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Report Date : |
07.03.2014 |
IDENTIFICATION DETAILS
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Name : |
L.K.
MACHINERY INTERNATIONAL LTD. |
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Formerly Known As : |
LKM (Hong Kong)
Ltd. |
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Registered Office : |
Unit A, 8/F., Mai Wah Industrial Building, 1-7 Wah Sing Street, Kwai Chung, New Territories |
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Country : |
Hong Kong |
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Date of Incorporation : |
03.11.2004 |
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Com. Reg. No.: |
37649596 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
· Manufacturer and Exporter of Microprocessor controlled hot chamber die-casting machines, microprocessor controlled cold chamber die-casting machines, plastic injection moulding machines, plastic processing machinery and equipment, metal working machinery and equipment. · engaged in marketing die-casting machines and plastic injection moulding machines. |
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No. of Employees |
12. (Including associates) Approx. 4,000. (Group) - (As at 30-09-2013) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source : CIA |
L.K. MACHINERY INTERNATIONAL LTD.
Unit A, 8/F., Mai Wah Industrial Building, 1-7 Wah Sing Street, Kwai Chung, New Territories, Hong Kong.
PHONE: 852-3412 5500, 3412 5592
FAX: 852-3412 5511
E-MAIL: sales@lkmachinery.com.hk
Managing Director: Mr. Chung Yuk Ming
Incorporated on: 3rd November, 2004.
Organization: Private Limited Company.
Capital: Nominal: HK$20,000,000.00
Issued: HK$10,000,000.00
Business Category: Sale of Die-Casting Machines and Plastic Injection Moulding Machines.
Group Revenue: HK$2,559,969,000 (Year ended 31-03-2013)
Employees: 12. (Including associates)
Approx. 4,000. (Group) - (As at 30-09-2013)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office:-
Unit A, 8/F., Mai Wah Industrial Building, 1-7 Wah Sing Street, Kwai Chung, New Territories, Hong Kong.
Immediate Holding
Company:-
Sky River International Ltd., British Virgin Islands.
Intermediate
Holding Company:-
L.K. Technology Holdings Ltd., Cayman Islands/Hong Kong.
Ultimate Holding
Company:-
Girgio Industries Ltd., British Virgin Islands.
Associated &
Affiliated Companies:-
LK Group of Companies
Best Truth Enterprises Ltd., British Virgin Islands.
Chongqing L.K. Machinery Co. Ltd., China.
Cyberbay Pte. Ltd., Singapore.
Fuxin L.K. Northern Machinery Co. Ltd., China.
Fuxin Lida Steel Casting Co. Ltd., China.
Gold Millennium Ltd., British Virgin Islands.
Gold Progress Ltd., Hong Kong.
Idra S.r.l., Italy.
L.K. Machinery (Shenzhen) Co. Ltd., China.
L.K. Machinery Co. Ltd., Hong Kong.
L.K. Machinery Corporation, Taiwan.
L.K. Machinery Inc., USA.
L.K. Precision Machinery (Kunshan) Co. Ltd., China.
L.K. Tech (Tianjin) Co. Ltd., China.
Lucky Prosper Ltd., Hong Kong.
Ningbo L.K. Machinery Co. Ltd., China.
Ningbo L.K. Technology Co. Ltd., China.
Power Excel International Ltd., Hong Kong.
Shanghai Atech Machinery Co. Ltd., China.
Shenzhen Leadwell Technology Co. Ltd., China.
World Force Ltd., British Virgin Islands.
Zhongshan L.K. Machinery Co. Ltd., China.
etc.
37649596
0931438
Group Chairperson: Ms. Chong Siw Yin
Managing Director: Mr. Chung Yuk Ming
Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
(As per registry
dated 03-11-2013)
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Name |
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No.
of shares |
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Sky River International
Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town,
Tortola, British Virgin Islands. |
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10,000,000 ======== |
(As per registry
dated 03-11-2013)
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Name (Nationality) |
Address |
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CHONG Siw Yin |
Flat A, 35/F., Tower 1, ARIA,
51 Fung Shing Street, Kowloon, Hong Kong. |
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CHUNG Yuk Ming |
Flat E, 46/F., Block 8, East
Point City, Tseung Kwan O, New Territories, Hong Kong. |
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CHAN Kwok
Keung |
Room 11, 5/F., Southorn
Garden, 2 O’Brien Road, Wanchai, Hong Kong. |
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FUNG Chi Yuen |
Flat E, 22/F., Tower 2, Tierra
Verde, Tsing Yi, New Territories, Hong Kong. |
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LIU Zhuo Ming |
Flat A, 35/F., Tower 1, ARIA,
51 Fung Shing Street, Kowloon, Hong Kong. |
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HONG Ka Kei |
Flat D, 7/F., Block 25, Parc
Oasis, Kowloon Tpng, Kowloon, Hong Kong. |
(As per registry
dated 03-11-2013)
|
Name |
Address |
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WONG Kin Ming |
Flat D, 35/F., Tower 6, Sky Tower, 38 Sung Wong Toi Road,
Tokwawan, Kowloon, Hong Kong. |
The subject was incorporated on 3rd November, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of L.K. Technology Holdings Ltd., name changed to LKM (Hong Kong) Ltd. on 15th September, 2006 and further to the present style on 23rd January, 2007.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Manufacturer and Exporter.
