MIRA
INFORM REPORT
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Report Date : |
03.07.2013 |
IDENTIFICATION DETAILS
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Name : |
VF HONG KONG LTD. |
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Registered Office : |
27/F., C-Bons International Centre, 108 Wai Yip Street, Kwun Tong,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
15.11.1974 |
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Com. Reg. No.: |
04312453 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter, Wholesaler and Retailer of Garments, textile
products |
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No. of Employees : |
60 |
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 : |
Good |
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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 1983.
|
Source
: CIA |
Company name
VF HONG KONG LTD.
ADDRESS
27/F., C-Bons International Centre, 108 Wai Yip Street, Kwun Tong,
Kowloon, Hong Kong.
PHONE: 852-2265 8922, 2953 1000,
2670 2001
FAX: 852-2390
9250, 2670 2188
MANAGEMENT
Managing Director: Mr. Thomas Allen Nelson
SUMMARY
Incorporated on: 15th November, 1974.
Organization: Private Limited Company.
Capital: Nominal: HK$5,000,000.00
Issued: HK$5,000,000.00
Business Category: Importer,
Exporter, Wholesaler and Retailer.
Group Net Sales: US$10,766,020,000 (Year ended 29-12-2012)
Employees: 60.
Group Employees: Approx. 57,000. (As at 29-12-2012)
Main Dealing Banker: The
Hongkong and Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Company name
VF HONG KONG LTD.
ADDRESS
Registered Head
Office:-
27/F., C-Bons International Centre, 108 Wai Yip Street, Kwun Tong, Kowloon,
Hong Kong.
Holding Company:-
V F Asia Ltd., Hong Kong. (same
address)
Ultimate Holding
Company:-
V. F. Corporation, US.
Associated/Affiliated
Companies:-
VF Group of Companies
Beatle Properties Ltd., Gibraltar.
Eagle Creek Inc., US.
Glaudio Belgium BVBA, Belgium.
Glaudio Fashion B.V., Netherlands.
H.D. Lee Spain S.L., Spain.
Imagewear Apparel Corp., US.
JanSport Apparel Corp., US.
Jeanswear Ventures LLC, US.
John Varvatos Apparel Corp., US.
John Varvatos Enterprises Inc., US.
Kipling Apparel Corp., US.
Lee Bell Inc., US.
Lucy apparel LLC, US.
Mo Industries LLC, US.
Nautica Apparel LLC, US.
Nautica Retail USA Inc., US.
R&R Apparel Inc., US.
Ring Company, US.
Seven For All Manking LLC, US.
Smartwool Consumer Direct LLC, US.
Smartwool LLC, US.
South Cone Inc., US.
The H.D. Lee Company Inc, US.
The North face (Italy) S.r.l., Italy.
The North face Apparel Corp., US.
The Recreational Footwear Company, Cayman Islands.
The Timberland Company (Asia Pacific) Pte. Ltd., Singapore.
Timberland (Gibraltar) Holding Ltd., Gibraltar.
Timberland Asia LLC, US.
Timberland Aviation LLC, US.
Timberland Canada Co., Canada.
Timberland España S.L., Spain.
Timberland Europe B.V., Netherlands.
Timberland Europe Services Ltd., UK.
Timberland GmbH, Austria.
Timberland Holding Luxembourg S.à.r.l., Luxembourg.
Timberland Hong Kong Ltd., Hong Kong.
VF (J) France S.A., France.
VF Italy Services S.r.l., Italy.
VF Jeanswear Argentina, Argentina.
VF Jeanswear de Mexico S.A. de C.V., Mexico.
VF Jeanswear Espana S.L., Spain.
VF Jeanswear Limited Partnership, US.
VF Korea Ltd., Korea.
VF Luxembourg S.à.r.l., Luxembourg.
VF Mauritius Ltd., Mauritius.
VF Northern Europe Ltd., UK.
VF Northern Europe services Ltd., UK.
VF Outdoor (Canada) Inc., Canada.
VF Outdoor Inc., US.
VF Outlet Inc., US.
VF Polska Sp. zo.o., US.
VF Receivables LP, US.
VF Receivables Services LLC, US.
VF Scandinavia A/S., US.
VF Services Inc., US.
VF Sourcing (Thailand) Ltd., Thailand.
