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Report Date : |
15.04.2013 |
IDENTIFICATION DETAILS
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Name : |
WARNACO
ASIA LTD. |
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Registered Office : |
20/F., Two Harbourfront, 22 Tak Fung Street, Hunghom,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
25.09.2009 |
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Com. Reg. No.: |
51209782 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is engaged in designing, sourcing, marketing and
distributing a broad line of intimate apparel, sportswear and swimwear
worldwide |
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No. of Employees : |
180. (Hong Kong) |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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.
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Source : CIA |
WARNACO ASIA LTD.
Important Note:
Your enquiry given as “Warnaco Inc.” of the same address. Please be noted that “Warnaco Inc.” was incorporated in 1969 and is headquartered in New York, USA. “Warnaco Inc.” operates as a subsidiary of Warnaco Group Inc. It designs, manufacturers, sources and markets intimate apparel; sportswear; and swimwear for men, women, juniors and children. “Warnaco Inc.” operates retail globally under the Calvin Klein Underwear, Calvin Klein Jeans and CK Calvin Klein brands. It is an affiliate of the subject company.
20/F., Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2798 1888
FAX: 2621 6135
E-MAIL: sleung@warnaco.com
Group Executive Vice President & Group Chief Operating and
Financial Officer:
Mr. Michael Alan Shaffer
Incorporated on: 25th September, 2009.
Organization: Private Limited Company.
Capital: Nominal: HK$3,500,000,000.00
Issued: HK$1,787,398,000.00
Business Category: Garment Buying Office, Importer and Exporter; Retailer.
Group Net Revenues: US$2,513,388,000 (Year ended 31-12-2011)
Employees: 180. (Hong Kong)
Main Dealing Banker: JPMorgan Chase Bank N.A., Hong Kong Branch.
Banking Relation: Good.
Registered Head
Office:-
20/F., Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong.
Immediate Holding
Company:-
Warnaco (HK) Ltd., Barbados.
Intermediate
Holding Company:-
Warnaco B.V., Netherlands.
Penultimate
Holding Company:-
The Warncao Group Inc., USA.
Ultimate Holding
Company:-
PVH Corporation, USA.
Associated/Affiliated
Companies:-
Warnaco Group of Companies
4278941 Canada Inc., Canada.
AEB Participacoes Ltda., Brazil.
Authentic Fitness On-Line Inc., USA.
Calvin Klein Jeanswear Co., USA.
CCC Acquisition Corporation, USA.
CK Jeanswear Asia Ltd., Hong Kong.
CK Jeanswear Australia Pty. Ltd., Australia.
CK Jeanswear Europe S.r.l., Italy.
CK Jeanswear Korea Ltd., Korea.
CK Jeanswear NZ Ltd., New Zealand.
CKJ Fashion (Shanghai) Ltd., China.
CKJ Holdings Inc., USA.
CKJ UK Ltd., UK.
CKU.com Inc., USA.
Designer Holdings Ltd., USA.
Distribuidor Textil Warnaco Chile Ltda., Chile.
Distribuidor Textil Warnaco Peru S.A., Peru.
Eratex GmbH, Germany.
Euro Retail S.r.l., Italy.
FA France Sarl., France.
Gold Lightening Ltd., Hong Kong.
Jeanswear Services Ltd., UK.
Lenitex-Warnaco Handelsgesellschaft m.b.H, Austria.
Lintex-Warnaco S.a.r.l., Switzerland.
Mullion International Ltd., British Virgin Islands.
Ocean Pacific Apparel Corporation, USA
Vista de Yucatan S.A. de C.V., Mexico.
Warnaco (Macao) Co. Ltd., Macao.
Warnaco Apparel SA (Proprietary) Ltd., South Africa.
Warnaco Argentina S.r.l., Argentina.
Warnaco Belgium Sprl, Belgium.
Warnaco Brasil Participacoes Ltda., Brazil.
