MIRA INFORM REPORT

 

 

Report Date :

26.05.2012

 

IDENTIFICATION DETAILS

 

Name :

ESQUEL  ENTERPRISES  LTD.

 

 

Registered Office :

12/F., Harbour Centre, 25 Harbour Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

22.11.1977

 

 

Com. Reg. No.:

05365716

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter, Manufacturer’s Representative and Investment Holding of all kinds of garments and textiles.

 

 

No. of Employees :

55,000

 

 

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 :

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 – 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

 

ESQUEL  ENTERPRISES  LTD.

 

 

ADDRESS:             12/F., Harbour Centre, 25 Harbour Road, Wanchai, Hong Kong.

 

PHONE:                  2811 8077,  2960 6000

 

FAX:                       2811 8067,  2960 6363,  2960 6988

 

E-MAIL:                  info@esquel.com

sales@esquel.com

 

 

MANAGEMENT

 

Chairman & Chief Executive Officer:  Ms. Yang Mun Tak, Marjorie

 

 

SUMMARY

 

Incorporated on:             22nd November, 1977.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$50,000,000.00

Issued:                          HK$50,000,000.00

 

Business Category:        Textile Product Merchant.

 

Group Turnover:             Approx. US$1,600 million.

 

Group Employees:         55,000.

 

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

 

Banking Relation:           Good.


Company name

 

ESQUEL  ENTERPRISES  LTD.

 

 

Company ADDRESS

 

Registered Head Office:-

12/F., Harbour Centre, 25 Harbour Road, Wanchai, Hong Kong.

 

Branch Office:-

Room 2909, 29/F., China Resources Building, 26 Harbour Road, Wanchai, Hong Kong.

 

Factories:-

Hong Kong, China (Gaoming, Yangmei, Ningbo, Changzhou & Xingjiang), Vietnam, Malaysia, Sri Lanka and Mauritius.

 

Sales Offices:-

Shanghai, London, Beijing, Tokyo, Seattle, Madison, Columbus, New York and Portland.

 

Retail Shops:-

Beijing & Gaoming, Guangdong Province, China.
[Under the name of PYE]

 

Immediate Holding Company:-

Esquel (Holdings) Ltd., Hong Kong.

 

Ultimate Holding Company:-

Esquel Holdings Inc., British Virgin Islands.

 

Affiliated Companies:-

Esquel Group of Companies

Afasia Knitting Factory (HK) Ltd., Hong Kong.

Afasia Textiles Manufacturing Co. Ltd., Hong Kong.

Akesu Esquel Agricultural Development Co. Ltd., China.

Akesu Esquel Cotton Industrial Co. Ltd., China.

Asia Garment Manufacturer (Vietnam) Co. Ltd., Vietnam

Becogate Ltd., Hong Kong.

Changji Esquel Textile Co. Ltd., China.

Changzhou Esquel Garment Co. Ltd., China.

Changzhou Esquel Knitting Apparel Co. Ltd., China.

Clytex (Hong Kong) Ltd., Hong Kong.

Copperfield Co. Ltd., Hong Kong.  [Dormant]

Deland Quarry & Mining Ltd., Hong Kong.  [Dissolved]

East Ocean Textiles Ltd., Jamaica.

Econde International Ltd., Hong Kong.  [Dissolved]

Esquel - Y. L. Yang Education Foundation Ltd., Hong Kong.

Esquel (Far East) Ltd., Hong Kong.  [Dissolved]

Esquel (Hong Kong) Ltd., Hong Kong.  [Dissolved]

Esquel (Mauritius) Ltd., Mauritius.

Esquel Apparel Co. Ltd., Hong Kong.  [Dissolved]

Esquel Apparel Inc., USA.

Esquel Apparel Ltd., UK.

Esquel China Holdings Ltd., Hong Kong.

Esquel Cotton Investment Ltd., Hong Kong.

Esquel Detex Ltd., Hong Kong.

Esquel Enterprises (S) Pte. Ltd., Singapore.

Esquel Enterprises Macao Commercial Offshore Ltd., Macao.

Esquel Garment Manufacturing (Vietnam) Co. Ltd., Vietnam.

Esquel Garments Manufactory Ltd., Hong Kong.  [Dissolved]

Esquel Group Ltd., Hong Kong.

Esquel Investment Co. Ltd., Hong Kong.  [Dissolved]

Esquel Japan Ltd., Japan.

Esquel Macao Holdings Inc., Macao.

Esquel Malaysia Sdn. Bhd., Malaysia.

