MIRA INFORM REPORT

Report Date :

05.03.2012

IDENTIFICATION DETAILS

Name :	DATSUN WEAVING FACTORY LTD.

Registered Office :	3/F. - 5/F., Sing Mei Industrial Building, 29-37 Kwai Wing Road, Kwai Chung, New Territories

Country :	Hong Kong

Date of Incorporation :	05.01.1973

Com. Reg. No.:	03752397

Legal Form :	Private Limited Company.

Line of Business :	Manufacturer and Exporter; Weaver of all kinds of denim, stretch denim, colour denim, stretch twill, chambray, canvas and dobby fabric, etc.

No. of Employees :	90

RATING & COMMENTS

MIRA’s Rating :

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^th, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Hong Kong

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

DATSUN WEAVING FACTORY LTD.

Company ADDRESS

3/F. - 5/F., Sing Mei Industrial Building, 29-37 Kwai Wing Road, Kwai Chung, New Territories, Hong Kong.

PHONE: 2429 6991 (3 lines), 2429 7206

FAX: 2489 1263

E-MAIL: info@datsunweaving.com.hk

johnny@datsunweaving.com.hk

MANAGEMENT

Managing Director: Mr. Lui Chun Fan

SUMMARY

Incorporated on: 5th January, 1973.

Organization: Private Limited Company.

Capital: Nominal: HK$2,000,000.00

Issued: HK$2,000,000.00

Business Category: Weaver.

Annual Turnover: HK$120-130 million.

Employees: 90.

Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Banking Relation: Good.

Company ADDRESS

Registered Head Office & Factory:-

3/F. - 5/F., Sing Mei Industrial Building, 29-37 Kwai Wing Road, Kwai Chung, New Territories, Hong Kong.

China Plant:-

Foshan Shunde Datsun Textiles Ltd., China.

Shanghai Office:-

Room A, 19/F., Jiahui Square, 2601 Xietu Road, Xuhui District, 200030 Shanghai, China.

Associated Companies:-

Datsun Textile (China) Ltd., Hong Kong.

Charlton Co. Ltd., Hong Kong. (Same address)

BUSINESS REGISTRATION NUMBER

03752397

COMPANY FILE NUMBER

0031296

MANAGEMENT

Managing Director: Mr. Lui Chun Fan

Director & Contact Person: Mr. Lui Bing Wing, Johnny

CAPITAL

Nominal Share Capital: HK$2,000,000.00 (Divided into 200 shares of HK$10,000.00 each)

Issued Share Capital: HK$2,000,000.00

SHAREHOLDERS

(As per registry dated 05-01-2012)

Name		No. of shares
LUI Chun Fan		130
LUI CHOI Kook Fun		20
LUI Bing Kin, Michael		20
LUI Bing Wing, Johnny		20
LUI Sin Yuk, Grace		10
		–––
	Total:	200 ===

DIRECTORS

(As per registry dated 05-01-2012)

Name

(Nationality)

Address

LUI CHOI Kook Fun

Flat A, 19/F., Block C, The Crescent, 11 Ho Man Tin Hill Road, Kowloon, Hong Kong.

LUI Bing Kin, Michael

Flat C, 19/F., Block C, The Crescent, 11 Ho Man Tin Hill Road, Kowloon, Hong Kong.

LUI Bing Wing, Johnny

Flat 1, 3/F., Block C, Fairland Gardens, 7 Ho Man Tin Hill Road, Kowloon, Hong Kong.

LUI Chun Fan

Flat A, 19/F., Block C, The Crescent, 11 Ho Man Tin Hill Road, Kowloon, Hong Kong.

SECRETARY

LUI CHOI Kook Fun (As per registry dated 05-01-2012)

HISTORY

The subject was incorporated on 5th January, 1973 as a private limited liability company under the Hong Kong Companies Ordinance.

Subsequent changes of the board are listed hereunder:-

Name	Date appointed	Date resigned
TONG Suk Ying	29-12-1972	28-01-1976
LUI Chun Fan	29-12-1972	-
CHIK Mo Se	29-12-1972	15-05-1974
LUI CHOI Kook Fun	15-05-1974	-
LUI Bing Kin, Michael	29-01-1996	-
LUI Bing Wing, Johnny	29-01-1996	-

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

OPERATIONS

Activities: Manufacturer and Exporter; Weaver.

Lines: All kinds of denim, stretch denim, colour denim, stretch twill, chambray, canvas and

dobby fabric, etc.

Office & Factory Space: Total 60,000 sq.ft. – self-owned.

Employees: 90.

Principal Equipment:-

Auto wearing looms – 72 sets (Belgium origin)

Monthly Production Capacity: 1,100,000 yds.

Raw Materials: Imported from Europe and bought from local suppliers.

Markets: USA, Europe, Southeast Asia, etc.

Annual Turnover: HK$120-130 million.

Terms/Sales: COD or as per contracted.

