MIRA INFORM REPORT

 

 

Report Date :

12.09.2013

 

IDENTIFICATION DETAILS

 

Name :

CHINA RESOURCES TEXTILES CO. LTD.

 

 

Registered Office :

44/F., China Resources Building, 26 Harbour Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

04.07.1979

 

 

Com. Reg. No.:

06159976

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter, Distributor and Re-exporter of Cotton yarn and cloth; polyester/cotton yarn and cloth; spun rayon yarn and cloth; flax blended yarn and cloth; ramie and ramie blended yarn and cloth; acrylic; pure polyester and other chemical fibre blended yarn and cloth; various kinds of pure wool, wool chemical fibre blended piece goods; cotton made-up goods such as towels, napkins, handkerchief, blankets and other bed-clothing; woollen blankets; cotton, woollen, chemical fibre knitwear for men, ladies and children; various cotton, woollen, chemical fibre and other woven clothing for men, ladies and children.

 

 

No. of Employees :

50.  (Excluding associates)

 

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 :

Regular

 

 

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

 

CHINA RESOURCES TEXTILES CO. LTD.

 

 

ADDRESS

 

44/F., China Resources Building, 26 Harbour Road, Wanchai, Hong Kong.

 

(Formerly located at:

39/F., China Resources Building, 26 Harbour Road, Wanchai, Hong Kong.)

 

 

PHONE:            852-2593 8383,  2593 8111

 

FAX:                 852-2827 5337,  2827 4211

 

E-MAIL:            admin@crctex.com

info@crlintex.com

 

 

MANAGEMENT

 

Managing Director:         Mr. Zhou Bo

 

 

SUMMARY

 

Incorporated on:             4th July, 1979.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$5,000,000.00

            Issued:              HK$5,000,000.00

 

Business Category:        Textiles trading and investment holding.

 

Annual Sales Turnover:  HK$6.5-7.0 billion.

 

Employees:                   50.  (Excluding associates)

 

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

 

Banking Relation:           Very Good.


Company name

 

CHINA RESOURCES TEXTILES CO. LTD.

 

 

ADDRESS

 

Registered Office:-

44/F., China Resources Building, 26 Harbour Road, Wanchai, Hong Kong.

 

Shenzhen Office:-

10/F., China Resources Building, No. 5001 Shennan Dong Road, Shenzhen Special Economic Zone, China.

[Tel.: 86-0755-8269 1999-3380

Fax: 86-0755-8269 1899 ]

 

Immediate Holding Company:-

China Resources Textiles (Holdings) Co. Ltd., Hong Kong.  (Same address)

 

Penultimate Holding Company:-

China Resources (Holdings) Co. Ltd., Hong Kong.

 

Ultimate Holding Company:-

China Resources National Corporation

5/F., China Resources Building, 16 Dong Hua Men Street, Beijing, China.

 

Associated Companies:-

Alex & Stephen Ltd., Hong Kong.

Beijing Jing Hua Textiles Co. Ltd., China.

Callany Ltd., Hong Kong.

China Hua Yuan Co. Ltd., Hong Kong.

China Resources (Shenyang) Sanyo Compressor Co. Ltd., China.

China Resources C’estbon Beverage (Holdings) Co. Ltd., Hong Kong.

China Resources Capital Holdings Co. Ltd., Hong Kong.

China Resources Cement Holdings Ltd., Cayman Island/Hong Kong.

China Resources Chemicals Co. Ltd., Hong Kong.

China Resources Chenucaks Holdings Ltd., Hong Kong.

China Resources Construction (Holdings) Ltd., Hong Kong.

China Resources Gas Group Ltd., Bermude/Hong Kong.

China Resources Land Ltd., Cayman Island/Hong Kong.

China Resources Logistics (Pak Sik Enterprises) Ltd., Hong Kong.

China Resources Logistics (Shatin Cold Storage) Ltd., Hong Kong.

China Resources Logistics (Yuen Fat Wharf & Godown) Ltd., Hong Kong.

China Resources Microelectronics Ltd., Cayman Island/Hong Kong.

China Resources Ng Fung Hong Ltd., Hong Kong.

China Resources Pharmacentical Group Ltd., Hong Kong.

China Resources Power Holdings Co. Ltd., Hong Kong.

