MIRA INFORM REPORT

 

 

Report Date :

25.01.2014

 

IDENTIFICATION DETAILS

 

Name :

WARNACO ASIA LTD.

 

 

Registered Office :

20/F., Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

25.09.2009

 

 

Com. Reg. No.:

51209782

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is engaged in designing, sourcing, marketing and distributing a broad line of intimate apparel, sportswear and swimwear worldwide. 

The subject operates a chain of retail shops in Hong Kong under the name of “Calvin Klein.”

 

 

No. of Employees :

180.  (Hong Kong)

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Hong Kong

A2

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 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 & address

 

WARNACO ASIA LTD.

 

ADDRESS:       20/F., Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong.

 

PHONE:            852-2798 1888

 

FAX:                 852-2621 6135

 

E-MAIL:            sleung@warnaco.com

 

 

MANAGEMENT

 

Group Executive Vice President:  Mr. Michael Alan Shaffer

 

 

SUMMARY

 

Incorporated on:             25th September, 2009.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$3,500,000,000.00

 

Issued:                          HK$1,787,398,000.00

 

Business Category:        Garment Buying Office, Importer and Exporter; Retailer.

 

Group Total Revenue:  US$6,042,999,000  (Year ended 03-02-2013)

 

Employees:                   180.  (Hong Kong)

 

Main Dealing Banker:     JPMorgan Chase Bank N.A., Hong Kong Branch.

 

Banking Relation:           Good.


Company name

 

WARNACO ASIA LTD.

 

 

ADDRESS

 

Registered Head Office:-

20/F., Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong.

 

Immediate Holding Company:-

Warnaco (HK) Ltd., Barbados.

 

Intermediate Holding Company:-

Warnaco B.V., Netherlands.

 

Penultimate Holding Company:-

The Warncao Group Inc., USA.

 

Ultimate Holding Company:-

PVH Corporation, USA.

 

Associated/Affiliated Companies:-

Warnaco Group of Companies

4278941 Canada Inc., Canada.

AEB Participacoes Ltda., Brazil.

Authentic Fitness On-Line Inc., USA.

Calvin Klein Jeanswear Co., USA.

CCC Acquisition Corporation, USA.

CK Jeanswear Asia Ltd., Hong Kong.

CK Jeanswear Australia Pty. Ltd., Australia.

CK Jeanswear Europe S.r.l., Italy.

CK Jeanswear Korea Ltd., Korea.

CK Jeanswear NZ Ltd., New Zealand.

CKJ Fashion (Shanghai) Ltd., China.

CKJ Holdings Inc., USA.

CKJ UK Ltd., UK.

CKU.com Inc., USA.

Designer Holdings Ltd., USA.

Distribuidor Textil Warnaco Chile Ltda., Chile.

Distribuidor Textil Warnaco Peru S.A., Peru.

Eratex GmbH, Germany.

Euro Retail S.r.l., Italy.

FA France Sarl., France.

Gold Lightening Ltd., Hong Kong.

Jeanswear Services Ltd., UK.

Lenitex-Warnaco Handelsgesellschaft m.b.H, Austria.

Lintex-Warnaco S.a.r.l., Switzerland.

Mullion International Ltd., British Virgin Islands.

Ocean Pacific Apparel Corporation, USA

Vista de Yucatan S.A. de C.V., Mexico.

Warnaco (Macao) Co. Ltd., Macao.

Warnaco Apparel SA (Proprietary) Ltd., South Africa.

Warnaco Argentina S.r.l., Argentina.

Warnaco (Belgium) Sprl, Belgium.

Warnaco Brasil Participacoes Ltda., Brazil.

Warnaco Commerce (Shanghai) Co. Ltd., China.

Warnaco Denmark A/S, Denmark.

Warnaco France S.A.R.L., France.

Warnaco Germany GmbH, Germany.

Warnaco Global Sourcing Ltd., Hong Kong.

Warnaco Inc., USA.

Warnaco International Trading (Shanghai) Co. Ltd., China.

Warnaco Intimo S.A., Spain.

Warnaco Italy S.r.l., Italy.

Warnaco Logistics B.V., Netherlands.

Warnaco Netherlands B.V., Netherlands.

Warnaco of Canada Co., Canada.

Warnaco Poland Sp. z.o.o., Poland.

Warnaco Portugal-Vestuario e Acessorios Sociedade Unipessoal Lda., Portugal.

Warnaco Puerto Rico Inc., USA.