Warnaco Commerce (Shanghai) Co. Ltd., China.
Warnaco Denmark A/S, Denmark.
Warnaco France S.A.R.L., France.
Warnaco Germany GmbH, Germany.
Warnaco
Global Sourcing Ltd., Hong Kong.
Warnaco Inc., USA.
Warnaco International Trading (Shanghai) Co. Ltd., China.
Warnaco Intimo S.A., Spain.
Warnaco Italy S.r.l., Italy.
Warnaco Logistics B.V., Netherlands.
Warnaco Netherlands B.V., Netherlands.
Warnaco of Canada Co., Canada.
Warnaco Poland Sp. z.o.o., Poland.
Warnaco Portugal-Vestuario e Acessorios Sociedade Unipessoal Lda., Portugal.
Warnaco Puerto Rico Inc., USA.
Warnaco Retail Inc., USA.
Warnaco Shanghai Co. Ltd., China.
Warnaco Singapore Pte. Ltd., Singapore.
Warnaco Swimwear Inc., USA.
Warnaco Swimwear Products Inc., USA.
Warnaco Taiwan Co. Ltd., Taiwan.
Warnaco U.S. Inc., USA.
Warnaco UK Ltd., Northern Ireland.
Warner’s (EIRE) Teoranta, Ireland.
Warner’s Aiglon S.A., France.
Warner’s de Mexico S.A. de C.V., Mexico.
WBR Industria e Comercio de Vestuario S.A., Brazil.
WF Overseas Fashion C.V., Netherlands, etc.
PVH Group of Companies
51209782
1376775
Group Executive Vice President & Group Chief Operating and
Financial Officer:
Mr. Michael Alan Shaffer
Nominal Share Capital: HK$3,500,000,000.00 (Divided into 3,500,000 shares of HK$1,000.00 each)
Issued Share Capital: HK$1,787,398,000.00
(As per registry
dated 25-09-2012)
|
Name |
|
No.
of shares |
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Warnaco (HK) Ltd. DGM Trust, Chamberlain Place, Broad Street, Bridgetown,
St. Michael, Barbados, British West Indies. |
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1,787,398 ======= |
(As per registry
dated 28-02-2013)
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Name (Nationality) |
Address |
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Michael Alan SHAFFER |
20 Norwood Ave., Avon By Sea, NJ 07717, USA. |
|
Mark David FISCHER |
9 Miller Circle, Armonk, NY 10504-1357, USA. |
|
HUI Hon Chiu, Jeffrey |
Flat A, 13/F., Tower 3, Residence Bel-Air, 28 Bel-Air Avenue,
Island South, Hong Kong. |
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Ericka Nicole ALFORD |
295 Central Park West, Apartment #16H, New York,
NY 10024, USA. |
|
Mark Philip WHYMAN |
90 Parade Hill Lane, New Canaan, CT 06840-4119, USA. |
HUI Hon Chiu, Jeffrey (As per registry dated 25-09-2012)
The subject was incorporated on 25th September, 2009 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: Garment Buying Office, Importer and Exporter; Retailer.
Lines: Pyjamas, robes, camisoles, seamless vests, briefs, swimwear, brassieres, etc.
Employees: 180. (Hong Kong)
Commodities Imported: Bought in Hong Kong and imported from China and other Asian countries, etc.
Markets: USA, Hong Kong, etc.
Group Net
Revenues:
· US$2,295,751,000 (Year ended 31-12-2010)
· US$2,513,388,000 (Year ended 31-12-2011)
· US$1,179,452,000 (6 months ended 30-06-2012)
Terms/Sales: COD, L/C or as per contracted.
Terms/Buying: Various terms.
