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Report Date : |
03.08.2013 |
IDENTIFICATION DETAILS
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Name : |
STRATEGIC SPORTS LTD. |
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Registered Office : |
Room 1016, 10/F., Concordia Plaza, 1 Science Museum Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong. |
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Date of Incorporation : |
22.07.1998. |
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Com. Reg. No.: |
21952353 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Importer and Exporter of all kinds of helmet |
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No. of Employees : |
25. (Including associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – 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 |
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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
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
STRATEGIC SPORTS
LTD.
Address: Room 1016,
10/F., Concordia Plaza, 1 Science Museum Road, Tsimshatsui,
Kowloon,
Hong Kong.
(Formerly located at:
Room 401, 4/F. & Room 1102, 11/F., Woon Lee Commercial Building, 7-9
Austin Avenue, Tsimshatsui,
Kowloon, Hong Kong. )
PHONE: 852-2332 3886, 852-2992 4960
FAX: 852-2332 3831
E-MAIL: helmets@helmets.com.hk
lilyzheng@helmets.com.hk
Managing Director: Mr. Cheng Tien
Jen
Incorporated on: 22nd
July, 1998.
Organization: Private
Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Manufacturer, Importer and Exporter.
Group Annual Turnover: HK$600-650 million.
Employees: 25.
(Including associates)
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 1016, 10/F., Concordia Plaza, 1 Science Museum Road, Tsimshatsui,
Kowloon, Hong Kong.
Holding Company:-
Strategic Sports (Holding) Co. Ltd., Hong Kong. (Same address)
China Factories:-
Dongguan Strategic Sports Ltd.
Linhuang District, Chashan Town, Dongguan City, Guangdong Province,
China.
[Tel: (86-0769) 8641 2310; Fax:
(86-0769) 8641 2330]
Jiangmen Strategic Sports Ltd.
Masan Industrial Area, Wai Hai District, Jiangmen City,
Guangdong Province, China.
Associated/Affiliated Companies:-
Conquer Management Ltd., Hong Kong.
Serico Design Ltd., Hong Kong.
(Same address)
Strategic Sports (BVI) Ltd., British Virgin Islands.
21952353
0650418
Chairman: Dr. Cheng Hui Ho,
Philip
Managing Director: Mr. Cheng Tien
Jen
Sales Manager: Ms. Sherry Tai Pei
Lin
Contact Person: Ms. Lotus Lam
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry dated 25-07-2012)
|
Name |
|
No. of shares |
|
CHENG Hui Ho, Philip |
|
50,000 |
|
CHENG Tien Jen |
|
50,000 |
|
CHENG Tien Hou |
|
50,000 |
|
Strategic Sports (Holding) Co. Ltd., Hong Kong. |
|
850,000 |
|
|
|
–––––––– |
|
|
Total: |
1,000,000 ======= |
(As per registry dated 22-07-2012)
|
Name (Nationality) |
Address |
|
CHENG Tien Hou |
Flat A, 11/F., Block 2, Carmen Garden, 9 Cox’s Road, Tsimshatsui,
Kowloon, Hong Kong. |
|
CHENG Tien Jen |
Flat C, 25/F., 26 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong. |
|
CHENG Hui Ho, Philip |
Flat C, 3/F., Garden Mansion, 156 Austin Road, Tsimshatsui, Kowloon,
Hong Kong. |
(As per registry dated 22-07-2012)
|
Name |
Address |
BR No. |
|
Tunghai Company |
Flat A, 15/F., Century House, 3-4 Hanoi Road, Tsimshatsui, Kowloon,
Hong Kong. |
21807615 |
The subject was incorporated on 22nd July, 1998 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 401, 4/F. & Room 1102, 11/F.,
Woon Lee Commercial Building, 7-9 Austin Avenue, Tsimshatsui, Kowloon, Hong
Kong, moved to the present address in February 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Manufacturer,
Importer and Exporter.
Lines: All
kinds of helmets.
Employees: 25. (Including associates)
Commodities/Materials Imported:-
Raw materials – Europe, Taiwan, South Korea,
other Asian countries
Finished products – Guangdong Province,
China.
Markets: Worldwide
countries.
Group Annual Turnover: HK$600-650 million.
Terms/Sales: L/C, T/T, D/P, etc.
Terms/Buying: L/C,
T/T, D/A, D/P, etc.
Federation of Hong Kong Industries,
Hong Kong. [Member No. A9363]
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
Alternation of Capital:-
|
Initially |
paid up |
HK$
150,000.00 |
|
August 2012 |
paid up |
HK$
850,000.00 |
|
|
|
–––––––––––––––– |
|
Total: |
paid up |
HK$
1,000,000.00 ============== |
Increases of Nominal Capital:-
|
From |
HK$150,000.00 |
to |
HK$
1,000,000.00 |
in |
August 2012 |
Mortgage or Charge:-
Date of Tripartite Legal Charge/Mortgage: 05-10-2004
Amount: To
secure “all monies” in respect of general banking facilities and interest
thereon to be granted to Conquer Management Ltd., Strategic Sports Ltd. and
Strategic Sports (BVI) Ltd.
