MIRA INFORM REPORT

 

Report Date :

20.03.2012

 

IDENTIFICATION DETAILS

 

Name :

VITAR  INSULATION  MANUFACTURERS  LTD.

 

 

Registered Office :

Flat 4-6, 3/F., New Trade Plaza, Tower B, 6 On Ping Street, Siu Lek Yuen, Shatin, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

07.11.1978

 

 

Com. Reg. No.:

05792147

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer, Wholesaler and Exporter of Silicone fibre glass sleevings, heater mica sheets, silicon wire and tubes, glass fibre tapes and rope, insulation laminate products, PVC tubes, heat shrinkable tubes, pedestal fans, pressboard, magnetic wire, electric cable and exhaust fans.

 

 

No. of Employees :

50

 

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 :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Exists

 

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

 

VITAR  INSULATION  MANUFACTURERS  LTD.

 

 

ADDRESS:       Flat 4-6, 3/F., New Trade Plaza, Tower B, 6 On Ping Street, Siu Lek Yuen, Shatin, New Territories, Hong Kong.

 

PHONE:            2411 3108,  2411 3176

 

FAX:                 2411 0895,  2789 8982

 

E-MAIL:                        enquiry@vitar.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Leung Kai Wing

 

 

SUMMARY

 

Incorporated on:                         7th November, 1978.

 

Organization:                              Private Limited Company.

 

Capital:                                     Nominal:           HK$10,000,000.00

Issued:              HK$10,000,000.00

 

Business Category:                    Manufacturing and trading of insulated sleeving, tubes, wires and mica sheets.

 

Annual Sales Turnover:  HK$120-135 million.

 

Employees:                               50.

 

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

 

Banking Relation:                       Satisfactory.


ADDRESS

 

Registered Head Office:-

Flat 4-6, 3/F., New Trade Plaza, Tower B, 6 On Ping Street, Siu Lek Yuen, Shatin, New Territories, Hong Kong.

 

China Factory:-

Longchuan Vitar Insulation Factory

Baolong Industrial Park, Longchuan County, Heyuan City, Guangdong Province, China.

 

Holding Company:-

Vitar Insulation Holdings Ltd., British Virgin Islands.

 

Ultimate Holding Company:-

Pure Best Ltd., British Virgin Islands.

 

Subsidiary/Associated Companies:-

Leader Tech Ltd., Hong Kong.

Long Chuan Weida Insulation Material Co. Ltd., China.

Longchuan Vitar Insulation Factory, China.

Vitar Insulation Material (Shenzhen) Ltd., China.

Weida Electrical Industrial Equipment (Long Chuna) Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

05792147

 

 

COMPANY FILE NUMBER

 

0065199

 

 

MANAGEMENT

 

Managing Director:  Mr. Leung Kai Wing

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000,000.00 (Divided into 100,000 shares of HK$100.00 each)

 

Issued Share Capital: HK$10,000,000.00

 


SHAREHOLDER

(As per registry dated 07-11-2011)

 

Name

 

No. of shares

Vitar Insulation Holdings Ltd.

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

 

100,000

======

 

 

DIRECTORS  

(As per registry dated 07-11-2011)

 

Name

(Nationality)

 

Address

LEUNG Chau Hiu

656 Wonderland, Tai Po Tau, Tai Po, New Territories, Hong Kong.

 

LEUNG Kai Wing

Flat A, 3/F., Ascot Heights, 21 Lok Lam Road, Fo Tan, Shatin, New Territories, Hong Kong.

 

TSANG Chi Yung

Flat A, 3/F., Ascot Heights, 21 Lok Lam Road, Fo Tan, Shatin, New Territories, Hong Kong.

 

LEUNG Chun Yin

Flat B, 65/F., Tower 8, Lake Silver, 599 Sai Sha Road, Ma On Shan, Shatin, New Territories, Hong Kong.

 

 

SECRETARY

(As per registry dated 07-11-2011)

 

Name

Address

Co. No.

Max Nominees Ltd.

Office C, 6/F., Centre Mark II, 305-313 Queen’s Road Central, Hong Kong.

0637286

 

 

HISTORY

 

The subject was incorporated on 7th November, 1978 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Block C, 26/F., Shield Industrial Centre, 84-92 Chai Wan Kok Street, Tsuen Wan, New Territories, Hong Kong, moved to the present address in March 2005.

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

 

 

OPERATIONS

 

Activities:                      Manufacturer, Wholesaler and Exporter.

 

Lines:                           Silicone fibre glass sleevings, heater mica sheets, silicon wire and tubes, glass fibre tapes and rope, insulation laminate products, PVC tubes, heat shrinkable tubes, pedestal fans, pressboard, magnetic wire, electric cable and exhaust fans.

 

Brand Name:                 VITAR.

 

Employees:                   50.

 

Materials/Commodities:  Imports raw materials from Europe, Japan, Taiwan, Korea, etc. and finished products from China.

 

Markets:                       Europe, Japan, Southeast Asia, South America, etc.

 

Annual Sales Turnover:  HK$120-135 million.