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

MEMBERSHIP

The Chinese Manufacturers’ Association of Hong Kong, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$2,000,000.00 (Divided into 200 shares of HK$10,000.00 each)

Issued Share Capital: HK$2,000,000.00

Alternation of Capital:-

20-04-1974	paid up	HK$ 400,000.00
26-05-1977	paid up	HK$ 300,000.00
20-12-1978	paid up	HK$ 1,000,000.00
29-01-1996	paid up	HK$ 300,000.00
		–––––––––––––––
Total:	paid up	HK$ 2,000,000.00 ==============

Increases of Nominal Capital:-

From	HK$ 600,000.00	to	HK$1,000,000.00	on	25-05-1977
From	HK$1,000,000.00	to	HK$2,000,000.00	on	20-12-1978

Mortgage or Charge: (See attachment)

Profit & Loss: Traded at a small profitable angle.

Condition: Keeping in an active and normal state.

Facilities: Making active use of general banking facilities.

Payment: Met on time.

Commercial Morality: Good.

Bankers:-

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

· BNP Paribas, Hong Kong Branch.

· Shanghai Commercial Bank Ltd., Hong Kong.

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

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

Standing: Good.

GENERAL

Founded in 1973 by Mr. Lui Chun Fan and his two friends, Datsun Weaving Factory Ltd. is one of the leading weaving factories in Hong Kong. It is specialised in all kinds of denim, stretch denim and stretch twill as well as dobby fabric. In 1974 and 1976, Mr. Lui’s friends retired successively. Later, the subject had been jointly owned by Mr. Lui Chun Fan and his wife Ms. Choi Kook Fun. In 1996, their three children joined in as shareholders. Now, the subject is jointly owned by Mr. Lui Chun Fan, holding 65% interest; Mrs. Lui Choi Kook Fun, holding 10%; Mr. Michael Lui Bing Kin, 10%; Mr. Johnny Lui Bing Wing, also 10%; and Ms. Grace Lui Sin Yuk, 5%.

The subject is operating a factory located at the present address with a quality control department and a showroom attached. The quality control department is able to test the quality of the fabric and the colour dyeing effect. Now, the factory is equipped with 72 advanced weaving machines such as Picanol Gamma, imported from Belgium, which is one of the top weaving machine manufacturers in the world.

Since Datsun is a Hong Kong-based factory, it is able to monitor its production closely and effectively. Its products include the following main items: DA48RM, DA89RM, DAC003A-A, DAC003A-B, DAC003A-A, DAC003A-B, DAC003A-C, DAC003A-D, DC004, DC034-A, DC034-B, DS3308RM, S1195RM, S1221RM, S783RM-I and S91218RM.

The above mentioned products are fabrics having either 100% or 98% cotton. Some of them bear different models as the colour is different although the blend compositions are the same.

The subject owns a factory in Shunde, Foshan City, Guangdong Province, China known as Foshan Shunde Datsun Textiles Ltd. [Shunde Datsun]. Established in April 1999 and with a registered capital of US$8.381 million, Shunde Datsun covers an area of 33,000 sq.m. Currently, Shunde Datsun is employing about 250 persons. It is engaged in manufacturing denims bearing the trade mark of “DATSUN”. Monthly production capacity is about 1.5 million yards. 80% of the products are exported to the United States, the United Kingdom, the Philippines, Japan, Malaysia, other Asian countries, the Middle East, Africa, Europe, etc. The legal representative of Shunde Datsun is also Lui Chun Fan. Business is rather active.

The subject is specialised in making denim for some significant clients including “Marks & Spencer”, “the Gap”, etc. Business ties with more clients are under development. The subject also offers clients with OEM services.

The subject has set up a sampling room at its operating address where about 800 sample swatches are displayed.

According to the subject, it is using the yarns from the textile mills in Hong Kong which imports raw materials from Cotton USA, a significant US‑based textile firm. The subject is also the very first local manufacturer of stretch fabrics in Hong Kong.

The founder and Managing Director, Mr. Lui Chun Fan, formerly was a worker who has changed himself to an industrialist with some means. Mr. Lui came to Hong Kong from Shanghai in 1949 and set up the subject in 1973. Prior to the establishment of the subject, he had worked in Majestic Textiles Ltd., also a Hong Kong weaver, for a number of years.

Now, the subject’s annual sales turnover ranges from HK$120 to 130 million. Regular clients have been maintained. The subject currently is employing about 90 people.

Owned by the Lui family, the subject’s business is chiefly administered by Mr. Lui Chun Fan and Mr. Johnny Lui. The subject operates from its own premises, covering an area of 60,000 sq.ft. which is located at the current operating address. The history of the subject is over thirty-nine years.

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

REMARKS:

Property information of the company:-

1. Property Location: Unit A & B on 3/F., Sing Mei Industrial Building,
29-37 Kwai Wing Road, Kwai Chung, New Territories, Hong Kong.