Lines: Microprocessor controlled hot chamber die-casting machines, microprocessor controlled
cold chamber die-casting machines, plastic injection moulding machines, plastic processing machinery and equipment, metal working machinery and equipment.
Trade Marks: “L.K.” and “POTENZA” brands.
Total Floor Space: 1,300 sq.m. – owned by the company and the Group.
Employees: 12. (Including associates)
Approx. 4,000. (Group) - (As at 30-09-2013)
Raw Materials: Imported from Japan, Germany, Sweden, etc. and also bought in Hong Kong.
Markets: Europe, US, Canada, Australia, Hong Kong, China, Taiwan, Japan, Thailand, Indonesia, etc.
Group Revenue:
HK$1,192,487,000 (Year ended 31-03-2009)
HK$1,408,364,000 (Year ended 31-03-2010)
HK$2,602,564,000 (Year ended 31-03-2011)
HK$3,011,636,000 (Year ended 31-03-2012)
HK$2,559,969,000 (Year ended 31-03-2013)
HK$1,331,799,000 (6 months ended 30-09-2013)
Terms/Sales: L/C or as per contracted.
Terms/Buying: Various terms.
Hong Kong Critical Components Manufacturers Association, Hong Kong.
Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
Alternation of
Capital:-
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03-11-2004 |
paid up |
HK$ 1.00 |
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09-05-2011 |
paid up |
HK$ 9,999,999.00 |
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–––––––––––––––– |
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Total: |
paid up |
HK$ 10,000,000.00 ============== |
Increase of
Nominal Capital:-
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From |
HK$10,000.00 |
to |
HK$20,000,000.00 |
on |
09-05-2011 |
Mortgage or Charge:
(See attachment)
Group Net Profit/(Loss):
(HK$ 52,213,000) (Year ended 31-03-2009)
HK$ 3,235,000 (Year ended 31-03-2010)
HK$259,138,000 (Year ended 31-03-2011)
HK$200,130,000 (Year ended 31-03-2012)
HK$ 33,331,000 (Year ended 31-03-2013)
(HK$ 46,344,000) (6 months ended 30-09-2013)
Profit or Loss: May make a loss in FY2013/2014.
Condition: Business is active.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
The Bank of East Asia Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
The Bank of Tokyo-Mitsubishi UFJ Ltd., Hong Kong Branch.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
DBS Bank (Hong Kong) Ltd., Hong Kong.
Public Bank (Hong Kong) Ltd., Hong Kong.
Bank of China (Hong Kong) Ltd., Hong Kong.
China CITIC Bank Corporation Ltd., Hong Kong.
Australia & New Zealand Banking Group Ltd., Hong Kong Branch.
etc.
Standing: Satisfactory.
L.K. Machinery International Ltd. is a wholly-owned subsidiary of Sky River International Ltd. [Sky River] which is a BVI-registered firm. In turn, Sky River is a wholly-owned subsidiary of L.K. Technology Holdings Ltd. [LKTH], a Cayman Islands-registered firm.
LKTH is a listed firm in Hong Kong. Its shares have been listed on The Stock Exchange of Hong Kong Ltd. bearing stock code 558 since 16th October, 2006. LKTH is an investment holding company of the LK Group.
The LK Group is principally engaged in designing, manufacturing and marketing hot chamber and cold chamber die-casting machines and plastic injection moulding machines. The products of the Group are sold mainly to the manufacturers of different industries in China. The Group’s products featuring 80 different models in 15 series under three major product categories. Die-casting machines are used for the die-casting of non-ferrous molten metals into different types of metallic consumer and industrial products such as automotive parts and components, computer, communication and consumer products, and household electrical products.
The subject is engaged in marketing die-casting machines and plastic injection moulding machines. Prime markets are Hong Kong, China, and other Asian countries.
For the year ended 31st March, 2013, the Group recorded total revenue of HK$2,559,969,000, representing a decrease of 15% as compared to the revenue of HK$3,011,636,000 in the same period of previous year. The profit attributable to the owners of the Company amounted to HK$33,706,000, representing a significant decrease of 83% as compared to the profit of HK$203,773,000 of the same period last year.