VF Sourcing Asia S.a.R.L., Luxembourg.
VF Sourcing Latin America S.a.R.L., Luxembourg.
VF Sportswear Inc, US.
VF Treasury Services LLC, US.
VF Ventures LLC, US.
Wrangler Apparel Corp., US.
etc.
BUSINESS REGISTRATION NUMBER
04312453
COMPANY FILE NUMBER
0040808
MANAGEMENT
Managing Director: Mr. Thomas
Allen Nelson
CAPITAL
Nominal Share Capital: HK$5,000,000.00 (Divided into 2,500,000 Ordinary
A shares and 2,500,000 Ordinary B shares of HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
SHAREHOLDER
(As per registry dated 15-11-2012)
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Name |
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No. of shares |
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Ordinary A |
Ordinary B |
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V F Asia Ltd., Hong Kong. |
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2,500,000 ======= |
2,500,000 ======= |
DIRECTORS
(As per registry dated 15-11-2012)
|
Name (Nationality) |
Address |
|
Aidan James O’MEARA |
Room B37, Regalia Bay, 88 Wong Ma Kok Road, Stanley, Hong Kong. |
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Patrick Joseph GUIDO |
3955 Old Atlanta Stn Ct, Smyrna, GA 30080-7386, USA. |
|
Karlheinz SALZBURGER |
Via Tesserete 69, 6942 Savosa, Switzerland. |
|
Robert Marcel WOLFF |
House 10, Fairway Vista, Po Toi O Village, DD241 Lot 241, Clearwater
Bay, Hong Kong. |
|
Thomas Allen NELSON |
Block J, 3/F., 33 Tai Tam Road, Hong Kong. |
SECRETARY
(As per registry dated 30-11-2012)
|
Name |
Address |
|
YIU Chi Hang |
Flat E, 47/F., The Forest Hills, 97-99 Po Kong Village Road, Diamond
Hill, Kowloon, Hong Kong. |
HISTORY
The subject was incorporated on 15th November, 1974 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of H. D. Lee
(Hong Kong) Ltd., name changed to the present style on 14th February,
2006.
Formerly the subject was located at Flat B, 10/F., Kader Building, 22
Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong, moved to the present address
with effect from 5th December, 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Importer,
Exporter, Wholesaler and Retailer.
Lines: Garments,
textile products.
Employees: 60.
Group Employees: Approx. 57,000. (As at 29-12-2012)
Commodities Imported: Europe, US,
etc.
Markets: Hong
Kong, Europe, North America, etc.
Group Net Sales: US$ 7,561,621,000
(Year ended 31-12-2008)
US$ 7,143,074,000 (Year ended 31-12-2009)
US$
7,624,599,000 (Year ended
31-12-2010)
US$
9,365,477,000 (Year ended
31-12-2011)
US$10,766,020,000 (Year ended 29-12-2012)
Terms/Sales: COD or as per contracted.
Terms/Buying: Various terms.
FINANCIAL INFORMATION
Nominal Share
Capital: HK$5,000,000.00
(Divided into 2,500,000 Ordinary A shares and 2,500,000 Ordinary B shares of
HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
Group Net Income: US$ 602,748,000
(Year ended 31-12-2008)
US$ 461,271,000 (Year ended 31-12-2009)
US$
571,362,000 (Year ended
31-12-2010)
US$
888,089,000 (Year ended
31-12-2011)
US$1,085,999,000 (Year ended 29-12-2012)
Profit or Loss: Making
a profit every year.
Condition: Keeping in a satisfactory and active manner.
Facilities: Making very
active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Good.
Banker: The Hongkong and Shanghai Banking
Corp. Ltd., Hong Kong.
Standing: Very Good.
GENERAL
VF Hong Kong Ltd. is a wholly owned subsidiary of V F Asia Ltd. which is
a Hong Kong-registered firm located at the operating address of the
subject. The ultimate holding company is
V. F. Corporation [VF], a US-based and listed firm. VF is the holding company of the VF Group.
VF, organized in 1899, is a worldwide leader in branded lifestyle
apparel and related products. The
subject is trading in the same commodities as its holding company.
For over 100 years, VF has offered consumers high quality, high value
branded products. VF’s strategy is to continue transforming our mix of business
to include more lifestyle brands.
