MIRA INFORM REPORT

 

 

Report Date :

21.02.2013

 

IDENTIFICATION DETAILS

 

Name :

PARNON  (HONG  KONG)  LTD.

 

 

Registered Office :

C/o RL Nominees Ltd.

Room 1002, 10/F., Malaysia Building, 50 Gloucester Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

12.04.2002

 

 

Com. Reg. No.:

32555742

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of Soaps, detergents, toiletries, beauty products, etc.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No Operating Office in Hong Kong

Payment Behaviour :

Unknown

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

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'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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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 & address

 

PARNON  (HONG  KONG)  LTD.

 

ADDRESS:       c/o RL Nominees Ltd.

Room 1002, 10/F., Malaysia Building, 50 Gloucester Road, Wanchai, Hong Kong.

 

PHONE:            2578 8010

 

FAX:                 2566 3369

 

E-MAIL:                        evelyn.teo@parnon.com.cn

 

 

MANAGEMENT

 

Managing Director:  Mr. Mui Cheng Teo

 

 

SUMMARY

 

Incorporated on:             12th April, 2002.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$11,000,000.00

Issued:              HK$10,855,388.00

 

Business Category:        Importer, Exporter and Wholesaler.

 

Group Revenue:             GBP 858.9 million  (Year ended 31-05-2012)

 

Employees:                   Nil.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


ADDRESS

 

Registered Office:-

c/o RL Nominees Ltd.

Room 1002, 10/F., Malaysia Building, 50 Gloucester Road, Wanchai, Hong Kong.

 

Holding Companies:-

PZ Cussons (Holdings) Ltd., UK.

PZ Cussons (International) Ltd., UK.

 

Associated Companies:-

Harefield Industrial Nigeria Ltd., Nigeria.

HPZ Ltd., Nigeria.

Milk Ventures (UK) Ltd., Nigeria.

Minerva SA, Greece.

Norpalm Ghana Ltd., Ghana.

Nutricima Ltd., Nigeria.

Parnon (HongKong) Ltd., China.

PT PZ Cussons Indonesia, Indonesia.

PZ Cusson (UK) Ltd., UK.

PZ Cusson Australia Pty. Ltd., Australia.

PZ Cusson Ghana Ltd., Ghana.

PZ Cussons (Hong Kong) Ltd., Hong Kong.

PZ Cussons (Thailand) Ltd., Thailand.

PZ Cussons East Africa Ltd., Kenya.

PZ Cussons Nigeria Plc., Nigeria.

PZ Cussons PLC, UK.

PZ Cussons Polska SA., Poland.

PZ Power Co. Ltd., Nigeria.

PZ Tower Ltd., Nigeria.

PZ Wilmar Food Ltd., Nigeria.

PZ Wilmar Ltd., Nigeria.

Seven Scent Ltd., UK.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

32555742

 

 

COMPANY FILE NUMBER

 

 0792682

 


MANAGEMENT

 

Managing Director:  Mr. Mui Cheng Teo

 

 

CAPITAL

 

Nominal Share Capital: HK$11,000,000.00 (Divided into 11,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$10,855,388.00

 

 

SHAREHOLDERS

(As per registry dated 12-04-2012)

 

Name

 

No. of shares

PZ Cussons (Holdings) Ltd.

Cussons House, Bird Hall Lane, Stockport, Sk3 OXN, England.

 

5,427,694

PZ Cussons (International) Ltd.

Cussons House, Bird Hall Lane, Stockport, Sk3 OXN, England.

 

5,427,694

 

 

–––––––––

 

Total:

10,855,388

========

 

 

DIRECTORS

(As per registry dated 12-04-2012)

 

Name

(Nationality)

 

Address

Neil John WEAVER

14 Lenton Avenue, Tollerton, Nottingham, NG12 4EG, UK.

 

Mui Cheng TEO

Block 193, Rivervale Drive, #16-791, 540193 Singapore.

 

Brandon Howard LEIGH

10 Marquis Drive, Heald Green, Cheshire, SK8 3HS, UK.

 

 

SECRETARY 

(As per registry dated 12-04-2012)

 

Name

Address

Co. No.

RL Nominees Ltd.

Room 1002, 10/F., Malaysia Building, 50 Gloucester Road, Wanchai, Hong Kong.

0821316

 

HISTORY

 

The subject was incorporated on 12th April, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of PZ Cussons (Hong Kong) Ltd., name changed to Cussons Toiletries (China) Ltd. on 31st May, 2002, and further changed to the present style on 3rd August, 2005.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           Soaps, detergents, toiletries, beauty products, etc.

 

Employees:                   Nil.

 

Commodities Imported:   China, other Asian countries, etc.

