MIRA INFORM REPORT

 

 

Report Date :

29.11.2012

 

IDENTIFICATION DETAILS

 

Name :

KING KONG LEATHER WARE LTD.

 

 

Registered Office :

Unit 1305-1309, 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road, Kwai Chung, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

29.11.1985

 

 

Reg. No.:

10010409

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Leather Shoe Manufacturer of All kinds of ladies’ leather shoes and snake skin shoes

 

 

No. of Employees :

32

 

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 :

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

 

KING KONG LEATHER WARE LTD.

 

 

ADDRESs

 

Unit 1305-1309, 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.

 

PHONE:            2481 6863,  2481 4307;  2481 4516;  2489 8707

 

FAX:                 2481 6895,  2481 6981

 

E-MAIL             kingkong@kingkong.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Fong Hoy Loon

 

 

SUMMARY

 

Incorporated on:             29th November, 1985.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$2,500,000.00

            Issued:              HK$2,500,000.00

 

Business Category:        Leather Shoe Manufacturer.

 

Annual Turnover:            HK$100-120 million.

 

Employees:                   32.  (Hong Kong)

 

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

 

Banking Relation:           Good.


Company Name

 

KING KONG LEATHER WARE LTD.

 

 

ADDRESS

 

Registered Head Office & Factory:-

Unit 1305-1309, 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.

 

China Factory:  Shenzhen, China.

 

Holding Company:-

Plantation Assets Ltd., British Virgin Islands.

 

Associated Companies:-

Kingford Co. Ltd., Hong Kong.

Silvercord Leather Shoes Factory Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

10010409

 

 

COMPANY FILE NUMBER

 

0162368

 

 

MANAGEMENT

 

Managing Director:  Mr. Fong Hoy Loon

 

 

CAPITAL

 

Nominal Share Capital: HK$2,500,000.00 (Divided into 25,000 shares of HK$100.00 each)

 

Issued Share Capital:     HK$2,500,000.00

 

SHAREHOLDERS

 

(As per registry dated 29-11-2011)

Name

 

No. of shares

Plantation Assets Ltd.

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

 

21,000

LING Chi Hung

 

2,400

FONG Hoy Loon

 

1,600

 

 

––––––

 

Total:

25,000

=====

 

 

DIRECTORS  

 

(As per registry dated 29-11-2011)

Name

(Nationality)

 

Address

FONG Tsz Ling, Chilly

Unit 1306, 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.

 

LING Chi Hung

Unit 1306, 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.

 

FONG Hoy Loon

Unit 1306, 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.

 

 

SECRETARY 

 

FONG Hoy Loon  (As per registry dated 29-11-2011)

 

 

HISTORY

 

The subject was incorporated on 29th November, 1985 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at 7/F., Wong’s Building, 33 Hung To Road, Kwun Tong, Kowloon, Hong Kong, moved to the present address in October 1997.

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

 

 

 

OPERATIONS

 

Activities:                      Leather Shoe Manufacturer.

 

Lines:                           All kinds of ladies’ leather shoes and snake skin shoes.

 

Employees:                   32.  (Hong Kong)

620.  (China)

 

Raw Materials:               Leather imported from Europe, India, etc.

 

Markets:                       Australia, Japan, US and Europe.

 

Annual Turnover:            HK$100-120 million.

 

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

 

Terms/Buying:               Various terms.

 

 

MEMBERSHIP    

 

The Federation of Hong Kong Footwear Ltd., Hong Kong.
[Membership No. PMF1118]

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$2,500,000.00 (Divided into 25,000 shares of HK$100.00 each)

 

Issued Share Capital:     HK$2,500,000.00

 

Alternation of Capital:-

29-11-1985

paid up

HK$      200.00

30-11-1985

paid up

HK$      399,800.00

14-10-1996

paid up

HK$      2,100,000.00

 

 

–––––––––––––––

Total:

paid up

HK$      2,500,000.00

==============

 

Increase of Nominal Capital:-

From

HK$800,000.00

to

HK$2,500,000.00

on

14-10-1996

 

Mortgage or Charge (since 2008):  (See attachment)

 

Profit & Loss:                            Business is profitable.

 

Condition:                                  Keeping in an active and satisfactory manner.

 

Facilities:                                  Making active use of general banking facilities.

 

Payment:                                  So far so good.

 

Commercial Morality:                 Good.

 

Bankers:-

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

Hang Seng Bank Ltd., Hong Kong.

China Construction Bank (Asia) Corporation Ltd., Hong Kong.

 

Standing:                                  Good.

 

 

GENERAL

 

King Kong Leather Ware Ltd. is a private limited company jointly held by Plantation Assets Ltd. [Plantation Assets], a BVI-registered firm holding 84.0% interests, Mr. Ling Chi Hung holding 9.6% and Mr. Fong Hoy Loon, 6.4%.