China Resources Textile Materials Co. Ltd., Hong Kong.

China Resources Vanguard (Hong Kong) Co. Ltd., Hong Kong.

China Resources Vanguard Co. Ltd., China.

China Resources Yantai Nylon Co. Ltd., China.

Chinese Arts & Crafts (H.K.) Ltd., Hong Kong.

Chung Fu Hong Ltd., Hong Kong.

Chung Kong Luen Livestock Co. Ltd., Hong Kong.

CRE (Nominees) Ltd., Hong Kong.

CRE Finance (Hong Kong) Ltd., Hong Kong.

CRE Properties (Hong Kong) Ltd., Hong Kong.

CRE Property (Argyle Centre) Ltd., Hong Kong.

CRE Property (Nan Fung Centre) Ltd., Hong Kong.

CRE Property (Silvercord) Ltd., Hong Kong.

Guang Yuan Textile Co. Ltd., Hong Kong.

Hsin Hung Textiles Ltd., Hong Kong.

Multi - Sources Development Ltd., Hong Kong.

Ng Fung Frozen Meats & Aquatic Products Co. Ltd., Hong Kong.

Ng Fung Slaughterhouse (Hong Kong) Co. Ltd., Hong Kong.

Perfect Youth Co. Ltd., Hong Kong.  [Dissolved]

Rich Resources Co. Ltd., Hong Kong.

Ting Key Investment Ltd., Hong Kong.

Worldfaith Properties Ltd., Hong Kong.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

06159976

 

 

COMPANY FILE NUMBER

 

0071036

 

 

MANAGEMENT

 

Managing Director:  Mr. Zhou Bo

Director & General Manager:  Mr. Xiang Ming

Contact Person:  Ms. Wu

 

 

CAPITAL

 

Nominal Share Capital:   HK$5,000,000.00 (Divided into 5,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$5,000,000.00

 

 

SHAREHOLDER  

 

(As per registry dated 04-07-2013)

Name

 

No. of shares

China Resources Textiles (Holdings) Co. Ltd., Hong Kong.

 

5,000,000

=======

 

 

DIRECTORS  

 

(As per registry dated 04-07-2013)

Name

(Nationality)

 

Address

XIANG Ming

Room 821, 10 Main Road, Zhifu District, Yantai, Shandong, China.

 

ZHOU Bo

Flat C, 60/F., Tower 6, The Palazzo, 28 Lok King Street, Fo Tan, New Territories, Hong Kong.

 

DI Hui

            (Chinese)

Room A, 11/F., Ming Yuen Mansion (Stage 3), 18 Peacock Road, North Point, Hong Kong.

 

 

SECRETARY 

 

(As per registry dated 04-07-2013)

Name

Address

Ankana LIVASIRI

Flat 1204, 12/F., Block B, Villa Lotto, 18 Broadwood Road, Happy Vallely, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 4th July, 1979 as a private limited liability company under the Hong Kong Companies Ordinance.

It was originally registered under the name of Boutsrema Trading Ltd., name changed to the present style on 4th January, 1980.

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter, Distributor and Re-exporter.

 

Lines:                           Cotton yarn and cloth; polyester/cotton yarn and cloth; spun rayon yarn and cloth; flax blended yarn and cloth; ramie and ramie blended yarn and cloth; acrylic; pure polyester and other chemical fibre blended yarn and cloth; various kinds of pure wool, wool chemical fibre blended piece goods; cotton made-up goods such as towels, napkins, handkerchief, blankets and other bed-clothing; woollen blankets; cotton, woollen, chemical fibre knitwear for men, ladies and children; various cotton, woollen, chemical fibre and other woven clothing for men, ladies and children.

 

Employees:                   50.  (Excluding associates)

 

Commodities Imported:-

Fabrics – China.

Textile fabrics – China, USA, Australia, Japan and South Korea.

Yarn – China.

Knitted and woven clothing – China.

 

Markets:                       Hong Kong, Japan, Korea, Thailand, etc.

 

Terms/Sales:                 Various terms.

 

Terms/Buying:               As per contracted.

 

 

GOVERNMENT CONTRACTS AWARDED SINCE 1998

 

Date

GN No.

