MIRA INFORM REPORT

 

 

Report Date :

03.08.2013

 

IDENTIFICATION DETAILS

 

Name :

PJ  HONG  KONG  LTD.

 

 

Registered Office :

8/F., EGL Tower, 83 Hung To Road, Kwun Tong, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

19.11.2001

 

 

Com. Reg. No.:

32212306

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Underwear Marketing and Distribution of all kinds of ladies foundation garments, lingerie and nightwear.

 

 

No. of Employees :

120.  (Including associates in Hong Kong)

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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

 

PJ  HONG  KONG  LTD.

 

 

ADDRESS:       8/F., EGL Tower, 83 Hung To Road, Kwun Tong, Kowloon, Hong Kong.

 

PHONE:            852-2376 1468

 

FAX:                 852-2376 1995

 

 

MANAGEMENT

 

Managing Director:  Mr. Hiroshi Tsujimoto

 

 

SUMMARY

 

Incorporated on:            19th November, 2001.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$3,500,000.00

Issued              HK$3,500,000.00

 

Business Category:       Underwear Marketing and Distribution.

 

Group Net Sales:           ¥177,154 million  (Year ended 31-03-2013)

 

Employees:                  120.  (Including associates in Hong Kong)

 

Group Employees:        18,622  (Year ended 31-03-2013)

 

Main Dealing Banker:     The Bank of Tokyo-Mitsubishi UFJ Ltd., Hong Kong Branch.

 

Banking Relation:          Good.


ADDRESS

 

Registered Head Office:-

8/F., EGL Tower, 83 Hung To Road, Kwun Tong, Kowloon, Hong Kong.

 

Holding Company:-

Peach John Co. Ltd., Japan.

 

Ultimate Holding Company:-

Wacoal Holdings Corporation, Japan.

 

Associated Companies:-

Wacoal Group of Companies

Dalian Wacoal Co. Ltd., China.

Eveden Ltd., UK.

Guangdong Wacoal Inc., China.

Hokuriku Wacoal Sewing Corporation, Japan.

House of Rose Co. Ltd., Japan.

Kyushu Wacoal Manufacturing Corporation, Japan.

Lecien Corporation, Japan.

Nanasai Co. Ltd., Japan.

Niigata Wacoal Sewing Corporation, Japan.

Philippine Wacoal Corporation, Philippines.

PT. Indonesia Wacoal, Indonesia.

Shanghai Yadie Fashion Co. Ltd., China.

Shinyoung Wacoal Inc., South Korea.

Taiwan Wacoal Co. Ltd., Taiwan.

Thai Wacoal Public Co. Ltd., Thailand.

Torica Co. Ltd., Japan.

Torica Inc., Japan.

Unenana Cool Corporation, Japan.

Vietnam Wacoal Corporation, Vietnam.

Wacoal (Shanghai) Human Science R&D Co. Ltd., China.

Wacoal (UK) Ltd., UK.

Wacoal America Inc., US.

Wacoal Art Center Co. Ltd., Japan.

Wacoal Canada Inc., Canada.

Wacoal Career Service Corporation, Japan.

Wacoal China Co. Ltd., China.

Wacoal Distribution Corporation, Japan.

Wacoal Dominicana Corporation, US.

Wacoal Eveden Ltd., UK.

Wacoal France S.A., France.

Wacoal France Société Abibtme, France.

Wacoal Hong Kong Co. Ltd., Hong Kong.

Wacoal International Corporation, US.

Wacoal International Hong Kong Co. Ltd., Hong Kong.

Wacoal Investment Co. Ltd., Taiwan.

Wacoal Malaysia Sdn. Bhd., Malaysia.

Wacoal Service Co. Ltd., Japan.

Wacoal Singapore Pte. Ltd., Singapore.

Wacoal Sports Science Corporation, US.

etc.

 

 

BUSINESS REGISTRATION NUMBER 

 

32212306

 

 

COMPANY FILE NUMBER

 

 0776572

 

 

MANAGEMENT

 

Managing Director:  Mr. Hiroshi Tsujimoto

Contact Person:  Mr. Toru Ueda

 

 

CAPITAL

 

Nominal Share Capital: HK$3,500,000.00 (Divided into 3,500,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$3,500,000.00

 

 

SHAREHOLDER

(As per registry dated 19-11-2012)

 

Name

 

No. of shares

Peach John Co. Ltd.