Lifestyle brands connect closely with consumers because they are
aspirational and inspirational; they reflect consumers’ specific activities and interests. Lifestyle brands generally extend across
multiple product categories and have higher than average gross margins. Accordingly, this transformation has included
the acquisitions of many lifestyle brands, including Timberland, Vans, Reef,
Kipling, Napapijr, 7 For All Mankind,
lucy, Splendid and Ella Moss. At the same time, the Grou has continued to
invest in all of its businesses through geographic expansion, retail store openings,
product line extensions, product innovation, consumer research and advertising.
VF’s businesses are organized primarily into product categories, and by
brands within those categories, for both management and internal financial
reporting purposes. These groupings of
businesses are called “coalitions” and consist of the following: Outdoor &
Action Sports, Jeanswear, Imagewear, Sportswear and Contemporary Brands. These coalitions are our reportable segments
for financial reporting purposes. Coalition
management has responsibility to build and operate their brands, with certain
financial, administrative and systems support and disciplines provided by
central functions within VF.
VF considers its Outdoor and Action Sports, Sportswear and Contemporary
Brands coalitions to be its lifestyle coalitions.
The following table summarizes VF’s primary owned and licensed brands by
coalition:-
|
Coalition |
Primary Brands |
Primary Products |
|
Outdoor & Action Sports |
The North Face |
High performance apparel,
footwear, outdoor gear |
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Timberland |
Outdoor adventure-oriented
footwear and apparel |
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Vans |
Skateboard-inspired footwear,
apparel |
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Kipling |
Handbags, luggage, backpacks,
accessories (outside North America) |
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Napapijri |
Premium outdoor apparel |
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Reef |
Surf-inspired footwear, apparel |
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Eastpak |
Backpacks, apparel |
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JanSport |
Backpacks, luggage, apparel |
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SmartWool |
Merino wool socks, apparel and
accessories |
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lucy |
Women’s activewear |
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Eagle Creek |
Luggage, packs, travel
accessories |
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Jeanswear |
Wrangler |
Denim and casual bottoms, tops |
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Lee |
Denim and casual bottoms, tops |
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Lee Casuals |
Denim and casual bottoms, tops |
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Riders |
Denim and casual bottoms, tops |
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Rustler |
Denim and casual bottoms, tops |
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Timber Creek by Wrangler |
Denim and casual bottoms, tops |
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Rock & Republic |
Fashion denim and sportswear |
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Imagewear |
Red Kap |
Occupational apparel |
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Bulwark |
Protective occupational apparel |
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Horace Small |
Occupational apparel |
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Majestic |
Athletic apparel |
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MLB (licensed) |
Licensed athletic apparel |
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NFL (licensed) |
Licensed athletic apparel |
|
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Harley-Davidson
(licensed) |
Licensed apparel |
|
Sportwear |
Nautica |
Fashion sportswear, denim
bottoms, sleepwear, accessories, underwear |
|
|
Kipling |
Handbags, luggage, backpacks,
accessories (within North America) |
|
Contemporary Brands |
7 For All Mankind |
Premium denim and casual
bottoms, sportswear, accessories |
|
|
Splendid |
Premium women’s sportswear |
|
|
Ella Moss |
Premium women’s sportswear |
The Group’s direct-to-consumer business includes full-price stores, outlet
stores, and e-commerce. Direct-to-consumer revenues accounted for 21% of VF’s
consolidated total revenues in 2012, as compared to 19% in 2011.
Its growing global retail operations include 1,129 stores at the end of
2012. Of that total, there are 1,049 single brand stores (i.e., primarily one
brand’s product offerings in each store) that sell The North Face,
Timberland, Vans, Nautica, 7 For All Mankind,
lucy, Splendid, Ella Moss, Lee, Wrangler,
Napapijri, Kipling, and Eastpak brand products. It also operates 80 VF Outlet
stores in the United States that sell a broad selection of excess quantities of
VF-branded products, as well as women’s intimate apparel, childrenswear, other
apparel and accessories. Approximately 70% of VFoperated stores offer products
at full price, and the remainder are outlet locations. Approximately 60% of its stores are located
in the United States and the remaining 40% are located in Europe, Latin America
and Asia.