Particulars

Amount

31-07-1998

GN3754

Supply of khaki/green blended twill

HK$2,795,000

31-07-1998

GN3754

Supply of towelling white

HK$1,881,000

31-07-1998

GN3754

Supply of drill cotton, heavy weight

HK$1,003,400

30-10-1998

GN5305

Supply of 100% wool worsted barathea, navy blue to Government Supplies Dept.

HK$19,200,000

29-01-1999

GN528

Supply of unbleached cotton calico

HK$4,620,000

26-02-1999

GN998

Supply of dyed sheeting, cotton

HK$1,634,800

25-06-1999

GN3588

Supply of cotton drills

HK$619,500

29-10-1999

GN6691

Supply of towelling white

HK$2,050,000

26-11-1999

GN7301

Supply of 100% wool worsted barathea, navy blue to Government Supplies Dept. Unallocated Stock

HK$15,744,000

31-03-2000

GN2057

Supply of cotton drills

HK$2,860,080

28-04-2000

GN2672

Supply of cotton calico, semi-bleached

HK$1,281,840

27-10-2000

GN7091

Supply of white cleaning rags, French polishing

HK$1,377,759

27-04-2001

GN2747

Supply of white bed sheeting

HK$2,211,000

28-09-2001

GN6104

Supply of cotton drills

HK$466,200

22-02-2002

GN1199

Supply of twill, polyester/cotton, with checked pattern

HK$952,000

26-04-2002

GN2588

Supply of cotton calico, unbleached

HK$1,053,000

26-04-2002

GN2588

Supply of white bed sheeting

HK$1,282,500

31-05-2002

GN3324

Supply of cotton drills

HK$828,600

31-05-2002

GN3324

Supply of cotton white calico and cotton dyed sheeting

HK$1,393,320

30-08-2002

GN5402

Supply of white cleaning rags, French polishing

HK$1,549,800

25-10-2002

GN6858

Supply of barathea, worsted, navy blue

HK$1,640,000

28-03-2003

GN2209

Supply of semi-bleached cotton calico

HK$1,296,000

27-08-2004

GN5669

Supply of cotton calico

HK$1,607,647

30-09-2004

GN6432

Supply of coverlet qualited ward

HK$1,543,200

28-04-2006

GN2700

Supply of twill polyester/cotton with checked pattern

HK$3,396,000

29-01-2010

GN604

Supply of polyester/cotton twill with checked pattern

HK$2,664,000

28-01-2011

GN804

Supply of shirting material in assorted colours

RMB4,000,260

30-06-2011

GN4208

Supply of dark bluepolyester/cotton twill

RMB2,997,600

30-03-2012

GN2200

Supply of white calico

HK$7,917,000

27-04-2012

GN2938

Supply of dark green twill

HK$2,212,800

26-10-2012

GN7045

Supply of cotton drill in assorted colours

HK$2,495,000

28-12-2012

GN8358

Supply of unbleached calico

HK$7,168,000

 

 

MEMBERSHIP

 

The Chinese General Chamber of Commerce, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$5,000,000.00 (Divided into 5,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$5,000,000.00

 

Increase of Nominal Capital:-

From

HK$10,000.00

to

HK$5,000,000.00

on

02-02-1980

 

Alternation of Issued Capital:-

04-07-1979

paid up

HK$              2.00

04-01-1980

paid up

HK$4,999,998.00

 

 

            –––––––––––––––

Total:

paid up

HK$5,000,000.00

            ==============

 

Group Profit Attributable to Shareholders (including continuing and discontinued operations):-

Period

CRE Group

Textile Division

Year ended 31-12-2005

HK$2,220 million

HK$  81 million

Year ended 31-12-2006

HK$2,776 million

HK$  61 million

Year ended 31-12-2007

HK$4,961 million

HK$144 million

Year ended 31-12-2008

HK$2,322 million

HK$  74 million

 

Profit & Loss:                Making small profit every year.

 

Condition:                      Business is active and good.

 

Facilities:                      Actively using general banking facilities.

 

Payment:                      Reliable.

 

Commercial Morality:     Good.

 

Bankers:-

Bank of China (Hong Kong) Ltd., Hong Kong.

Bank of Communications, Hong Kong Branch.

Chiyu Banking Corporation Ltd., Hong Kong.

Nanyang Commercial Bank Ltd., Hong Kong.

The Bank of Tokyo-Mitsubishi UFJ Ltd., Hong Kong Branch.

