MIRA INFORM REPORT

           

 

 

Report Date :

17.05.2013

 

IDENTIFICATION DETAILS

 

Name :

Winall Industries Ltd.

 

 

Registered Office :

Room No.101-102, 1/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

13.11.1984

 

 

Com. Reg. No.:

09492006

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer, Importer and Exporter of all kinds of Leather Garment and Clothings.

 

 

No. of Employees :

15

 

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 and address

 

WINALL  INDUSTRIES  LTD.

 

ADDRESS:             Room 101-102, 1/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.

 

PHONE:                  3552 4800,  2334 6417,  3552 4797

 

FAX:                       3552 4814,  2765 6459

 

E-MAIL:                  win1@winall.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Lo Sai Man, Simon

 

 

SUMMARY

 

Incorporated on:            13th November, 1984.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:HK$10,000,000.00

                                    Issued: HK$10,000,000.00

 

Business Category:       Leather Garment Manufacturer and Exporter.

 

Annual Turnover:           HK$320-350 million.

 

Employees:                  15.  (Hong Kong)

 

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

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

Room 101-102, 1/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.

 

China Factory:-

Jiangmen Winall Leather Products Co. Ltd.

Hongqi Mountain, Guifeng Road, Xinhui District, Jiangmen City Guangdong Province, China.

[Tel: 750-6171131    Fax: 750-6171733]

 

Holding Company:-

Winall Investment Ltd., [not registered in Hong Kong].  (same address)

 

Associated Companies:-

Jiangmen City Winall Gallery, China.

Jiangmen Winall Industries Ltd., China.

Magazzini Vivace Ltd.

Shop B & C, G/F., Ruttonjee Centre, 11 Duddell Street, Central, Hong Kong.

Winall Industries (USA) Ltd., US.

 

 

BUSINESS REGISTRATION NUMBER

 

09492006

 

 

COMPANY FILE NUMBER

 

0143517

 

 

MANAGEMENT

 

Managing Director:  Mr. Lo Sai Man, Simon

 

 

CAPITAL

 

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

 

Issued Share Capital:     HK$10,000,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 13-11-2012)

Name

 

No. of shares

Winall Investment Ltd., Hong Kong.

[It is not a Hong Kong-registered firm.]

 

9,999,999

LO Sai Man, Simon

 

1

 

 

–––––––––

 

Total:

10,000,000

========

 

DIRECTORS

 

(As per registry dated 13-11-2012)

Name

(Nationality)

 

Address

LO Sai Man, Simon

Flat C, 3/F., Hillwood Mansion, 45-47 Hillwood Road, Tsimshatsui, Kowloon, Hong Kong.

 

MA Kit Ling

Flat C, 3/F., Hillwood Mansion, 45-47 Hillwood Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

SECRETARY

 

(As per registry dated 13-11-2012)

Name

Address

Co. No.

Malo Nominees Ltd.

Office No. 1002, 10/F., Li Po Chun Chambers, 189 Des Voeux Road Central, Hong Kong.

0127908

 

 

HISTORY

 

The subject was incorporated on 13th November, 1984 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:                                  Manufacturer, Importer and Exporter.

 

Lines:                                       All kinds of leather garments and clothings.

 

Employees:                              15.  (Hong Kong)

                                                1,500.  (China)

 

Raw Materials:                           Mainly imports leather from India, Italy and the other European countries.

 

Markets:                                    China, US, Europe, Southeast Asia, etc.

 

Annual Turnover:                       HK$320-350 million.

 

Terms/Sales:                             L/C or T/T.

 

Terms/Buying:                           L/C or as per contracted.

 

 

FINANCIAL INFORMATION

 

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

 

Issued Share Capital:                 HK$10,000,000.00

 

Alternation of Capital:-

13-11-1984

paid up

HK$                2.00

25-02-1985

paid up

HK$     449,998.00

07-11-2000

paid up

HK$  9,550,000.00

 

 

            –––––––––––––––––

Total:

paid up

HK$10,000,000.00

            ===============

 

Increases of Nominal Capital:-

From

HK$  10,000.00

to

HK$     500,000.00

on

25-02-1985

From

HK$500,000.00

to

HK$10,000,000.00

on

07-11-2000

 

Mortgage or Charge:                 (See attachment)

 

Profit & Loss:                           Business is profitable.

