MIRA INFORM REPORT

 

 

Report Date :

16.06.2014

 

IDENTIFICATION DETAILS

 

Name :

TOP CREATION LTD.

 

 

Registered Office :

c/o Dickson Concepts (International) Ltd.

4/F., East Ocean Centre, 98 Granville Road, Tsimshatsui East, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

13.07.1998

 

 

Com. Reg. No.:

21915244

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Retailer and Wholesaler of all kinds of fashions such as men’s suits and ladies’ fashions.

 

 

No. of Employees :

Group Employees           550.  (Tommy Hilfiger Group)

  2,598.  (Dickson Group – as at 31-03-2014)

 

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 :

--

 

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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately 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 and address

 

TOP CREATION LTD.

 

 

ADDRESS:       Room 804, 8/F., South Block, Skyway House, 3 Sham Mong Road, Taikoktsui, Kowloon, Hong Kong.

 

PHONE:            852-2311 8838

 

FAX:                 Not available.

 

 

MANAGEMENT

 

Group Deputy Chairman & Chief Executive Officer:  Mr. Raymond Lee

 

 

SUMMARY

 

Incorporated on:            13th July, 1998.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000.00

 

Issued:                         HK$2.00

 

Business Category:       Fashion Retailer.

 

Dickson Group Turnover:  HK$4,353,361,000  (Year ended 31-03-2014)

 

Group Employees:           550.  (Tommy Hilfiger Group)

2,598.  (Dickson Group – as at 31-03-2014)

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.


Company name

 

TOP CREATION LTD.

 

 

ADDRESS

 

Registered Office:-

c/o Dickson Concepts (International) Ltd.

4/F., East Ocean Centre, 98 Granville Road, Tsimshatsui East, Kowloon, Hong Kong.

[Tel: 852-2311 3888,   Fax: 852-2311 3323]

 

Head Office:-

Room 804, 8/F., South Block, Skyway House, 3 Sham Mong Road, Taikoktsui, Kowloon, Hong Kong.

 

Immediate Holding Company:-

Tommy Hilfiger Asia-Pacific Ltd., British Virgin Islands.

 

Ultimate Holding Company:-

Dickson Concepts (International) Ltd., Bermuda/Hong Kong.

 

Operating Companies:-

Tommy Girl, Hong Kong.

Tommy Hilfiger, Hong Kong.

Tommy Jeans, Hong Kong.

 

Subsidiaries:-

Full Kingdom Interior Design Consultancy (Shanghai) Ltd., China.

Full Kingdom Ltd., Hong Kong.

Tommy Hilfiger Apparel (Shanghai) Ltd., China.

 

Sister/Affiliated Companies:-

Tommy Hilfiger Group of Companies

Tommy Hilfiger (HK) Ltd., Hong Kong.

Tommy Hilfiger Asia-Pacific Ltd., Taiwan Branch.

Tommy Hilfiger Corporation, British Virgin Islands.

Tommy Hilfiger Handbags & Small Leather Goods Inc., U.S.A.

Tommy Hilfiger Marketing Ltd., Hong Kong.

 

Associated with:-

Dickson Group of Companies

Bertolucci SA, Switzerland.

Bondwood Investments Ltd., Hong Kong.

Castlereagh Ltd., British Virgin Islands.

China Tone Ltd., Hong Kong.

Chopard Hong Kong Distribution Ltd., Hong Kong.

D Marketing Japan K.K., Japan.

Dickson (Shanghai) Co. Ltd., China.

Dickson Concepts (Retail) Ltd., Hong Kong.

Dickson Concepts (Wholesale) Ltd., Hong Kong.

Dickson Concepts Ltd., Hong Kong.

Dickson Interior Design Ltd., Hong Kong.

Dickson Investments (H.K.) Ltd., Hong Kong.

Dickson Licensing Ltd., British Virgin Islands.

Dickson Stores Pte. Ltd., Singapore.

Dickson Trading (Asia) Co. Ltd., Hong Kong/Taiwan.

Dickson Warehousing Ltd., Hong Kong.

Ever Success Consultancy (Shenzhen) Ltd., China.

Ever Success Management Ltd., Hong Kong.

Harmonious Time Ltd., Hong Kong.

Harvey Nichols (Hong Kong) Ltd., Hong Kong.

Hong Kong Seibu Enterprise Co. Ltd., Hong Kong.

Hong Kong Seibu Holdings (China) Ltd., Hong Kong.

Hong Kong Seibu Investment Co. Ltd., Hong Kong.