6-17-11 Jingumae Shibuya-Ku, Tokyo, Japan.

 

3,500,000

=======

 

 

DIRECTORS

(As per registry dated 01-04-2013)

 

Name

(Nationality)

 

Address

Akiyuki UENO

1-13-6-2403, Kachidoki, Chuo-Ku, Tokyo 104-0054, Japan.

 

Hiroshi TSUJIMOTO

Flat E, 14/F., Juniper Mansion, Harbour View Gardens, 16 Taikoo Wan Road, Taikoo Shing, Hong Kong.

 

HIROSHI Kokubo

3-18-16-2, Nishionuma, Minami-Ku, Sagamihara-City, Kanagawa, Japan.

 

Hiroaki MIYAKE

Flat F, 41/F., Tower 1, The Orchards, 3 Greig Road, Hong Kong.

 

Toru UEDA

6-8-902 Tachimachi, Aobaku, Sendaishi, Miyagiken, Japan.

 

 

SECRETARY

(As per registry dated 19-11-2012)

 

Name

Address

Co. No.

Tricor Secretaries Ltd.

Level 28, Three Pacific Place, 1 Queen’s Road East, Hong Kong.

0014900

 

 

HISTORY

 

The subject was incorporated on 19th November, 2001 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:                      Underwear Marketing and Distribution.

 

Lines:                           All kinds of ladies foundation garments, lingerie and nightwear.

 

Employees:                  120.  (Including associates in Hong Kong)

 

Commodities Imported: Imported from China, Taiwan, Japan, and other Asian countries.

 

Markets:                        Worldwide.

 

Group Net Sales:           ¥170,960 million  (Year ended 31-03-2009)

¥163,548 million  (Year ended 31-03-2010)

¥165,548 million  (Year ended 31-03-2011)

¥171,897 million  (Year ended 31-03-2012)

¥177,154 million  (Year ended 31-03-2013)

 

Terms/Sales:                 On various terms.

 

Terms/Buying:               As per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$3,500,000.00 (Divided into 3,500,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$3,500,000.00

 

Group Net Income         Attributable to Wacoal Holding Corp.:-

¥5,062 million  (Year ended 31-03-2009)

¥2,457 million  (Year ended 31-03-2010)

¥2,785 million  (Year ended 31-03-2011)

¥6,913 million  (Year ended 31-03-2012)

¥7,623 million  (Year ended 31-03-2013)

 

Group Net Worth:          ¥166,767 million  (As at 31-03-2009)

¥171,860 million  (As at 31-03-2010)

¥167,480 million  (As at 31-03-2011)

¥171,496 million  (As at 31-03-2012)

¥185,840 million  (As at 31-03-2013)

 

Profit & Loss:               Whole Group business is profitable.

 

Condition:                      Keeping in an active and satisfactory manner.

 

Facilities:                      Supported by parent.

 

Payment:                      Prompt.

 

Commercial Morality:     Good.

 

Banker:                         The Bank of Tokyo-Mitsubishi UFJ Ltd., Hong Kong Branch.

 

Standing:                      Good.

 

 

GENERAL

 

PJ Hong Kong Ltd. is a wholly-owned subsidiary of Peach John Co. Ltd. [Peach John] which is a Japan-based firm.

The ultimate holding company Wacoal Holdings Corporation [Wacoal/refer to Group when including associates and subsidiaries] is also a Japan-based company.  Wacoal is the largest women’s undergarment company in Japan.

Peach John segment is composed of four companies, including its domestic and overseas subsidiaries.  The two domestic subsidiaries and two overseas subsidiaries are sales companies, and Peach John and one of its subsidiaries mainly engage in the retail sales of products that are independently supplied mainly from nongroup companies.

Peach John is a leading mail-order company in women’s apparel and lingerie targeting fashionable young women throughout Japan.  The company markets and sells lingerie, clothes, shoes, bags, accessories, cosmetics and beauty care products.  Most of its merchandise is imported from all over the world.  In February, May, August, and October, Peach John releases the catalogues, “PJ” and “GJ” which introduce Peach John’s latest products.

