MIRA INFORM REPORT

 

 

Report Date :

13.12.2013

 

IDENTIFICATION DETAILS

 

Name :

BEL FUSE (MACAO COMMERCIAL OFFSHORE) LIMITED 

 

 

Registered Office :

Em Macau, Rua De Xangai No 175, Edificio Da Associacao Commercial De Macau H13

 

 

Country :

Macau

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

28.10.2005

 

 

Com. Reg. No.:

SO22741

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in handling with the daily files and financial files

 

 

No. of Employees :

About 10 Employees

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct  

 

 

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 – September 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Macau

A2

A2

 

Risk Category

ECGC Classification

 

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Macau ECONOMIC OVERVIEW

 

Since opening up its locally-controlled casino industry to foreign competition in 2001, Macau has attracted tens of billions of dollars in foreign investment, transforming the territory into one of the world's largest gaming centers. Macau's gaming and tourism businesses were fueled by China''s decision to relax travel restrictions on Chinese citizens wishing to visit Macau. By 2006, Macau''s gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for more than 70% of total government revenue. Macau''s economy slowed dramatically in 2009 as a result of the global economic slowdown, but strong growth resumed in 2010-11, largely on the back of tourism from mainland China and the gaming sectors. In 2012, this city of 582,000 hosted nearly 28 million visitors. Almost 60% came from mainland China. Macau''s traditional manufacturing industry has slowed greatly since the termination of the Multi-Fiber Agreement in 2005. China is Macau''s second largest goods export market, behind Hong Kong, and followed by the United States. In 2012, exports were less than US$1 billion, while gaming receipts were US$38 billion, a 13.5% increase over 2011. Macau''s economy expanded by 10% in 2012; although impressive, it was a slower growth rate than in previous years. Macau continues to face the challenges of managing its growing casino industry, money-laundering, and the need to diversify the economy away from heavy dependence on gaming revenues. Macau''s currency, the pataca, is closely tied to the Hong Kong dollar, which is also freely accepted in the territory.

 

Source : CIA

 

Company Details

 

Company Name (in Chinese):

百富(澳門離岸商業服務)有限公司

Company Name (in English):

Bel Fuse (Macao Commercial Offshore) Limited

Company Name (in Portuguese):

Bel Fuse (Comercial Offshore De Macau) Limitada

Supplied Name:

BEL FUSE (MACAO COMMERCIAL OFFSHORE) LIMITED

Trading Address:

Em Macau, Rua De Xangai No 175, Edificio Da Associacao Commercial De Macau H13

Supplied Address:

RUA DE XANGAI, NO.175, EDIFICIO DA ASSOCIACAO COMMERCIAL DE MACAU 13 ANDAR H-K MACAU

Telephone Number:

+853-2870-6137

Fax Number:

+853-2870-7483

E-mail:

belmco@belfuse.com

 

Notes: The exact name and address are as above.

 

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Registered Name:

Bel Fuse (Macao Commercial Offshore) Limited

Registered Address:

Em Macau, Rua De Xangai No 175, Edificio Da Associacao Commercial De Macau H13

Date of Registration:

2005-10-28

Business Registered Number:

SO22741

Legal Form:

Limited Liability Company

Registered Capital:

MOP 100,000 (USD 12,310)

(As of 2013.12, 1 MOP = 0.1231 USD)

Principal Activities:

Handling with the daily files and financial files

Staff:

About 10 Employees

Listed at Stock Exchange:

No

Information Ended at:

2013-11-27

 

 

History

 

Subject was incorporated on 2005-10-28 with registered number SO22741 as Limited Liability Company in Macao.