Warnaco Retail Inc., USA.

Warnaco Shanghai Co. Ltd., China.

Warnaco Singapore Pte. Ltd., Singapore.

Warnaco Swimwear Inc., USA.

Warnaco Swimwear Products Inc., USA.

Warnaco Taiwan Co. Ltd., Taiwan.

Warnaco U.S. Inc., USA.

Warnaco UK Ltd., Northern Ireland.

Warner’s (EIRE) Teoranta, Ireland.

Warner’s Aiglon S.A., France.

Warner’s de Mexico S.A. de C.V., Mexico.

WBR Industria e Comercio de Vestuario S.A., Brazil.

WF Overseas Fashion C.V., Netherlands.

 

Associated/Affiliated with:-

PVH Group of Companies

 

 

BUSINESS REGISTRATION NUMBER

 

51209782

 

 


COMPANY FILE NUMBER

 

1376775

 

 

MANAGEMENT

 

Group Executive Vice President:  Mr. Michael Alan Shaffer

 

 

CAPITAL

 

Nominal Share Capital: HK$3,500,000,000.00

 

(Divided into 3,500,000 shares of HK$1,000.00 each)

 

Issued Share Capital:     HK$1,787,398,000.00

 

 

SHAREHOLDER  

 

(As per registry dated 25-09-2013)

Name

 

No. of shares

Warnaco (HK) Ltd.

DGM Trust, Chamberlain Place, Broad Street, Bridgetown, St. Michael, Barbados, British West Indies.

 

1,787,398

=======

 

 

DIRECTORS  

 

(As per registry dated 25-09-2013)

Name

(Nationality)

 

Address

Michael Alan SHAFFER

20 Norwood Ave., Avon By Sea, NJ 07717, USA.

 

Mark David FISCHER

9 Miller Circle, Armonk, NY 10504-1357, USA.

 

HUI Hon Chiu, Jeffrey

Flat C, 21/F., Tower 6, Parc Palais, 18 Wylie Road, Ho Man Tin, Kowloon, Hong Kong.

 

 


SECRETARY

 

HUI Hon Chiu, Jeffrey  (As per registry dated 25-09-2013)

 

 

HISTORY

 

The subject was incorporated on 25th September, 2009 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:                      Garment Buying Office, Importer and Exporter; Retailer.

 

Lines:                           Pyjamas, robes, camisoles, seamless vests, briefs, swimwear, brassieres

 

Employees:                   180.  (Hong Kong)

 

Commodities Imported:   Bought in Hong Kong and imported from China and other Asian countries

 

Markets:                       USA, Hong Kong.

 

Group Total Revenues:   US$4,636,848,000  (Year ended 31-12-2010)

US$5,890,624,000  (Year ended 31-12-2011)

US$6,042,999,000  (Year ended 03-02-2013)

 

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

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$3,500,000,000.00

 

(Divided into 3,500,000 shares of HK$1,000.00 each)

 

Issued Share Capital:     HK$1,787,398,000.00

 

Alternation of Issued Capital:-

25-09-2009

paid up

HK$              1,000.00

01-11-2009

paid up

HK$1,016,856,000.00

02-11-2009

paid up

HK$   770,541,000.00

 

 

–––––––––––––––––––

Total:

paid up

HK$1,787,398,000.00

=================

 

Group Net Income:         US$  54,377,000  (Year ended 31-12-2010)

US$275,697,000  (Year ended 31-12-2011)

US$433,840,000  (Year ended 03-02-2013)

 

Indebtedness:                HK$6,420,266.00 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 25-09-2013)

 

Profit or Loss:                Profitable.

 

Condition:                      Keeping in a normal manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Good.

 

Banker:                         JPMorgan Chase Bank N.A., Hong Kong Branch.

 

Standing:                      Good.

 

 

GENERAL

 

Warnaco Asia Ltd. is a wholly-owned subsidiary of Warnaco (HK) Ltd. which was registered in Barbados, British West Indies.  In turn, Warnaco (HK) Ltd. is a subsidiary of The Warnaco Group Inc. [Warnaco] of the United States.  However, Warnaco was acquired by PVH Corp. [PVH] on 13th February, 2013.

The subject and its holding company are engaged in designing, sourcing, marketing and distributing a broad line of intimate apparel, sportswear and swimwear worldwide.  The subject’s products are sold under several highly recognized brand names.

The subject operates a chain of retail shops in Hong Kong under the name of “Calvin Klein.”

Warnaco was listed on the New York Stock Exchange on 11th October, 1991.