 

Condition:                                 Keeping in an active state.

 

Facilities:                                  Making active use of general banking facilities.

 

Payment:                                  So far so good.

 

Commercial Morality:                 Satisfactory.

 

Bankers:-

DBS Bank (Hong Kong) Ltd., Hong Kong.

Bank of Communications Co. Ltd., Hong Kong Branch.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

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

 

Standing:                                  Good.

 

 

GENERAL

 

Winall Industries Ltd. is a wholly-owned subsidiary of Winall Investment Ltd. [Winall Investment] which is not a Hong Kong-incorporated company.

 

Founded in 1984 by Mr. Simon Lo Sai Man, the subject is a leather garment manufacturer.  Initially the subject had issued 450,000 ordinary shares of HK$1.00 each of which 449,999 shares were owned by Mr. Simon Lo, while the balance 1 share was held by Ms. Lo Ming Yee.  On 7th November, 2000, the issued ordinary share was increased to 10 million of the same value each.  The newly issued 9,550,000 shares were allotted to Winall Investment, an investment arm of Mr. Simon Lo.  Later, Winall Investment acquired more shares from the other shareholders.  Now, the subject 9,999,999 shares have been owned by Winall Investment, while the founder Simon Lo keeps holding a single share.

 

The subject is engaged in manufacturing leather garments which have been exported to the United States, Canada, Japan, Europe and Southeast Asia, etc.  In 2009, the subject’s products began marketing in China.

 

The subject’s factory Jiangmen Winall Leather Products Co. Ltd. is occupying a site covering an area of 123 acres in Xinhui, Guangdong Province, China.  The factory was established in 1992 and now it is employing about 1,500 persons.  The factory has been equipped with modern technology, production lines.  Besides, the factory has got ISO 9001: 2000 certification.

 

Currently, the factory is able to produce over 600,000 units of jackets and garments yearly.  Each jacket or garment is hand crafted and styled to the customers specifications and requirements.

 

According to the subject, it has got the following customers:-

 

Ann Taylor, Arden B, Avirex, Bass Pro Shop, Bob Timberlake, Catherine Malandrino, Chine, Colorado, Cripple Creek, Dana Buchman, DKNY, Eddie Bauer, Emanuel Ungaro, Episode, Evisu, Express, Fashioncrew, First Gear, Harley Davidson, J. Crew, Joan & David, Juliana, Kenzie, Land’s End, Limited, Mac & Jac, Madeleine, Michael Kors, Neiman Marcus, North Beach Leather, The Territory Ahead, Theory, Tori, US Polo Assn., Vivienne Tam, Weatherproof, Witchery and Yamaha, etc.

 

The subject also has had its own brand name Winall.

 

The subject has set up a leather processing factory in Jiangmen City, Guangdong Province, China.

 

The founder Mr. Simon Lo is experienced in the line of business.  Formerly he was a technician in San Wo Garment Factory, a large leather garment manufacturer.  He started his business in 1984.

 

Now, the overall business of the subject has been steady and active.

 

The subject’s jackets and garments were exhibited in fashion shows like Men’s Apparel Guild in California also known as MAGIC hold in Las Vegas, the United States, and Collections Premiere Dusseldorf Show [CPD] in Germany.

 

The annual sales turnover of the subject ranges from HK$320 to 350 million.  Making a profit every year.

On the whole, consider the subject good for normal business engagements.

 

 

REMARKS

 

Property information of the company:-

1.Property Location:      Workshop Units Nos. 1 & 2 (including Flat Roof) on 1/F., Hilder Centre, 2 Sung  Ping Street, Kowloon, Hong Kong.

Owner:                          Winall Industries Ltd.

Date of Purchase:         17-01-1989

Purchased Price:           HK$5,280,000

 

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

11-04-1995

-

Dao Heng Bank Ltd., Hong Kong.  [Merged into DBS Bank (Hong Kong) Ltd.]

