MIRA INFORM REPORT

 

 

Report Date :

26.06.2014  

 

IDENTIFICATION DETAILS

 

Name :

HOP YING INTERNATIONAL LEATHER CO. LTD.

 

 

Registered Office :

Room 1207, 12/F., Riley House, 88 Lei Muk Road, Kwai Chung, New Territories,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

17.04.1984

 

 

Com. Reg. No.:

08971825

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter, Distributor and Wholesaler of all kinds of raw cattle hides, wet cow hides, cow skins, goat skins, sheep skins, leathers and chemical products for tanning

 

 

No. of Employees

16

 

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 and address

 

HOP  YING  INTERNATIONAL  LEATHER  CO.  LTD.

 

 

ADDRESS:       Room 1207, 12/F., Riley House, 88 Lei Muk Road, Kwai Chung, New Territories, Hong Kong.

 

PHONE:            852-2781 4323,  2781 4251,  2781 4255,  2423 9352

 

FAX:                 852-2359 7497,  2359 3779

 

E-MAIL:            williama@hopying.com.hk

wha@hopying.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. To Yee Fong David

 

 

SUMMARY

 

Incorporated on:            17th April, 1984.

 

Organization:                 Private Limited Company.

 

Issued Capital:              HK$10,002,000.00

 

Business Category:       Leather Trading.

 

Annual Turnover:           HK$250~300 million.

 

Employees:                  16.  (Including associates)

 

Main Dealing Banker:     Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.

 


 

ADDRESS

 

Registered Head Office & Warehouse:-

Room 1207, 12/F., Riley House, 88 Lei Muk Road, Kwai Chung, New Territories, Hong Kong.

 

Subsidiary:-

Glory Point Ltd., Hong Kong.  (Same address)

 

Associated/Affiliated Companies:-

Golden Easy Ltd., Hong Kong.

Hop Ying (China) Ltd., Hong Kong.

Hop Ying International (B.V.I.) Ltd., British Virgin Islands.

Hop Ying International Chemicals Ltd., Hong Kong.  [Dissolved]

Hop Ying International Investments Ltd., Hong Kong.

Hop Ying International Leather Co. Ltd., Hong Kong.  (Same address)

Hop Ying International Trading Co. Ltd., Hong Kong.  [Dissolved]

Hop Ying Leather (S.E.A.) Pte. Ltd., Singapore.

Hop Ying Leather (Taiwan) Co. Ltd., Taiwan.

Hop Ying Properties Investment Ltd., Hong Kong.  (Same address)

Hop Ying Tanning Industrial Co. Ltd., Hong Kong.  [Dissolved]

Taurus Australia Hides. Skins & Leather Pty. Ltd., Australia.

Yauyue Holdings Ltd., Liberia.

 

 

BUSINESS REGISTRATION NUMBER

 

08971825

 

 

COMPANY FILE NUMBER

 

0135693

 

 

MANAGEMENT

 

Chairman:  Mr. Au Weng Hei

Managing Director:  Mr. To Yee Fong David

Contact Person:  Ms. Chong Lai Yee Melinda

 

ISSUED CAPITAL:  HK$10,002,000.00

 


SHAREHOLDERS:        (As per registry dated 17-04-2014)

Name

 

No. of shares

AU Weng Hei

 

8,001

To Yee Fong, David

 

2,000

Hop Ying International (B.V.I.) Ltd.

Trident Chambers, P .O. Box 146, Road Town, Tortola, British Virgin Island.

 

1

 

 

––––––

 

Total:

10,002

=====

 

DIRECTORS:    (As per registry dated 17-04-2014)

Name

(Nationality)

 

Address

TO Yee Fong, David

8/F., Tropicana Court, 45 South Bay Close, Repulse Bay, Hong Kong.

 

CHONG Lai Yee

Flat D, 6/F., Tower 1, Phase 1, Metro City, 1 Wan Hang Road, Tseung Kwan O, New Territories, Hong Kong.

 

SECRETARY:   (As per registry dated 17-04-2014)

Name

Address

Co. No.

Glory Point Ltd.

Room 1207, 12/F., Riley House, 88 Lei Muk Road, Kwai Chung, New Territories, Hong Kong.

0142976

 

 

HISTORY

 

The subject was incorporated on 17th April, 1984 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Room 2106-2112, 21/F., Park-In Commercial Centre, 56 Dundas Street, Mongkok, Kowloon, Hong Kong, moved to Room 1533, 15/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong in 1977, and further moved to the present address in November 2011.

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter, Distributor and Wholesaler.

 

Lines:                           All kinds of raw cattle hides, wet cow hides, cow skins, goat skins, sheep skins, leathers and     chemical products for tanning.

