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Report Date : |
19.12.2013 |
IDENTIFICATION DETAILS
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Name : |
KAM HING PIECE WORKS LTD. |
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Registered Office : |
Unit 1-9, 8/F., Lucida Industrial Building, 43-47 Wang Lung Street, Tsuen Wan, New Territories |
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Country : |
Hong Kong |
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Date of Incorporation : |
21.08.1998 |
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Com. Reg. No.: |
21876814 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of Fabric. All kinds of finished fabrics (including cotton knit fabric, Jersey, Interlock, Terry, Jacquard, Mesh, Drop needle, Auto Stripe fabric |
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No. of Employees : |
6,007 (As at 30-06-2013) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 198
Source
: CIA
KAM HING PIECE WORKS
LTD.
ADDRESS: Unit 1-9, 8/F., Lucida Industrial Building, 43-47 Wang Lung Street, Tsuen Wan, New Territories, Hong Kong.
PHONE: 852-2406 0080
FAX: 852-2408 1891
E-MAIL: info@kamhingintl.com
cc-tai@kam-hing.com.hk
Group Chairman & Managing Director: Mr. Tai Chin Chun
Incorporated on: 21st August, 1998.
Organization: Private Limited Company.
Capital: Nominal:HK$1,000,100.00
Issued: HK$1,000,012.00
Business Category: Fabric Trader.
Group Revenue: HK$4,100,160,000 (Year ended 31-12-2012)
Group Employees: 6,007. (As at 30-06-2013)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office:-
Unit 1-9, 8/F., Lucida Industrial Building, 43-47 Wang Lung Street, Tsuen Wan, New Territories, Hong Kong.
Shipping Department:-
Unit 1-3, 12/F., Lucida Industrial Building, 43-47 Wang Lung Street, Tsuen Wan, New Territories, Hong Kong.
China Factory:-
Panyu District, Guangzhou City, Guangdong Province, China.
Holding Company:-
Joint Result Holdings Ltd., British Virgin Islands.
Ultimate Holding
Company:-
Kam Hing International Holdings Ltd., Cayman Islands/Hong Kong.
Associated
Companies:-
Kam Hing
International Group of Companies
En Ping KH, China.
En Ping KL, China.
Guangzhou Gong Zhan Plastic Products Ltd., China.
Guangzhou Kam Sing Textile Dyeing Co. Ltd., China.
Guangzhou Kam Yam Garment Design Co. Ltd., China.
Guangzhou Kamhing Textile Dyeing Co. Ltd., China.
Guangzhou Kwok Hing Garment Ltd., China.
Highkeen Enterprises Ltd., British Virgin Islands/Hong Kong.
Jiangmen Yingxing Garment Ltd., China.
Kam Hing Global Garment Co. Ltd., Hong Kong.
Kam Hing International Ltd., British Virgin Islands.
Kam Hing Korea Ltd., Korea.
Kam Hing Madagascar, Madagascar.
Kam Hing Piece Works (S) Pte. Ltd., Singapore.
Kam Hing Piece Works Ltd., Hong Kong.
Kam Hing Textile (International) Ltd., Hong Kong.
Kam Hing Textile Macao Commercial Offshore Co. Ltd., Macau.
Kam Wing International Textile Co. Ltd., Hong Kong.
Kwok Hing Garment Madagascar, Madagascar.
Sparkle Logistics Ltd., Hong Kong.
Strong View International Ltd., British Virgin Islands/Hong Kong.
etc.
21876814
0652927
Group Chairman & Managing Director: Mr. Tai Chin Chun
Group Chief Executive Officer & Director: Mr. Tai Chin Wen
Nominal Share Capital: HK$1,000,100.00 (Divided into 2 Ordinary shares and 1,000,010 Non-voting Deferred shares of HK$1.00 each)
Issued Share Capital: HK$1,000,012.00
SHAREHOLDERS: (As per registry dated 21-08-2013)
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Name |
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No. of shares |
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Non-voting Deferred |
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TAI Chin Chun |
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1 |
- |
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Joint Result Holdings Ltd. P.O. Box 987, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands. |
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1 |
1,000,010 |
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–– |
–––––––– |
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Total: |
2 = |
1,000,010 ======= |
DIRECTORS: (As per registry dated 21-08-2013)
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Name (Nationality) |
Address |
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TAI Chin Wen |
Flat A, 11/F., Tower 10, Parc Royale, 8 Hin Tai Street, Shatin, New Territories, Hong Kong. |
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TAI Chin Chun |
26 King’s Park Hill Road, King’s Park Hill, Ho Man Tin, Kowloon, Hong Kong. |
SECRETARY: (As per registry dated 21-08-2013)
|
Name |
Address |
|
LEI Heong Man |
Flat A2, 11/F., Coral Court, 116 Tin Hau Temple Road, North Point, Hong Kong. |
The subject was incorporated on 21st August, 1998 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: Fabric Trader.