Mortgage to secure general banking facilities

 

2.Property Location:      Flat B1 on 15/F. of Block B and Car Parking Space No. 76 on Basement, Kingsland Villa, 19 Man Fuk Road, Kowloon, Hong Kong.

Owner:                          Winall Industries Ltd.

Date of Purchase:          n.a.

Purchased Price:           n.a.

 

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

12-01-2007

-

DBS Bank (Hong Kong) Ltd., Hong Kong.

Mortgage to secure general banking facilities


MORTGAGE OR CHARGE

                                                             

Date

Particulars

Amount

01-04-1992

Instrument:      Deed of Charge on Deposits and Set-Off

Property:

Time Deposit Receipt No. 152497 for HK$2,150,000 dated 01-04-1992

Mortgagee:      Bank of Communications, Hong Kong Branch.  [Now known as Bank of Communications Co. Ltd.]

To secure banking facilities

11-05-1992

Instrument:      Deed of Charge on Deposits and Set-Off

Property:

Time Deposit Receipt No. 152665 for HK$500,000 dated 09-05-1992

Mortgagee:      Bank of Communications, Hong Kong Branch.  [Now known as Bank of Communications Co. Ltd.]

To secure banking facilities

11-04-1995

Instrument:      Mortgage

Property:

22/1,148th parts or shares of and in Section B of Kowloon Marine Lot No. 113 [Workshop Unit Nos. 1 & 2 (including Flat Roof) on 1/F. of Hilder Centre, 2 Sung Ping Street, Kowloon, Hong Kong.]

Mortgagee:      Dao Heng Bank Ltd., Hong Kong.  [Merged into DBS Bank (Hong Kong) Ltd.]

To secure all sums of money from time to time advanced by the Lender to the Company including general banking facilities

26-03-1998

Instrument:      Charge Over Cash Deposits

Property:

All right, title and interest of the Company
Account No.: 451-9647518620
Amount: HK$6,100,000

Mortgagee:      Dao Heng Bank Ltd., Hong Kong.  [Merged into DBS Bank (Hong Kong) Ltd.]

To secure general banking facilities

04-08-2000

Instrument:      Charge Over Deposits – CD 1 (89)

Property:

1)  By fixed Charge:  all the Company’s rights in respect of the following:

i)     Time deposit of HK$8,000,000

ii)    all other sums in any currency at any time standing to the credit of the Company or any other person for the Company’s benefit on any deposit account with the Bank, Standard Chartered Asia Ltd. or Standard Chartered Finance Ltd., including additions to or renewals or replacements of such sum, and all interest thereon;

2)  By assignment:  all Deposits held with Standard Chartered Asia Ltd. or Standard Chartered Finance Ltd.

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

To secure the payment or discharge of all moneys, obligations and liabilities, actual or contingent at any time due, owing or incurred by the Company to the Bank whether alone or jointly and whether as principal or as surety

15-04-2005

Instrument:      A Charge Over Securities – Section 1 (04)

Property:

1)   All the Company’s rights, title and interest in and to: (a) all, stocks, shares, bonds, debentures, certificates of deposit, promissory notes, units in any trust, units or other interests in any collective investment scheme and other securities; and (b) all securities

2)   All rights in relation to any Securities

3)   All dividends, interest or other distributions paid or to be paid on any of the Securities and the Rights and all allotments, accretions, offers, rights, benefits and advantages

Mortgagee:      Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

All moneys, obligations and liabilities, whether actual or contingent, at the date of the Charge or at any time thereafter due, owing or incurred by the Company to the Bank

11-07-2006

Instrument:      Assignment of DC Proceeds re export bills restricted to other banks for negotiation/payment

Property:

By way of assignment or agreement to assign in each case as beneficial owner.  All monies in any currency representing proceeds payable or to be paid to the Customer under the Documentary Credits, all the Customer’s right, title and interest in the said Documentary Credits and the benefit of all powers and remedies for enforcing the Documentary Credits

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

All loans or other advances made or to be made by the Bank to the Customer against documents submitted under a Documentary Credit, all monies and liabilities in any currency owing by the Customer to the Bank at any time, whether separately or jointly, actually or contingently, present or future, interest on all loans and advances and such monies and all expenses of the Bank in perfecting or enforcing the Assignment