The catalogue “PJ”, with circulation of 2 million copies with each release, reaches 25% of the Japanese women in their 20’s.

Peach John’s sister catalogue “GJ”, has a circulation of 600,000 copies.  The catalogue carries cosmetics, beauty care products, clothes and accessories, etc.

Now, Peach John has got the following retail stores:-

“PEACH JOHN THE STORE”
APPORO / SENDAI / OHMIYA / SHINJUKU/ SHINJUKU 3 CHOUME / SHIBUYA / NISHIGINZA / IKEBUKURO / UENO / TACHIKAWA / CHIBA / KAWASAKI / YOKOHAMA / SHIZUOKA / NIIGATA / KANAZAWA / NAGOYA / NAGOYA SAKAE / KYOTO KAWARAMACHI / SHINSAIBASHI / FUKUOKA / MACHIDA / FUNABASHI / KASHIWA / NISHINOMIYA / COLLECTED NAGOYA / SANO OUTLET /
HONG KONG Causeway Bay / HONG KONG Tsim Sha Tsui / CHINA Xujiahui(Shanghai) / CHINA Xintiandi (Shanghai) / CHINA Lujiazui (Shanghai) / CHINA Xizangbeilu(Shanghai) / CHINA Huaihaizhonglu(Shanghai)

The Group’s sales facility in Hong Kong covers 46,618 sq.ft.

Wacoal” is a significant brand name of undergarment in Japan and Asia.  The Group has offices in Southeast Asia, the United States, Europe, etc.

The corporate group consists of one holding company [Wacoal Holdings Corp.], 59 subsidiaries, and nine affiliates, and is principally engaged in the manufacturing and wholesale distribution of innerwear (primarily women’s foundation wear, lingerie, nightwear, and children’s underwear), outerwear, sportswear, and other textile goods and related products, as well as the direct sale of certain products to consumers.  Its corporate group also conducts business in the restaurant, culture, service, and interior design businesses.

For the year ended in March 2013, the Group’s sales increased from the previous fiscal year mainly due to the expansion of sales attributable to its businesses in the United States, and also due to the inclusion of the business results of Eveden.  Operating income decreased from the previous fiscal year due to the impact of the impairment loss of ¥2,852 million as a result of the reassessment of the fair value of Peach John, despite its efforts to promote efficiency through cost reduction and cutting expenses.  Net income attributable to Wacoal Holdings Corp. exceeded the results for the previous fiscal year as a result of favorable factors, including the sale of marketable securities and a decrease in tax expenses.  The followings are the highlights of the Group:-

Sales: ¥177,154 million

(an increase of 3.1% as compared to the previous fiscal year)

Operating income: ¥8,099 million yen

(a decrease of 22.0% as compared to the previous fiscal year)

Pretax net income: ¥10,544 million yen

(an increase of 3.3% as compared to the previous fiscal year)

Net income attributable to Wacoal Holdings Corp.: ¥7,623 million yen

(an increase of 10.3% as compared to the previous fiscal year)

Concerning Peach John Business, sales from its core mail-order catalogues fell below the results for the previous fiscal year due to the expansion of sales of innerwear achieved through TV commercials in the previous year and the poor performance of outerwear and general merchandise, despite its efforts in increasing occasions to receive orders by realigning based on consumer age‑group and by sending supplementary volume of catalogues.  Net sales attributable to its directly managed stores in Japan showed weak performance due to insufficient inventory of its popular items.  With respect to its directly managed overseas stores, sales from Hong Kong exceeded the results for the previous fiscal year due to the opening of new stores, while our directly managed stores in China showed weak performance.  As a result of the above, overall sales from our Peach John Business fell below the results for the previous fiscal year.  With respect to profitability, despite its efforts to promote efficiency through cost reduction and cutting expenses, we recorded an operating loss due to reduced sales and recognition of impairment loss.

The followings are the highlights of Peach John Business:-

Sales: ¥11,972 million

(a decrease of 13.5% as compared to the previous fiscal year)

Operating loss: ¥2,701 million

(as compared to 529 million yen of operating income incurred for the previous fiscal year)

The subject is fully supported by Peach John and ultimately by Wacoal Group.

On the whole, consider the subject good for normal business engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.80

UK Pound

1

Rs.91.95

Euro

1

Rs.80.36

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.