MIRA INFORM REPORT

 

 

Report Date :

17.12.2014

 

IDENTIFICATION DETAILS

 

Name :

MG MACAO COMMERCIAL OFFSHORE LTD.

 

 

Registered Office :

Avenida de Praia Grande, n° 567, Edificio Banco Nacional Ultramarino, 13° andar, “A”, Macau

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

06.07.2004

 

 

Com. Reg. No.:

19025 (SO)

 

 

Legal Form :

Not Available

 

 

Line of Business :

Trader of Garment.

 

 

No of Employees :

Not Available

 

 

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 :

Not Registered 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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Hong Kong

A1

A1

 

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


Note

 

Please be advised that the subject has not registered with the Companies Registry of Hong Kong.  It is a Macao-registered firm.  Located at the above-mentioned address is a firm known as Jordache International (Hong Kong) Ltd. which is an associated company of the subject.

 

 

Company name

 

MG MACAO COMMERCIAL OFFSHORE LTD.

 

 

Company ADDRESS

 

Registered Head Office:-

Avenida de Praia Grande, n° 567, Edificio Banco Nacional Ultramarino, 13° andar, “A”, Macau.

[Tel: 853-2833 1600]

 

Hong Kong Corresponding Address:-

c/o Jordache International (Hong Kong) Ltd.

Room 901, 9/F., Wing On Plaza, 62 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.

[Tel: 852-2762 4700;  Fax: 852-2715 5074]

 

Holding Company:-

MG Overseas Ltd.

P.O. Box 438, Palm Grove House, Road Town, Tortola, British Virgin Islands.

 

Associated Companies:-

American Jordanian Industrial Company For Apparel, Jordan.

Arkia Israel Airlines Ltd., Israel.

Arkia Israeli Airlines Ltd., Israel.

Blue Star Apparel SARL, Morocco.

Haultza Ltd., Israel.

JJ Asia Ltd., Hong Kong.

Jordache Enterprises Inc., US.

Jordache International (Hong Kong) Ltd., Hong Kong.

Kenya Trading (EPZ) Ltd., Kenya.

Mklen International SARL, Madagascar.

Nakash Five Points LLC, US.

Nakash Holdings LLC, US.

Pago Maritime Ltd., Israel.

 

 

GENERAL

 

MG Macao Commercial Offshore Ltd., in English, is also known as “MG Comercial Offshore De Macau Limitada” in Portuguese.  It was registered in Macao on 6th July, 2004 bearing Business Registration No. 19025 (SO).

 

The subject is a wholly-owned subsidiary of MG Overseas Ltd. [MG Overseas] which is a BVI-registered firm.  Its registered address in Macao is located at Avenida de Praia Grande, n° 567, Edificio Banco Nacional Ultramarino, 13° andar, “A”, Macau.  It is incorporated under Decree-Law No. 58/99/M (“58/99/M Company”) and is exempted from Macau complementary tax (Macau income tax) as long as the “58/99/M Company” does not sell its products to Macau resident as it satisfies a number of conditions.  These include:-

 

  • All activities shall be conducted only in non-Macao currency (other than for the purpose of paying local expenses);
  • The target customers cannot be Macao residents; and
  • The target markets must be outside Macao.

 

The subject in fact is controlled by Mr. Vincent Chan Chun Sing who is a Hong Kong merchant.

 

The subject has got an associated company in Hong Kong known as Jordache International (Hong Kong) Ltd. [Jordache] which is a garment trader.  The subject is also a garment trader.

 

The parent company of Jordache is also MG Overseas.  Chan Chun Sing is one of the directors of Jordache.  In fact, he is administering the business of Jordache as well as the subject in Macao.

