|
Report Date : |
21.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
NEXT SOURCING
LTD. |
|
|
|
|
Registered Office : |
Room 1203-1205, 12/F. & 14/F.,
Cityplaza One, 1111 King’s Road, Taikoo Shing |
|
|
|
|
Country : |
Hong Kong |
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|
|
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Date of Incorporation : |
04.10.1983 |
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|
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Com. Reg. No.: |
08641626 |
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|
|
|
Legal Form : |
Private Limited Liability Company |
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|
Line of Business : |
Exporter of all kinds of fashion garments |
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|
|
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No. of Employees |
80 |
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 |
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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 |
A2 |
A2 |
|
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 |
NEXT
SOURCING LTD.
ADDRESS:
Room 1203-1205,
12/F. & 14/F., Cityplaza One, 1111 King’s Road, Taikoo Shing, Hong
Kong.
PHONE: 852-2739 2173 (12 lines)
FAX: 852-2724 1697, 2907 1653,
2907 1939
E-MAIL: hrdept@nextsl.com.hk
Managing
Director: Mr. Luk Kam Tim, Jimmy
Incorporated on: 4th October, 1983.
Organization: Private Limited Company.
Capital: Nominal: HK$20,010,000.00
Issued: HK$20,010,000.00
Business Category: Garment Exporter.
Group Revenue: £3,740.0 million (Year ended 31-01-2014)
Employees: 80.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
NEXT
SOURCING LTD.
ADDRESS:
Registered
Head Office:-
Room 1203-1205,
12/F. & 14/F., Cityplaza One, 1111 King’s Road, Taikoo Shing, Hong
Kong.
Immediate
Holding Company:-
Next Brand Ltd.,
UK.
Intermediate
Holding Company:-
Next Group PLC,
UK.
Ultimate
Holding Company:-
Next PLC, UK.
Associated
Companies:-
Next Group of Companies
Cairns Ltd., Hong Kong.
Choice Discount Stores Ltd., UK.
Cotton Traders Holdings Ltd., UK.
Cotton Traders Ltd., UK.
First Retail Finance Ltd., UK.
Lipsy Ltd., UK.
Next (Asia) Ltd., Hong Kong.
Next Directory, UK. [A division of Next Retail Ltd.]
Next Distribution Ltd., UK.
Next Europe BV, the Netherlands.
Next Financial Services Ltd., UK.
Next Manufacturing (Pvt) Ltd., Sri Lanka.
Next Retail Ltd., UK.
Next Sourcing VM Ltd., Hong Kong.
Next Transport Ltd., UK.
08641626
0128942
Managing
Director: Mr. Luk Kam Tim, Jimmy
Nominal Share
Capital: HK$20,010,000.00 (Divided into 5,000,000 Ordinary shares and
15,010,000 Non-voting Deferred shares of HK$1.00 each)
Issued Share
Capital: HK$20,010,000.00
(As
per registry dated 04-10-2013)
|
Name |
|
No.
of shares |
|
|
|
|
|
Non-voting
Deferred |
|
Next Brand Ltd. Desford
Road, Enderby, Leicester, LE19 4AT, UK. |
|
4,999,999 |
10,010,000 |
|
Next Group PLC Desford
Road, Enderby, Leicester, LE19 4AT, UK. |
|
1 |
- |
|
Next Transport Ltd. Desford Road,
Enderby, Leicester, LE19 4AT, UK. |
|
- |
5,000,000 |
|
|
|
–––––––– |
––––––––– |
|
|
Total: |
5,000,000 ======= |
15,010,000 ======== |
(As
per registry dated 04-10-2013)
|
Name (Nationality) |
Address |
|
LUK
Kam Tim, Jimmy |
Flat C, 19/F., Block 1, Victoria Centre, 15 Watson Road, 15 Watson
Road, North Point, Hong Kong. |
|
WONG
Yiu Kwan |
Flat D, 38/F., Block 5, Scenic View, 63 Fung Shing Street, Kowloon,
Hong Kong. |
|
David
KEENS |
Dingley House, 25 Harborough Road, Dingley, Market Harborough,
Leicestershire LE16 8PQ, UK. |
WONG Yiu Kwan (As per
registry dated 04-10-2013)
The
subject was incorporated on 4th October, 1983 as a private limited liability
company under the Hong Kong Companies Ordinance.
Originally
the subject was registered under the name of Silversheen Ltd., name changed to
Next (Hong Kong) Ltd. on 8th February, 1985; changed to Next (Asia) Ltd. on
25th March, 1998; and further to the present style on 8th October, 2004.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Exporter.
Lines: All kinds of fashion garments.
Employees: 80.
Commodities Imported: Hong Kong, China, other Asian countries, etc.
Markets: Europe (main), US, etc.
Group Revenue (continuing operations):-
£3,260.9 million (Year ended 29-01-2010)
£3,297.7 million (Year ended 31-01-2011)
£3,441.1 million (Year ended 31-01-2012)
£3,562.8 million (Year ended 31-01-2013)
£3,740.0 million (Year ended 31-01-2014)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, etc.
MEMBERSHIP:
The Hong Kong General
Chamber of Commerce, Hong Kong.