11-07-2006

Instrument:      Security Over Deposits

Property:

A deposit with chargee in the amount of HK$11,500,000 under Deposit A/C No. 030-314470, whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any further monies in any deposit account with the chargee at any of its offices

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

Amount secured – (i) all monies in any currency owing by the Company to the chargee at any time, actually or contingently, in any capacity, alone or jointly with any other person; (ii) interest on such monies, to the date on which the chargee receives payment, at the rates payable by the Company or which would have been payable but for any circumstance which restricts payment and (iii) all expenses of the chargee in perfecting or enforcing the charge

28-01-2008

Instrument:      Charge on Cash Deposit to secure Liabilities of the Depositor

Property:

1)   By way of first fixed charge and agreement to charge: the Deposit and all right, title and interest of the Company

2)   By way of set-off: any sum standing to the credit of any one or more of the accounts of the Company

Mortgagee:      DBS Bank (Hong Kong) Ltd., Hong Kong.

All sums of money and liabilities

26-09-2010

Instrument:      Assignment of Life Insurance

Property:

(1)  All the Assignor’s claims under the Insurance:-

Insurance Policy No: 28002029

Name of Insurance Co.: HSBC Life (International) Ltd.

Name of the Insured: Mr. Lo Sai Man

Assignor / Policy Owner: Winall Industries Ltd.

(2)  All the Assignor’s claims against the issuer of the Policy

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

Secure Monies, all and any monies and liabilities

17-06-2011

Instrument:      Charge on Cash Deposit to secure Liabilities

Property:

1)   By way of first fixed charge and agreement to charge: the Deposit and all right, title and interest of the Company

2)   By way of set-off: any sum standing to the credit of any one or more of the accounts of the Company

Mortgagee:      DBS Bank (Hong Kong) Ltd., Hong Kong.

All sums of money and liabilities

28-11-2012

Instrument:      Charge on Cash Deposit and Structured Investment Deposit to secure Liabilities of the Depositor

Property:

1)   By way of first fixed charge and agreement to charge:

a)  The Structured Investment Deposit and all rights, title, interest and benefit of the Company

b)  The Deposit and all right, title and interest of the Company whatsoever, present & future, thereto and therein, together with any certificates of deposit or other instruments or securities evidencing, title, or otherwise relating, thereto and any account to which the same is credited; and

c)  if any time any other Structured Investment Deposit shall be deposited or transferred by the Company to the Bank

2)   By way of assignment:

To the extent not otherwise effectively charged Clause 3 of the Charge the company assigns absolutely, subject to a proviso for re-assignment on redemption

3)   By way of set-off:

Without limiting any general or banker’s lien, right of set-off or other right to which the Bank may be entitled, the Bank may at any time and from time to time, whether or not any liabilities shall have become due and payable

Mortgagee:      DBS Bank (Hong Kong) Ltd., Hong Kong.

All present and future obligations and liabilities

28-11-2012

Instrument:      Assignment of Insurance Policy

Property:

In consideration of the Assignee making and continuing to make available credit facilities or accommodation to the Assignor pursuant to the Transaction Documents and as a continuing security for the due and punctual payment and discharge of the Secured Obligations and for the due and punctual observance and performance by the Assignor of its obligations under the Transaction Documents, the Assignor as beneficial owner, assigns and agrees to assign absolutely to the Assignee by way of first legal assignment free from all Encumbrances all the Assignor’s right, title & interest in and to, and all benefits accrued and to accrue to the Assignor under, the Policy and the Proceeds, whether in existence now or after the date of the Assignment, to the fullest extent permitted by law.

Name of the Life Insured:  Lo Sai Man

Policy No: 019003769

Mortgagee:      DBS Bank (Hong Kong) Ltd., Hong Kong.

The payment and discharge in full of the Secured Obligations in accordance with the terms subject to which the Secured Obligations were incurred

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.77

UK Pound

1

Rs.83.31

Euro

1

Rs.70.46

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.