Esquel Polybag Manufacturing Co. Ltd., Hong Kong.

Esquel Secretarial & Management Services Ltd., Hong Kong.

Fashion Outlet Ltd., Hong Kong.

Fenghua Esquel Garment Co. Ltd., China.

Golden Field United Textiles Ltd., Foshan, Guangdong, China.

Green House Enterprises Ltd., Hong Kong.

Guangdong Esquel Accessories Co. Ltd., China.

Guangdong Esquel Knitters Co. Ltd., China.

Guangdong Esquel Packing Co. Ltd., China.

Guangdong Esquel Plastic Co. Ltd., China.

Guangdong Esquel Textiles Co. Ltd., China.

Guilin Esquel Textiles Co. Ltd., China.

Ningbo Esquel Apparel Co. Ltd., China.

Polytex Garment Ltd., Sri Lanka.

Rawnsley Co. Ltd., Hong Kong.  [Dissolved]

Robot Ltd., Hong Kong.

Shandah Garment Factory Ltd., Hong Kong.

Silverdeer Ltd., Hong Kong.

Tai Lon Knitting (S) Co. Pte. Ltd., Singapore.

Taizhou Esquel Garment Co. Ltd., China.

Textile Industries Ltd., Mauritius.

The Eastern Corrugated Boxes Manufacturing Sdn. Bhd., Malaysia.

The Eastern Garment Manufacturing Co. (Kelantan) Sdn. Bhd., Malaysia.

The Eastern Garment Manufacturing Co. Sdn. Bhd., Malaysia.

The Eastern Knitters Manufacturing Co. Sdn. Bhd., Malaysia.

Turpan Esquel Textile Co. Ltd., China.

Way Yat Industrial Ltd., Hong Kong.

Xinjiang Esquel Agritechnology Co. Ltd., China.

Xinjiang Esquel Textile Co. Ltd., China.

Xinjiang White Field Farming Ltd., China.

Y.L. Yang & Associates Ltd., Hong Kong.

Yang Mei Garment Factory, China.

Young Post International Ltd., Hong Kong.

etc.

 

Associated with:-

Addleshaw Co. Ltd., Hong Kong.

Brilliant Smart Ltd., Hong Kong.

Cinnara Inc., British Virgin Islands.

Keen Choice Enterprises Ltd., Hong Kong.

Marjorie Mun Tak Yang & Teresa Ming Yen Yang Ltd., Hong Kong.  [Dissolved]

Snif Labs Inc., USA.

 

 

BUSINESS REGISTRATION NUMBER

 

05365716

 

 

COMPANY FILE NUMBER 

 

0056781

 

 

MANAGEMENT

 

Chairman & Chief Executive Officer:  Ms. Yang Mun Tak, Marjorie

Vice Chairman:  Ms. Yang Ming Yen, Teresa

 

 

CAPITAL

 

Nominal Share Capital: HK$50,000,000.00 (Divided into 50,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$50,000,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 22-11-2011)

Name

 

No. of shares

Esquel (Holdings) Ltd., Hong Kong.

 

49,999,999

YANG Mun Tak, Marjorie

 

1

 

 

–––––––––

 

Total:

50,000,000

========

 

 

DIRECTORS

 

(As per registry dated 22-11-2011)

Name

(Nationality)

 

Address

YANG Mun Tak, Marjorie

Flat A, 5/F., Cragside Mansion, 23 Barker Road, Hong Kong.

 

YANG Ming Yen, Teresa

Flat B, 3/F., Cragside Mansion, 23 Barker Road, Hong Kong.

 

CHEH Huk Tau, John

10/F., 38 Belleview Drive, Repulse Bay, Hong Kong.

 

LEE Koon Lam

Flat A, 30/F., 35-37 MacDonnell Road, Hong Kong.

 

SECRETARY:        (As per registry dated 22-11-2011)

Name

Address

Co. No.

Esquel Secretarial & Management Services Ltd.

12/F., Harbour Centre, 25 Harbour Road, Wanchai, Hong Kong.

0082352

 

 

HISTORY

 

The subject was incorporated on 22nd November, 1977 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Shandah Building, 682-684 Castle Peak Road, Kowloon, Hong Kong, moved to 16/F., Somerset House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong in December 1994, and further to the present address with effect from 3rd October, 2000.

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter, Manufacturer’s Representative and Investment Holding.

 

Lines:                           All kinds of garments and textiles.

 

Group Employees:         55,000.

 

Commodities Handled:-

Garments – China, Philippines, Malaysia and Hong Kong.