 

The subject and Jordache are garment traders.  They are carrying the following products:-

 

Suits & Jackets - Women’s, Blouses, Blouse - Denim (From China & Thailand), Children’s Wear - Denim (From China & Thailand), Dress & Skirt - Denim (From China & Thailand), Shirt - Denim (From China & Thailand), Jeans (From China & Thailand), Men’s Suit & Jacket - Denim (From China & Thailand), Women’s Suit & Jacket - Denim (From China & Thailand), Dresses & Skirts (Cotton), Trousers (From China & Thailand), Slacks (From China & Thailand),

 

Although Jordache’s popularity had declined in the late 1990s, it continues to manufacture jeans—among other clothing and brands.

 

Today, the company designs and manufactures a wide variety of denim, apparel and accessories, some distributed internationally.  The brands owned by Jordache Enterprises include Jordache, Earl Jeans, KIKIT Jeans, Maurice Sasson, Fubu Ladies, Airport, Blue Star, and Gasoline. Jordache is also an official licensee of the U.S. Polo Assn. brand. Jordache Enterprises also manufactures private label denim for well-known companies, including Gap, Tommy Hilfiger, Levi's, and Abercrombie & Fitch, among others.

 

Through the initial proceeds from the Jordache label, the Nakash brothers have expanded their interest into real estate, aviation, high-tech (cryptography), maritime ventures, and food.  Jordache Enterprises has two separate boards—one comprising six Nakashes and an outside board with 10 nonfamily members.  Each male member of the second generation is highly specialized and has a nominal responsibility.  The Nakash women have no formal responsibilities.

 

Spokesmodels for Jordache have included Brittany Murphy, Elizabeth Hurley, Katrina Bowden and the current spokesmodel Heidi Klum.

The Jordache Group is a leader in denim garment distribution.  Jordache was set up by three brothers from Israel.  Arriving in New York in the early 1960’s, the Nakash brothers, Joe, Ralph, and Avi, opened their first jeans store by 1969.  In a few years, they expanded their business to four stores in the United States.  Throughout the early 1970’s, the Nakash brothers kept their eyes on the European jeans market.  Joe, Ralph, and Avi brought that “European-look jeans” to America and made it the “Jordache look”.

 

The results were staggering.  Sales skyrocketed from US$72 million in 1979 to US$600 million by 1986.  Throughout its history, Jordache has remained to be a fashion leader.

 

Jordache’s owned production facilities are located in Jordan, Madagascar, Kenya, Marocco, Mexico and Mauritius.  Each facility is fully integrated with in-house cutting, sewing, wet-processing, sand-blasting, embroidery, finishing and packing capabilities.  Jordache’s two distribution centres in New Jersey and Louisiana can support large-scale replenishment programs and are available for use by the private label division.

 

In addition, the subsidiary of the Private Label division is Jordache which handles products development, technical supporting, raw materials purchasing and finance supporting.

 

Some of Jordache’s garments are manufactured by contracted factories in Thailand, Indonesia, the Philippines, China, apart from manufactured by its own factory in the Philippines.  In recent years, Jordache’s garments are chiefly sourced from China and Thailand.  Main products are trousers, slacks, dresses, skirts, denim products, jeans

 

Set up by its holding company, the subject sometimes is responsible for acquiring raw materials, receiving payments for Jordache for the evading of certain amount of taxes in Hong Kong.

 

Jordache is employing about 25 persons in Hong Kong and its annual turnover ranges from HK$650 to 700 million.  Now, its annual sales turnover ranges from US$220 to 250 million.  Making a rather good profit in the year.

 

The Chairman and CEO of Jordache is Mr. Joseph Nakash who is an American residing in New York.

 

Jordache Enterprises Inc., a US-based company, is owned and operated by the Nakash brothers.

 

The Jordache Group is engaged in diversified economy such as real estate, hotel & resorts, agriculture, aviation and port operations.  Its small clothes shop transformed into US$2 billion Empire.

 

On the whole, since the subject has not registered in Hong Kong, consider it not suitable for any business engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.41

UK Pound

1

Rs.99.03

Euro

1

Rs.79.00

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 

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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