 

Standing:                      Very good.

 

 

GENERAL

 

China Resources Textiles Co. Ltd. [CRT], incorporated in Hong Kong in July 1979, was previously a direct wholly-owned subsidiary of China Resources (Holdings) Co. Ltd. [CRH], a significant Hong Kong-based firm backed by Chinese Government.  CRT has become a wholly-owned subsidiary of China Resources Light Industries & Textiles (Holdings) Co. Ltd. [CRLITH] which was incorporated in Hong Kong in September 1997.  CRLITH is a wholly-owned subsidiary of China Resources Enterprise Ltd. [CRE] which is a listed firm in Hong Kong.  However, on 10th March, 2005, CRLITH changed name to China Resources Textiles (Holdings) Co. Ltd. [CRTH].  Now, CRTH is not a directory subsidiary of CRE.

CRT and most of its associated companies are located at China Resources Building, in Wanchai, Hong Kong, which is owned by CRH.

Currently, CRT is trading in fabrics, man-made fibres, yarns and garments.  Man-made fibres, bearing the brand name “TENCEL”, are imported from the United Kingdom.  Fabrics, yarns and garments are chiefly sourced from China.  Prime markets are Hong Kong, South Korea, Japan, Thailand, etc.

CRT, had been the textile department of China Resources Co. since 1954, was founded in 1979.

Since 1993, CRT and its subsidiaries have set up joint ventures engaged in diversified economy including real estate, tourism, recreations, etc.

Since 1998, CRT has been awarded contracts in supplying of cotton drills and other textiles to the Hong Kong SAR Government Departments.

Now, CRT has a total capital of HK$6.6 billion and it annual turnover ranges from HK$6.5 to 7.0 billion.  It has 16 mills in China.  Two of them are dyeing and printing mills and with 15 dyeing and printing production lines, with an annual production capacity for 140 million meters.  It has got the advanced production machine MBK, STOCK, GOLLER, MONFORTS, etc.  It is able to produce fine quality fabric in 100% cotton and polyester/cotton with specific function.

The followings are the main products of CRT:-

100%COTTON 20/20 60/60 44 “OR57/58”

100%COTTON 30/30 68/68 44 “OR57/58”

100%COTTON 40/40 120/60 44 “OR57/58”

100%COTTON 50/50 144/80 44 ‘OR57/58”

100%COTTON 60/60 90/88 55”

100%COTTON 80/80 90/88 55”

100%COTTON 20/20 108/58 44 “OR57/58”

100%COTTON 20/16 128/60 44 “OR57/58”

T/C 45/45 110/76 45 “OR57/58”

T/C 45/45 133/72 45 “OR57/58”

T/C 45/2*45/2 100/55 45 “OR57/58”

T/C 20/16 120/60 44 “OR57/58”

T/C 16/12 108/56 44 “OR57/58”

CRTH is one of China’s leading textile manufacturers and distributors.  It wholly owns or partly owns 16 Mainland companies which form a comprehensive import, export and sales network with customers worldwide.

In 2003, CRTH acquired a 51% stake in a Shenzhen-listed company, which is later renamed China Resources Jinhua Co. Ltd. [CR Jinhua].  CR Jinhua provides CRTH with a platform for further development through China’s capital market.  CRTH currently owns over one million spindles, 14,600 looms and 13 printing and dyeing lines.  Its annual production capacity is up to 100,000 metric tonnes of yarn, 10 million pieces of clothing, 260 million metres of grey fabric and 130 million metres of finished fabric.

Listed on The Stock Exchange of Hong Kong Ltd. bearing stock code 0291, CRE is one of the constituent stocks of the Hang Seng Index and the Hang Seng London Reference Index.  This company also trades as an ADR (Stock Code: CHNRY) and is listed on SEAQ International of the London Stock Exchange.  CRE is a conglomerate with principal activities in retail, food, beverages and textile products.  Other businesses include property investment, petroleum and related products distribution, investments, etc.

The subject is fully supported by CRE.

Founded in 1949, CRH is the Hong Kong agent for most large firms in China which have close relationships with the Chinese Government.

On the whole, in view of CRT’s background, history and parentage, consider it good for normal business engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.90

UK Pound

1

Rs.100.47

Euro

1

Rs.84.65

 

 

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.