MIRA INFORM REPORT

 

 

Report Date :

14.04.2014

 

IDENTIFICATION DETAILS

 

Name :

CENTRAL FABRICS LTD.

 

 

Registered Office :

Lower G/F., Kong Nam Industrial Building, 603-609 Castle Peak Road, Tsuen Wan, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

23.07.2003

 

 

Com. Reg. No.:

33781881

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Textile Product Trader.

 

 

No. of Employees

396

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies

Source : CIA

 

 

 


company name

 

CENTRAL  FABRICS  LTD.

 

ADDRESS:            

 

Lower G/F., Kong Nam Industrial Building, 603-609 Castle Peak Road, Tsuen Wan, New Territories, Hong Kong.

 

PHONE:                  853-2402 3456,  2413 1085

 

FAX:                       853-2413 1085

 

E-MAIL:                  cfsales@centralfabrics.com

 

MANAGEMENT:

 

Managing Director:  Mr. Yung Wing Kay, Leo

 

 

SUMMARY

 

Incorporated on:            23rd July, 2003.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$1,000,000.00

Issued:                         HK$1,000,000.00

 

Business Category:       Textile Product Trader.

 

Employees:                  396.  (Including associates in Hong Kong)

 

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

 

Banking Relation:          Good.


Company name  

 

CENTRAL  FABRICS  LTD.

 

ADDRESS:

 

Registered Head Office:-

Lower G/F., Kong Nam Industrial Building, 603-609 Castle Peak Road, Tsuen Wan, New Territories, Hong Kong.

 

Holding Company:-

Central Textiles (HK) Ltd., Hong Kong.  (Same address)

 

China Associated Company:-

Central Fabrics (Guangzhou) Ltd.

Room B, 7 /F., Tower West, Yinzheng Building, 338 Huanshi East Road, 510091 Guangzhou, Guangdong Province, China.

[Tel:  86-20-8349 0363

Fax:  86-20-8349 0301

E-mail: cfsales@centralfabrics.com]

 

Associated Companies:-

Central Textiles (Weaving) Ltd., Hong Kong.

Central Textiles Knitting And Dyeing Ltd., Hong Kong.

Chung Charm Trading (HK) Ltd., Hong Kong.

Dai Chung Trading (Hong Kong) Ltd., Hong Kong.

Galaxy Commutech Ltd., Hong Kong.

Zhanjiang Chung Charm Textiles Ltd., China.

Zhanjiang Dai Chung Textiles Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

33781881

 

 

COMPANY FILE NUMBER 

 

0854456

 

 


MANAGEMENT

 

Managing Director:  Mr. Yung Wing Kay, Leo

Contact Person:  Mr. Roy Yim Ho Wang

 

 

CAPITAL

 

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$1,000,000.00

 

 

SHAREHOLDER

(As per registry dated 23-07-2013)

Name

 

No. of shares

Central Textiles (HK) Ltd., Hong Kong.

 

1,000,000

=======

 

 

DIRECTORS

(As per registry dated 23-07-2013

Name

(Nationality)

 

Address

WOO Pat Nie

7 Purves Road, Jardine’s Lookout, Hong Kong.

 

YUNG Wing Kay

Flat D, 8/F., Tower 5, The Regalia, King’s Park Rise, Homantin, Kowloon, Hong Kong.

 

CHI Woo Wha

Flat B, 7/F., Block 3, Peridot Court, 17-1/2 Miles, Castle Peak Road, New Territories, Hong Kong.

 

CHAN To Sang

Flat B, 26/F., Block 5, New Jade Garden, Chai Wan, Hong Kong.

 

YEUNG Hoi Hung

Flat A, 59/F., Tower 3, Vision City, 1 Yeung Uk Road, Tsuen Wan, New Territories, Hong Kong.

 

LAM Lap Wai

Flat 09, 10/F., Block A, Kornhill, Quarry Bay, Hong Kong.

 

 

SECRETARY 

 

CHAN To Sang  (As per registry dated 23-07-2013)

 

 

HISTORY

 

The subject was incorporated on 23rd July, 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:          Textile Product Trader.

 

Lines:               100% cotton yarn, cotton/spandex yarn, P/C 100% cotton woven fabric, knitted fabric, dyed yarn.

 

Trade Marks:     Yarn - “GREAT JOY” & “GOLDEN FISH” brands.

 

Employees:         396.  (Including associates in Hong Kong) 1,120. (China)

 

Materials Buying From:-

Raw cotton - US, Pakistan, East Africa, China, S. America & India.

Polyester filament - Japan.

 

Markets:            Hong Kong, other Asian countries, UK, Europe, Canada, Australia, etc.

 

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

 

Terms/Buying:   T/T, L/C, D/P, etc.

 

 

GOVERNMENT CONTRACTS AWARDED IN THE PAST

 

Date

GN No.

Particulars

Amount

31-12-2004

GN8446

Supply of shirting materials white and light blue

HK$5,580,000.00

27-05-2005

GN2517

Supply of blue polyester/rayon twill

HK$2,035,000.00

 

FINANCIAL INFORMATION

 

Nominal Share Capital:              HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

 

Issued Share Capital:                 HK$1,000,000.00

           

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

 

Standing:                                  Normal.

