MIRA INFORM REPORT

 

 

Report Date :

03.08.2013

 

IDENTIFICATION DETAILS

 

Name :

STRATEGIC  SPORTS  LTD.

 

 

Registered Office :

Room 1016, 10/F., Concordia Plaza, 1 Science Museum Road,   Tsimshatsui, Kowloon          

 

 

Country :

Hong Kong.

 

 

Date of Incorporation :

22.07.1998.

 

 

Com. Reg. No.:

21952353

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer, Importer and Exporter of all kinds of helmet

 

 

No. of Employees :

25.  (Including associates)

 

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

 

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

 

 

MANAGEMENT

 

Managing Director:  Mr. Cheng Tien Jen

 

 

SUMMARY

 

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.


ADDRESS

 

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.

 

 

BUSINESS REGISTRATION NUMBER

 

21952353

 

 

COMPANY FILE NUMBER 

 

0650418

 

 

MANAGEMENT

 

Chairman:  Dr. Cheng Hui Ho, Philip

Managing Director:  Mr. Cheng Tien Jen

Sales Manager:  Ms. Sherry Tai Pei Lin

Contact Person:  Ms. Lotus Lam

 

 

CAPITAL

 

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

 

SHAREHOLDERS

(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

=======

 

 

DIRECTORS

(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.

 

 

SECRETARY

(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

 

 

HISTORY

 

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.

 

OPERATIONS

 

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.

 

 

MEMBERSHIP

 

Federation of Hong Kong Industries, Hong Kong.  [Member No. A9363]

 

 

FINANCIAL INFORMATION

 

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.

 

 

GENERAL

 

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.

 

 

REMARKS

 

            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

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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