Ining Investments Ltd., Hong Kong.

Leading Way Apparel Shanghai Ltd., China.

Leading Way Ltd., British Virgin Islands/Hong Kong.

Michael Kors Asia Pacific Ltd., British Virgin Islands.

Mighty Achievements Investments Ltd., Hong Kong.

Mighty Leader Ltd., Hong Kong.

Pui Chak Enterprises Ltd., Hong Kong.

Raglan Resources Ltd., British Virgin Islands.

Shanghai Jin Jiang Dickson Centre Co. Ltd., China.

Shenzhen Dickson Retail Ltd., China.

Shenzhen Seibu Department Store Co. Ltd., China.

Sichuan Dickson Rongxing Department Store Co. Ltd., China.

Sinotop Development Ltd., Hong Kong.

Sinotop Retail Ltd., Hong Kong.

T A Apparel (Shenzhen) Ltd., China.

Teamgain Investment Ltd., Hong Kong.

The Dickson Shop Ltd., Hong Kong/Singapore.

The Dickson Trading (Taiwan) Co. Ltd., Taiwan.

Top Able Management Ltd., Hong Kong.

Wealth Top Investment Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

 21915244

 

 

COMPANY FILE NUMBER

 

0649574

 

MANAGEMENT

 

Group Deputy Chairman & Chief Executive Officer:  Mr. Raymond Lee

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00

 

 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$2.00

 

 

SHAREHOLDERS

 

(As per registry dated 13-07-2013)

Name

 

No. of shares

Tommy Hilfiger Asia-Pacific Ltd.

P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

 

1

CHAN Tsang Wing, Nelson

 

1

 

 

––

 

Total:

2

=

 

 

DIRECTORS

 

(As per registry dated 13-07-2013)

Name

(Nationality)

 

Address

CHAN Tsang Wing, Nelson

Flat A, 24/F., Block 2, Clovelly Court, 12 May Road, Hong Kong.

 

Raymond LEE

7C, Woodland Heights, 2 Wong Nei Chung Gap Road, Hong Kong.

 

CHAN Hon Chung, Johnny Pollux

Flat D, 36/F., Block 5, Kenswood Court, Kingswood Villas, Tin Shui Wai, New Territories, Hong Kong.

 

 

 

SECRETARY

 

(As per registry dated 17-03-2013)

Name

Address

OR Suk Ying, Stella

Flat A, 24/F., Block 12, Laguna City, Lam Tin, Kowloon, Hong Kong.

HISTORY

 

The subject was incorporated on 13th July, 1998 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:                      Importer, Retailer and Wholesaler.

 

Lines:                           All kinds of fashions such as men’s suits and ladies’ fashions.

 

Group Employees:        550.  (Tommy Hilfiger Group)

 2,598.  (Dickson Group – as at 31-03-2014)

 

Commodities Imported: Mainly imported from Europe.

 

Markets:                        Hong Kong, China

 

Dickson Group Turnover:-HK$3,633,639,000  (Year ended 31-03-2010)

HK$3,403,861,000  (Year ended 31-03-2011)

HK$3,985,304,000  (Year ended 31-03-2012)

HK$4,126,217,000  (Year ended 31-03-2013)

HK$4,353,361,000  (Year ended 31-03-2014)

 

Terms/Sales:                 COD or as per contracted.

 

Terms/Buying:               L/C, T/T, D/A and D/P.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$10,000.00

 

(Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$2.00

 

Dickson Group Net Profit:-HK$303,734,000  (Year ended 31-03-2010)

HK$346,939,000  (Year ended 31-03-2011)

HK$188,892,000  (Year ended 31-03-2012)

HK$229,277,000  (Year ended 31-03-2013)

HK$154,830,000  (Year ended 31-03-2014)

 

Group Net Worth:          HK$2,075,101,000.00  (As at 31-03-2010)

HK$2,296,934,000.00  (As at 31-03-2011)

HK$2,360,748,000.00  (As at 31-03-2012)

HK$2,469,864,000.00  (As at 31-03-2013)

HK$2,548,430,000.00  (As at 31-03-2014)

 

Profit & Loss:               Made small profits in the past years.

 

Condition:                     Keeping in a satisfactory manner.

 

Facilities:                       Making rather active use of general banking facilities.

 

Payment:                       Regularly met.

 

Commercial Morality:      Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                       Good.

 

 

GENERAL

 

Top Creation Ltd. is a private limited company incorporated in July 1998.  It is equally held by Mr. Nelson Chan Tsang Wing and a BVI-registered firm Tommy Hilfiger Asia-Pacific Ltd.  The subject has just issued 2 ordinary shares of HK$1.00 each while Mr. Chan and the holding company each holds a single share.