Textiles – China, Malaysia, Taiwan and Hong Kong.

 

Markets:                       USA (58%), Europe (21%) and others (21%).

 

Group Turnover: Approx. US$1,600 million.

 

Terms/Sales:                 L/C (80%), D/P (10%) and D/A (10%).

 

Terms/Buying:               L/C or 30 days credit.

 

 

MAIN JAPANESE SUPPLIERS

 

Itochu Corporation, Japan.

Kanematsu Corporation, Japan.

Sojitz Corporation, Japan.

Tomen Corporation, Japan.

 

 

MAIN CUSTOMERS

 

Abercrombie & Fitch

Anita

Banana Republic

Brooks Brothers

Cortefiel

Esprit

Fred Perry

Gant

Giordano

Hugo Boss

Ito-Yokado

J. Crew

Jack & Jones

JCPenney

Kohl’s

Konaka

Lacoste

LG Fashion

Lotto

Marks & Spencer

Metersbonwe

Muji

Nautica

Next

Nike

Nordstrom

Polo Ralph Lauren

Right On

Septwolves

Shimamura

Ted Baker

Tommy Hilfiger

 

 

MEMBERSHIP

 

Federation of Hong Kong Industries, Hong Kong.  [Member No. A8828]

The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKE0241]

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$50,000,000.00 (Divided into 50,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$50,000,000.00

 

Increases of Nominal Capital:-

 

From

HK$       10,000.00

to

HK$  1,000,000.00

on

23-03-1978

From

HK$  1,000,000.00

to

HK$  2,000,000.00

on

06-09-1978

From

HK$  2,000,000.00

to

HK$  5,000,000.00

on

26-08-1980

From

HK$  5,000,000.00

to

HK$15,000,000.00

on

07-09-1982

From

HK$15,000,000.00

to

HK$25,000,000.00

on

04-01-1983

From

HK$25,000,000.00

to

HK$40,000,000.00

on

15-11-1983

From

HK$40,000,000.00

to

HK$50,000,000.00

on

18-02-1985

 

Mortgage or Charge:       (See attachment)

 

Profit or Loss:                Traded at a profitable angle.

 

Condition:                      Business remains active and good.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Good.

 

Bankers:-

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

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

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

BNP Paribas, Hong Kong Branch.

Credit Agricole Corporate & Investment Bank, Hong Kong Branch.

Citibank N.A., Hong Kong Branch.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

 

Standing:  Good.

 

 

GENERAL

 

Esquel Enterprises Ltd. was incorporated in November 1977 and commenced business in March 1978.  It was a joint partnership firm between Mr. Yang Yuan Loong and some Shanghainese merchants.  Now it is a wholly-owned subsidiary of Esquel (Holdings) Ltd., a Hong Kong-based firm, which is in turn a subsidiary of Esquel Holdings Inc. [Esquel], a BVI-registered firm.

The subject is a member of the Esquel Group.

Esquel is a textile organization enjoying fast expansion since commencement.  The subject is the flagship of the Esquel Group, a private held group which controls numerous companies in Hong Kong as well as factories in the PRC, Mauritius, Sri Lanka, Malaysia, Vietnam, etc. with a total of 55,000 employees worldwide.  For Hong Kong alone, there are about 700 to 800 employees.

The Group’s total output is as follows:-

·         Knitting – It produces 13,500 tons of cotton knit fabric annually, including piece dyed, yarn dyed and heather.

·         Weaving – With a capacity of 95 million yards a year, it is the PRC’s largest manufacturer of cotton yarn dyed woven fabric.

·         Garment Manufacturing – It produces 70 million of shirts each year to the world’s best known and highly respected brands as well as major retailers.

Esquel’s manufacturing facilities worldwide produce high-end cotton garments for such distinguished clientele as Abercrombie & Fitch, Brooks Brothers, Hugo Boss, J. Crew, Muji, Nike, Banana Republic, Marks & Spencer, Nordstrom, Polo Ralph Lauren, Tommy Hilfiger, etc.  Its products are WRAP, ISO 9001, 14001, OHSMS 18001 and 28001 certified.

In addition to garment manufacturing, Esquel produces a versatile range of high-end cotton fabrics and accessories.  To meet its huge demand for cotton, the group has a cotton farm in Xinjiang, China which grows the world-renowned Xinjiang extra long staple cotton.  The cotton is then spun, woven, knitted, dyed and finished in the Group’s manufacturing facilities in Xinjiang, China.  So far, the Group has made an investment in Xinjiang over US$100 million.

