MIRA INFORM REPORT

 

 

Report Date :

04.10.2013

 

IDENTIFICATION DETAILS

 

Name :

DOLLAR GENERAL GLOBAL SOURCING LTD.

 

 

Registered Office :

Unit 1101-1106, Portion of Unit 1107 & 1109, 11/F., One Kowloon, 1‑11 Wang Yuen Street, Kowloon Bay, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

19.02.2003

 

 

Com. Reg. No.:

33429356

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of Gift, premiums, utensils, kitchenware, tableware, toys, hardware, sundry products

 

 

No. of Employees :

100.

 

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 :

Good

 

 

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

 

DOLLAR GENERAL GLOBAL SOURCING LTD.

 

 

ADDRESS

 

Unit 1101-1106, Portion of Unit 1107 & 1109, 11/F., One Kowloon, 1‑11 Wang Yuen Street, Kowloon Bay, Kowloon, Hong Kong.

 

PHONE:            852-2121 5757

 

FAX:                 852-2722 1370

 

E-MAIL:            ing@dollargeneral.com

 

 

MANAGEMENT

 

General Manager:          Mr. West Roderick Jay

 

 

SUMMARY

 

Incorporated on:            19th February, 2003.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000.00

Issued:                         HK$1,000.00

 

Business Category:       Importer, Exporter and Wholesaler.

 

Net Sales of Group:      US$16,022.1 million.  (Year ended 01-02-2013)

 

Employees:                  100.

 

Main Dealing Banker:     Bank of America N.A., Hong Kong Branch.

 

Banking Relation:          Good.


Company name

 

DOLLAR GENERAL GLOBAL SOURCING LTD.

 

 

ADDRESS

 

Registered Head Office:-

Unit 1101-1106, Portion of Unit 1107 & 1109, 11/F., One Kowloon, 1‑11 Wang Yuen Street, Kowloon Bay, Kowloon, Hong Kong.

 

Holding Company:-

Dollar General Corporation, US.

 

Subsidiaries/Associated/Affiliated Companies:-

Ashley River Insurance Co. Inc., U.S.A.

DC Financial LLC, U.S.A.

DG eCommerce LLC, U.S.A.

DG Logistics LLC, U.S.A.

DG Louisiana LLC, U.S.A.

DG Promotions Inc., U.S.A.

DG Retail LLC, U.S.A.

DG Strategic I LLC, U.S.A.

DG Strategic II LLC, U.S.A.

DG Strategic VI LLC, U.S.A.

DG Strategic VII LLC, U.S.A.

DG Strategic VIII LLC, U.S.A.

DG Transportation Inc., U.S.A.

Dolgen California LLC, U.S.A.

Dolgen I Inc., U.S.A.

Dolgen II Inc., U.S.A.

Dolgen III Inc., U.S.A.

Dolgen Midwest LLC, U.S.A.

Dolgencorp LLC, U.S.A.

Dolgencorp of New York Inc., U.S.A.

Dolgencorp of Texas Inc., U.S.A.

Dollar General Literacy Foundation, U.S.A.

Dollar General Partners, U.S.A.

Retail Property Investments LLC, U.S.A.

Retail Risk Solutions LLC, U.S.A.

South Boston FF&E LLC, U.S.A.

South Boston Holdings Inc., U.S.A.

Sun-Dollar L.P., U.S.A.

 

 

BUSINESS REGISTRATION NUMBER

 

33429356

 

 

COMPANY FILE NUMBER

 

0833893

 

 

MANAGEMENT

 

General Manager:  Mr. West Roderick Jay

Contact Person:  Ms. Isabella Ng

 

 

CAPITAL

 

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

 

Issued Share Capital:     HK$1,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 19-02-2013)

Name

 

No. of shares

Dollar General Corporation

100 Mission Ridge, Goodlettsville, Tennessee 37072, U.S.A.

 

999

DGC Holdings, LLC

100 Mission Ridge, Goodlettsville, Tennessee 37072, U.S.A.

 

1

 

 

––––

 

Total:

1000

====

 

 

DIRECTORS  

 

(As per registry dated 19-02-2013)

Name

(Nationality)

 

Address

Robert Ragan STEPHENSON

508 Almadale Court, Brentwood, Tennessee U.S.A. 37027.

 

James Edward KOPP JR

3210 West End Circle, #103 Nashville, TN 37203, U.S.A.

 

 

SECRETARY 

 

(As per registry dated 19-02-2013)

Name

Address

Co. No.

RD Secretaries (1990) Ltd.

Unit 5705, 57/F., The Centre, 99 Queen’s Road, Central, Hong Kong.

0293530

 

 

HISTORY

 

The subject was incorporated on 19th February, 2003 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:                      Importer, Exporter and Wholesaler.

 

Lines:                           Gift, premiums, utensils, kitchenware, tableware, toys, hardware, sundry products.

 

Employees:                  100.

 

Commodities Imported: China, other Asian countries, etc.

 

Markets:                        United States, etc.

 

Group Net Sales:           US$10,457.7 million  (Year ended 30-01-2009)

US$11,796.4 million  (Year ended 29-01-2010)

US$13,035.0 million  (Year ended 28-01-2011)

US$14,807.2 million  (Year ended 03-02-2012)

US$16,022.1 million  (Year ended 01-02-2013)

 

Terms/Sales:                  As per contracted.

 

Terms/Buying:                Various terms.