 

 

Shareholders

 

Unit: MOP

Name

Subscription Amount

Proportion of Investment (%)

Bel Fuse Inc

100,000

100%

Total

100,000

100%

 

Major Shareholder Information:

Name:

Bel Fuse Inc

Address:

206 Van Vorst Street, Jersey City, New Jersey, 07302, U.S.A.

 

Corporate Structure

 

Parent Company

Name:

Bel Fuse Inc

Address:

206 Van Vorst Street, Jersey City, New Jersey, 07302, U.S.A.

Tel:

+1-201-432-0463

Fax:

+1-201-432-9542

Stake Interest in Subject            :

100%

Listed at Stock Exchange:

Yes; (Public, NASDAQ: BELFA/ BELFB)

Staff:

About 4,166 Employees

 


Major Related Companies

1.Bel Fuse Europe Ltd.

28 Turkey Court

Turkey Mill, Ashford Road

Maidstone ME14 5PP

United Kingdom

Tel 44-1622-757-395

Fax 44-1622-663-252  (Fax)

techhelp@belf.com

 

2. Bel Stewart GmbH

Industriestrasse 20

61381 Friedrichsdorf

Germany

Tel 49-6172-9552-0

Fax 49-6172-9552-40  (Fax)

cprebeck@bel-stewart.com

 

3. Bel Stewart Net, s.r.o.

Na Bojišti 2 (entry from Ke Karlovu St)

Praha 2

120 00

Czech Republic

+420 296 180 000

+420 296 180 001

+420 296 180 003  (Fax)

rpinc@bel-stewart.com

 

4. Cinch Connectors Ltd.

Shireoaks Road

Worksop S80 3HA

Nottinghamshire

United Kingdom

44-1-909-474131

44-1-909-478321  (Fax)

 

5. Bel Fuse Ltd.

8/F Luk Hop Industrial Building

8 Luk Hop Street

San Po Kong

Kowloon, Hong Kong

Tel 852-2328-5515

Fax 852-2352-3706  (Fax)

bel_hk@belfuse.com

 

 

Management Information

 

Core Management

Management as of 2013-11-27

 

Board of Directors:

1

Name:

Colin Wallace Dunn

Registered Address:

9 Femcliff Terrace, Short Hills, Nj 07078, Em U.S.A

Position:

Director

Marital Status:

Married

2

Name:

Cheung Wah Choi

Registered Address:

Room 2, 1/F., Tower B, Pearl Garden, Pearl Island, Tuen Mun, Hong Kong

Position:

Director

Marital Status:

Married

3

Name:

Tso Yiu Kwan

Registered Address:

FLAT B, 21/FL, Block 1, Peak One, No 63 Mei Tin Road, Tai Wai, Shatin, New Territories, Hong Kong

Position:

Director

Marital Status:

Married

 

Name:

Fung Kam Ping, Regina

Registered Address:

Room B, 6F, Hoi Tou Mansion, Riviera Garden, Tsuen Wan, New Territories, Hong Kong

Position:

Director

Marital Status:

Married

Authorized Signatures

Any one of the above directors can sign on behalf of the subject with seal affixed.

 

Personnel Structure

Total Employees

About 10 employees

 

 

Operation Information

 

Offices & Factories

 

Office

Address:

Em Macau, Rua De Xangai No 175, Edificio Da Associacao Commercial De Macau H13

 

Premises Information

Office address:

Address:

Em Macau, Rua De Xangai No 175, Edificio Da Associacao Commercial De Macau H13

Owners:

Lao Fu Ip E Multher Chan Wai

Matriz:

70883

Nature:

Urban

Duration:

10 years since 2013-7-29

 

Operation Information

 

l         The subject is mainly engaged in handling with the daily files and financial files.

l         It is introduced that subject's major customers are memebers of subject's group.

l         It is introduced that subject’s group is mainly engaged in manufacturing and sales of DC/DC converters, transformers, connector modules, fuses and value added modules and etc.

l         It is introduced that’s subject doesn’t take orders.

 

Financial Information

 

The subject has no obligation to supply its financial statement to the third party. Subject’s relevant staff Ms. Fung declined to disclose any finical information of subject for us.

 

We found the consolidated financial information of subject’s parent company (Bel Fuse Inc) from public files for reference.