In August 2006, Dickson Concepts (International) Ltd. [Dickson] which is a listed firm in Hong Kong acquired Tommy Hilfiger Asia-Pacific Ltd.  Now, the subject has become a wholly-owned subsidiary of Dickson.  In other words, the subject’s ultimate holding company is Dickson.

The subject’s business name is “Tommy Hilfiger” which is the name of its holding company.  It is a fashion (men’s suits and ladies’ fashions) retailer and has set up a number of retailing outlets in Hong Kong.  Commodities, claimed to be high end, are imported from Italy, France, etc.  Now, it is selling the products of a number of significant brand names.  Most of its customers are either tourists visiting Hong Kong or foreigners.  These include China tourists.

There are a number of Tommy Hilfiger shops located throughout Hong Kong and gave its solid profitable track record to Dickson.  The strong recognition of the brand and the continued aggressive expansion of its retail network, the Dickson Group is confident that the Tommy Hilfiger Group will become an increasingly significant contributor to Dickson’s turnover and profits.  Currently, Tommy Hilfiger Group has about 550 employees in total.

Dickson Group’s turnover for the year ended 31st March, 2014 was HK$4,353.4 million, an increase of 5.5% as compared to HK$4,126.2 million in the previous year.

Profit attributable to equity shareholders was HK$154.8 million compared to HK$229.3 million in the previous year, which included HK$77.6 million of one-off non-trading income from the sale of the Group’s American Eagle Outfitters license.  Excluding this one-off income, the profit of HK$154.8 million increased by 2.0% as compared to HK$151.7 million previous year.

The Group continued to demonstrate its commitment and confidence in its principal markets with the opening of 36 new shops during the FY 2013/14.  Its retail network as at 31st March, 2014 totalled 285 shops comprising of 46 shops in Hong Kong, 120 in China, 7 in Macau, 87 in Taiwan and 25 in Singapore and Malaysia.

Geographically, 64 per cent. of sales was generated in Hong Kong, 17 per cent. in Taiwan, 9 per cent. in China and 10 per cent. in the rest of South East Asia.

In Hong Kong, 6 new shops were opened this year, including the world’s first Rolex Icon store of 4,900 sq. ft. at the Hong Kong International Airport at Chek Lap Kok in August 2013 and the new 22,000 sq. ft. Beauty Avenue store at Langham Place in October 2013 offering the most comprehensive cosmetics and skincare products from leading international names.  Since opening, Beauty Avenue has performed strongly and above our expectations. The Group intends to continue to invest in expanding Beauty Avenue in Hong Kong and China.

In China, 18 new shops were opened in 2013/14, bringing the retail network to 120 shops.

In South East Asia, 10 shops were opened in Taiwan bringing the total number of shops to 87, and 1 store each was added to Singapore and Macau, taking the total number of shops in Singapore and Malaysia and Macau to 25 and 7 respectively.

As at 31st March, 2014, the Group had 2,598 (2013: 2,882) employees.

The subject is fully supported by Dickson Group with Mr. Dickson Poon as the Chairman.  Mr. Dickson Poon is one of the tycoons in Hong Kong.

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

 

 

REMARKS

 

Brief information of the principal director:-

Mr. Raymond LEE (Deputy Chairman and Chief Executive Officer), aged 58, joined the Dickson Group in 1992 as an Executive Director.  He was appointed the Deputy Chairman in 2000 and the Chief Executive Officer in 2005.  He is a Fellow of The Institute of Chartered Accountants in England and Wales, and prior to joining the Group, held a senior position with a major international financial institution.  Mr. Lee is a Qualified Accountant and provides leadership for the management of the Group to implement the strategies and oversee the realisation of the objectives set by the Board.

 

Court case:-

Action Date

Case No.

Plaintiff

Defendant

Cause

Amount

04-07-2002

S14306

Man Dragon Frienky

Top Creation Ltd. and Tommy Hilfiger (HK) Ltd.

Consumer Claims

Not stated

04-09-2002

S14306

Man Dragon Frienky

Top Creation Ltd. and Tommy Hilfiger (HK) Ltd.

Consumer Claims

Not stated

04-11-2002

S14306

Man Dragon Frienky

Top Creation Ltd. and Tommy Hilfiger (HK) Ltd.

Consumer Claims

Not stated

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.48

UK Pound

1

Rs.100.93

Euro

1

Rs.80.71

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.