per registry dated 28-01-2012)

 

            Name

            (Nationality)

 

Address

KWOK Chi Hang, Lester

19B,19/F., Victoria Heights, 43A Stubbs Road, Hong Kong.

 

KWOK Chi Kuen, Philip

Penthouse, Twin Brook, 43 Repulse Bay Road, Hong Kong.

 

KWOK Chi Leung, Karl

Flat 7A, 7/F., 51 Stubbs Road, Hong Kong.

 

KWOK Chi Piu, Bill

E3, Altadena House, 27 Barker Road, The Peak, Hong Kong.

 

KWOK Chi Yat

22/F., The Colonnade, 152 Tai Hang Road, Hong Kong.

 

 

SECRETARY

(As per registry dated 28-01-2012)

 

            Name

Address

SIN Kar Tim

Flat 7, 28/F., Lung San House, Lung Poon Court, Diamond Hill, Kowloon, Hong Kong.

 

 

HISTORY

 

Wing On was established in Sydney, Australia under the name of Wing On Fruit Merchants.  The sum of 1,400 pounds from the original capital; the man who first organized the business dealt in exports of fruits from Australia and imports of products from China.  They were James Gocklock, Philip Gockchin, O’Young Man Hing, Leung Chong, Ma Joe Sing, Mark Shun Gee Hing, O’Young Pun, Yung Tsze Wing, Gock Quay, Pang Yung Kwan, William Gockson, Gock Chew and William Gock Young.

As business continued to prosper, the company sought newer fields.

In 1907, a capital of HK$150,000.00 was raised and Mr. Philip Gockchin was entrusted with the task of establishing a department store in Hong Kong.  The site was located at 167 Queen’s Road Central.  The first three years of operation were marked with steady progress and the site soon became inadequate.

Then the company was incorporated on 28th January, 1915 under the Companies Ordinance of Hong Kong under the present name of The Wing On Co. Ltd. [WOC] with a capital increased to HK$600,000.00, partly capitalized from the company’s reserve and partly subscribed by the original shareholders and their friends.

By this time the company was in Des Voeux Road Central, where the present Main Store is situated.

Soon, it has become a public limited company with shares quoted on The Stock Exchange of Hong Kong Ltd.

Pursuant to the Scheme of Arrangement in December 1991, WOC, the former holding company of the Group, became a wholly owned indirect subsidiary of Wing On Co. International Ltd. [WOCI] by the cancellation of all the 296,100,000 shares of HK$2.00 each and re-issuing them to WOCI via Wing On Co. (BVI) Ltd.  WOCI in turn issued the same number of share of HK$0.10 each to WOC’s original shareholders.  The excess of the consolidated net assets represented by the WOC’s shares acquired by WOCI via Wing On Co. (BVI) Ltd. over the nominal value of the new shares of WOCI issued to the Scheme has been credited to the contributed surplus account of WOCI.

WOCI was incorporated in Bermuda on 14th October, 1991 and became the new holding company of The Wing On Co. Ltd. Group pursuant to the Scheme of Arrangement which became effective on 24th December, 1991.

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

 

 

OPERATIONS

 

Activities & Lines:          Investment Holding and Property Investment.

 

Group Employees:         843.  (As at 31-12-2011)

 

FY

Whole Group

Department Stores Division

Year ended 31-12-2007

HK$1,294,898,000

HK$1,009,700,000

Year ended 31-12-2008

HK$1,407,644,000

HK$1,100,859,000

Year ended 31-12-2009

HK$1,443,180,000

HK$1,133,414,000

Year ended 31-12-2010

HK$1,572,597,000

HK$1,228,006,000

Year ended 31-12-2011

HK$1,763,783,000

HK$1,381,795,000

 

 

MEMBERSHIP

 

The Hong Kong General Chamber of Commerce, Hong Kong.

The Chinese General Chamber of Commerce, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$800,000,000.00 (Divided into 400,000,000 shares of HK$2.00 each)

 

Issued Share Capital: HK$592,200,000.00

 

Mortgage or Charge:-

Date of Mortgage:          26-03-1999

Amount:            To secure general banking facilities and interest

Property:           All that piece or parcel of ground registered in the Land Registry as Inland Lot No. 7916 and of and in all the messuages erections and building thereon (now known as Wing On Centre, 211 Des Voeux Road Central/110-114 Connaught Road Central, Hong Kong.)

Mortgagee:        Hang Seng Bank Ltd., Hong Kong.

