MIRA INFORM REPORT

 

 

Report Date :

08.11.2013

 

IDENTIFICATION DETAILS

 

Name :

LI YUEN (CHINA) INVESTMENT LTD.

 

 

Registered Office :

8/F., Hop Ying Commercial Centre, 755 Nathan Road, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

12.05.1992

 

 

Com. Reg. No.:

15644548

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer, Importer and Exporter of Footwear, clothing and chemicals such as adhesive and glue.

 

 

No. of Employees :

8.

 

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

 

LI YUEN (CHINA) INVESTMENT LTD.

 

 

ADDRESS

 

8/F., Hop Ying Commercial Centre, 755 Nathan Road, Kowloon, Hong Kong.

 

PHONE:            852-2393 7868,  852-2393 7898

 

FAX:                 852-2397 7871

 

E-MAIL:            lyc@ismart.net

admin@liyuen.com

 

 

MANAGEMENT

 

Managing Director:         Mr. Li Biu Ling

 

 

SUMMARY

 

Incorporated on:             12th May, 1992.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$6,000,000.00

Issued:                          HK$6,000,000.00

 

Business Category:        Manufacturer, Importer and Exporter.

 

Annual Turnover:            HK$180~200 million.

 

Employees:                   8.  (Hong Kong)

 

Main Dealing Banker:     The Bank of East Asia Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


Company name

 

LI YUEN (CHINA) INVESTMENT LTD.

 

 

ADDRESS

 

Registered Head Office:-

8/F., Hop Ying Commercial Centre, 755 Nathan Road, Kowloon, Hong Kong.

 

Representative Offices:-

Shenzhen
Li Yuen (China) Investment Ltd.
902, Zhuoyue Building, 98 Fuhua 1st Road, Futian Zone, Shenzhen, China.
Tel:       86-755-8287 9026
Fax:      86-755-8287 9032

UK
Unit 4, Caleb Close, Dunstable Road, Luton, LU4 8DR, UK.
Tel:       44-158-259 3387
Fax:      44-158-259 7587
E-mail:  antexuk@liyuen.com

 

China Factories:-

Zhongshan Yadai Shoes Industry Co. Ltd.
Yongtang Industrial Dadao, Xiaolan Town, Zhongshan City, Guangdong Province, China.
Tel:       86-760-2262072
Fax:      86-760-2275332

Minan Industrial Zone, Nantou, Zhongshan, Guangdong Province, China.
Tel:       2311 4536, 2312 2518
Fax:      2311 4537, 2313 9966
E-mail:  admin@antex-emulsion.com

etc.

 

Associated Companies:-

Li Yuen Group of Companies

Antex Chemicals (Zhongshan) Ltd., China.

Antex Industrial (Europe) Ltd., Hong Kong.

Antex Industrial (Europe) Ltd., UK.

Li Yuen (China) Investment Ltd. Shenzhen Representative Office, China.

Li Yuen Industrial (Holdings) Ltd., Hong Kong.

Li Yuen Trading Co., Hong Kong.

Shenzhen Li Yuen Shoe Design Studio, China.

Zhongshan Li Wah Protective Products Co. Ltd., China.

Zhongshan Man Box Shoe Manufacturing Co. Ltd., China.

Zhongshan Yadai Clothing Factory Co. Ltd., China.

Zhongshan Yadai Shoes Industry Co. Ltd., China.

etc.

 

BUSINESS REGISTRATION NUMBER 

 

15644548

 

 

COMPANY FILE NUMBER

 

0357086

 

 

MANAGEMENT

 

Managing Director:  Mr. Li Biu Ling

 

 

CAPITAL

 

Nominal Share Capital: HK$6,000,000.00 (Divided into 6,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$6,000,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 12-05-2013)

Name

 

No. of shares

CHAN Hung Wai

 

350,000

LAU Hung Mui

 

1,575,000

LAU King Chuen

 

350,000

LI Biu Ling

 

1,575,000

LUK Kin Shing

 

1,150,000

LI Yat Ming

 

1,000,000

 

 

––––––––

 

Total:

6,000,000

=======

 

DIRECTORS

 

            (As per registry dated 12-05-2013)

Name

(Nationality)

 

Address

CHAN Hung Wai

Flat 4B, Block 1, Kwong Fung Terrace, 163 Third Street, Hong Kong.

 

LAU Hung Mui

Flat 2, 36/F., Block H, 6 Broadwood Road, Hong Kong.

 

LAU King Chuen

Room 1403, 14/F., Block D, Fanling Centre, Fanling, New Territories, Hong Kong.

 

LI Biu Ling

Flat B, 3/F., Village Garden, 21 Fa Po Street, Kowloon, Hong Kong.

 

LI Yat Ming

Flat B, 3/F., Village Garden, 21 Fa Po Street, Kowloon, Hong Kong.

 

LUK Kin Shing

Flat 4B, Block 1, Kwong Fung Terrace, 163 Third Street, Hong Kong.

 

 

SECRETARY 

 

(As per registry dated 12-05-2013)

Name

(Nationality)

 

Address

TSE Kin Sang

Flat 8, 9/F., Tsui Ming House, Chung Ming Court, Tseung Kwan O, New Territories, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 12th May, 1992 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:                           Footwear, clothing and chemicals such as adhesive and glue.

 

Brand Names:               “ADOR”, “WALKLANDER” and “ARMOUR”.

 

Employees:                     8.  (Hong Kong)

1,000.  (China)

 

Commodities/Materials Imported:-

Raw materials – Europe, India, etc.

Finished products – Guangdong, China.