Nominal Share Capital: HK$3,500,000,000.00 (Divided into 3,500,000 shares of HK$1,000.00 each)
Issued Share Capital: HK$1,787,398,000.00
Alternation of
Capital:-
|
25-09-2009 |
paid up |
HK$ 1,000.00 |
|
01-11-2009 |
paid up |
HK$ 1,016,856,000.00 |
|
02-11-2009 |
paid up |
HK$ 770,541,000.00 |
|
|
|
––––––––––––––––––– |
|
Total: |
paid up |
HK$ 1,787,398,000.00 ================= |
Group Net Income: US$138,581,000 (Year ended 31-12-2010)
US$127,450,000 (Year ended 31-12-2011)
US$ 45,532,000 (6 months ended 30-06-2012)
Group Net Worth: US$972,606,000 (As at 31-12-2010)
US$897,200,000 (As at 31-12-2011)
US$960,096,000 (As at 30-06-2012)
Profit or Loss: Traded at a profitable angle.
Condition: Kept in a normal manner.
Facilities: Is making use of general banking facilities.
Payment: So far so good.
Commercial Morality: Good.
Banker: JPMorgan Chase Bank N.A., Hong Kong Branch.
Standing: Good.
Warnaco Asia Ltd. is a wholly-owned subsidiary of Warnaco (HK) Ltd., Barbados, West Indies. In turn, Warnaco (HK) Ltd. is a subsidiary of The Warnaco Group Inc. [Warnaco] of the United States.
The subject and its holding company are engaged in designing, sourcing, marketing and distributing a broad line of intimate apparel, sportswear and swimwear worldwide. The subject’s products are sold under several highly recognized brand names.
The subject operates a chain of retail shops in Hong Kong under the name of “Calvin Klein.”
Warnaco has been listed on the New York Stock Exchange since 11th October, 1991.
Warnaco, a Delaware corporation organized in 1986 (collectively with its subsidiaries, the “Group”), designs, sources, markets, licenses and distributes a broad line of intimate apparel, sportswear and swimwear worldwide. The Group’s products are sold under several highly recognized brand names, including, but not limited to, “Calvin Klein®”, “Speedo®”, “Chaps®”, “Warner’s®” and “Olga®”.
The Group’s products are distributed domestically and internationally, primarily to wholesale customers through various distribution channels, including major department stores, independent retailers, chain stores, membership clubs, specialty and other stores, mass merchandisers and the internet.
In addition, the Group distributes its branded products through dedicated retail stores, and as of 31st December, 2011, the Group operated 1,759 Calvin Klein retail stores worldwide (consisting of 263 full price free‑standing stores, 118 outlet free-standing stores,
1,376 shop‑in‑shop/concession stores and, in the United States, two on-line stores: Calvinkleinjeans.com, and CKU.com) and one on-line swimwear store SpeedoUSA.com. There were also 615 Calvin Klein retail stores operated by third parties under retail licenses or franchise and distributor agreements. For the fiscal year ended 31st December, 2011 (“Fiscal 2011”), approximately 40.3% of the Group’s net revenues were generated from domestic sales and approximately 59.7% were generated from international sales. In addition, approximately 71.1% of net revenues were generated from sales to customers in the wholesale channel and approximately 28.9% of net revenues were generated from customers in the direct-to-consumer channel.
The Group carries
the following products:-
· intimate apparel (including bras, panties, loungewear, sleepwear, shapewear and daywear for women, and underwear and sleepwear for men);
· sportswear for men, women and juniors (including jeanswear, khakis, knit and woven shirts, tops and outerwear); and
· swimwear for men, women, juniors and children (including swim accessories and fitness and active apparel).
The Calvin Klein Underwear women’s lines consist primarily of women’s underwear, bras, panties, daywear, loungewear and sleepwear. The Calvin Klein men’s lines consist primarily of men’s underwear, briefs, boxers, T‑shirts, loungewear and sleepwear.
The Intimate Apparel Group has operations in North America (U.S., Canada and Mexico), Central and South America, Europe, Asia and Australia. The Intimate Apparel Group’s products are sourced entirely from third party suppliers worldwide.