Lines: All kinds of finished fabrics (including cotton knit fabric, Jersey, Interlock, Terry, Jacquard, Mesh, Drop needle, Auto Stripe fabric,)
Commodities Imported: India, Europe, Japan, other Asian countries, etc.
Markets: Hong Kong, Taiwan, South Korea, Singapore, Malaysia, Africa and America.
Group Revenue: HK$2,586,617,000 (Year ended 31-12-2008)
HK$2,523,245,000 (Year ended 31-12-2009)
HK$3,267,785,000 (Year ended 31-12-2010)
HK$4,065,355,000 (Year ended 31-12-2011)
HK$4,100,160,000 (Year ended 31-12-2012)
HK$2,057,415,000 (6 months ended 30-06-2013) – Unaudited
Terms/Sales: As per contracted.
Terms/Buying: Various terms.
Nominal Share Capital: HK$1,000,100.00 (Divided into 2 Ordinary shares and 1,000,010 Non-voting Deferred shares of HK$1.00 each)
Issued Share Capital: HK$1,000,012.00
Group Net Profit: HK$ 80,641,000 (Year ended 31-12-2008)
HK$ 80,675,000 (Year ended 31-12-2009)
HK$104,383,000 (Year ended 31-12-2010)
HK$127,232,000 (Year ended 31-12-2011)
HK$109,386,000 (Year ended 31-12-2012)
HK$ 81,851,000 (6 months ended 30-06-2013) – Unaudited
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Very Good.
Kam Hing Piece Works Ltd. is a subsidiary of Joint Result Holdings Ltd. which is a BVI-registered firm.
The ultimate holding company is Kam Hing International Holdings Ltd.
The subject actually is a member of the Kam Hing International Group.
The Group is principally engaged in the manufacture and sale of finished knitted fabrics. The Group’s merchandise was sold to various garment manufacturers, many of whom are suppliers to international fashion apparel brand operators that sell garment products to the consumers in the US and other countries. Many of the Group’s products have been made into garments bearing international brands carried by companies such as Gap Inc., Target Corporation, May Department Stores, Eddie Bauer Inc., Associated Merchandising Corporation and Sears. Apart from knitting and dyeing fabrics for its own sale, the Group has occasionally provided knitting and dyeing services for other fabric manufacturers. The Group has vertically integrated its operations, which include marketing and sales, research and development, production processes, including knitting, fabrics dyeing and yarn dyeing, and final processes, such as setting and pre-shrinking.
The investment holding company of the Group is Kam Hing International Holdings Ltd. [KHIH] is registered in the Cayman Islands. It is a public listed company with shares traded on the Stock Exchange of Hong Kong Ltd. bearing stock code 2307.
The subject is responsible for part of the Group’s provision of knitting and dyeing services and trading of finished fabrics. Many of the Group’s customers are based in or have set up representative offices in Singapore.
KHIH was founded in 1996. The manufacturing base is located in the Panyu district of Guangzhou City, Guangdong Province, China, with a facilities area of 226,000 sq.m. To cope with the rising market demand, KHIH established a second fabric factory in Enping, Guangdong Province in China. The Group also has established garment factories in Madagascar. In 2008, a new spinning factory has been set up in Hubei Province in the PRC which further strengthen the vertically-integrated operations. KHIH has several subsidiaries located in China, Hong Kong, Macau, Singapore, Madagascar and Korea. Its finished products are distributed in Hong Kong, Macau, Southeast Asia, Europe, Japan, South Korea, Africa, the Americas, the South Pacific, South Asia, China and other countries.
KHIH was accredited with ISO 9001:2008 by the TUV Rhein CERT Certification Body in 2009.