 

 

FINANCIAL INFORMATION

 

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

 

Issued Share Capital:     HK$1,000.00

 

Group Net Income:        US$108.2 million  (Year ended 30-01-2009)

US$339.4 million  (Year ended 29-01-2010)

US$627.9 million  (Year ended 28-01-2011)

US$766.7 million  (Year ended 03-02-2012)

US$952.7 million  (Year ended 01-02-2013)

 

Profit or Loss:               Making a small profit every year.

 

Condition:                     Keeping in a satisfactory manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                       Met trade commitments as required.

 

Commercial Morality:      Satisfactory.

 

Banker:                         Bank of America N.A., Hong Kong Branch.

 

Standing:                      Good.

 

 

GENERAL

 

Dollar General Global Sourcing Ltd. is a wholly-owned subsidiary of Dollar General Corporation [DGC] which is a US-based firm.

 

The subject is the buying office of DGC which is a listed firm in the United States.

 

DGC is a US chain of variety stores headquartered in Goodlettsville, Tennessee.  As of January 2012, Dollar General operated over 10,000 stores in 40 US states.

 

DGC stores tend to locate in smaller communities than those where Walmart would go.  The company acquired the 280 stores of the P.N. Hirsh Division of Interco, Inc. (now Furniture Brands International, Inc.) in 1983, and in 1985 added 206 stores and a warehouse from Eagle Family Discount Stores, also from Interco, Inc.  In recent years, the chain has started constructing more stand-alone stores, typically in areas not served by another general-merchandise retailer.

 

DGC offers both name brand and generic merchandise — including off-brand goods and closeouts of name-brand items — in the same store, often on the same shelf.  Although it has the word “dollar” in the name, DGC is not a dollar store.  Most of its products are priced at more than $1.00.  However, goods are usually sold at set price points of penny items and up to the range of 50 to 60 dollars, not counting phone cards and loadable store gift cards.

 

DGC often serves communities that are too small for Wal-Marts.  It competes in the dollar store format with national chains Family Dollar and Dollar Tree, regional chains such as Fred’s in the southeast, and numerous independently owned stores.

Since the turn of the century, DGC has experimented with stores that carry a greater selection of grocery items.  These stores, (similar to the Wal-Mart Supercenter, but much smaller), operate under the name “Dollar General Market”.

 

DGC has been listed on New York Stock Exchange of the United States.

 

J.L. Turner founded DGC in 1939 as J.L. Turner and Son, Wholesale.  It was incorporated as a Kentucky corporation under the name J.L. Turner & Son, Inc. in 1955, when it opened its first Dollar General store.  It changed its name to Dollar General Corporation in 1968 and reincorporated in 1998 as a Tennessee corporation.  Its common stock was publicly traded from 1968 until July 2007, when it merged with an entity controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P., or KKR.  In November 2009 its common stock again became publicly traded.

 

After slowing its growth rate in 2007 and 2008 to focus on significantly improving the sales and profitability of our stores, DGC accelerated its expansion in 2009 and have grown its retail square footage by approximately 7% annually since that time.  In 2012, it made its initial entrance into California and Massachusetts, and in 2011 it entered Connecticut, New Hampshire and Nevada, its first new states since 2006.  In 2013, it plans to again increase its square footage by approximately 7% as it further expand in its core markets.

 

DGC offers a focused assortment of everyday necessities.  Its product assortment provides the opportunity for its customers to address most of their basic shopping needs with one trip.  It sells national brands from leading manufacturers such as Procter & Gamble, PepsiCo, Coca-Cola, Nestle, General Mills, Unilever, Kimberly Clark, Kellogg’s and Nabisco.

 

Consumables is its largest category and includes paper and cleaning products (such as paper towels, bath tissue, paper dinnerware, trash and storage bags, laundry and other home cleaning supplies); packaged food (such as cereals, canned soups and vegetables, condiments, spices, sugar and flour); perishables (such as milk, eggs, bread, frozen meals, beer and wine); snacks (including candy, cookies, crackers, salty snacks and carbonated beverages); health and beauty (including over-the-counter medicines and personal care products, such as soap, body wash, shampoo, dental hygiene and foot care products); and pet (including pet supplies and pet food).

 

Seasonal products include decorations, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive and home office supplies.

 

Home products includes kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, bed and bath soft goods.

 

Apparel includes casual everyday apparel for infants, toddlers, girls, boys, women and men, as well as socks, underwear, disposable diapers, shoes and accessories.

 

Its seasonal and home products categories typically account for the highest gross profit margins, and the consumables category typically accounts for the lowest gross profit margin.

 

The typical DGC store has, on average, approximately 7,300 square feet of selling space and is typically operated by a store manager, an assistant store manager and three or more sales clerks.  Approximately 63% of its stores are in freestanding buildings and 37% are in strip shopping centres.

 

DGC owns marks that are registered with the United States Patent and Trademark Office and are protected under applicable intellectual property laws, including without limitation the trademarks Dollar General®, Dollar General Market®, Clover Valley®, DG®, Smart & Simple®, trueliving®, Sweet Smiles®, Open Trails®, Bobbie Brooks® Comfort Baytm, and Holiday Style®, along with variations and formatives of these trademarks as well as certain other trademarks.

 

For the year ended 1st February, 2013, the net sales of DGC amounted to US$16,022.1 million (previous year: US$14,807.2 million); net income for the year was US$952.7 million (previous year: US$766.7 million).

As of March 1, 2013, DGC employed approximately 90,500 full-time and part-time employees, including divisional and regional managers, district managers, store managers, other store personnel and distribution centre and administrative personnel.

 

The subject is fully supported by DGC.  History in Hong Kong is over ten years and seven months.

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.93

UK Pound

1

Rs.100.44

Euro

1

Rs.84.23

 

 

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.