MIRA INFORM REPORT

 

 

Report Date :

05.06.2014

 

IDENTIFICATION DETAILS

 

Name :

PVH  FAR  EAST  LTD.

 

 

Formerly Known as :

Phillips‑Van Heusen Far East Ltd

 

 

Registered Office :

10/F., One Kowloon, 1 Wang Yuen Street, Kowloon Bay, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

14.03.1980

 

 

Com. Reg. No.:

06511615

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         Importer, Exporter and Wholesaler of all kinds of apparels

·         subject is sourcing all kinds of apparels for PVHC.

·         subject is a regional buying and marketing office for the apparel maker most famous for its dress-shirt brands, including “Calvin Klein” and “Tommy Hilfiger”.

 

 

No of Employees :

120.  (Hong Kong)

13.  (China)

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

PVH  FAR  EAST  LTD.

 

 

Company ADDRESS

 

10/F., One Kowloon, 1 Wang Yuen Street, Kowloon Bay, Kowloon, Hong Kong.

 

PHONE:            852-2738 6500,  2317 1203,  2738 6831

FAX:                 852-2730 2398,  2377 1966,  2755 2265,  2375 9605

E-MAIL:            tonywong@pvh.com

kennischan@pvh.com     

hkhr@pvh.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Ma Kin Hung

 

 

SUMMARY

 

Incorporated on:            14th March, 1980.

 

Organization:                 Private Limited Company.

 

Issued Capital:                          HK$180.00

 

Business Category:       Importer, Exporter and Wholesaler.

 

Group Sales:     US$8,186,351,000  (Year ended 04-02-2013)

 

Employees:                  120.  (Hong Kong)

 

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

 

Banking Relation:          Good.


Company ADDRESS

 

Registered Head Office:-

10/F., One Kowloon, 1 Wang Yuen Street, Kowloon Bay, Kowloon, Hong Kong.

 

Holding Company:-

PVH International Corporation, The Netherlands.

 

Ultimate Holding Company:-

PVH Corporation, US.

 

Associated Companies:-

PVH Group of Companies

Arrow C.V., Netherlands.

Authentic Fitness On-line. Inc., US.

BassNet Inc, US.

BassNet LLC, US.

Calvin Hoilding C.V., Netherlands.

Calvin Klein Europe B.V., Netherlands.

Calvin Klein Inc., US.

Calvin Klein Jeanswear Company, US.

Calvin Klein Stores Ireland Ltd., Ireland.

Calvin Klein Stores Rus LLC, Russia.

Calvin Klein Stores Spain S.L., Spain.

Calvin Klein Stores UK Ltd., UK.

CCC Acquisition Corporation, US.

CK Jeanswear Asia Ltd., Hong Kong.

CK Logistics B.V., Netherlands.

CK Service Corporation, US.

CK Stores Austria GmbH, Austria.

CK Stores B.V., Netherlands.

CK Stores Belgium BVBA, Belgium.

CK Stores Denmark ApS, Denmark.

CK Stores Finland OY, Finland.

CK Stores France SAS, France.

CK Stores Germany GmbH, Germany.

CK Stores Italy S.r.l., Italy.

CK Stores Netherlands B.V., Netherlands.

CK Stores Poland Sp. z o.o., Poland.

CK Stores Portugal. Unipessoal Lda., Portugal.

CK Stores Switzerland GmbH, Switzerland.

CKJ Fashion (Shanghai) Ltd., China.

CKJ Holdings. Inc.,US.

CKU.com Inc., US.

Cluett Peabody & Co. Inc., US.

Cluett Peabody Resources Corporation, US.

Confezioni Moda Italia S.r.l., Italy.

Designer Holdings Ltd., US.

Distribuidor Textil Warnaco Chile. Limitada, Chile.

Distribuidor Textil Warnaco Peru S.A.C., Peru.

Elmira 3 B.V., Netherlands.

PVH Holdings Germany GmbH & Co. KG, Germany.

PVH International B.V., Netherlands.

PVH Italia S.r.l., Italy.

PVH Korea Co. Ltd., Korea.

PVH Management Consultant (Shanghai) Ltd., Hong Kong.

PVH Neckwear. Inc., US.

PVH Netherlands B.V., Netherlands.

PVH Norge AS, Norway.