 

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

 

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

 

 

MEMBERSHIP

 

Federation of Hong Kong Industries, Hong Kong.  [Member No. A4524]

Hong Kong Electrical Appliances Manufacturers Association, Hong Kong.

Hong Kong Productivity Council, Hong Kong.

The Chinese General Chamber of Commerce, Hong Kong.

The Chinese Manufacturers’ Association of Hong Kong, Hong Kong.
[Membership No. 004440]

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$10,000,000.00 (Divided into 100,000 shares of HK$100.00 each)

 

Issued Share Capital:     HK$10,000,000.00

 

Profit or Loss:                Made losses in 2009 and 2011

 

Condition:                      Maintaining in a normal manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

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

DBS Bank (Hong Kong) Ltd., Hong Kong.

Dah Sing Bank Ltd., Hong Kong.

 

Standing:                       Normal.

 

 

GENERAL

 

Having issued 100,000 ordinary shares of HK$100.00 each, Vitar Insulation Manufacturers Ltd. is a wholly owned subsidiary of Vitar Insulation Holdings Ltd. which is a BVI-registered firm.  The ultimate holding company Pure Best Ltd. [Pure Best] is also a BVI-registered firm.

Formerly the ultimate holding company of the subject Vitar International Holdings Ltd. [VIHL] was a Caymen Islands-registered firm.  It was also a listed firm.  Now, VIHL has changed name to Goodtop Tin International Holdings Ltd. [Goodtop] which is still a listed firm in Hong Kong.

On 5th December, 2011, Goodtop agreed to sell the entire issued share capital of VIHL to Pure Best, a BVI-registered firm, for cash consideration of HK$83.4 million.  Pure Best is owned by Mr. Liu Guohua who is a China merchant.  Goodtop has changed its core business to mining and sales of non‑ferrous metal such as tin resources since March 2011.  The Directors consider that the disposal of VIHL would allow the Group to focus on its core business of mining and sales of non-ferrous metal such as tin resources.

The subject holds the entire issued share capital of Leader Tech Ltd., a Hong Kong-registered firm and 100% equity interest in PRC subsidiaries.

The subject is a silicone rubber insulation material manufacturer.  It owns a set of proprietary formula that enables it to produce cost effective and high quality silicone rubber materials applicable in a wide range of household electric appliances.  The subject provides one-stop solution entailing a variety of products to customers.

The subject was the 10th largest insulation materials supplier for household electric appliances in China in terms of annual production value.  Most of its customers are OEM manufacturers in China for leading global brands.

The subject’s principal production facilities are based in Longechuan, Guangdong Province, China which are owned by Weida Longchuan.

The subject’s Longchuan factory has a total area of 86,000 sq.m. and has been equipped with more than 2,000 braiding machines, nine production lines of silicone-based and fluoro-polymer-based electric wiring products, eight production lines for silicone and PVC tubes and six production lines for fibre‑glass sleeving tubers with silicone coating.

The followings are the subject’s main products:-

Silicone Glass Fibre Sleeving (UL/CSA)

Silicone Rubber Tube (FDA)

Silicone Glass Fibre Braided Silicone Tube

Lead Wire – Silicone Rubber Wire (CUL)

Lead Wire – Silicone G.F. Braided Silicone Wire (CUL)

Silicone Heating Cable (CUL), Silicone Lid Seal, etc.

Most of the subject’s products are exported to Europe, Japan and Southeast Asia.  Other minor markets are South America, etc.  The subject’s significant clients are Sony and Matsushita.

In September 2001, the subject got the ISO 9002 certification.  Besides, the subject’s Mica products got UL approval in 1992.  Sleeving products got CSA approval in 1995.  Lead Wires got UL3122 and UL3367 approval, Silicone heating cable got UL3590 approval in 1998.  Mica Tape also got UL approval in 1998.

On 29th October, 2004, the subject set up a wholly-owned subsidiary Leader Tech Ltd. in Hong Kong which is the holding company of Long Chuan Weida Insulation Material Co. Ltd.

In 2008, all the production facilities were moved to Longchuan Plant.  Vitar Insulation Material (Shenzhen) Ltd. has become a customer service centre, showroom, research & development centre and warehouse.

The subject suffered from losses in 2009 and 2011.

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

 

 

REMARKS

 

            Court case:-

Action Date

Case No.

Plaintiff

Defendant

Cause

Amount

14-09-2001

ST8407

Government of HKSAR

Vitar Insulation Manufacturers Ltd.

Parked likely to cause unnecessary obstruction of a road or danger to other persons using the road

Not stated

10-02-2004

D686

Kwok Wai Man trading as Kam Fook Generator & Engineering Co.

Vitar Insulation Manufacturers Ltd.

Services Rendered

HK$87,065

06-04-2004

ST29

Government of HKSAR

Vitar Insulation Manufacturers Ltd.

Failing to give information relating to the driving of vehicles

Not stated

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.12

UK Pound

1

Rs.79.37

Euro

1

Rs.66.00

 

 

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.