MIRA INFORM REPORT

 

 

Report Date :

07.05.2014

 

IDENTIFICATION DETAILS

 

Name :

SIXTY  FAR  EAST  LTD.

 

 

Formerly Known as :

Rho Beta 33 Ltd

 

 

Registered Office :

10/F., JOS Tower, Millennium City 2, 378 Kwun Tong Road, Kwun Tong, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

30.01.2002

 

 

Com. Reg. No.:

32440632

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

subject is trading in the following commodities:-

 

·         Jacket – Men (excluding Ski-Jacket);

·         Jacket – Ladies (excluding Ski-Jacket);

·         Blouses‚ Jeans‚ Dresses and Skirts;

·         Tee and Sweat Shirts; &

·         Footwear – Leather.

 

 

No of Employees :

70  (Including retail shops)

 

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

 

SIXTY  FAR  EAST  LTD.

 

 

Company ADDRESS

 

10/F., JOS Tower, Millennium City 2, 378 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong.

 

PHONE:            852-2267 0906,  2161 9300,  2869 6588

FAX:                 852-2267 0669,  2525 7577

E-MAIL:            paulho@sixtyfareast.com.hk

carmen@sixtyfareast.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Paolo Bodo

 

 

SUMMARY

 

Incorporated on:            30th January, 2002.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$250,000,000.00

Issued:             HK$250,000,000.00

 

Business Category:       Garment Trader.

 

Employees:                  70.  (Including retail shops)

 

Main Dealing Banker:     DBS Bank Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.


COMPANY ADDRESS

 

Registered Head Office:-

10/F., JOS Tower, Millennium City 2, 378 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong.

 

Retail Shops:  8 in Hong Kong.

 

Holding Company:-

Sixty International S.A., Luxembourg.

 

Ultimate Holding Company:-

Sixty S.p.A., Italy.

 

Associated/Affiliated Companies:-

Guangzhou Trendy Information Technology Co. Ltd., China.

Miss Sixty Footwear Asia Ltd., Hong Kong.  (Same address)

Shanghai Trendy Fashion Trading Co. Ltd., China.

Sixty Asia (HK) Ltd., Hong Kong.

Sixty Asia Holdings Ltd., Hong Kong.

Sixty Asia Investment Ltd., Hong Kong.

Sixty Far East Ltd., Hong Kong.  (Same address)

Sixty Group S.p.A., Italy.

Trendiano Investments (BVI) Ltd., British Virgin Islands.

Trendy International (Central China) Ltd., Hong Kong.

Trendy International (East China) Ltd., Hong Kong.

Trendy International (HK) Ltd., Hong Kong.  (Same address)

Trendy International (Shanghai Corso Como) Ltd., Hong Kong.

Trendy International (Southwest) Ltd., Hong Kong.

Trendy International Investment Ltd., Hong Kong.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

32440632

 

 

COMPANY FILE NUMBER

 

0784562

 

 

MANAGEMENT

 

Chairman & Chief Executive Officer:       Mr. Paolo Bodo

General Manager:                                  Mr. Paul Ho

 

CAPITAL

 

Nominal Share Capital: HK$250,000,000.00 (Divided into 250,000,000 shares of HK$1.00 each)

Issued Share Capital:     HK$250,000,000.00

 

 

SHAREHOLDERS

(As per registry dated 30-01-2014)

 

Name

 

No. of shares

Sixty International S.A.

29 Avenue Monterey, L-2163, Luxembourg.

 

249,999,995

Sixty S.A.

2, avenue Charles de Gaulle, L-1653, Luxembourg.

 

5

 

 

––––––––––

 

Total:

250,000,000

=========

 

 

DIRECTORS  

(As per registry dated 30-01-2014)

 

Name

(Nationality)

 

Address

Pietro BONGIOVANNI

Lungotevere, Cenci 09, 00185, Rome, Italy.

 

Rocco TRISCHITTA

Lungotevere de Cenci, 900186 Roma, Italy.

 

Paolo BODO

Suite 3108, 31/F., Hampton Court, Gateway Apartments, Harbour City, Tsimshatsui, Kowloon, Hong Kong.