PVH Osterreich GesmbH, Austria.

PVH Prince C.V. Holding Corporation, US.

PVH Puerto Rico Inc., US.

PVH Puerto Rico LLC, US.

PVH Realty Corporation, US.

PVH Retail Stores LLC., US.

PVH Schweiz GmbH, Switzerland.

PVH Singapore Private Ltd., Singapore.

PVH Sweden AB, Sweden.

PVH Taiwan Company Ltd., Taiwan.

PVH UK Ltd., UK.

PVH Wholesale Corporation, US.

PVH Wholesale New Jersey Inc., US.

Quiver C.V., Netherlands.

T. H. International N.V., Netherlands Antilles.

TH Asia Ltd., Hong Kong.  (Joint venture in HK)

TH Australia Holdings Pty Ltd., Australia.

TH l Holding (Cyprus) Ltd., Cyprus.

The Monument B.V., Netherlands.

The Warnaco Group. Inc., US.

Tomcan Investments Inc., US.

Tommy Hilfiger (Eastern Hemisphere) Ltd., British Virgin Island.

Tommy Hilfiger (HK) Ltd., Hong Kong.

Tommy Hilfiger Corporation, British Virgin Island.

Tommy Hilfiger Europe B.V., Netherlands.

Tommy Hilfiger Japan Corporation, Japan.

Tommy Hilfiger Japan Holding Godo Kaisha, Japan.

Tommy Hilfiger Licensing B.V., Netherlands.

Tommy Hilfiger Licensing LLC, US.

Tommy Hilfiger Marka Dagitim Ve Ticaret Anonim Sirketi, Turkey.

Tommy Hilfiger Retail. LLC, US.

Tommy Hilfiger Services Ltd., UK.

Tommy Hilfiger Stores Norge AS, Norway.

Tommy Hilfiger U.S.A. Inc., US.

Tommy Hilfiger Wholesale. Inc., US.

Tommy Holding C.V., Netherlands.

Trumpet C.V., Netherlands.

etc.


BUSINESS REGISTRATION NUMBER

 

06511615

 

 

COMPANY FILE NUMBER

 

0079691

 

 

MANAGEMENT

 

Chairman & Chief Executive Officer:  Mr. Emanuel Chirico

Senior Vice President (General Counsel & Secretary):  Mr. Mark David Fischer

Managing Director:  Mr. Ma Kin Hung

 

 

ISSUED CAPITAL

 

HK$180.00

 

 

SHAREHOLDER

(As per registry dated 14-03-2014)

 

Name

 

No. of shares

PVH International B.V.

Stadhouderskade 6, 1054 Es Amsterdam, The Netherlands.

 

18

==

 

 

DIRECTORS

(As per registry dated 14-03-2014)

 

Name

(Nationality)

 

Address

MA Kin Hung

15B, Bon-Point, 11 Bonham Road, Hong Kong.

 

Mark David FISCHER

9 Miller Circle, Armonk, New York 10504, US.

 

Michael Alan SHAFFER

500 Burlington Ave, Bradley Beach, Nj 07720-1120, US.

 

Mark Quentin Toye GREEN

Flat H, 13/F., Yat Wing Mansion, 43 Tai Hong Street, Lei King Wah, Hong Kong.

 

Michael David COLLINSON

Flat E, 15/F., Block 4, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.

 

Emanuel CHIRICO

31 Hewitt Avenue, Bronxville, New York 10708, US.

 

 

SECRETARY

 

MA Kin Hung (As per registry dated 14-03-2014)

 

 

HISTORY

 

The subject was incorporated on 14th March, 1980 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Dalriada Ltd., name changed to Envoy Pacific Ltd. on 24th October, 1980, changed to Phillips‑Van Heusen Far East Ltd. on 28th November, 1996 and further to the present style on 19th July, 2011.

 

Last time, the subject was located at 10/F., 11/F. & 12/F., TAL Building, 49 Austin Road, Jordan, Kowloon, Hong Kong, moved to the present address in mid-2007.

 

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of apparels.

 

Employees:                  120.  (Hong Kong)

13.  (China)

 

Commodities Imported: China and other Asian countries.

 

Markets:                        US, etc.