 

Consolidated Balance Sheet

 

Unit: USD/000

Date

2012-12-31

2011-12-31

ASSETS

 

 

Current Assets:

71,262.00

88,241.00

Marketable securities

2.00

5,731.00

Accounts receivable - less allowance for doubtful accounts
of $743 and $771 at December 31, 2012 and 2011, respectively

43,086.00

39,107.00

Inventories

54,924.00

53,361.00

Restricted cash, current

12,993.00

12,991.00

Prepaid expenses and other current assets

4,480.00

4,092.00

Refundable income taxes

2,955.00

2,871.00

Deferred income taxes

1,434.00

1,295.00

Total Current Assets

191,136.00

207,689.00

Property, plant and equipment - net

34,988.00

39,414.00

Deferred income taxes

1,403.00

2,814.00

Intangible assets - net

20,963.00

10,877.00

Goodwill

14,218.00

4,163.00

Other assets

12,510.00

11,954.00

TOTAL ASSETS

275,218.00

276,911.00

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

Current Liabilities:

 

 

Accounts payable 

18,862.00

18,459.00

Accrued expenses

25,360.00

22,936.00

Accrued restructuring costs

122.00

--

Notes payable

205.00

--

Income taxes payable

1,040.00

224.00

Dividends payable

799.00

806.00

Total Current Liabilities

46,388.00

42,425.00

Long-term Liabilities:

 

 

Liability for uncertain tax positions

2,161.00

4,132.00

Minimum pension obligation and unfunded pension liability

11,045.00

9,274.00

Other long-term liabilities

233.00

--

Total Long-term Liabilities

13,439.00

13,406.00

Total Liabilities

59,827.00

55,831.00

Commitments and Contingencies

 

 

Stockholders' Equity:

--

--

Preferred stock, no par value, 1,000,000 shares authorized; none issued - -
Class A common stock, par value $.10 per share, 10,000,000 shares
authorized; 2,174,912 shares outstanding at each date (net of
1,072,769 treasury shares)

217.00

217.00

Class B common stock, par value $.10 per share, 30,000,000 shares
authorized; 9,372,170 and 9,635,643 shares outstanding, respectively
(net of 3,218,307 treasury shares)

937.00

964.00

Additional paid-in capital

20,452.00

25,420.00

Retained earnings

195,212.00

196,029.00

Accumulated other comprehensive loss

-1,427.00

-1,550.00

Total Stockholders' Equity

215,391.00

221,080.00

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

275,218.00

276,911.00

 

 

Consolidated Profit and Loss Account

 

                                                                  Unit: USD/000

Date

2012

2011

Net sales

286,594.00

295,121.00

Costs and expenses:

 

 

Cost of sales

240,092.00

244,749.00

Selling, general and administrative

39,343.00

39,284.00

Litigation charges

26 3,471

8,103.00

Restructuring charges

5,245.00

314.00

Loss (gain) on disposal/sale of property, plant and equipment

183.00

-93.00

Income from operations

1,705.00

7,396.00

Impairment of investment

-775.00

--

(Loss) gain on sale of investments

-142.00

119.00

Interest expense

-16.00

--

Interest income and other, net

266.00

357.00

Earnings before (benefit) provision for income taxes

1,038.00

7,872.00

(Benefit) provision for income taxes

-1,364.00

4,108.00

Net earnings

2,402.00

3,764.00

Earnings per share:

 

 

Class A common share - basic and diluted

0.17

0.28

Class B common share - basic and diluted

0.21

0.33

Weighted-average shares outstanding:

 

 

Class A common share - basic and diluted

2,174,912.00

2,174,912.00

Class B common share - basic and diluted

9,624,578.00

9,597,661.00

Dividends paid per share:

 

 

Class A common share

0.24

0.24

Class B common share

0.28

0.28

Net earnings

2,402.00

3,764.00

Other comprehensive income (loss):

 

 

