|
Report Date : |
13.09.2012 |
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 |
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
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
Chairman
& Chief Executive Officer: Ms. Yang Mun Tak, Marjorie
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.
ESQUEL
ENTERPRISES LTD.
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.
05365716
0056781
Chairman & Chief Executive Officer: Ms. Yang Mun Tak, Marjorie
Vice
Chairman: Ms. Yang Ming Yen, Teresa
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
(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 ======== |
(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 |
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.
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.
Itochu Corporation, Japan.
Kanematsu Corporation, Japan.
Sojitz Corporation, Japan.
Tomen Corporation, Japan.
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
Federation of Hong Kong Industries,
Hong Kong. [Member No. A8828]
The Hong
Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKE0241]
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.
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.
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.55.26 |
|
|
1 |
Rs.88.85 |
|
Euro |
1 |
Rs.71.13 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.