MIRA INFORM REPORT

 

 

Report Date :

17.10.2012

 

IDENTIFICATION DETAILS

 

Name :

HUAFU  HONGKONG  TRADING  CO.  LTD.

 

 

Registered Office :

 

Unit 1502-5, 15/F., Clifford Centre, 778-784 Cheung Sha Wan Road, Cheung Sha Wan, Kowloon

 

 

 

 

Country :

Hong Kong

 

 

 

 

Date of Incorporation :

29.03.2011

 

 

 

 

Com. Reg. No.:

58150699

 

 

 

 

Legal Form :

Private Limited Company

 

 

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of yarns, etc.

 

 

 

 

No. of Employees :

6

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 and address

 

HUAFU  HONGKONG  TRADING  CO.  LTD.

 

 

ADDRESS:       Unit 1502-5, 15/F., Clifford Centre, 778-784 Cheung Sha Wan Road, Cheung Sha Wan, Kowloon, Hong Kong.

 

PHONE:            2409 6299

 

FAX:                 2408 7366

 

E-MAIL:                        szhf@e-huafu.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Sun Weiting

 

 

SUMMARY

 

Incorporated on:             29th March, 2011.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000,000.00

Issued:              HK$10,000,000.00

 

Business Category:        Yarn and Fabric Trader.

 

Annual Turnover:            RMB362,474,800 Yuan  (Year ended 31-12-2011)

 

Employees:                   6.

 

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

 

Banking Relation:           Satisfactory.


ADDRESS

 

Registered Head Office:-

Unit 1502-5, 15/F., Clifford Centre, 778-784 Cheung Sha Wan Road, Cheung Sha Wan, Kowloon, Hong Kong.

 

Holding Company:-

Shenzhen Huafu Import & Export Co. Ltd., China.

 

Ultimate Holding Company:-

Huafu Top Dyed Melange Yarn Co. Ltd., China.

 

Associated Companies:-

Huafu Group Co. Ltd., Hong Kong.

Huafu HK Co. Ltd., Hong Kong.

Anhui Huaibei Jinfu Weaving Co. Ltd., China.

Zhejiang Huafu Melange Yarn Spining Co. Ltd., China.

Zhejiang Jinyun Huafu Textile Co. Ltd., China.

Pinghu Huafu Jinping Textile Co. Ltd., China.

Xinjiang Huafu Textile Co. Ltd., China.

Dongzhi Huafu Dyeing Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

 58150699

 

 

COMPANY FILE NUMBER 

 

1580311

 

 

MANAGEMENT

 

Managing Director:  Mr. Sun Weiting

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000 shares of HK$1,000.00 each)

 

Issued Share Capital: HK$10,000,000.00

 


SHAREHOLDER

(As per registry dated 29-03-2012)

 

Name

 

No. of shares

Shenzhen Huafu Import & Export Co. Ltd.

No. 1, 14/F., Block B, United Plaza, Binhe Boulevard Shenzhen, China.

 

10,000

=====

 

 

DIRECTORS  

(As per registry dated 29-03-2012)

 

Name

(Nationality)

 

Address

CHEN Lingfen

12/F., Mid-Block, Lianxing Building, 8 Wenjin Zhong Road, Shenzhen, China.

 

SUN Weiting

12/F., Mid-Block, Lianxing Building, 8 Wenjin Zhong Road, Shenzhen, China.

 

 

SECRETARY

(As per registry dated 29-03-2012)

 

Name

Address

Co. No.

Woodland Secretaries Co. Ltd.

Suite 1001, 10/F., Centre Point, 181 Gloucester Road, Hong Kong.

0160862

 

 

HISTORY

 

The subject was incorporated on 29th March, 2011 as a private limited liability company under the Hong Kong Companies Ordinance.

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of yarns, etc.

 

Employees:                   6.

 

Commodities Imported:   China, etc.

 

Markets:                       China, other Asian countries, Europe, etc.

 

Annual Turnover:            RMB362,474,800 Yuan  (Year ended 31-12-2011)

 

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

 

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

           

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$10,000,000.00 (Divided into 10,000 shares of HK$1,000.00 each)

 

Issued Share Capital:     HK$10,000,000.00

 

Total Assets:                 RMB14,312,710,000 Yuan  (Year ended 31-12-2011)

 

Net Profit:                      RMB6,354,600 Yuan  (Year ended 31-12-2011)

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in a satisfactory manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

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

 

Standing:                      Normal.

 

 

GENERAL

 

Huafu Hongkong Trading Co. Ltd. is a wholly-owned subsidiary of Shenzhen Huafu Import & Export Co. Ltd. which is a China-based firm.

The ultimate holding company of the subject Huafu Top Dyed Melange Yarn Co. Ltd. [HFTDM] is also a China-based firm.  HFTDM is a listed firm in China.  Its A shares, bearing Code No. 002042, have been traded in Shenzhen Stock Exchange.  HFTDM and its associated companies are referred to “Group”.

The directors of the subject Mr. Chen Lingfen and Mr. Sun Weiting is a couple.  At present, they are residing in Shenzhen Special Economic Zone, China.

In Hong Kong, the subject is sharing the office with its associated company Huafu Group Co. Ltd. which is also a Hong Kong-based firm.

Established in 1993, HFTDM has become one of the largest yarn and thread providers in the world.  Its Huafu brand colour yarn is a famous name in the garment manufacturing industry.  Many of the international famous garment manufacturers are using HFTDM’s products for their garments.  These firms are H&M, Zara, Polo, Gap, Uniqlo, etc.  It also has had a number of domestic customers which are garment manufacturers such as Metersbonwe, Semir, Li Ning, and Septwolves ,etc.

Meanwhile, HFTDM has established cooperation partnership with suppliers such as China National Cotton Group Corporation, Austria Lenzing Group and Cotton USA.

Besides, HFTDM’s products have been exported to Europe, North America, Japan, South Korea, Hong Kong, Macau, and Southeast Asia, etc.

The Group production bases are in Zhejiang Province, Yangtze River, Huang and Huai River, and Xinjiang Area.

Currently HFTDM is deputy president unit of China Cotton Association, China Fashion and Color Association, and China Cotton Textile Association, and chairman unit of Zhejiang Cotton Textile Association.  It has been honoured many years in a row with the title ‘Top Ten Enterprises of Strongest Competitiveness in China Textile Industry’ and it has won the National Contribution Award of Textile Product Development, and the Award of First-class Exportation, etc.  It was also awarded the National New Mélange Yarn Product Development Base, R&D Base for Yarn Color of China, and the Base of Finest Mélange Yarn in China, and the Provincial High-tech Enterprise, etc.

Leading the industry’s color trend, HFTDM launches standard color books biennially, and every year introduces trend color books twice, for the season of spring/summer and fall/winter.  36 standard color books and 16 trend books have been launched so far.  HFTDM is the first company to launch the sweater color book which is for special products of certain categories, techniques and materials.  They serve as reference for designers’ selection and clients’ color correction.  HFTDM’s color books won the only color award of the year for textile product at the appraisal of the 84th World Fashion Color Conference.

The sales turnover of the subject in 2011 amounted to RMB362.5 million Yuan, net profit was RMB6.4 million.  Profit margin was low in the year.

The subject is fully supported by the Group.  History in Hong Kong is just over a year and six months.

On the whole, since the history of the subject is short, consider it good for normal business engagements on L/C basis.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.82

UK Pound

1

Rs.84.96

Euro

1

Rs.68.61

 

 

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.