[Membership No. HKN0038]
Nominal Share Capital: HK$20,010,000.00 (Divided into 5,000,000 Ordinary shares and 15,010,000 Non-voting Deferred shares of HK$1.00 each)
Issued Share Capital: HK$20,010,000.00
Group Net Profit:
£364.0 million (Year ended 29-01-2010)
£400.9 million (Year ended 31-01-2011)
£474.8 million (Year ended 31-01-2012)
£508.6 million (Year ended 31-01-2013)
£553.2 million (Year ended 31-01-2014)
Group Net Worth:
£133.4 million (As at 29-01-2010)
£232.4 million (As at 31-01-2011)
£222.7 million (As at 31-01-2012)
£285.6 million (As at 31-01-2013)
£286.2 million (As at 31-01-2014)
Profit or Loss: Business was profitable in the past five years.
Condition: Keeping in an active and satisfactory manner.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Good.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Very Good.
Next
Sourcing Ltd., formerly known as Next (Asia) Ltd., is a wholly-owned subsidiary
of Next Brand Ltd. which is a UK-based firm.
The subject’s ultimate holding company Next PLC [Next] is also a
UK-based firm.
The
subject is engaged in garment designing and sourcing. Its lines of business are the same as its
holding companies, more or less.
Besides
Hong Kong, the subject has operations in mainland China, Romania, Sri Lanka,
India, Turkey and the United Kingdom. It
is engaged in the design, sourcing, buying, merchandising and quality control
of Next products.
Next
is a rather significant UK-based retail and mail order company with retail
stores in the United Kingdom, the United States, France, the Middle East and
South East Asia.
The
subject is trading in all kinds of garments and related products. Products have been exported to the United
Kingdom and the other European countries.
Commodities are imported from China or other Asian countries. Business has been active.
The
predecessor of Next, J. Hepworth & Son, was established in Leeds in the
United Kingdom in 1864. In 1986, J.
Hepworth & Son changed name to Next.
It acquired Grattan PLC (mail order company) in the same year.
Next
is a UK-based retailer offering stylish, good quality products in clothing,
footwear, accessories and home products.
Next distributes through three main channels: Next Retail, a chain of
more than 500 stores in the United Kingdom and Eire; the Next Directory, a
direct mail catalogue and transactional website with more than 2 million active
customers; and Next International, with more than 170 stores overseas.
Other
businesses in the Next Group include:-
·
Next Sourcing, which designs, sources and buys Next
branded products;
·
Lipsy, which designs and sells its own branded
younger women’s fashion products through wholesale, retail and internet
channels; and
·
Ventura, which provides customer services
management to clients wishing to outsource their customer contact
administration and fulfilment activities.
Next
has been a listed company in the United Kingdom. For the fiscal year ended January 2014, the
Next Group’s revenue amounted to ₤3,740.0 million, increased by 5.0% as
compared with FY 2013 which was ₤3,562.8 million. Profit after tax amounted to ₤553.2
million, increased by 8.8% as compared with ₤508.6 million of FY
2013. Overall business is good.
Unlike
many high street retailers, Next designs and directly sources the vast majority
of its products. It can do more to
leverage its design resources and sourcing base to produce better quality
fabrics, print designs, trim detailing and make up.
Next
has also adjusted its buying cycle to reflect the continuing trend for
consumers to buy closer to the point at which they need the clothing. Its aim is to increase the availability of
cold weather clothing in January, February and March and warm weather clothing
in August and September. Going forward
it will move away from a two season buying cycle to a four season cycle and its
customers will see a bigger change from spring into summer (in April) and
autumn into winter (in October).
Over
the last 6 years Next has made significant progress in developing its Home
business. Trading space has more than
doubled to 1.7 million square feet and Home sales now account for 18% of its
total turnover. Over the next few years
it intends to grow Home further by adding retail space and improving its online
functionality.
Next
competes for business against the many other suppliers to NEXT Retail and NEXT
Directory, it continued to provide more than 40% of NEXT Brand stock. Each of its in-country offices operates in a
very competitive environment, both against external suppliers and other Next
offices. Its franchise business, with
partners operating 173 stores in 35 countries, continued to grow both sales and
profits. The number of directly owned
stores has been reduced to 16 and they broke even for the first time. Its 11 stores in Central Europe made a small
profit, offset by a small loss in China.
It does not aim to expand its directly owned international stores.
In
2014, the Group has 15,929 male employees and 34,138 female employees.
The
history of the subject in Hong Kong is over thirty years.
The
subject is fully supported by the Group.
On
the whole, in view of the background and parentage of the subject, consider it
good for normal business engagements.
Brief
personal profile of the principal director:-
Mr.
David Keens, Aged 60, is an Group Finance Director, Joined
Next in 1686 as Group Treasurer and was appointed to the Board in 1991. Previous experience includes seven years in
the accountancy profession and nine years in the UK and overseas operations of
multinational manufacturers of consumer goods, with roles including Group
Treasurer and Finance Director.
Professional qualifications include the Association of Chartered
Certified Accountants and the Association of Corporate Treasurers.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.74 |
|
|
1 |
Rs.98.77 |
|
Euro |
1 |
Rs.80.52 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
PDT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.