E-commerce is the Group’s fastest growing direct-to-consumer channel and
represents approximately 11% of its direct-to-consumer business. It currently market The North Face,
Timberland, SmartWool, Vans, Lee, Wrangler, 7
For All Mankind, lucy, Nautica, Kipling, Splendid,
Ella Moss, Eastpak, Napapijri, Eagle Creek,
and Reef products online in the United States, plus The North
Face, Timberland, Vans, 7 For All Mankind, Kipling,
Napapijri, Eastpak, and other brands internationally. It is continuing to expand its e-commerce
initiatives by rolling out additional brand sites in Europe and Asia, and
enhancing each brand’s site to deliver a superior consumer experience.
It opened 141 stores during 2012 and it is planning to open
approximately 160 additional locations in 2013, concentrated in the businesses
where we see higher retail growth potential — Vans, The North
Face, Timberland, Splendid, and international.
In addition to its direct-to-consumer operations, its licensees,
distributors and other independent parties own and operate over 2,500
partnership stores. These are primarily
monobrand stores selling VF-branded products, and have the appearance of
VF-operated stores. Most of these
partnership stores are located in Europe and Asia, and are concentrated in The
North Face, Vans, Timberland, Kipling, Nautica,
Napapijri, Lee, and Wrangler brands.
On an annual basis, VF sources or produces approximately 450 million
units spread across 36 brands. VF
operates 29 manufacturing facilities and utilizes approximately 1,900
contractor manufacturing facilities in 60 countries. It operates 29 distribution centers and 1,129
retail stores. Managing this complexity
is made possible by the use of a network of information systems for product
development, forecasting, order management and warehouse management, attached
to its core enterprise resource management platforms.
In 2012, 28% of its units were manufactured in VF-operated facilities
and 72% were obtained from independent contractors, primarily in Asia.
Products manufactured in VF facilities generally have a lower cost and
shorter lead times than contracted production. Products obtained from
contractors in the Western Hemisphere generally have a higher cost than
products obtained from contractors in Asia. But contracting in the
Western Hemisphere gives it greater flexibility, shorter lead times and allows
for lower inventory levels.
VF operates manufacturing facilities in Mexico, Central and South
America, the Caribbean, Europe and the Middle East. A
significant percentage of denim bottoms and occupational apparel are
manufactured in these plants, as well as a smaller percentage of footwear. For these owned production facilities, it
purchases raw materials from numerous domestic and international suppliers to
meet our production needs. Raw materials
include products made from cotton, leather, rubber, wool, synthetics and blends
of cotton and synthetic yarn, as well as thread and trim (product
identification, buttons, zippers, snaps, eyelets and laces). In some instances, it contracts the sewing of
VF-owned raw materials into finished product with independent contractors. Manufacturing in the United States includes
all Major League Baseball uniforms, along with screen printing and embroidery
of jerseys, T-shirts and fleece products.
Fixed price commitments for fabric and certain supplies are generally
set on a quarterly basis for the next quarter’s purchases. No single supplier represents more than 5% of
its total cost of sales.
Independent contractors generally own the raw materials and ship
finished ready-for-sale products to VF.
These contractors are engaged through VF sourcing hubs in Hong Kong
(with satellite offices across Asia) and Panama. These hubs are responsible for coordinating
the manufacturing and procurement of product,
supplier management, product quality assurance, and transportation and shipping
functions in the Eastern and Western Hemispheres, respectively. Substantially all products in the Outdoor
& Action Sports and Sportswear Coalitions, as well as a portion of products
for our Jeanswear and Imagewear Coalitions, are obtained through these sourcing
hubs. For most products in its
Contemporary Brands Coalition, we contract the sewing and finishing of VF-owned
raw materials through a network of independent contractors based in the United
States.
VF employed approximately 57,000 men and women at the end of 2012, of
which approximately 25,000 were located in the United States.
For the year ended 29th December, 2012, the sales of the Group amounted
to US$10,766.0 million, grew by 15.0% as compared with US$9,365.5 million in FY
2011; net income was US$1,086.0 million, grew by 22.3% as compared with
US$888.1 million in FY 2011.
The subject is fully supported by VF.
History in Hong Kong is over thirty‑eight years.
On the whole, consider the subject good for normal business engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.41 |
|
|
1 |
Rs.90.38 |
|
Euro |
1 |
Rs.77.61 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.