 

Segment Result (Department Stores Division):-

HK$121,307,000  (Year ended 31-12-2007)

HK$142,077,000  (Year ended 31-12-2008)

HK$122,487,000  (Year ended 31-12-2009)

HK$172,727,000  (Year ended 31-12-2010)

HK$223,385,000  (Year ended 31-12-2011)

 

Group Net Profit (Loss):-

HK$1,590,527,000         (Year ended 31-12-2007)

(HK$   172,236,000)       (Year ended 31-12-2008)

HK$   737,773,000         (Year ended 31-12-2009)

HK$1,376,778,000         (Year ended 31-12-2010)

HK$1,774,620,000         (Year ended 31-12-2011)

 

Group Net Worth:          

HK$  7,562,422,000  (As at 31-12-2007)

HK$  6,763,556,000  (As at 31-12-2008)

HK$  7,775,319,000  (As at 31-12-2009)

HK$  9,176,977,000  (As at 31-12-2010)

HK$10,754,211,000  (As at 31-12-2011)

 

Profit & Loss:    Traded at a profitable angle.

 

Condition:          Keeping in an active and good manner.

 

Facilities:          Making active use of general banking facilities.

 

Payment:          Reliable.

 

Commercial Morality:  Good.

 

Bankers:-

Hang Seng Bank Ltd., Hong Kong.

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

ABN AMRO Bank N.V., Hong Kong Branch.

American Express Bank Ltd., Hong Kong Branch.

Bank of America (Asia) Ltd., Hong Kong.

Bank of America, N.A., Hong Kong Branch.

Barclays Bank PLC, Hong Kong Branch.

BNP Paribas, Hong Kong Branch.

Citibank N.A., Hong Kong Branch.

Crédit Agricole Indosuez, Hong Kong Branch.

DBS Bank (Hong Kong) Ltd., Hong Kong.

Fortis Bank Asia HK, Hong Kong Branch.

Standard Chartered Bank, Hong Kong Branch.

Sumitomo Mitsui Banking Corporation, Hong Kong Branch.

The Bank of East Asia Ltd., Hong Kong.

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

The First National Bank of Chicago, Hong Kong Branch.

etc.

 

Banking:-

One source reports they have kept an entirely satisfactory current account with them for many years and all their dealings with them have been very pleasant.

 

Standing:  Very Good.

 


GENERAL

 

The Wing On Co. Ltd. [WOC] was established in Hong Kong in 1907 and incorporated as a limited company on 28th January, 1915.  WOC became a listed firm before WWII.

WOC’s business includes the operation of department stores, property investment, trading and the provision of hotel services.  In late 1981, WOC raised HK$394.8 million by way of a rights issue to finance the acquisition of Hotel Fortuna Ltd. [Fortuna] through its wholly-owned subsidiary Wing Tak Kwei Ltd.  Fortuna was incorporated on 3rd May, 1963 primarily for the purpose of carrying on the business of owning and managing hotels in Hong Kong.  The Fortuna Group had two principal property interest, a leasehold interest in the Hotel Fortuna; known as the Wing On Building and the Fortuna Court Hotel.  In the event that the sale of the Fortuna Court Hotel was successfully completed.  Fortuna’s principal remaining property interest is its leasehold interest in the Wing On Building.

Pursuant to the Scheme of Arrangement in December 1991, WOC, the former holding company of the Group, became a wholly owned indirect subsidiary of Wing On Co. International Ltd. [WOCI] by the cancellation of all the 296,100,000 shares of HK$2.00 each and re-issuing them to WOCI via Wing On Co. (BVI) Ltd.  WOCI in turn issued the same number of share of HK$0.10 each of WOC’s original shareholders.  The excess of the consolidated net assets represented by the WOC’s shares acquired by WOCI via Wing On Co. (BVI) Ltd. over the nominal value of the new shares of WOCI issued to the Scheme has been credited to the contributed surplus account of WOCI.

WOCI was incorporated in Bermuda on 14th October, 1991 and became the new holding company of The Wing On Co. Ltd. Group pursuant to the Scheme of Arrangement which became effective on 24th December, 1991.

Presently, WOC, a member of the WOCI Group, is engaged in investment holding and property investment.

The principal activities of the WOCI Group are the operation of department stores, investment holding, property investment, mortgage servicing, securities trading and motor vehicle dealership business.

The department store operation in Hong Kong is carried on by The Wing On Department Stores (Hong Kong) Ltd. which is directly owned by WOC and The Wing On Department Stores (Bermuda) Ltd. of Bermuda.  The Wing On Department Stores Group is one of the largest and best known retailers in Hong Kong with five outlets at present.

The Group is engaged in the following businesses:-

·         Automobile Dealership Business;

·         Department Stores Operation; &

·         Property Investments.

For the year ended 31st December 2011, the Group’s turnover increased by 12.2% to HK$1,763.8 million (2010: HK$1,572.6 million).  The increase was attributable mainly to the improvement in both the Group’s department stores business turnover and the rental income from the Group’s investment properties.

