MIRA INFORM REPORT

 

 

Report Date :

26.02.2013

 

IDENTIFICATION DETAILS

 

Name :

CHIP  TAK  WEAVING  FACTORY  LTD.

 

 

Registered Office :

Chip Tak Weaving Factory Building, 105-113 Ta Chuen Ping Street, Kwai Chung, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

19.07.1962

 

 

Com. Reg. No.:

01421255

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer & Trader of all kinds of denim, etc.

 

 

No. of Employees :

20

 

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 – 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 and address

 

CHIP  TAK  WEAVING  FACTORY  LTD.

 

 

ADDRESS:                   Chip Tak Weaving Factory Building, 105-113 Ta Chuen Ping Street, Kwai Chung, New Territories, Hong Kong.

 

PHONE:                        2427 6111

 

FAX:                             2420 0448

 

E-MAIL:                                    lausaunam@chiptak.com

 

 

MANAGEMENT

 

Managing Director:         Mr. Lau, Lee Hok, Thomas

 

 

SUMMARY

 

Incorporated on:             19th July, 1962.

 

Organization:                  Private Limited Company.

 

Capital:                         Nominal:           HK$15,000,000.00

Issued:              HK$141,090.00

 

Business Category:        Denim Manufacturer & Trader.

 

Employees:                    20.

 

Main Dealing Banker:     Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:           Good.


ADDRESS

 

Registered Head Office:-

Chip Tak Weaving Factory Building, 105-113 Ta Chuen Ping Street, Kwai Chung, New Territories, Hong Kong.

 

Holding Company:-

Quality Denim Ltd., British Virgin Islands.

 

Subsidiary Company:-

Concept Studio Ltd., Hong Kong.  (Same address)

 

Associated Companies:-

Chip Tak Investments Ltd., Hong Kong.

Chip Tak Textiles (Taishan) Co. Ltd., China.

Chip Tak Textiles (Shenzhen) Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER 

 

01421255

 

 

COMPANY FILE NUMBER

 

 0007859

 

 

MANAGEMENT

 

Managing Director:  Mr. Lau, Lee Hok, Thomas

Contact Person:  Mr. Lau Chor Hee

 

 

CAPITAL

 

Nominal Share Capital: HK$15,000,000.00 (Divided into 90 Class A shares and 141,000 Class B shares of HK$100.00 each)

 

Issued Share Capital: HK$141,090.00

 

 


SHAREHOLDERS

(As per registry dated 19-07-2012)

 

Name

 

No. of shares

 

 

Class A

Class B

LAU Lee Hok, Thomas

 

1

25,637

LAU Lee Tung

 

 

25,636

LAU Lee Cheung

 

 

89,727

Quality Denim Ltd.

P.O. Box 957, Road Town, Tortolia, British Virgin Islands.

 

89

 

 

 

––

––––––

 

Total:

90

==

141,000

======

 

 

DIRECTORS  

(As per registry dated 19-07-2012)

 

Name

(Nationality)

 

Address

LAU Lee Tung

4 Magnolia Road, Yau Yat Chuen, Kowloon, Hong Kong.

 

LAU Lee Cheung

4 Magnolia Road, Yau Yat Chuen, Kowloon, Hong Kong.

 

LAU Wendy Yee

Flat A, 3/F., 9 Marigold Road, Yau Yat Chuen, Kowloon, Hong Kong.

 

LAU Wayne Kin

Flat D, 3/F., 9 Marigold Road, Yau Yat Chuen, Kowloon, Hong Kong.

 

Wilson LAU

Flat C, 3/F., 9 Marigold Road, Yau Yat Chuen, Kowloon, Hong Kong.

 

LAU, Lee Hok, Thomas

4 Magnolia Road, Yau Yat Chuen, Kowloon, Hong Kong.

 

 

SECRETARY

 

LAU Lee Hok, Thomas  (As per registry dated 19-07-2012)

 

 

HISTORY

 

The subject was incorporated on 19th July, 1962 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.

OPERATIONS

 

Activities:                      Denim Manufacturer & Trader.

 

Lines:                           All kinds of denim, etc.

 

Employees:                   20.

 

Commodities Imported:   China, other Asian countries, etc.

 

Markets:                       North America, Southeast Asia, Western Europe, Middle East, etc.

 

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

 

Terms/Buying:                L/C, D/P, O/A, etc.

 

 

MEMBERSHIP

 

The Chinese General Chamber of Commerce, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$15,000,000.00 (Divided into 90 Class A shares and 141,000 Class B shares of HK$100.00 each)

 

Issued Share Capital:     HK$141,090.00

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in a satisfactory manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                       Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Banker:                         Standard Chartered Bank, Hong Kong Branch.
[Business transferred to Standard Chartered Bank (Hong Kong) Ltd.]

 

Standing:                      Good.

 


GENERAL

 

Chip Tak Weaving Factory Ltd. is chiefly owned by the Lau family.  It is a denim manufacturer and trader.

The subject has had a subsidiary company Concept Studio Ltd. located at the same building.

The subject is located at Chip Tak Weaving Factory Building which is owned by it.

Concept Studio is a garment designer, manufacturer and trader.  It is one of the suppliers for Levi Strauss & Co. in Hong Kong.

The subject is a significant weaver and fabric trader in Hong Kong.  Business had been flourished in the 60’s and 70’s.  It is manufacturing and wholesaling the following fabrics: chambray, denim – 100% cotton, dobby, herringbone, plain weave fancies, shirting – oxford, twill, etc.

The subject had a factory in at Longgang District, Shenzhen Special Economic Zone, China.  The Shenzhen factory is known as Chip Tak Textiles (Shenzhen) Co. Ltd. [Shenzhen Chip Tak].  Shenzhen Chip Tak was set up in July 1990.  It covers an area of about 66,600 sq.m.  Including warehouse and workers’ accommodation, the factory covers a total area of about 100,000 sq.m.

The annual production capacity of Shenzhen Chip Tak are the followings:-

·         Cotton Yarn: 2,000 tonnes;

·         Denim:  36 million yards; &

·         Dyed Yarn:  40 million yards.

Most of the machinery and equipment of Shenzhen Chip Tak were imported from Germany, Italy, Belgium Switzerland and Japan.  The factory is able to integrate all the procedures under a roof such as dyeing, scouring, finishing and weaving, etc.

Shenzhen Chip Tak has got ISO 9000 and ISO 14000 certification.

The subject has had another factory in Taishan, Guangdong Province, China.

The Taishan factory is known as Chip Tak Textiles (Taishan) Co. Ltd. [Taishan Chip Tak].  Taishan Chip Tak covers an area of 350,000 sq.m.  Its annual production capacity is about 60 million yards.

The products of the factories are exported to North America, Southeast Asia, Western Europe, the Middle East, etc. as well as marketed in China.  Raw materials are imported from Asian countries and Europe.  Overall business is good.

The annual sales turnover of the subject is very significant.  Business is profitable.  No derogatory data have been heard.

The subject operates from a self-owned office.

As the history of the subject is over 50 years in Hong Kong, on the whole, consider it good for normal business engagements.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.04

UK Pound

1

Rs.81.80

Euro

1

Rs.71.41

 

 

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.