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Report Date : |
13.05.2014 |
IDENTIFICATION DETAILS
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Correct Name : |
VITAR INSULATION
MANUFACTURERS LTD. |
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Registered Office : |
Flat 4-6, 3/F., New Trade Plaza, Tower B, 6 On Ping Street, Siu Lek Yuen, Shatin, New Territories |
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Country : |
Hong Kong |
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Date of Incorporation : |
07.11.1978 |
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Com. Reg. No.: |
05792147 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Wholesaler and Exporter of Silicone Fibre Glass Sleevings, Heater Mica Sheets, Silicon Wire and Tubes, Glass Fibre Tapes and Rope, Insulation Laminate Products, PVC Tubes, Heat Shrinkable Tubes, Pedestal Fans, Pressboard, Magnetic Wire, Electric Cable as well as Exhaust Fans bearing the brand name “Vitar” |
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No of Employees : |
35 |
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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source : CIA |
VITAR INSULATION MANUFACTURERS LTD.
(Your enquiry given as VITA INSULATION MANUFACTURERS LTD of the same address)
Flat 4-6, 3/F., New Trade Plaza, Tower B, 6 On Ping Street, Siu Lek Yuen, Shatin, New Territories, Hong Kong.
PHONE: 852-2411 3108, 2411 3176
FAX: 852-2411 0895, 2789 8982
E-MAIL: enquiry@vitar.com.hk
Managing Director: Mr. Leung Kai Wing
Incorporated on: 7th November, 1978.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$10,000,000.00
Business Category: Manufacturer and trader.
Annual Sales Turnover: HK$150-200 million.
Employees: 35.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Flat 4-6, 3/F., New Trade Plaza, Tower B, 6 On Ping Street, Siu Lek Yuen, Shatin, New Territories, Hong Kong.
China Factory:-
Longchuan Vitar Insulation Factory
Baolong Industrial Park, Longchuan County, Heyuan City, Guangdong Province, China.
Holding Company:-
Vitar Insulation Holdings Ltd., British Virgin Islands.
Ultimate Holding
Company:-
Pure Best Ltd., British Virgin Islands.
Subsidiary/Associated
Companies:-
Leader Tech Ltd., Hong Kong.
Long Chuan Weida Insulation Material Co. Ltd., China.
Longchuan Vitar Insulation Factory, China.
Vitar Insulation Material (Shenzhen) Ltd., China.
Weida Electrical Industrial Equipment (Long Chuan) Co. Ltd., China.
05792147
0065199
Managing Director: Mr. Leung Kai Wing
Contact Person: Ms. Daisy Tsang Chi Yung
Nominal Share Capital: HK$10,000,000.00 (Divided into 100,000 shares of HK$100.00 each)
Issued Share Capital: HK$10,000,000.00
(As per registry
dated 07-11-2013)
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Name |
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No.
of shares |
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Vitar Insulation Holdings
Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town,
Tortola, British Virgin Islands. |
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100,000 ====== |
(As per registry
dated 07-11-2013)
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Name (Nationality) |
Address |
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LEUNG Chau Hiu |
656 Wonderland, Tai Po Tau, Tai
Po, New Territories, Hong Kong. |
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LEUNG Kai Wing |
Flat A, 3/F., Ascot Heights,
21 Lok Lam Road, Fo Tan, Shatin, New Territories, Hong Kong. |
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TSANG Chi Yung |
Flat A, 3/F., Ascot Heights, 21
Lok Lam Road, Fo Tan, Shatin, New Territories, Hong Kong. |
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LEUNG Chun Yin |
Flat B, 65/F., Tower 8, Lake
Silver, 599 Sai Sha Road, Ma On Shan, Shatin, New Territories, Hong Kong. |
(As per registry
dated 07-11-2013)
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Name |
Address |
Co.
No. |
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Max Nominees Ltd. |
Office C, 6/F., Centre Mark II, 305-313 Queen’s Road
Central, Hong Kong. |
0637286 |
The subject was incorporated on 7th November, 1978 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Block C, 26/F., Shield Industrial Centre, 84-92 Chai Wan Kok Street, Tsuen Wan, New Territories, Hong Kong, moved to the present address in March 2005.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Manufacturer, Wholesaler and Exporter.
Lines: Silicone fibre glass sleevings, heater mica sheets, silicon wire and tubes, glass fibre
tapes and rope, insulation laminate products, PVC tubes, heat shrinkable tubes, pedestal fans, pressboard, magnetic wire, electric cable as well as exhaust fans.
Brand Name: VITAR.
Employees: 35.
Materials/Commodities: Imports raw materials from Europe, Japan, Taiwan, Korea, etc. and finished products
from China.