The Group has been able to expand the distribution of its international Calvin Klein products in the Intimate Apparel Group, primarily in its direct-to-consumer business, and to increase net revenues to US$755.3 million, US$669.8 million and US$580.2 million in Fiscal 2011, Fiscal 2010 and Fiscal 2009, respectively. Direct-to-consumer products accounted for 30.7%, 28.5% and, 28.6% of the Intimate Apparel segment’s Fiscal 2011, Fiscal 2010 and Fiscal 2009 net revenues, respectively.
The Group’s Intimate Apparel brands are distributed primarily through department stores, independent retailers, chain stores, membership clubs, mass merchandisers, off-price stores, Group operated retail stores, shop-in-shop/concession locations, stores operated under retail licenses or franchise and distributor agreements, the Company’s “CKU.com” internet website and, to a lesser extent, specialty stores.
The Group traces its origins back more than 130 years, when the “Warner’s®” intimate apparel line, which is owned by the Group, first entered the market. Through a series of acquisitions, the Group has grown to become a worldwide leader in the apparel business.
The Group owns and licenses a portfolio of highly recognized brand names. The preponderance of trademarks used by the Group are either owned or licensed in perpetuity. The Group’s core brands have been established in their respective markets for extended periods and have attained a high level of consumer awareness.
The Group relies on its portfolio of highly recognized brand names to appeal to a broad range of consumers. The Group’s goal is to develop products that address a full range of price points and meet the needs and shopping preferences of male and female customers in all age groups.
On 4th February, 2003, the Group emerged from Chapter 11 bankruptcy protection and the Group’s New Common Stock began trading on the NASDAQ National Stock Market on 5th February, 2003 under the symbol “WRNC”.
For the year ended 31st December, 2011, the net revenues of the Group amounted to US$2,513.4 million, increased by 11.2% as compared with US$2,259.8 million in the previous year; net income was US$127.5 million, decreased by 8.0% as compared with US$138.6 million in the Fiscal 2010.
The Group employs about 5,200 employees.
The Group supports the subject’s business to a very great extent.
In February 2013, PVH Corporation [PVH] - one of the world's largest apparel companies, announced that it has completed its acquisition of Warnaco, which makes it one of the largest global branded lifestyle apparel companies in the world, with a diversified portfolio of iconic brands led by Calvin Klein and Tommy Hilfiger, as well as its heritage brands - Van Heusen, IZOD, ARROW, Bass, Speedo, Olga and Warner's - and over $8 billion in pro forma revenue.
PVH is also a public listed company whose shares are quoted on the New York Stock Exchange. PVH bought Warnaco for about US$2.8 billion in a deal that will give the PVH more control of the Calvin Klein clothing brand and boost profits immediately, sending PVH shares up as much as 23 percent. The acquisition has solidified its position as one of the largest global branded lifestyle apparel companies in the world.
During FY2011, PVH recorded a total revenue of US$5.9 billion and an operating profit of US$758 million.
In view of its parentage, we consider the subject good for its normal business engagements.
REMARKS:
Brief information
of the principal director:-
Mr. Michael A. SHAFFER, aged 51, is Chief Operating and Financial Officer, Executive Vice President of PVH. Mr. Shaffer has been employed by PVH since 1990. He served as Senior Vice President, Retail Operations immediately prior to being named Executive Vice President, Finance in 2005, Executive Vice President and Chief Financial Officer in March 2006, and Executive Vice President and Chief Operating & Financial Officer in February 2012.
Mr. Mark David FISCHER, is a Director & Senior Vice President at Warnaco, and Secretary, Senior Vice President & General Counsel at PVH Corp. He is on the Board of Directors at Warnaco. He received his undergraduate degree from Brandeis University and a graduate degree from the Boston University School of Law.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
|
UK Pound |
1 |
Rs.83.78 |
|
Euro |
1 |
Rs.71.33 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.