MIRA INFORM REPORT

 

 

Report Date :

09.07.2013

 

IDENTIFICATION DETAILS

 

Name :

NATIONAL  FISH  &  SEAFOOD  LTD.

 

 

Formerly Known as:

NFS Ltd.

 

 

Registered Office :

c/o Pacific Andes International Holdings Ltd.

Room 3201-3210, 32/F., Hong Kong Plaza, 186 Connaught Road West

 

 

Country :

Hong Kong 

 

 

Date of Incorporation :

28.11.1996

 

 

Com. Reg. No.:

20597102

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Wholesaler and Re-exporter of all kinds of frozen seafood products

 

 

No. of Employees :

Approx. 10,100.  (As at 28-03-2013)

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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

 

NATIONAL  FISH  &  SEAFOOD  LTD.

 

 

Company ADDRESS

 

c/o Pacific Andes International Holdings Ltd.

Room 3201-3210, 32/F., Hong Kong Plaza, 186 Connaught Road West, Hong Kong.

 

PHONE:            852-2547 0168,  2547 0525

FAX:                 852-2858 2764

E-MAIL:            pandes.andes@pandes.com.hk

 

 

MANAGEMENT

 

Group Vice Chairman & Managing Director:  Mr. Ng Joo Siang

 

 

SUMMARY

 

Incorporated on:            28th November, 1996.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:             HK$2.00

 

Business Category:       Frozen Seafood Products Trading.

 

Group Revenue:            HK$14,601,432,000  (Year ended 28-09-2012)

 

Group Employees:        Approx. 10,100.  (As at 28-03-2013)

 

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

 

Banking Relation:          Satisfactory.


Company ADDRESS

 

Registered  Office:-

c/o Pacific Andes International Holdings Ltd.

Room 3201-3210, 32/F., Hong Kong Plaza, 186 Connaught Road West, Hong Kong.

 

Holding Companies:-

National Fish & Seafood Inc., USA/Worldwide.

Pacific Andes International Holdings (BVI) Ltd., British Virgin Islands.

 

Ultimate Holding Company:-

Pacific Andes International Holdings Ltd., Bermuda/Hong Kong.

 

Associated Companies:-

Pacific Andes Group of Companies

·         Aqua Foods (Qingdao) Co. Ltd., China.

·         Bonaire Developments Ltd., British Virgin Islands/Hong Kong.

·         CFG Investment S.A.C., Peru.

·         Champion Shipping Ltd., British Virgin Islands/Worldwide.

·         Chasterton Group Ltd., British Virgin Islands/Hong Kong.

·         China Fisheries International Ltd., Samoa/Worldwide.

·         China Fishery Group Ltd., Cayman Islands.

·         Clamford Holding Ltd., British Virgin Islands.

·         Europaco (AP) Ltd., British Virgin Islands/Worldwide.

·         Europaco (EP) Ltd., British Virgin Islands/Worldwide.

·         Europaco (HP) Ltd., Hong Kong & Worldwide.

·         Europaco (QP) Ltd., Samoa/Worldwide.

·         Europaco Ltd., British Virgin Islands/Worldwide.

·         Fastact Group Ltd., British Virgin Islands/Hong Kong.

·         Global Research Group Inc., British Virgin Islands/Hong Kong.

·         Global Research Services Inc., British Virgin Islands.

·         Glorious Ocean Ltd., Hong Kong.

·         Grandluck Enterprises Ltd., Hong Kong.  [Dissolved]

·         Nouvelle Foods International Ltd., British Virgin Islands/Worldwide.

·         Pacific Andes Enterprises (BVI) Ltd., British Virgin Islands/Worldwide.

·         Pacific Andes Enterprises (Hong Kong) Ltd., Hong Kong.

·         Pacific Andes Food (BVI) Ltd., British Virgin Islands/Hong Kong.

·         Pacific Andes Food (Hong Kong) Co. Ltd., Hong Kong & Worldwide.

·         Pacific Andes Food Ltd., China.

·         Pacific Andes Resources Development Ltd., Bermuda/Singapore & Worldwide.

·         Pacific Andes Treasury Management Ltd., Hong Kong.

·         Paco (ET) Ltd., Cyprus.

·         Paco (GT) Ltd., Cyprus.

·         Paco (HT) Ltd., Cyprus.

·         Paco Alpha Ltd., British Virgin Islands/Worldwide.

·         Paco Beta Ltd., British Virgin Islands/Worldwide.

·         Paco-EP Ltd., Cyprus.

·         Paco-GP Ltd., Cyprus.

·         Paco-HP Ltd., Cyprus.

·         Pacos (QP) Ltd., Cyprus.

·         Pacos Processing Ltd., Cayman Islands/Worldwide.

·         Pacos Processing Ltd., Cyprus.

·         Pacos Trading Ltd., Cayman Island/Worldwide.

·         Pacos Trading Ltd., Cyprus.

·         Parkmond Group Ltd., British Virgin Islands/Worldwide.

·         Pelican Food Ltd., British Virgin Islands/Worldwide.

·         Qingdao Canning Foodstuff Co. Ltd., China.