Currency translation adjustment

281.00

-236.00

Reclassification adjustment for write-down/loss on sale of marketable
securities included in net earnings, net of tax of $348

569.00

--

Reclassification adjustment for gain on sale of marketable securities
included in net earnings, net of tax of ($45)

--

-74.00

Unrealized holding (losses) gains on marketable securities arising during
the period, net of taxes of ($154), ($310) and $280, respectively

-251.00

-507.00

Change in unfunded SERP liability, net of taxes of ($210),
($306) and ($294), respectively

-476.00

-694.00

Other comprehensive income (loss)

123.00

-1,511.00

Comprehensive income

2,525.00

2,253.00

 

Consolidated Cash Flow

 

Date

2012

2011

Cash flows from operating activities:

 

 

Net earnings

2,402.00

3,764.00

Adjustments to reconcile net earnings to net cash
provided by operating activities:

 

 

Depreciation and amortization

9,072.00

8,667.00

Stock-based compensation

1,767.00

1,709.00

Loss (gain) on disposal/sale of property, plant and equipment

183.00

-93.00

Impairment/loss on disposal of assets related to restructuring

1,389.00

--

Loss (gain) on sale of investments

142.00

-119.00

Impairment of investment

775.00

--

Other, net

97.00

1,114.00

Net Cash Provided by Operating Activities

11,609.00

30,267.00

Cash flows from investing activities:

 

 

Purchase of property, plant and equipment

-4,744.00

-2,928.00

Purchase of marketable securities

-24.00

-5,135.00

(Purchase of) proceeds from surrender of
company-owned life insurance, net

--

-2,406.00

Cash transferred (to) from restricted cash

--

-12,830.00

Payments for acquisitions, net of cash acquired

-19,410.00

--

Proceeds from sale of marketable securities

5,119.00

433.00

Proceeds from disposal/sale of property, plant and equipment

193.00

386.00

Net Cash Used In Investing Activities

-18,866.00

-22,480.00

Cash flows from financing activities:

 

 

Dividends paid to common shareholders

-3,225.00

-3,205.00

Decrease in notes payable

-17.00

--

Purchase and retirement of Class B common stock

-6,644.00

--

Net Cash Used In Financing Activities

-9,886.00

-3,205.00

Effect of exchange rate changes on cash

164.00

-170

Net (Decrease) Increase in Cash and Cash Equivalents

-16,979.00

4,412.00

Cash and Cash Equivalents - beginning of year

88,241.00

83,829.00

Cash and Cash Equivalents - end of year

71,262.00

88,241.00

Changes in operating assets and liabilities consist of:

 

 

Decrease (increase) in accounts receivable

260.00

14,172.00

(Increase) decrease in inventories

-343.00

3,561.00

Increase in prepaid expenses and other current assets

-273.00

-1,746.00

Increase in other assets

-230.00

-140.00

(Decrease) increase in accounts payable

-1,422.00

-2,683.00

Increase in accrued expenses

553.00

501.00

Increase in other liabilities

11.00

--

Increase (decrease) in accrued restructuring costs

122.00

-507.00

Supplementary information:

 

 

Cash paid during the year for:

 

 

Income taxes, net of refunds received

1,464.00

1,947.00

Interest

16.00

--

Details of acquisition (see Note 2):

 

 

Fair value of identifiable net assets acquired

12,677.00

--

Goodwill

9,724.00

--

Fair value of net assets acquired

22,401.00

--

Details of acquisition (see Note 2):

 

 

Fair value of identifiable net assets acquired

12,677.00

--

Goodwill

9,724.00

--

Fair value of net assets acquired

22,401.00

--

Fair value of consideration transferred

22,401.00

--

Less: Cash acquired in acquisition

-2,991.00

--

Cash paid for acquisition, net of cash acquired

19,410.00

--

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.

 

 

Interview Details

 

Name:

Ms. Fung

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.62

UK Pound

1

Rs.100.84

Euro

1

Rs.84.98

 

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%)

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.