Markets: Europe, Japan, Southeast Asia, South America, etc.
Annual Sales Turnover: HK$150-200 million.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T and D/P.
· Federation of Hong Kong Industries, Hong Kong. [Member No. A4524]
Hong
Kong Electrical Appliances Manufacturers Association, Hong Kong.
Hong
Kong Productivity Council, Hong Kong.
The
Chinese General Chamber of Commerce, Hong Kong.
The
Chinese Manufacturers’ Association of Hong Kong, Hong Kong. [Membership
No. 004440]
Nominal Share Capital: HK$10,000,000.00 (Divided into 100,000 shares of HK$100.00 each)
Issued Share Capital: HK$10,000,000.00
Profit or Loss: Made small profits in past two years
Condition: Maintaining in a normal manner.
Facilities: Making rather active use of general banking facilities.
Payment: Met as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
DBS
Bank (Hong Kong) Ltd., Hong Kong.
Dah
Sing Bank Ltd., Hong Kong.
Standing: Good.
Having issued 100,000 ordinary shares of HK$100.00 each, Vitar Insulation Manufacturers Ltd. is a wholly owned subsidiary of Vitar Insulation Holdings Ltd. which is a BVI-registered firm. The ultimate holding company Pure Best Ltd. [Pure Best] is also a BVI-registered firm.
Formerly the ultimate holding company of the subject Vitar International Holdings Ltd. [VIHL] was a Caymen Islands-registered firm. It was also a listed firm. Now, VIHL has changed name to Goodtop Tin International Holdings Ltd. [Goodtop] which is still a listed firm in Hong Kong.
On 5th December, 2011, Goodtop agreed to sell the entire issued share capital of VIHL to Pure Best, a BVI-registered firm, for a cash consideration of HK$83.4 million. Pure Best is owned by Mr. Liu Guohua who is a China merchant. Goodtop has changed its core business to mining and sales of non‑ferrous metal such as tin resources since March 2011. The Directors consider that the disposal of VIHL would allow the Group to focus on its core business of mining and sales of non-ferrous metal such as tin resources.
The subject holds the entire issued share capital of Leader Tech Ltd., a Hong Kong-registered firm and 100% equity interest in PRC subsidiaries.
The subject is a silicone rubber insulation material manufacturer. It owns a set of proprietary formula that enables it to produce cost effective and high quality silicone rubber materials applicable in a wide range of household electric appliances. The subject provides one-stop solution entailing a variety of products to customers.
The subject was the 10th largest insulation materials supplier for household electric appliances in China in terms of annual production value. Most of its customers are OEM manufacturers in China for leading global brands.
The subject’s principal production facilities are based in Longechuan, Guangdong Province, China which are owned by Weida Longchuan.
The subject’s Longchuan factory has a total area of 86,000 sq.m. and has been equipped with more than 2,000 braiding machines, nine production lines of silicone-based and fluoro-polymer-based electric wiring products, eight production lines for silicone and PVC tubes and six production lines for fibre‑glass sleeving tubers with silicone coating. There are about 700 employees in Weida Longchuan.
The followings are
the subject’s main products:-
· Lead Wire – Silicone G.F. Braided Silicone Wire (CUL);
Lead Wire – Silicone
Rubber Wire (CUL);
Mica Sheet;
Silicone Glass Fibre
Braided Silicone Tube;
Silicone Glass Fibre
Sleeving (UL/CSA);
Silicone Heating Cable
(CUL), Silicone Lid Seal; &
Silicone Rubber Tube
(FDA), etc.
Most of the subject’s products are exported to Europe, Japan, India and Southeast Asia. Other minor markets are South America, etc. The subject’s significant clients are Sony and Matsushita.
In September 2001, the subject got the ISO 9002 certification. Besides, the subject’s Mica products got UL approval in 1992. Sleeving products got CSA approval in 1995. Lead Wires got UL3122 and UL3367 approval, Silicone heating cable got UL3590 approval in 1998. Mica Tape also got UL approval in 1998.
On 29th October, 2004, the subject set up a wholly-owned subsidiary Leader Tech Ltd. in Hong Kong which is the holding company of Long Chuan Weida Insulation Material Co. Ltd.
In 2008, all the production facilities were moved to Longchuan Plant. Vitar Insulation Material (Shenzhen) Ltd. has become a customer service centre, showroom, research & development centre and warehouse.
The subject suffered from losses in 2009 and 2011. It made profits in past two years.
The subject has had sufficient working to support the current operating level.
On the whole, consider the subject good for normal business engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.73 |
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1 |
Rs.100.82 |
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Euro |
1 |
Rs.82.22 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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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.