Profit attributable to shareholders for the year was HK$1,774.3 million (2010: HK$1,375.7 million), an increase of 29.0% due primarily to the increase in net valuation gain on investment properties as compared to previous year.  Excluding this non-cash item and related deferred tax thereon, the Group’s underlying profit attributable to shareholders increased by 8.5% to HK$496.3 million (2010: HK$457.6 million).  This was due mainly to the increase in the improved contributions from the Group’s department stores operations, property investments and the Group’s automobile dealership associate.

In 2011 the Group’s department stores business achieved a 12.5% increase in turnover to HK$1,381.8 million (2010: HK$1,228.0 million) while its operating profit increased by 29.4% to HK$223.4 million (2010: HK$172.7 million).  The Group was able to achieve these better results on the back of strong local consumer demand aided by Mainland shoppers, and the continued efforts in providing timely promotional events, regularly improving the merchandise mix and quality of customer service.

As at 31st December 2011, the Group had a total staff of 843 (2010: 953).

On the whole, in view of WOC’s history, background and lines of business, consider it good for normal business engagements.

 

REMARKS

 

            Brief information of the principal directors:-

Mr. Karl Kwok Chi Leung, aged 63, is the Chairman of WOCI and WOIH (the controlling shareholder of WOCI).  He was educated at Carleton College, Minnesota and Wharton School, University of Pennsylvania where he obtained an M.B.A. degree.  He joined the Group in 1974.  He has over 20 years’ experience in senior management positions in banking and finance.  He is a member of the Board of The Trustees of Chung Chi College of The Chinese University of Hong Kong, a member of University Council of The Chinese University of Hong Kong, a member of the Council of City University of Hong Kong, a trust member of The Outward Bound Trust of Hong Kong Ltd. as well as a member of the Inland Revenue Board of Review, an adjudicator of the Registration of Persons Tribunal, the chairman of Hong Kong Sports Development Board-Hong Kong Coaching Committee, the president of Hong Kong Yachting Association, vice president of Sports Federation & Olympic Committee of Hong Kong, the PRC and a director of Tai Cheung Holdings Ltd.  He is also a director of Wing On Corporate Management (BVI) Ltd., Kee Wai Investment Co. Ltd. and Kee Wai Investment Co. (BVI) Ltd.

Mr. Lester KWOK Chi Hang, J.P., aged 62, is the Deputy Chairman of WOCI.  He was educated at Stanford University, California where he obtained a B.A. (Economics) degree.  He subsequently qualified as a barrister-at-law at Gray’s Inn, London in 1975 and practised in London and Hong Kong.  He joined the Group in late 1985.  He is the chairman of three statutory Appeal Boards – Hotel and Guesthouse Accommodation Ordinance, Clubs (safety of premises) Ordinance, and Bedspace Apartments Ordinance – and is a member of the Administrative Appeals Board, and Non-local Higher and Professional Education Appeal Board.  He has served as a member of the Inland Revenue Board of Review from 1985 to 2002, Municipal Services Appeals Board from 2000 to 2002, Town Planning Appeal Board from 1994 to 2001, a panel member on the Securities and Futures Appeals Panel of the Securities and Futures Commission from 1989 to 1995, a District Board member of the Wan Chai District Board from 1985 to 1994, and as a member of the Consumer Council from 1996 to 1997.  He is the deputy chairman and managing director of WOIH and also a director of Wing On Corporate Management (BVI) Ltd., Kee Wai Investment Co. Ltd. and Kee Wai Investment Co. (BVI) Ltd.

Mr. Mark KWOK Chi Yat, aged 57, is the Company Chief.  He was educated at Stanford University, California and the University of Santa Clara where he obtained a B.A. (Economics) degree and an M.B.A. degree respectively.  He joined the Group in 1986 and has been responsible for the Group’s retail operations until mid 2001.  He is currently looking after the Group’s overseas investments.  He was a member of the Executive Committee of the Hong Kong Retail Management Association.  He has served as a member of Law Reform Commission’s Sub-committee on Civil Liability for Unsafe Products from 1995 to 1997 and Member of Election Committee of Subsector of Wholesale and Retail for the Legislative Council Elections of Hong Kong Special Administrative Region [HKSAR] in 1997, 2000 and 2002.  He is also a director of WOIH, Wing On Corporate Management (BVI) Ltd., Kee Wai Investment Co. Ltd. and Kee Wai Investment Co. (BVI) Ltd.  He is a brother of Mr. Karl Kwok and Mr. Lester Kwok.

 

            Property information of the company:-

            Property Location:          Wing On Centre, 211 Des Voeux Road Central/110-114 Connaught Road Central, Hong Kong.

Owner:  The Wing On Co. Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

26-03-1999

-

Hang Seng Bank Ltd., Hong Kong.

Mortgage to secure general banking facilities


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.76

UK Pound

1

Rs.86.69

Euro

1

Rs.70.44

 

 

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.