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Report Date : |
17.10.2012 |
IDENTIFICATION DETAILS
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Name : |
HUAFU HONGKONG TRADING CO. LTD. |
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Registered Office : |
Unit 1502-5, 15/F., Clifford Centre, 778-784 Cheung Sha Wan Road, Cheung Sha Wan, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
29.03.2011 |
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Com. Reg. No.: |
58150699 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of yarns, etc. |
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No. of Employees : |
6 |
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RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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
Managing Director: Mr. Sun
Weiting
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.
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.
58150699
1580311
Managing Director: Mr. Sun
Weiting
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
(As per registry dated 29-03-2012)
|
Name |
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No. of shares |
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Shenzhen Huafu Import & Export Co. Ltd. No. 1, 14/F., Block B, United Plaza, Binhe Boulevard Shenzhen, China. |
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10,000 ===== |
(As per registry dated 29-03-2012)
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Name (Nationality) |
Address |
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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. |
(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 |
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.
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.
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.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.52.82 |
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|
1 |
Rs.84.96 |
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Euro |
1 |
Rs.68.61 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.