Property: 214/10,000th
parts or shares of and in Kowloon Inland Lot Nos. 10583, 10306, 10561 and 10577
(Unit 401 on 4/F. of Woon Lee Commercial Building, 5A-9A Austin Avenue,
Tsimshatsui, Kowloon, Hong Kong.)
Mortgagee: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.
Profit or Loss: Made significant profits in the past years.
Condition: Business
is active and good.
Facilities: Making
active use of general banking facilities.
Payment:
So far so good.
Commercial Morality: Satisfactory.
Bankers:-
Standard Chartered Bank (Hong Kong) Ltd.,
Hong Kong.
China Construction Bank (Asia) Corporation
Ltd., Hong Kong.
Nanyang Commercial Bank Ltd.,
Hong Kong.
Standing: Very Good.
Having issued 1,000,000 ordinary shares of HK$1.00 each, Strategic Sports
Ltd. was equally owned by three Taiwan merchants at the very beginning:
Mr. Cheng Tien Jen, Mr. Wang Ning, and Mr. Norman Cheng Tien Hou. On 28th June, 2007, Mr. Wang Ning transferred
all his shares to Mr. Philip Cheng Hui Ho.
Subsequently, 850,000 more ordinary shares were issued and allotted to
Strategic Sports (Holding) Co. Ltd. [SSH], a Hong Kong-registered firm located
at the same address. Since then, SSH has
been holding 85% interests, while the balance 15% is equally held by Cheng Tien
Hou, Cheng Tien Jen and Cheng Hui Ho.
The subject was founded by Philip Cheng Hui Ho who is a Chinese bearing
the nationality of American. He is also
a Hong Kong ID holder. He has got a PhD
degree from an American university.
The subject is a leading manufacturer and trader of helmets. It is engaged in manufacturing and exporting
all kinds of Bike Helmets, Skate/Winter Helmets, Snow Helmets and Motorcycle
Helmets.
The details of its sport helmet series are the followings:-
Motorcycle Helmets — eleven models of ST series;
Skate/Winter Helmets — 14 models of SK and BA series;
Bike Helmets — with different sizes and colours;
Snow/Ski Helmets — with different sizes and colours;
Equestrian;
Rock climbing Helmets;
Water-sports;
Paragliding; &
Helmet for different industries.
Most of the products bear the brand name “KIDZAMO”. Prime markets are marketed in Hong Kong and
China, exported to Japan, South Korea, Taiwan, the other Asian countries, the
Middle East, Eastern and Western Europe, Scandinavia, North America, etc.
The subject’s products penetrated the China market in 2010.
Its main factories are in Dongguan City and Jiangmen City of Guangdong
Province, China. Some of the designers
are American and Italian.
The subject is also a sales office of its helmets. Products are exported to Japan, Taiwan,
Southeast Asia, Europe, and the Americas.
Business is rather active. Raw
materials are imported from Europe, Taiwan, South Korea, etc. Most of the subject’s clients are sporting
goods companies.
The subject’s business is chiefly handled by Ms. Sherry Tai who is the
Sales Manager. Besides to be a sales
office, the subject is also a designing and engineering office.
The subject has had other affiliated or associated factories, in total
there are 17 factories employing about 3,600 persons. The subject’s products bear private brand
names such as Bell Sports, Rollerblade, Trek and Giro. Its products account for 30% of the worldwide
market share. Annual production capacity
is about 14 million helmets.
The annual sales turnover of the group ranges from HK$600 to 650
million. Making a small profit every
year.
In order to penetrate the international market further, the subject has
taken part in fairs and exhibitions held in Hong Kong. For instance, it is going to take part in
“Hong Kong Toys & Games Fair 2013” which will be held in Hong Kong
Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 7th
to 10th January, 2013.
The subject and its associates operate from a rented office in Hong
Kong.
On the whole, having a history of about fifteen years in Hong Kong, the
subject is considered good for normal business engagements.
Property information of
the company:-
1. Property
Location: Unit 401 on 4/F., Woon
Lee Commercial Building,
5A-9A Austin Avenue, Tsimshatsui, Kowloon, Hong Kong.
Owner: Strategic Sports Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
05-10-2004 |
- |
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
Tripartite legal charge to secure general banking facilities granted
to Conquer Management Ltd., Strategic Sports Ltd. and Strategic Sports (BVI)
Ltd. |
2. Property Location: Factory Unit 1 on 21/F., Wah Sing
Industrial Building,
12-14 Wah Sing Street, Kwai Chung, New Territories, Hong Kong.
Owner: Strategic Sports Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
13-10-2008 |
- |
Nanyang Commercial Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
3. Property Location: Factory Unit 2 on 21/F., Wah Sing
Industrial Building,
12-14 Wah Sing Street, Kwai Chung, New Territories, Hong Kong.
Owner: Strategic Sports Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
13-10-2008 |
- |
Nanyang Commercial Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.80 |
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.