MIRA INFORM REPORT

 

 

Report Date :

18.11.2013

 

IDENTIFICATION DETAILS

 

Name :

SON-TECH TEXTILE MACHINERY (HK) LTD.

 

 

Registered Office :

c/o Hong Kong Consultant Co.

Room 1905, 19/F., Nan Fung Centre, 264-298 Castle Peak Road, Tsuen Wan, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

10.12.2005

 

 

Com. Reg. No.:

36280715

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

The subject is trading in all kinds of textile machinery and equipment. 

 

 

No. of Employees :

No employees in Hong Kong

 

[It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.]

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No employees in Hong Kong

 

 

Payment Behaviour :

Unknown

 

 

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

 

SON-TECH TEXTILE MACHINERY (HK) LTD.

 

 

ADDRESS

 

Registered Office:-

c/o Hong Kong Consultant Co.

Room 1905, 19/F., Nan Fung Centre, 264-298 Castle Peak Road, Tsuen Wan, New Territories, Hong Kong.

[Tel: 852-6325 1859,   Fax: 852-2783 1690]

 

Associated Companies:-

Foshan Vtech Valve Technology Co. Ltd., China.

J & H Dyeing Control Engineering Co. Ltd., China.

Son-Tech Precision Machinery Co. Ltd., China.

Texpro & Stentex Machinery Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

36280715

 

 

DATE OF INCORPORATION 

 

10th December, 2005.

 

 

CAPITAL

 

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

 

Issued Share Capital:     HK$10,000.00

 

 

SHAREHOLDER  

 

(As per registry dated 10-12-2012)

Name

 

No. of shares

ZHENG Yongzhong

 

10,000

=====

 

 

DIRECTOR

 

(As per registry dated 10-12-2012)

Name

(Nationality)

 

Address

ZHENG Yongzhong

Room 2207, No. 61 Linhe Road East, Qiaolin Tianhe District, Guangzhou, Guangdong, China.

 

 

SECRETARY

 

(As per registry dated 10-12-2012)

Name

Address

Co. No.

Conson Secretarial Ltd.

Room 703, 7/F., Kowloon Building, 555 Nathan Road, Kowloon, Hong Kong.

0726935

 

 

GENERAL

 

Son-Tech Textile Machinery (HK) Ltd. was incorporated on 10th December, 2005 as a Private Limited Liability Company under the Hong Kong Companies Ordinance.

 

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at “Room 1905, 19/F., Nan Fung Centre, 264-298 Castle Peak Road, Tsuen Wan, New Territories, Hong Kong” which is handling its correspondences and documents.

 

The subject has no employees in Hong Kong.

 

According to the Companies Registry of Hong Kong, the subject has issued 10,000 ordinary shares of HK$1.00 each which are wholly-owned by Mr. Zheng Yongzhong who is a China merchant.  He is a China ID holder and does not have the right to reside in Hong Kong permanently.  He is also the only director of the subject.

 

The subject is trading in all kinds of textile machinery and equipment.  Its main associated company Son-Tech Precision Machinery Co. Ltd. [STPM] is a China-based firm.

 

The managing director of the subject Mr. Zheng Yongzhong is also the director of STPM.

 

STPM was founded in 1997 and is located in Huabao South Road, Foshan National High Technology Development District, Foshan City, Guangdong Province, China.  It is a professional manufacturer engaged in developing, producing and selling dyeing machines.  All the products bear the brand name of Son-tech.

STPM’s annual production capacity of dyeing machines is about 500 sets.  STPM’s site covers an area of 80,000 sq.m.  It has nearly 500 employees in China and its sales network spreads all over the world.

 

In 2008, STPM got the British UKAS ISO90001:2008 international quality management system certification.

 

STPM has provided products and service for more than 100 large textile enterprises both in China and abroad.  It has set up service centres and professional technical teams in Africa, Europe and Southeast Asian Countries like Bangladesh, India, Pakistan and Thailand.

 

STPM has developed good reputation in many provinces of China such as Guangdong, Shandong, Jiangsu, Zhejiang, Fujian, and Hong Kong and some of the foreign countries.

 

The subject is trading in STPM’s products.

The subject has had the following two main associates:

Texpro & Stentex Machinery Co., Ltd. [Texpro & Stentex]

 

Texpro & Stentex is a Sino-foreign joint venture.  It was set up in 2010 and its total investment was RMB100 million Yuan.  The foreign party is a Germany company – Krantz GmbH.  Locating in Datang Garden, Central Technical Industrial Zone, Sanshui District, Foshan City, Guangdong Province, China, the factory of Texpro & Stentex covers an area of 60,000 sq.m. and is planned to have more than 1,000 employees.  With the introduction of Germany TEXPRO’s knitting and finishing equipment, Texpro & Stentex mainly is engaged in manufacturing and developing of stenter, tensionless dryer and the other machines for textile industry.

 

Vtech Valve Technology Co., Ltd. [Vtech Valve]

Vtech Valve mainly is engaged in introducing Italian technology and brands, acting as agent of “VTECH” automatic control valves, researching and developing stainless steel pneumatic valves, electric valves and the precision manufacturing of entire silicon sol.  Its annual production capacity is 1,500 tons of precision casting parts of all kinds.

 

Currently, the subject has had the following customers:

  • Epyllion Group, Bangladesh;
  • Fariha Knit Tex Ltd., Bangladesh;
  • Highnoon Textiles Limited, Pakistan;
  • Kam Wing International Textile Co. Ltd., Hong Kong;
  • Lafayette Group, Colombia;
  • Life Textiles(Pvt)Limited, Bangladesh;
  • M/S SRI Thirumagal Process Ltd., India;
  • Powernet Industries SDN BHD, Malaysia;
  • Rung Sup Dyeing Co., Ltd., Thailand;
  • Samprahomchai Ltd., Thailand;
  • The Immaculate (Pvt) Ltd., Bangladesh; &
  • Yasin Knittex Industries Ltd., Bangladesh.

The subject’s business in Hong Kong is not active.  History in Hong Kong is about eight years.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

 

 

NOTE:

 

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.06

UK Pound

1

Rs.101.15

Euro

1

Rs.84.95

 

 

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%)

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