·         Sevenseas Enterprises Ltd., British Virgin Islands/Hong Kong.

·         Tassal Group Ltd., Australia.

·         Xinxing Foodstuffs (Qingdao) Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

20597102

 

 

COMPANY FILE NUMBER

 

0577335

 

 

MANAGEMENT

 

Group Chairperson:  Madam Teh Hong Eng

Group Vice Chairman & Managing Director:  Mr. Ng Joo Siang

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital:     HK$2.00

 

 

SHAREHOLDERS

(As per registry dated 28-11-2012)

 

Name

 

No. of shares

Pacific Andes International Holdings (BVI) Ltd.

Omar Hodge Building, Wickhams Cay I, P.O. Box 362, Road Town, Tortola, British Virgin Islands.

 

1

National Fish & Seafood Inc.

11-15 Parker Street, Gloucester MA01930-3017, USA.

 

1

 

 

––

 

Total:

2

=

 

 

DIRECTORS

(As per registry dated 28-11-2012)

 

Name

(Nationality)

 

Address

NG Joo Siang

House 36, Manderly Garden, 48 Deep Water Bay Road, Hong Kong.

 

TEH Hong Eng

House 34, Manderly Garden, 48 Deep Water Bay Road, Hong Kong.

 

NG Joo Puay, Frank

Flat A1, 20/F., Evergreen Villa, 43 Stubbs Road, Hong Kong.

 

NG Joo Kwee

Flat B, 8/F., Celestial Garden, 5 Repulse Bay Road, Hong Kong.

 

 

SECRETARY

(As per registry dated 28-11-2012)

 

Name

Address

Co. No.

PA Corporate Advisory Services Ltd.

Flat B, 16/F., Empire Land Commercial Centre, 81-85 Lockhart Road, Wanchai, Hong Kong.

0831055

 

 

HISTORY

 

The subject was incorporated on 28th November, 1996 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Uni-Link (Hong Kong) Ltd., name changed to NFS Ltd. on 29th January, 1997.  Subsequently, the present style was adopted on 1st September, 1997.

 

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

 

 


OPERATIONS

 

Activities:                      Importer, Wholesaler and Re-exporter.

 

Lines:                           All kinds of frozen seafood products.

 

Group Employees:        Approx. 10,100.  (As at 28-03-2013)

 

Commodities Imported: Buying frozen seafood from US, New Zealand, Malaysia, China, etc.

 

Markets:                        Hong Kong, US and worldwide.

 

Group Revenue:-

HK$11,264,418,000  (Year ended 28-09-2009)

HK$11,470,543,000  (Year ended 28-09-2010)

HK$14,245,411,000  (Year ended 28-09-2011)

HK$14,601,432,000  (Year ended 28-09-2012)

HK$  8,401,135,000  (6 months ended 28-03-2012) – Unaudited

HK$  7,238,909,000  (6 months ended 28-03-2013) – Unaudited

 

Terms/Sales:                 On various terms.

 

Terms/Buying:               On various basis.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$2.00

 

Mortgage or Charge:     (See attachment)

 

Group Net Profit:-

HK$1,015,310,000  (Year ended 28-09-2009)

HK$1,090,829,000  (Year ended 28-09-2010)

HK$   923,413,000  (Year ended 28-09-2011)

HK$   737,387,000  (Year ended 28-09-2012)

HK$   593,149,000  (6 months ended 28-03-2012) – Unaudited

HK$   570,844,000  (6 months ended 28-03-2013) – Unaudited

 

Profit or Loss:               Group business is profitable.

 

Condition:                     Keeping in a satisfactory condition.

 

Facilities:                      Actively using general banking facilities.

 

Payment:                      Met as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. [Rabobank], Hong Kong Branch.

 

Standing:  Good.

 

 

GENERAL

National Fish & Seafood Ltd. [NFS] is equally owned by National Fish & Seafood Inc. [NFSI] of the United States and Pacific Andes International Holdings (BVI) Ltd., a BVI-registered firm.  The subject has just issued 2 ordinary shares of HK$1.00 each while each of the holding companies holds a single share.

All the firms are under the same umbrella of the Pacific Andes Group of which the holding company is Pacific Andes International Holdings Ltd. [PAIH], a Bermuda-incorporated company with shares listed on The Stock Exchange of Hong Kong Ltd. bearing stock code 1174 as from 3rd October, 1994.  PAIH was incorporated in Bermuda on 6th October, 1993 as a holding company of the Pacific Andes Group.  NFSI is a 60%-owned subsidiary of the Group having a plant in Gloucester, Massachussetts of the United State to process and package frozen seafood products.  NFS was set up in Hong Kong mainly responsible for the sourcing and marketing activities on behalf of NFSI.

Founded in 1986, the Pacific Andes Group is principally engaged in fish processing at sea, global sourcing, further processing on shore, and international distribution of a wide variety of frozen seafood products.  In addition, it is also engaged in the provision of fuel-trading-at-sea, agency and shipping services, and trade related finance.  In recent years, the Group has evolved from purely trading company for seafoods products in the direction to be a fully-integrated global food company.  The Group now sources, processes and distributes a diverse range of frozen food products including seafood products and vegetables to 36 countries worldwide covering the PRC, North & South America, Europe, Africa and Asia.  Its client base ranges from wholesalers, retailers, processors, re-processors and institutional customers.  It is headquartered in Hong Kong, with offices in the PRC, Singapore, Russia and North America.