In 1996, the Group launched a retail franchise chain in the PRC, called “Pye”, the Chinese word for style.  Pye” is Esquel’s own brand.  Its sales are growing smartly and now has two shops in the PRC.  Besides “Pye”, Esquel also owns another brand name “Shirt Stop”.

Today, the Esquel Group is a vertically integrated supply chain which encompasses cotton farming, spinning, weaving, knitting, garment and accessories manufacturing, exporting and retailing.  Now, the annual turnover of the Group amounts to US$1,600 million.

In 1989, Esquel got many directors changed and the former Managing Director, Mr. Jesse Zee left Esquel.  Management is now under the hands of Ms. Marjorie Yang and Mr. John Cheh Huk-Tau.

Ms. Yang is the daughter of the late Yang Yuan Loong and ex-wife of Mr. Dickson Poon who is Chairman of Dickson Concepts (International) Ltd.  Ms. Yang has been managing director of fashion label Esquel Group since 1989 and chairman since 1995.  Born in Hong Kong in 1952, she was educated at St. Paul’s Co-educational College in Hong Kong and at Baldwin School in the United States.  She got a Bachelor of Science in Mathematics at MIT, Cambridge, Massachusetts, in 1974 and a Master’s in business Administration at Harvard Business School in 1976.  She had been working in First Boston Corporation between 1976-77 before returning to Hong Kong to become director in charge of finance at Esquel in 1978.  She had rushed back to Hong Kong from First Boston when her father fell ill in 1978.  He survived and convinced her that the opening up of China market offer would big opportunities for the family business.  Ms. Yang is a member of the Executive Council of the Government of Hong Kong SAR.  She is also a Director of Swire Pacific Ltd. and Novartis AG.  She sits on various advisory boards of educational institutions including Massachusetts Institute of Technology, Hong Kong University of Science and Technology and Tsinghua School of Economics and Management.

Mr. Yang Yuan Loong, passed away in 2007, was the ex-Chairman of the Esquel Group and former Director and Manager of Textile Alliance Ltd. [TAL], ex-largest textile organization in Hong Kong.

The subject is fully supported by Esquel Group.

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

 

 

REMARKS

 

            Court case:-

Date

Plaintiff

Defendant

Cause

Amount

Jan. 1984

Hoovercool Engineering Co. Ltd.

Esquel Enterprises Ltd.

Goods Sold and Delivered

HK$9,900

Feb. 1986

Lap Shun Textiles Industrial Co. Ltd.

Esquel Enterprises Ltd.

Goods Sold and Delivered

HK$676,236

Aug. 1986

Quicken Textile Ltd.

Esquel Enterprises Ltd.

Goods Sold and Delivered

HK$3,532,126

Feb. 1990

King’s Dyeing & Weaving Factory (1986) Ltd.

Esquel Enterprises Ltd.

Work Done

HK$286,502

Nov. 1990

Reuters HK Ltd.

Esquel Enterprises Ltd.

Amount Due

HK$320,303

Oct. 1991

Kwong Tak Fong Textiles Ltd.

Esquel Enterprises Ltd.

Amount Due

HK$391,786

 

Property information of Esquel Group:-

1.     Property Location:       Apartment B on 6/F., Cragside Mansion, 23 Barker Road, Hong Kong.

Owner:     Yang Tsai Yung Fong & Yang Ming Yen
(Wife & Daughter of Mr. Yang Yuan Loong, the founder)

Date of Purchase:  10-05-1980

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

10-05-1980

HK$2,000,000

Standard Chartered Bank, Hong Kong Branch.  [Business transferred to Standard Chartered Bank (Hong Kong) Ltd.]

Mortgage to secure banking facilities

11-01-1982

HK$1,500,000

- ditto -

Further charge

 

2.     Property Location:       7 Devon Road, Kowloon, Hong Kong.

Owner:     Esquel Investment Co. Ltd.

Date of Purchase:  28-09-1979

Purchased Price:  HK$4,850,000

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

19-02-1986

-

Standard Chartered Bank, Hong Kong Branch.  [Business transferred to Standard Chartered Bank (Hong Kong) Ltd.]

Legal charge to secure general banking facilities

 

Note:      The Yang’s family also owns some residential properties in Guangdong, Shanghai and Beijing in China; one plot of land in Connecticut in USA; one residential property in Florida, USA; one residential property in British Columbia, Canada; some residential properties in Singapore; and other residential properties on Hong Kong Island.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.73

UK Pound

1

Rs.87.26

Euro

1

Rs.69.84

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.