The subject is a well-established leather shoe manufacturer in Hong Kong.  It has got an affiliated factory in China employing about 620 persons.  The factory is in Shenzhen Special Economic Zone, China.  Most of its products are ladies’ leather shoes and ladies’ snake-skin shoes.  The followings are its main products:-

Boots - Leather (For ladies, OEM);

Sandals - Leather (For ladies include evening sandals, OEM);

Shoes - Leather (For ladies, OEM); &

Shoes - Suede (For ladies, OEM).

Principal markets are the European countries, Japan, Australia and North America.  Raw materials, mainly leather, are imported from Spain, Italy and India.  Business is rather active and steady.  Management is experienced.

The annual sales turnover of the subject ranges from HK$100 to 120 million.  Making a small profit every year.  It has got ISO9001:2000 certification.

Plantation Assets has got another subsidiary company Silvercord Leather Shoes Factory Ltd. [Silvercord] which is also a Hong Kong-registered firm.  This firm is 75% held by Plantation Assets.  Silvercord is also trading in leather shoes.  Mr. Fong Hoy Loon is also a director of Silvercord.  However, Silvercord is located at a different address.

Having a history of about twenty-seven years, the subject is considered good for normal business engagements.

 

 

REMARKS

 

Property information of the company and affiliate:-

1.         Property Location:          7/F. & Roof (including structures thereon), 33 Hung To Road, Kowloon, Hong

Kong.

Owner:                                      King Kong Leather Ware Ltd.

Date of Purchase:                      27-02-1987

Purchased Price:                       HK$2,422,500

Incumbrances:                           No mortgage record registered against the property.

 

Date of Mortgage

Amount Consideration

Mortgagee

Nature

09-04-2003

-

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

-

 

2.         Property Location:          Unit 2006 on 20/F., Nan Fung Centre, 264-298 Castle Peak Road, Tsuen Wan,

New Territories, Hong Kong.

Owner:                                      King Kong Leather Ware Ltd.

Date of Purchase:                      n.a.

Purchased Price:                       n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

01-03-1993

-

Kincheng Banking Corporation, Hong Kong Branch.  [Merged into Bank of China (Hong Kong) Ltd.]

Mortgage to secure general banking facilities

 

3.         Property Location:          Counter No. TK1A on 3/F. of Portion B, Argyle Centre Phase 1, 688 Nathan    

Road & 65 Argyle Street, Kowloon, Hong Kong.

Owner:                                      King Kong Leather Ware Ltd.

Date of Purchase:                      n.a.

Purchased Price:                       n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

15-07-1999

-

Bank of America (Asia) Ltd., Hong Kong.  [Now known as China Construction Bank (Asia) Corporation Ltd.]

Mortgage to secure general banking facilities

 

4.         Property Location:          Shop No. T 69 on 3/F. of Portion B, Argyle Centre Phase 1, 688 Nathan Road &

65 Argyle Street, Kowloon, Hong Kong.

Owner:                                      King Kong Leather Ware Ltd.

Date of Purchase:                      n.a.

Purchased Price:                       n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

15-07-1999

-

The China State Bank Ltd., Hong Kong Branch.  [Merged into Bank of China (Hong Kong) Ltd.]

Legal charge to secure general banking facilities

 

5.         Property Location:          House No. 14, Windsor Park, 2-88 Ma Ling Path, Kau To Shan, Shatin, New

Territories, Hong Kong.

Owner:                                      King Kong Leather Ware Ltd.

Date of Purchase:                      n.a.

Purchased Price:                       n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

28-12-1999

-

The China State Bank Ltd., Hong Kong Branch.  [Merged into Bank of China (Hong Kong) Ltd.]

Legal charge to secure general banking facilities

 

6.         Property Location:          Workshop No. 5-9 on 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road,

Kwai Chung, New Territories, Hong Kong.

Owner:                                      Kingford Co. Ltd.

Date of Purchase:                      10-08-1993

Purchased Price:                       HK$15,174,000

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

10-08-1993

-

Kincheng Banking Corporation, Hong Kong Branch.  [Merged into Bank of China (Hong Kong) Ltd.]

Legal charge to secure general banking facilities

 

 

MORTGAGE OR CHARGE

 

(Since 2008)

 

Date

Particulars

Amount

27-08-2008

Instrument:        Charge Over Securities (2-Party)

Property:

Securities account number 286-445515-382

Mortgagee:        Hang Seng Bank Ltd., Hong Kong.

To secure owing all monies in any currency by the Company to Hang Seng Bank Ltd.

27-08-2008

Instrument:        Charge Over Securities (2-Party)

Property:

Securities account number 339-002867

Mortgagee:        Hang Seng Bank Ltd., Hong Kong.

To secure owing all monies in any currency by the Company to Hang Seng Bank Ltd.

27-08-2008

Instrument:        Charge Over Securities (2-Party)

Property:

Securities account number 286-445515-085

Mortgagee:        Hang Seng Bank Ltd., Hong Kong.

To secure owing all monies in any currency by the Company to Hang Seng Bank Ltd.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.70

UK Pound

1

Rs.89.34

Euro

1

Rs.72.35

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.