In FY2012, total revenue of the Group increased by 2.5% to HK$14,601 million (approximately US$1,872 million). EBITDA increased by 5.7% to HK$2,685 million (approximately US$344 million).  Net profit was down by 20.1% to HK$737 million (approximately US$94 million) due to a lower than expected contribution from the China Fishery Fleet (“CF Fleet”, formerly the South Pacific Operations) under the Fishery and Fish Supply Division [FFS Division] and the challenging market conditions in the processing and distribution business.

For the 6 months ended 28th March 2013 [1HFY2013], the total revenue of the Group decreased by 13.8% from HK$8,401.1 million (approximately US$1,077.1 million) to HK$7,238.9 million (approximately US$928.1 million). The FFS Division accounted for 29.2% (1HFY2012: 32.1%) of total revenue; the Frozen Fish Supply Chain Management Division [Frozen Fish SCM Division] for 38.1% (1HFY2012: 36.6%) and the processing and distribution division for the remaining 32.4% (1HFY2012: 31.1%).

As of 28th March 2013, total assets of the Group amounted to HK$29,373.6 million (28th September 2012: HK$29,470.0 million).

The Group expects the world economic outlook to remain uncertain due to ongoing volatility in the financial markets and general slowdown in the growth of the global economy.  The Group is dedicated to strengthening and expanding its core competencies in key business areas, as well as to exploring related business opportunities.

For the FFS Division, the Group expects to realise additional cost savings from FY2013 onwards, following the completion of the Fourth Long Term Supply Agreement under the Contract Supply Business.  The long term stable supply of fish places the Group in a position to benefit from the increasing market demand for fish.

Although fishmeal and fish oil prices have remained on an upward trend, the reduction in the total allowable catch of Peruvian Anchovy for the November 2012 to January 2013 fishing season to 0.81 million tonnes, due to a high level of juvenile fish in the water, is expected to have an impact on the contribution of the Peruvian Fishmeal Operations in 1HFY2013.

As at 28th March, 2013, the Group had a total of approximately 10,100 employees.

On the whole, in view of the parentage of NFS, consider it good for normal business engagements.

REMARKS:

 

Brief personal profile of the directors:-

Madam TEH Hong Eng, aged 77, is the Executive Director and Chairperson of PAIH.  She is responsible for general administration and strategic planning.  She joined the Group in 1986 and has over 30 years experience in administration and financial investments.  Madam Teh is the mother of Ng Joo Siang, Ng Joo Kwee, Ng Joo Puay, Frank and Ng Puay Yee.

Mr. NG Joo Siang, aged 53, is the Managing Director and Vice-Chairman of PAIH.  He is responsible for overall corporate policy making, strategic planning, development, investment and management of the Group.  Mr. Ng graduated from Louisiana State University, Baton Rouge, Louisiana in the USA, majoring in International Trade and Finance, and has over 30 years experience in the trading of seafood products.  Prior to joining PAIH in 1986, Mr. Ng was in the ship agency business, overseeing the chartering and operation of ocean-going vessels calling at various Asian ports.

Mr. NG Joo Kwee, aged 52, is the Executive Director of PAIH.  He is responsible for all production of frozen seafood in the PRC.  Mr. Ng studied in the USA at South-eastern Louisiana University in Hammond, Louisiana.  From 1983 to 1989, Mr. Ng was president of a fish trading company in Taiwan.  In 1989, Mr. Ng joined the Group as general manager of PRC operations, responsible for daily operations, trading activities and the sourcing of frozen seafood products from South America, India, the PRC and Russia.  In 1994, Mr. Ng resigned from PAIH, but rejoined in March 1996.

Mr. NG Joo Puay, Frank, aged 50, is the Executive Director of PAIH.  He is responsible for international sales and marketing of the Group’s frozen seafood products outside the PRC.  Mr. Ng graduated from Loyola University in New Orleans, Louisiana, in the USA, majoring in business administration.  He has over 20 years experience in the seafood trading business.  Prior to joining PAIH in 1987, Mr. Ng was the trading manager of a fish trading company in Taiwan for three years.

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

05-08-1998

Instrument:      Charge Over Deposit

Property:

The Deposit as defined in the Charge Over Deposit of all monies for A/C No. 461103 maintained with Rabobank, Hong Kong Branch, Customer: National Fish & Seafood Management Ltd., C.I. No. 627670 and A/C No. 9374682166 maintained with Fleet Bank, U.S.A., Customer: National Fish & Seafood Ltd., C.I. No. 577335

Mortgagee:      Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. [Rabobank], Hong Kong Branch.

To secure all monies, obligations and liabilities, actual or contingent, which are now or at any time hereafter may be outstanding, owing or payable by National Fish & Seafood Management Ltd. and/or National Fish & Seafood Ltd.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.05

UK Pound

1

Rs.90.89

Euro

1

Rs.78.27

 

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.