 

Markets:                       Other Asian countries, UK, other European countries, etc.

 

Group Revenue: GBP 820.7 million  (Year ended 31-05-2011)

GBP 858.9 million  (Year ended 31-05-2012)

GBP 414.0 million  (half year ended 30-11-2011)

GBP 414.8 million  (half year ended 30-11-2012)

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               As per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$11,000,000.00 (Divided into 11,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,855,388.00

 

Group Net Profit:            GBP 79.9 million  (Year ended 31-05-2011)

GBP 38.0 million  (Year ended 31-05-2012)

GBP 39.2 million  (half year ended 30-11-2011)

GBP 41.8 million  (half year ended 30-11-2012)

 

Profit or Loss:                Group business is profitable.

 

Condition:                      Business is not active in Hong Kong.

 

Facilities:                      Making fairly 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:                      Small.

 

 

GENERAL

 

Parnon (Hong Kong) Ltd. is equally owned by two UK-based firm: PZ Cussons (Holdings) Ltd. and PZ Cussons (International) Ltd.  The subject has had a main associated company PZ Cussons PLC [PZ Cussons/Group] which is a listed firm in the United Kingdom.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at “Room 1002, 10/F., Malaysia Building, 50 Gloucester Road, Wanchai, Hong Kong” known as “RL Nominees Ltd.” which is handling its correspondences and documents.  This firm is also the corporate secretary of the subject.

The subject has no employees in Hong Kong.  Its main office is in Shanghai, China.  Detailed address is Unit 8C, Liangfeng Mansion, 8 Dongfang Road, Pudong New District, Shanghai, China.

The subject is carrying the same commodities as PZ Cussons.

PZ Cussons is a holding company.  It is engaged in the manufacture and distribution of soaps, detergents, toiletries, beauty products, pharmaceuticals, electrical goods, edible oils, fats and spreads and nutritional products.  Its product portfolio includes home care, personal care, electrical goods, food and nutrition, beauty and baby care.  Its geographical segments include Africa, Asia and Europe.

The Group’s subsidiaries include PZ Cussons Australia Pty Ltd., PZ Cussons Middle East and South Asia FZE, Seven Scent Ltd., PZ Cussons (Holdings) Ltd., PZ Cussons (International) Ltd., PZ Cussons (UK) Ltd. and PZ Cussons Ghana Ltd.

In 2010, PZ Cussons Plc acquired St Tropez and in 2010, it entered into a joint venture (PZ Wilmar Ltd.) with Wilmar International to build a palm oil refinery in Nigeria and build up an associate food ingredients business.

On 24th January, 2012, PZ Cussons acquired the Fudge brand, intellectual property, inventory and certain other business assets.

For the year ended 31st May, 2012, Group revenue up by 4.7% to £858.9 million (2011: £820.7 million).  In the FY, raw material costs, worsening trading environment in the Australian Home Care category and the social and economic tensions in Nigeria decreased profit before tax and exceptional items by 15.2% to GBP 92.3 million (2011: GBP 108.9 million).

The Group delivered revenue growth of 4.7% for the year despite challenging trading conditions in a number of markets.  Profits before tax and exceptional items were 15.2% lower than the previous year reflecting a robust performance in the UK, strong trading in the Beauty division and positive momentum in Indonesia, more than offset by the impact of three factors: approximately £25 million of increased costs from the significant year‑on‑year raw material cost inflation; a worsening environment in the Australian Home Care category; and the social and economic tensions in Nigeria.

In Asia, continued positive momentum delivered another year of revenue and profit growth in Indonesia although this was more than offset by lower results in Australia as well as tough trading conditions in Thailand and the Middle East.

PZ Cussons reported that profit before tax and exceptional items for the six month period to 30th November 2012 was GBP 44.1 million (30th November 2011: GBP 40.2 million) on revenue of GBP 414.8 million (30th November 2011: GBP 414.0 million).  There were exceptional charges in the period of GBP 3.5 million (30th November 2011: GBP 0.9 million).  After exceptional items, profit before tax increased by 3.3% to GBP 40.6 million (30th November 2011: GBP 39.3 million).

The subject is fully supported by PZ Cussons.

The subject’s business in Hong Kong is not active.  History in Hong Kong is over ten years.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis or in small credit amounts.

 

 

REMARKS

 

Brief Personal History of Principal Director:-

Brandon Howard Leigh  Group Finance Director

Mr Leigh qualified as a chartered accountant with Deloitte & Touche in 1996.  He joined PZ Cussons in 1997 and was appointed to the Board as Group Finance Director in 2006.  Mr Leigh is a member of the Group Risk and CSR Committees.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.05

UK Pound

1

Rs.83.45

Euro

1

Rs.72.53

 

 

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.