For the year ended 31st December 2012, the Group’s overall revenue increased by approximately 0.9% to HK$4,100.2 million (2011: HK$4,065.4 million). Gross profit increased by approximately 13.5% to HK$668.8 million (2011: HK$589.5 million), whilst net profit attributable to ordinary equity holders of KHIH amounted to HK$100.9 million, representing a decrease of approximately 12.0% from the previous year (2011: HK$114.6 million). Excluding the one-off gain of HK$12.8 million in relation to the disposal of part of its equity interest in the Madagascar mining project in 2011, the underlying net profit attributable to ordinary equity holders of KHIH’s core textile and garment business just slightly decreased by approximately 0.9% as compared to the previous corresponding year.
The Group’s regional sales for the year ended 31st December 2012 achieved a satisfactory performance, with Hong Kong and Bangladesh registering modest growth rates of 10.1% and 76.0%, respectively. To diversify the Group’s operational risks in the long term, strategic venture into new geographic markets, such as Russia with the growth rate of 204.8%, was also initiated during the Year 2012 and have made notable progress.
For the six months ended 30th June, 2013 [Period], the Group’s overall revenue increased by approximately 1.4% to HK$2,057.4 million (six months ended 30th June 2012: HK$2,028.6 million). Gross profit decreased by approximately 1.9% to HK$354.5 million (six months ended 30th June 2012: HK$361.2 million), whilst net profit attributable to ordinary equity holders of KHIH amounted to HK$72.6 million, representing a marginal increase of approximately 4.0% from the previous corresponding period (six months ended 30 June 2012: HK$69.8 million). The growth was mainly attributable to contributions from the textile segment, which recorded a period to period revenue increase of 5.6% during the Period and in line with the market trend. This, however, was partially offset by the substantial 53.1% decline in revenue from its garment segment as a result of the uncertainties brought forth by the recent government election in Madagascar, which has languished orders from overseas buyers during the Period.
As at 30th June 2013, the Group had 6,007 employees in the PRC and Madagascar (31st December 2012: 8,172) and 172 employees in Hong Kong, Macau, Singapore and Korea (31st December 2012: 183).
The subject is fully supported by the Kam Hing International Group.
On the whole, consider the subject good for normal business engagements.
Brief personal profile of the directors:-
Mr. TAI Chin Chun, aged 51, is the Chairman of the Board, an executive Director and founder of the Group. He is in charge of the Group’s corporate strategy, planning and overall development. He has more than 25 years of experience in the textile industry. Mr. Tai conferred an Honorary Consulate of The Republic of Mauritius in Hong Kong Special Administration Region in January 2010. Mr. Tai obtained the “World Outstanding Chinese Award 2008” from United World Chinese Association and conferred an Honorary Doctor Degree by The University of West Alabama (Regional University), USA. Mr. Tai is an Executive Director of Guangdong Chamber of Foreign Investors, a member of Guangdong Committee of CPPCC and Panyu District Committee of CPPCC. He is also a Vice Chairman and life honorary president of Pan Yue Industrial and Commercial Fellowship Association Ltd. He has also been awarded honorary citizenship of Guangzhou Municipal, life honorary president of Fujian Tai’s Clan Hong Kong Association, Panyu Charity Federation, Guangzhou Municipal. Mr. Tai is the younger brother of Mr. Tai Chin Wen.
Mr. TAI Chin Wen, aged 57, is an executive Director, the Chief Executive Officer and founder of the Group. He is in charge of the Group’s day-to-day management. He has over 25 years of management experience in the manufacturing industry. Mr. Tai is a standing member of Hubei Committee of CPPCC and Guangdong Enping Committee of CPPCC, a member of the Fujian Nan An Committee of CPPCC and Jiangmen Committee of CPPCC. He is a Vice Chairman of Hubei-Africa Business Council, Executive Director of Hubei Chinese Overseas Friendship Association, Vice Chairman of Guangdong Jiangmen City Association of Foreign Investment and President of Fujian Tai’s Clan Hong Kong Association. He has also been awarded honorary citizenship of Guangzhou Municipal and Jiangmen, life honorary president of Hong Kong Fujian Nan An Association.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.92 |
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|
1 |
Rs.100.83 |
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Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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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.