 

Markets:                       Europe, USA, Australia, Middle East, China, etc.

 

Annual Turnover:            HK$180~200 million.

 

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

 

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

 

 

MEMBERSHIP

 

Federation of Hong Kong Industries, Hong Kong.  [Member No. A6879]

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$6,000,000.00 (Divided into 6,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$6,000,000.00

 

Mortgage or Charge:        (See attachment)

 

Profit or Loss:                Made profits in the past years.

 

Condition:                      Keeping in an active state.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

The Bank of East Asia Ltd., Hong Kong.

Nanyang Commercial Bank Ltd., Hong Kong.

Citibank N.A., Hong Kong Branch.

UPS Capital Global Trade Finance (HK) Ltd., Hong Kong.

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

 

Standing:  Good.

 

 

GENERAL

 

Incorporated in May 1992, Li Yuen (China) Investment Ltd. is a private limited company jointly owned by six Hong Kong merchants.  The new coming shareholder is Mr. Li Yat Ming.

The subject is a member of the Li Yuen Group which was set up in 1982.  It is trading in the Group’s products.

Besides the subject, Li Yuen Group has had a number of subsidiaries and associated companies in Hong Kong, China and the United Kingdom.  The Group is engaged in the following three business scopes:-

Footwear (leather and casual footwear, protective shoes & boots, safety shoes, PVC and plastic) manufacturing and trading

Chemicals (chemicals for paint, adhesive and textiles) trading

Garments (knitted garments) manufacturing and trading

Li Yuen Group has set up a shoe designing studio in Shenzhen Special Economic Zone, China known as Shenzhen Li Yuen Shoe Design Studio.  The operating office of the studio is also the Shenzhen Representative Office of the subject.

The subject exports its products to Eastern and Western Europe, the Middle East, Scandinavia, Southeast Asia and North America, etc.

Li Yuen Group also has set up five manufacturing facilities in China.  The main one is Zhongshan Yadai Shoes Industry Co. Ltd. which is in Xiaolan Town, Zhongshan City, Guangdong Province, China.  The contact person is Mr. Fung Shiu Kuen.  The other plants are the followings:-

·         Antex Chemicals (Zhongshan) Ltd. [Antex Chemicals]

·         Zhongshan Li Wah Protective Products Co. Ltd.

·         Zhongshan Man Box Shoe Manufacturing Co. Ltd.

·         Zhongshan Yadai Clothing Factory Co. Ltd.

The Group has diversified business into chemical polyurethane products, ANTEX CHERMICAL has been developed, along with inventions and industrial patents, a manufacturing technology capable of serving high quality PU products.  In 2007 the Group expanded into a larger 50,000 sq meters factory, employing 1,000 staff and investing in new manufacturing machinery and put into place a factory manager to run the ever-growing logistics operation.

The Group’s range of products includes casual/sport shoes, classic shoes, safety shoes (CE standard en-345), hi-visibility clothing (CE standard en‑471), work clothing and special polymer emulsion from its strategic partner Antex Chemicals.  Significant trade marks are “Ador”, “Walklander” and “Armour”.  The first brand has been registered in Hong Kong.

Li Yuen Group is distributing all over the world with OEM and ODM footwear products, and can be projected for any kind of applications: PU / PU injection, PU / TPU injection, PU / Rubber injection, cemented construction, and good-year welted construction.  Footwear produced through Li Yuen is approved to meet the CEN European Standards, for personal protective equipment (directive 89/686/EEC) and meets the new requirements according to the European harmonized standards ENISO 20345.

The Group’s European representative office and warehouse are based in Northampton, the United Kingdom.

The subject’s Textiles Controls Registration [TCR] Number in Hong Kong was 40893, but now it does not have any quotas allocated due to the textile quota system has been abolished.

The subject is one of the participants of Safety Equipment Institute [SEI].  SEI offers participants with certification programs to test and certify safety equipment products.

Now, the annual sales turnover of the Group ranges from HK$180 to 200 million.  Making a small profit every year.

The subject operates from a rented office.  It is administered by the shareholders.  History in Hong Kong is over 21 years and five months.

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

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

20-05-2005

Instrument:        Deposit Deed

Property:

By way of a first fixed charge and as a continuing security for the Obligations, the Company charges all the Company’s rights, title to and interest in all the Company’s accounts

Mortgagee:        Citibank N.A., Hong Kong Branch.

All moneys now or at any time in the future owing by the Company to the Bank under any banking, derivative, foreign exchange, trade, margin, guarantee or other facility or facilities or any account and all other liabilities

26-07-2005

Instrument:        Assignment of DC Proceeds

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

23-12-2005

Instrument:        Deed of Charge on Cash Deposit

Property:

A cash deposit of HK$1,000,000 under Account No. 515-30-16919-4 Deposit No. 0001

Mortgagee:        The Bank of East Asia Ltd., Hong Kong.

To secure credit facilities or financial accommodation

03-05-2011

Instrument:        Charge Over Deposit

Property:

The Depositor charges the Deposit with full title guarantee and by way of first fixed charge, in favour ANZ as continuing security for the due and punctual payment of all moneys and performance of all other obligations that the Depositor and/or Borrower, in any capacity and whether alone or with any other person, is or at any time becomes actually or contingently liable to pay or perform to, for or on account of ANZ in any manner or on any account whatsoever prusuant to or in connection with the Secured Failities.

Deposit Account No.: 410423 assigned by ANZ

Mortgagee:        Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

All obligations


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.57

UK Pound

1

Rs.100.62

Euro

1

Rs.84.62

 

 

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%)

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.