 

 

GENERAL

 

Central Fabrics Ltd. is a wholly-owned subsidiary of Central Textiles (HK) Ltd. [Central Textiles] which is a Hong Kong-based firm located at the same address.

The subject is a member of the Central Textiles Group.  Central Textiles was set up in 1953 in Hong Kong.  Its factories are located in Tsuen Wan and Yuen Long.  The total floor area is about 150,000 sq.m.  The Group in Hong Kong has about 396 employees.

The Group is a family business which is run by the third generation.  Headquartered in Hong Kong, the Group has been equipped with spinning, weaving and dyeing facilities.

Founded in 2003, the subject is engaged in manufacturing high-quality denim.

Being one of the Lycra-accredited fabric mills, the subject offers customers with a wide range of denim and piece-dyed woven fabrics.

Under the collaboration with Hong Kong Polytechnic University, the subject has developed ESTex - a breakthrough spinning technology that delivers extra soft yarn and fabrics.

In 2007, the subject was one of the first mills employing process improvement tools - Six Sigma, in its operation.  By implementing a comprehensive monitoring system in the production process, it makes a positive progress in minimizing the production loss as well as the defective ratio.

In November 2008, the subject was supported Control Union to be the pilot company for the initial trial audit, and were announced to be the first mill in Asia being certified under Global Recycled Standard (GRS) in March 2009.

In 2012, the Group became the first textile mill globally to receive an independently assessed score using the Higg Index, a sustainability scoring system developed by the Sustainable Apparel Coalition (SAC), which is a global industry body with membership from major global brands including Nike, Levi’s, Puma, Esprit, VF and support from over 30% of the textile and apparel trade worldwide.  The development of the Index has received input from the global community in the industry and has been in the works for many years.  Higg Index aims to be the global standard upon which sustainability for suppliers, brands and products are measured based on a unified metric.

The Group was also instrumental in developing the world first recycled fashion line for Esprit which was launched in May 2012.  By fully supporting EcoChic Design Award which was organized by NGO Redress, the winner of EcoChic Design Award designed a recycled pre-consumer textile waste capsule collection for retail in Hong Kong, and the subject provided all the recycled denim for the fashion line.

The subject is trading in the following products:

Yarns, piecegoods & textiles (piece dyed fabric/greige fabric (stretch or non-stretch), piece dyed fabric/greige fabric (stretch or non-stretch); obtained “Certificate of HK origin, CEPA”), denim - cotton, woven (stretch or non-stretch, stretch or non‑stretch; obtained “Certificate of HK origin, CEPA”, OEM), piecegoods - blended (piece dyed fabric/greige fabric (stretch or non-stretch), piece dyed fabric/greige fabric (stretch or non-stretch)), denim - cotton blended, woven (stretch or non-stretch, stretch or non-stretch; obtained “Certificate of HK origin, CEPA”, OEM), etc.

The subject is a LYCRA® accredited fabric mill, offering a wide range of bottom-weight greige, denim and piece-dyed woven fabrics.  Its innovative fabric products include X-Fit (bi-stretch T-400 TM) items, extra soft denim using its own ESTex yarns, technical denim (i.e. quick dry, thermal, lightweight, and anti-bacterial), recycled denim and organic cotton denim.

Every month, around 2.2 million yards of fabrics are produced by the Group.

The subject’s products are exported to China, Japan, South Korea, North America, Southeast Asia, Western Europe, etc.  Its main customers are Gap, Levi’s, Calvin Klein, Marks & Spencer, Espirit, etc.

The subject has set up an associated company Central Fabrics (Guangzhou) Ltd. which is in Guangzhou, Guangdong Province, China.  Central Fabrics (Guangzhou) is trading in yarns, denim and dyed fabrics.  This company was set up in 2008.

Besides, the subject has set up two factories in Zhanjiang City, Guangdong Province, China.  The two factories are:

·         Zhanjiang Chung Charm Textiles Ltd. [Chung Charm];

·         Zhanjiang Dai Chung Textiles Ltd. [Dai Chung].

Chung Charm was set up by the subject in 1993.  It is the first China spinning mill in Zhanjiang City, Guangdong Province, China.

Dai Chung was set up in 2008.  It is the second spinning mill in Zhanjiang City.  In 2012, Dai Chung was recognized as a “Guangdong Province Clean Production Organization”.

In 2012, the subject received the ‘2012 Hang Seng Pearl River Delta Environmental Awards, Gold Award’ and received ISO14001 Environmental Management System Certificate.

In 2013, the subject’s Chung Charm was recognized as a “Guangdong Province Clean Production Organization”.

In 2013, the Group celebrated its 60 anniversary.

The annual sales turnover of the subject is very significant, ranges from HK$1,200 to 1,250 million.  Making a profit every year.

The Group has 396 employees in Hong Kong and 1,102 in China.

The contact person of the subject Mr. Roy Yim Ho Wang is the Sales Manager of the subject.

As the history of the subject is over ten years  in Hong Kong, on the whole, consider it good for normal business engagements.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.27

UK Pound

1

Rs.101.09

Euro

1

Rs.83.74

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

PDT

 

               

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.