During the Year, the Group recorded a decrease in gross profit margin from 27% of the same period last year to 25%. The decrease was mainly attributable to the increase in proportion of fixed costs as compared to revenue. Moreover, the new plants in Taiwan, Kunshan and Shenzhen have commenced production at the beginning of 2012 respectively. In addition, the Group has acquired additional processing equipment for the plant in Fuxin City of Liaoning Province in order to enhance the overall processing capacity of the Group and to reduce the outsourcing of processing, resulting in increase in overall depreciation costs as compared to the same period last year.
For the six months ended 30th September, 2013, the Group recorded revenue of HK$1,331,799,000, representing an increase of 5% as compared to HK$1,268,312,000 recorded in the same period of previous year.
As for regional markets, the Group’s revenue in the PRC market amounted to HK$1,139,709,000, representing an increase of 30% as compared with the same period of previous year. However, as the Euro Zone economy remained fragile and the economic growth for the emerging economies like India and Brazil suffered noticeable slowdown, revenue contributed by the overseas markets dropped 51% to HK$192,090,000.
The loss for the period HK$46,344,000 as compared with a net profit of HK$14,592,000 in the same period of previous year.
Looking forward to the second half of the year, in the international market, the mild recovery of the US economy, coupled with euro zone’s stabilising economy, will contribute to the improvement of the business performance of IDRA, the Group’s subsidiary in Italy, Europe, and allow the Group to take advantage of the increase in orders received by its domestic customers in the export industry. In the domestic market, given China’s steadily growing economy, automobile and 3C industries achieved stable growth, reinforcing our customers’ confidence in equipment investment.
As at 30th September, 2013, the Group employed approximately 4,000 full time staff.
The subject is fully supported by the LK Group.
On the whole, consider the subject good for normal business engagements.
REMARKS:
Brief information
of directors:-
Ms. CHONG Siw Yin, aged 58, is the Chairperson of the Board and an Executive Director of LKTH. Ms. Chong joined the Group in March 1988, and was appointed as an Executive Director in August 2004. She is also a director of certain subsidiaries of LKTH. Ms. Chong is responsible for the strategic planning, administration and human resources management of the Group and has over 24 years of management experience.
Mr. CHUNG Yuk Ming, aged 66, is an Executive Director of LKTH. Mr. Chung joined the Group in February 2001 as a director of L.K. Machinery Co. Ltd. He was appointed as an Executive Director in September 2004. Mr. Chung is also a director of certain subsidiaries of LKTH. He is responsible for the strategic planning, the finance and investment of the Group. Mr. Chung has over 30 years of working experience in various sectors, including automobile, toys, electronics and telecommunication. Before joining the Group, he was an executive director of Kader Holdings Co. Ltd., and Shougang Concord Grand (Group) Ltd. (previously known as Kader Investment Co. Ltd.), both of which are publicly listed companies in Hong Kong. Mr. Chung holds a Master degree in Business Administration from the University of East Asia of Macau. He is a fellow member of the Hong Kong Institute of Directors.
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Date |
Particulars |
Amount |
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23-12-2010 |
Instrument: Assignment of DC Proceeds Property: By way of assignment or agreement to assign in each case as beneficial owner. All monies in any currency representing proceeds payable or to be paid to the Customer under the Documentary Credits, all the Customer’s right, title and interest in the said Documentary Credits and the benefit of all powers and remedies for enforcing the Documentary Credits Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
All loans or other advances made or to be made by the
Bank to the Customer against documents submitted under a Documentary Credit,
all monies and liabilities in any currency owing by the Customer to the Bank
at any time, whether separately or jointly, actually or contingently, present
or future, interest on all loans and advances and such monies and all
expenses of the Bank in perfecting or enforcing the Assignment |
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18-09-2012 |
Instrument: Trade Finance Security Assignment Property: The Borrower as beneficial owner: (a) assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interest and benefits of the Borrower in and to the following assets: (i) Export Credits; (ii) Export Collection Bills; (iii) Sales Contracts; (iv) Invoice Receivables; (v) Insurances; (vi) Trade Documents; & (vii) all claims, remedies and proceeds is connection with any of the foregoing; and (b) charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Goods together with their proceeds; & (ii) the Deposits; and (c) pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the Bank’s possession. Mortgagee: CITIC Bank International Ltd., Hong Kong. |
As security for the payment of all secured
liabilities. |
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10-01-2014 |
Instrument: Charge Over Account Property: The Chargor as sole beneficial owner and as security for the payment of all Secured Liabilities charges the Credit Balance to the Bank, by way of first fixed charge. The charge created as a separate charge over the credit balance of each Charged Account from time to time, including all interest accruing from time to time in respect of it. Type of Account: HK$ Current Account Account Number: 10645242 Mortgagee: China Construction Bank (Asia) Corporation Ltd.,
Hong Kong. |
All present and future obligations and liabilities |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.32 |
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|
1 |
Rs.102.54 |
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Euro |
1 |
Rs.84.19 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.