 

 

SECRETARY

(As per registry dated 30-01-2014)

 

Name

Address

Co. No.

RSRB Secretariat Ltd.

20/F., Alexandra House, 18 Charter Road, Central, Hong Kong.

1721104

 


HISTORY

 

The subject was incorporated on 30th January, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Rho Beta 33 Ltd., name changed to the present style on 22nd March, 2002.

 

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           Jackets, blouses, jeans, dresses, skirts & sweat shirts

 

Employees:                  70.  (Including retail shops)

 

Commodities Imported: Italy, other European countries, etc.

 

Markets:                        Hong Kong, China, other European countries, etc.

 

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

 

Terms/Buying:               L/C, T/T, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$250,000,000.00 (Divided into 250,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$250,000,000.00

 

Mortgage or Charge

(Since 2011):                 (See attachment)

 

Profit or Loss:               Group business suffered from losses.

 

Condition:                     Keeping in an normal manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.


Bankers: -

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

·         DBS Bank Ltd., Hong Kong Branch.

 

Standing:  Normal.

 

 

GENERAL

 

Sixty Far East Ltd. is a wholly-owned subsidiary of Sixty International S.A. which is a Luxembourg-based firm.  The ultimate holding company Sixty S.p.A. is an Italy-based firm.  This firm is the holding company of the Sixty Group.

 

In December 2011, the subject increased its issued share capital to HK$250 million form HK$140 million.

 

The Directors of the subject are Italian.  The managing director of the subject Mr. Paolo Bodo is residing in Hong Kong.

 

The subject is trading in the following commodities:-

 

·         Jacket – Men (excluding Ski-Jacket);

·         Jacket – Ladies (excluding Ski-Jacket);

·         Blouses‚ Jeans‚ Dresses and Skirts;

·         Tee and Sweat Shirts; &

·         Footwear – Leather.

Sixty Group is an international fashion company, based in Italy.  In 1989, Wicky Hassan, Creative Director and Co-founder of the Group, had the intuition to create a company where denim and fashion would coexist in a world without limits and boundaries.  Collaborating with Co-founder and CEO Renato Rossi, they set up the Group with a portfolio comprising several brands.

It was due to the financial crisis emerged in the European countries, Sixty S.p.A. had faced financial difficulties and disposed its Asian business to Trendy International Group [Trendy Group] which is a China‑based group of companies.

In order to avoid bankruptcy and liquidation of the company, in July 2013 Sixty Group met with all creditors to sign an agreement detailing how their EUR 380 million debt would be paid.  The banks had the biggest exposure of over EUR 250 million of a total debt of approximately EUR 370 million.  88% of the creditors gave their consent.

The procedure for solving the company’s difficult situation still has to pass through a series of delicate steps.  If the situation is solved positively, two of the Luxembourg companies now controlling Sixty S.p.A - Sixty International and Sixty S.p.A, which were both acquired by the Asian fund Crescent Hyde Park, will buy the Energie and Miss Sixty brands immediately and, by March 2014, the Refrigiwear and Murphy & Nye brands.

To carry out this restructuring on the entire European market, Sixty Group has also slashed its network of outlets and has lost its corporate structure to avoid bankruptcy.

Sixty Group has seen its sales reduced to 267 million euros at the end of 2011.

The fashion group, which owns brands Miss Sixty, Energie, Refrigiwear, Killah and Murphy & Nye, is now controlled by two Luxembourg companies, Sixty International and Sixty S.A., part of the Asian fund.

Now, the key personnel of the subject and the business of the Group in China are Jacky Xu and Mr. Paolo Bodo.  The former is a China merchant while the latter is an Italian who is a Hong Kong ID holder.

Sixty Group is a unique universe divided in two main sectors:-

·         FASHION division - characterized by collections with a recognizable vocation for research, experimentation and trend setting;

·         The AUTHENTICH wear division - where brands are identified by strong personality and historical heritage based on a tradition of high quality, technological garments which respond to specific needs in urban life, free time and work.

Trendy Group is chiefly owned by Mr. Jacky Xu who is a billionaire in China.

According to Forbes Magazine, Jacky Xu ranked the 974th in the Forbes Lists.  As of March 2013, his net worth was US$1.5 billion.