           


Group Total Sales:-

·         US$2,398,731,000  (Year ended 01-02-2009)

·         US$4,636,848,000  (Year ended 30-01-2011)

·         US$5,890,624,000  (Year ended 29-01-2012)

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

·         US$8,186,351,000  (Year ended 02-02-2014)

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Issued Capital:                          HK$180.00

 

Group Net Income Attributable to PVH Corp.:-

·         US$153,499,000  (Year ended 01-02-2009)

·         US$  54,377,000  (Year ended 30-01-2010)

·         US$275,697,000  (Year ended 29-01-2011)

·         US$433,840,000  (Year ended 03-02-2012)

·         US$143,537,000  (Year ended 02-02-2013)

 

Profit & Loss:               Business is profitable.

 

Condition:                     Keeping in an active state.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments on time.

 

Commercial Morality:     Good.

 

Bankers:-

·         Bank of America N.A., Hong Kong Branch.

·         JP Morgan Chase Bank N.A., US.

·         Wachoria Bank N.A., US.

 

Standing:  Good.

 

 

GENERAL

PVH Far East Ltd. is a wholly-owned subsidiary of PVH International Corporation [PVH] which is a firm registered in The Netherlands.  Its ultimate holding company PVH Corporation [PVHC] is a US-based and listed firm in The New York Stock Exchange.

The subject is a regional buying and marketing office for the apparel maker most famous for its dress-shirt brands, including “Calvin Klein” and “Tommy Hilfiger”.

It also trades in the other branded products such as “Van Heusen”, “Kenneth Cole”, “Geoffrey Beene” and “Arrow”.  Since its founding in March 1980, the subject has played a key role in sourcing the “right products at the right price, decreasing operating expenses and improving corporate financial performance”.

Over the past years, the subject has expanded significantly and at the same time decentralized its merchandising and quality assurance functions to different Asian offices.

The subject is sourcing all kinds of apparels for PVHC.

PVHC is one of the largest apparel companies in the world, with a heritage dating back over 130 years.  It was incorporated in the State of Delaware in 1976 as the successor to a business begun in 1881.

PVHC designs and markets branded dress shirts, sportswear, footwear and other related products.  It also designs, manufactures and markets neckwear products.  Its licensing activities, principally its Calvin Klein business has provided PVHC with a sizeable base of profitable licensing sales.

Over the last decade, PVHC has made several acquisitions that have redefined the identity, performance and long-term growth potential of the Company – first with the acquisition of Calvin Klein in 2003, then with the addition of Tommy Hilfiger in 2010, and most recently with its February 2013 acquisition of The Warnaco Group, Inc. [Warnaco].  Through these transformative acquisitions, the Group has secured its position as one of the largest branded lifestyle apparel companies in the world, with a diversified portfolio of iconic designer lifestyle apparel brands, led by Calvin Klein and Tommy Hilfiger.  The Calvin Klein and Tommy Hilfiger brands together represent close to 85% of its operating profits and are expected to continue to drive future sales and profitability growth.

PVHC has grown exponentially from its 1881 roots of selling and mending shirts for miners in Pottsville, PA and its 1920’s introduction of the Van Heusen “soft-folding” collar to become a global company with over US$8.0 billion in estimated 2013 sales through a combination of strategic acquisitions and by successfully growing its brands globally across the wholesale, retail, e-commerce and licensing channels throughout North America, Europe, Asia and Latin America.  Its brands include Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Speedo, Warner’s and Olga.  In addition, it license brands for dress shirts and neckwear offered in the United States and Canada.

Today, PVHC is a dedicated global corporate citizen and has the benefit of strong established operating platforms in North America and Europe and a growing presence in Asia and Latin America.

For the FY 2013 (Year ended 02-02-2014), the total sales of PVHC amounted to US$8,186.4 million, grew by 35.5% as compared with US6,043.0 million in FY 2012 (Year ended 03-02-2013); net income attributable to PVH Corp. was US$143.5 million, decreased by 66.9% as compared with US$433.8 million in FY 2012.

The number of full time employees of PVHC as at end of 2013 was 16,700, part time was 16,500.

The subject is fully supported by PVHC.

The Chairman and Chief Executive Officer of PVHC is Mr. Emanuel Chirico, who is one of the directors of the subject.

The history of the subject in Hong Kong is over 34 years.

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.34

UK Pound

1

Rs.99.18

Euro

1

Rs.80.76

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

 

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.