 

Employees:                  16.  (Including associates)

 

Commodities Imported: Imported from India, Europe, US, South America, etc.

 

Markets:                        Hong Kong, China, Southeast Asia, etc.

 

Annual Turnover:           HK$250~300 million.

 

Terms/Sales:                 As per contracted.

 

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

 

MEMBERSHIP: The Chinese General Chamber of Commerce, Hong Kong.

The Hong Kong Hide & Leather Trader’s Association Ltd., Hong Kong.

The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKH0355]

 

 

FINANCIAL INFORMATION

 

Issued Capital:                          HK$10,002,000.00

 

Profit or Loss:               Making a small profit in the past years.

 

Condition:                     Business is active and good.

 

Facilities:                       Making active use of general banking facilities.

 

Payment:                       Met on time.

 

Commercial Morality:      Satisfactory.

 

Bankers:-

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

Bank of China (Hong Kong) Ltd., Hong Kong.

Barclays Bank PLC, Hong Kong Branch.

BNP Paribas, Hong Kong Branch.

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

 

Standing:                      Good.

 

 

GENERAL

 

Hop Ying International Leather Co. Ltd., incorporated in April 1984, is a well-established leather business belonging to the Hop Ying Group which was formerly under the umbrella of the listed parent company Hop Ying International Holdings Ltd. [HYIH].  HYIH is a Bermuda-incorporated company with shares listed on The Stock Exchange of Hong Kong Ltd. in 1992.

HYIH was spun off from the Hop Ying Group after the reorganisation of the Group in October 1996.  HYIH was renamed Dong-Jun (Holdings) Ltd. in Bermuda on 25th October, 1996 and in Hong Kong on 17th December, 1996.  Consequent on the reorganisation, the management and activities of the Dong-Jun Group changed.  The Group has become an investment holding and property development company.

After reshuffling in August 2013, now the subject is jointly owned by William Au Weng Hei, who is the founder of the Group holding 80%, and Mr. To Yee Fong David, holding 20%.

Founded in 1983, the Hop Ying Group is one of the largest leather trading companies and distributors in Hong Kong.  The subject is responsible for sourcing, importing, marketing and distributing raw cattle hides, wet cow hides, cow hides, goat and sheep skins, and chemical products for tanning.  The Group is engaged in importing and exporting all kinds of raw hides, crusts, finished leather, as well as leather products.  Trading countries and regions include the United States, South America, Europe, Southeast Asia, India, Bangladesh, Thailand, South Korea, Japan, Argentina, Pakistan, etc.

In order to ensure the quality of the products, the Group has set up subsidiary or associated companies in Taiwan, Singapore and Australia, and even representative offices in Italy, Brazil and India.  The Group markets the leather materials primarily in Hong Kong and China.  Customers include tanneries, leather dealers and leather product and leather garment manufacturers.  Besides, the Group is also importing and wholesaling leather products, such as shoes and handbags.

The subject’s annual sales turnover ranges from HK$250 to 300 million.  Business is rather active.

The subject has got an affiliated company Golden Easy Ltd. located the operating office of the subject.  Incorporated on 14th May, 1996 and having issued 10,000 ordinary shares of HK$1.00 each, Golden Easy is a private limited company equally owned by William Au and Kong Yu Choi.  The latter formerly was a shareholder of the subject.  Golden Easy is also engaged in the same lines of business as the subject.

William Au, aged 56, is the co-founder of the Hop Ying Group and has over 36 years of experience in the leather industry.  He is responsible for the overall management of the Group and directly supervising the activities of raw materials sourcing and products marketing.  Au has got a Diploma in Management for Executive Development from the Chinese University of Hong Kong.  He is a Committee Member of The Hong Kong Hide & Leather Traders’ Association Ltd.

Kong Yu Choi, aged 77, is also the co-founder of the Group and has over 56 years of experience in the leather industry.  He got an Honorary Doctor of Philosophy degree in Marketing from a university in California, the United States in 1993.  He was the old shareholder of the subject.

The history of the subject in Hong Kong is over 30 years in Hong Kong.

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

 

 

REMARKS

 

Court case:-

Action Date

Case No.

Plaintiff

Defendant

Cause

Amount

12-09-1994

H9013

Austal International Ltd.

Hop Ying International Leather Co. Ltd.

Goods Sold and Delivered

US$102,712

09-12-2003

S96688

Hong Kong Broadband Network Ltd.

Hop Ying International Leather Co. Ltd.

Service Charge

Not stated

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.28

UK Pound

1

Rs.102.28

Euro

1

Rs.82.05

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIS

 

               

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.