Jacky Xu leads retailer Trendy, one of the most successful home-grown Chinese businesses to cash in on the country’s spending binge on apparel in recent years.  The best known brands among Xu’s 2,000 shops include Ochirly and Five Plus.  It has teamed up with 10 Corso Como in 2013 to open the Italian fashion retailer’s first China store in Shanghai.  The new store commenced business in November 2013 in Shanghai.

Trendy is a designer, distributor and retailer of China’s favourite women’s fashion lines Ochirly and Five Plus, as well as the leading men’s fashion brand Trendiano, and Love Ysabel, targeting the children’s market.

In 2012, Trendy International Group acquired the global Miss Sixty brand, Killah and Energie for Asia Pacific including over 200 points of sale.

The subject is fully supported by the Trendy Group and the Sixty Group.  History is over twelve years in Hong Kong.

On the whole, consider the subject good for normal business engagements in small credit amounts.

 

 

MORTGAGE OR CHARGE

(Since 2011)

 

Date

Particulars

Amount

07-10-2011

Instrument:      Charge Over Account Receivables re US$20,000,000 Facility Letter (“Deed”)

Property:

(i)   all moneys which are in the future may be payable to the chargor by any person

(ii)   by way of security, all the Chargor’s right’s, title and interests to all moneys standing to the credit of the Charged Account including all interest earned thereon

Mortgagee:      DBS Bank Ltd., Hong Kong Branch.

To secure the discharge of: (i) any and all indebtedness, liabilities and obligations of the Chargor to the Bank, under the facility letter dated 3rd August, 2011 relating to banking facilities of up to US$20,000,000; (ii) the repayment of all moneys expended by the Bank together with interest; (iii) the indemnity given by the Chargor to the Bank

25-11-2011

Instrument:      Charge on Cash Deposit(s) to secure Liabilities of the Depositor(s) (“Charge”)

Property:

(1)  By way of first fixed charged and agreement to charge:
the Deposit and all right, title and interest of the Company

(2)  By way of set-off:
any sum standing to the credit of the accounts of the Company with the Bank

Mortgagee:      DBS Bank Ltd., Hong Kong Branch.

All sums of money and liabilities as at the date of the Charge or in the future owing to the bank

07-06-2012

Instrument:      Account Charge (the “Deed”)

Property:

The Chargor charges the account with account number 10010723588 (USD) (SWIFT Code: DBSSHKHH) with DBS Bank Ltd in the names of the Chargor and the credit balance on the Account

Mortgagee:      Sixty Asia Holdings Ltd., Hong Kong.

The payment and discharge of all obligations owing to the Secured Party by the Chargor under a facility letter dated 7th June, 2012 (between the Chargor, the Secured Party and Sixty International S.A.)

07-06-2012

Instrument:      Deed of Assignment

Property:

The assignor assigns the assigned receivables to the assignee in accordance with the terms and conditions of this deed with effect from the effective date as continuing security for the repayment of the Assignor outstanding receivables by the assignor to the assignee

Mortgagee:      Sixty Asia Holdings Ltd., Hong Kong.

The repayment of the assignor outstanding Receivables by the assignor to the assignee

11-04-2013

Instrument:      Supplemental Deed to Charge Over Account Receivables dated 7th October, 2011

Property:

The chargor further assigns and agrees to assign to the Bank

(i)   By way of first floating charge, all the chargor’s rights, title and interests to and in all receivables; and

(ii)   By way of security, all the chargor’s right, title and interest in and to all moneys from time to time standing to the credit of the charged account including all interest earned thereon from time to time, and additions to and renewals or conversions and replacements of such moneys in any account;

In each case together with all benefits, rights and remedies in respect of the same and power for the Bank to sue for recovery and give effectual discharge for all such moneys in the name of the chargor

Mortgagee:      DBS Bank Ltd., Hong Kong Branch.

(i) Any and all indebtedness (ii) The repayment on demand of all moneys reasonably expended by the Bank(iii) The indemnity given by the chargor to the bank


 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.20

UK Pound

1

Rs.101.68

Euro

1

Rs.83.55

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.