Warnaco, a Delaware corporation organized in 1986 (collectively with its subsidiaries, the “Group”), designs, sources, markets, licenses and distributes a broad line of intimate apparel, sportswear and swimwear worldwide.  The Group’s products are sold under several highly recognized brand names, including, but not limited to, “Calvin Klein®”, “Speedo®”, “Chaps®”, “Warner’s®” and “Olga®”.

The Group’s products are distributed domestically and internationally, primarily to wholesale customers through various distribution channels, including major department stores, independent retailers, chain stores, membership clubs, specialty and other stores, mass merchandisers and the internet.

PVH is also a public listed company in the New York Stock Exchange.  It is one of the world’s largest apparel companies, with a heritage dating back over 130 years.  Its brand portfolio consists of nationally and internationally recognized brand names, including the global designer lifestyle brands Calvin Klein and Tommy Hilfiger, as well as Van Heusen, IZOD, Bass, ARROW and Eagle, which are owned brands, and Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, JOE Joseph Abboud, MICHAEL Michael Kors, Michael Kors Collection, Chaps, Donald J. Trump Signature Collection, DKNY, Elie Tahari, Nautica, Ted Baker, J. Garcia, Claiborne, Robert Graham, U.S. POLO ASSN., Ike Behar, Axcess, Jones New York and John Varvatos, which are licensed, as well as various other licensed and private label brands.  It designs and markets branded dress shirts, neckwear, sportswear and, to a lesser extent, footwear and other related products.  Additionally, it licenses its owned brands over a broad range of products.  During 2012, its directly operated businesses in North America (United States and Canada) consisted principally of wholesale dress furnishings sales under its owned and licensed brands; wholesale men’s sportswear sales under our Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD and ARROW brands; and the operation of retail stores, principally in outlet malls, under our Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD and Bass brands.  During 2012, its directly operated businesses outside of North America consisted principally of its Tommy Hilfiger International wholesale and retail businesses in Europe and Japan and its Calvin Klein dress furnishings and wholesale Calvin Klein Collection businesses in Europe.  Its licensing activities principally related to the licensing worldwide of its Calvin Klein trademark for a broad range of lifestyle products and for specific geographic regions.

During 2012, PVH aggregated its segments into three main businesses: (i) Tommy Hilfiger, which consists of the Tommy Hilfiger North America and Tommy Hilfiger International segments; (ii) Calvin Klein, which consists of the Calvin Klein Licensing segment (including its Calvin Klein Collection business, which it operates directly in support of the global licensing of the Calvin Klein brands) and the Other (Calvin Klein Apparel) segment, which consists of its Calvin Klein dress furnishings, sportswear and outlet retail divisions in North America; and (iii) Heritage Brands, which consists of the Heritage Brand Wholesale Dress Furnishings, Heritage Brand Wholesale Sportswear and Heritage Brand Retail segments.

PVH’s revenue reached a record US$6.043 billion in 2012, approximately 39% of which was generated internationally.  Its global designer lifestyle brands, Tommy Hilfiger and Calvin Klein, together generated approximately 72% of its revenue during 2012.

Its largest customers account for significant portions of its revenue.  Sales to its five largest customers were 18.7% of its revenue in 2012, 19.5% of its revenue in 2011 and 22.6% of its revenue in 2010.  Macy’s, Inc., its largest customer, accounted for 8.7% of its revenue in 2012, 9.4% of its revenue in 2011 and 10.1% of its revenue in 2010.

The PVH Group supports the subject’s business to a very great extent.

On the whole, in view of the parentage of the subject, consider it good for normal business engagements.

 

 

REMARKS

 

Brief information of the principal director:-

Mr. Michael A. SHAFFER, aged 52, is Chief Operating and Financial Officer, Executive Vice President of PVH.  Mr. Shaffer has been employed by PVH since 1990.  He served as Senior Vice President, Retail Operations immediately prior to being named Executive Vice President, Finance in 2005, Executive Vice President and Chief Financial Officer in March 2006, and Executive Vice President and Chief Operating & Financial Officer in February 2012.

 

Mr. Mark David FISCHER, is a Director & Senior Vice President at Warnaco, and Secretary, Senior Vice President & General Counsel at PVH Corp.  He is on the Board of Directors at Warnaco.  He received his undergraduate degree from Brandeis University and a graduate degree from the Boston University School of Law.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.18

UK Pound

1

Rs.103.38

Euro

1

Rs.85.09

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.