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Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
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Name : |
SOUTH GRAND
KNITTING FACTORY LTD. |
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Registered Office : |
7/F., South Asia Building, 108 How Ming Street, Kwun Tong, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
10.01.1969 |
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Com. Reg. No.: |
02611134 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
manufacturer and trader of all kinds of Woollen Knitwear & Garment |
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No of Employees : |
180 (Including
associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
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
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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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 |
SOUTH GRAND KNITTING FACTORY LTD.
7/F., South Asia Building, 108 How Ming Street, Kwun Tong, Kowloon, Hong Kong.
PHONE: 852-2389 3383, 2389 3271
FAX: 852-2343 4058
E-MAIL: southgrand@southasiagroup.com
francis-bcw@southasiagroup.com
Chairman & Managing Director: Mr. Lam Shu Chit
Incorporated on: 10th January, 1969.
Organization: Private Limited Company.
Capital: Nominal: HK$2,000,000.00
Issued: HK$2,000,000.00
Business Category: Knitwear and garment trader and manufacturer.
Employees: 180. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
7/F., South Asia Building, 108 How Ming Street, Kwun Tong, Kowloon, Hong Kong.
Parent Company:-
South Asia Knitting Factory Ltd., Hong Kong.
Associated/Affiliated
Companies:-
· Allied Smart Holdings Ltd., Hong Kong.
Chi
Kee Investment Co. Ltd., Hong Kong.
Chivas
Godown Co. Ltd., Hong Kong.
Datian
Nan Hua Textiles Co. Ltd., China.
Dongguan
Nan Tai Fashion Knitting Ltd., China.
Dongguan
Nanda Fashionable Dress Knitting Co. Ltd., China.
Earngold
Ltd., Hong Kong.
Fashion
Resources Ltd., Hong Kong. [Dissolved]
Fast
Chance International Ltd., Hong Kong.
Fu
Nan Enterprises Co. Ltd., Hong Kong.
Gaylake
Ltd., Hong Kong.
Genlink
Development Ltd., Hong Kong.
Good
Ready Investment Ltd., Hong Kong.
Hui
án Nanjiang knitting Fashion Co. Ltd., China.
Huian
Nan Jiang Knitting Garment Co. Ltd., China.
International
Fashions Ltd., Hong Kong. [Dissolved]
Ji
án Nanfa knitting Fashion Co. Ltd., China.
Kian
Hing Traders Co. Ltd., Hong Kong.
Kian
Nan Financial Ltd., Hong Kong.
Kian
Nan Trading Co. Ltd., Hong Kong.
Lusin
& Co. Ltd., Hong Kong.
Nan
Hu Knitting Fashion Ltd., China.
Nan
Sing Machinery Ltd., Hong Kong.
Nanan
Nan Fa Woolen Knitwear Co. Ltd., China.
Nanan
Nan Feng Textiles Ltd., China.
Nanan
Nan Hua Textiles Co. Ltd., China.
Nanan
Nan Yuan Knitting & Garment Co. Ltd., China.
Nanan
Nanging Fashions (China) Ltd., China.
Nanan
Nanyi Textiles Co. Ltd., China.
Nanan
South Fountain Garment Factory Ltd., China.
Nanan
South Pacific Fashions Co. Ltd., China.
Nansin
Bleaching & Dyeing Co. Ltd., Hong Kong.
Nantex
Fashions Ltd., Hong Kong.
Putian
Nan Hing Knitting Factory Ltd., China.
Quanzhou
Nanxin Bleaching Dye Co. Ltd., China.
Rich
China Development Ltd., Hong Kong.
S.A.
Textiles (Canada) Ltd., Canada.
Safety
Godown Co. Ltd., Hong Kong.
South
Asia Buying Co. Ltd., Hong Kong.
[Dissolved]
South
Asia Enterprises Ltd., Hong Kong.
South
Asia Fashions Ltd., Hong Kong.
South
Asia Holding (Fujian) Ltd., China.
South
Asia Holding Co. Ltd., Hong Kong.
South
Asia Management Service Ltd., Hong Kong.
South
Asia Real Estate Development Ltd., Hong Kong.
South
Asia Textiles Ltd., Hong Kong.
South
Fountain Garment Factory Ltd., Hong Kong.
South
Glamour Fashions Garment Ltd., Hong Kong.
South
Overseas Fashions Ltd., Hong Kong.
South
Pacific Fashions (Thailand) Ltd., Thailand.
South
Pacific Fashions Ltd., Hong Kong.
South
Sea Real Estate Ltd., Hong Kong.
etc.
02611134
0016654
Chairman & Managing Director: Mr. Lam Shu Chit
Nominal Share Capital: HK$2,000,000.00 (Divided into 20,000 shares of HK$100.00 each)
Issued Share Capital: HK$2,000,000.00
(As per registry
dated 10-01-2014)
|
Name |
|
No. of shares |
|
South Asia Knitting Factory Ltd., Hong Kong. |
|
19,999 |
|
LU Sin |
|
1 |
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|
–––––– |
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Total: |
20,000 ===== |
(As per registry
dated 10-01-2014)
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Name (Nationality) |
Address |
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LAM Shu Chit |
Flat B, 25/F., Block 12,
Provident Centre, North Point, Hong Kong. |
|
CHUI Wai Fook |
15/F., South Asia Building,
108 How Ming Street, Kwun Tong, Kowloon, Hong Kong. |
|
YEUNG Lin Kar |
Flat A, 22/F., Block 4, Provident
Centre, North Point, Hong Kong. |
(As per registry dated 10-01-2014)
|
Name |
Address |
|
YEUNG Lin Kar |
Flat A, 22/F., Block 4, Provident Centre, North Point,
Hong Kong. |
The subject was incorporated on 10th January, 1969 as a private limited liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: manufacturer and trader
Lines: All kinds of Woollen Knitwear & Garment
Employees: 180. (Including associates)
Raw materials Imported From: Europe, Japan, Australia, etc.
Markets: US, Japan, Canada, UK, Europe and Australia, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$2,000,000.00 (Divided into 20,000 shares of HK$100.00 each)
Issued Share Capital: HK$2,000,000.00
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Very Good.
South Grand Knitting Factory Ltd. is a wholly-owned subsidiary of South Asia Knitting Factory Ltd., a Hong Kong-registered company under the same Group and located at the same building.
The subject is a member of South Asia Textiles (Holding) Ltd. [South Asia Textile Group/Group] which is a Hong Kong-registered company located at the same building.
The subject is trading in all kind of knitted products.
The Group now employs over 25,000 staff, with an average yearly production of 40 million items of knitwear and 10 million garments. The annual exported value is about HK$4.0 billion. Main customers include Abercrombie & Fitch, AK, Anne Klein, Banaka Republic, Billabang, Bosch, Bowen & Wright, BP., Brahmin, Brody, Caslon, Casual Corner, Cleo, Country Road, Daniel Cremieun, David Brooks, Disney, Driving Force, Encore, Esprit, Express, Free’s Phrase, Gap, Great Northwest, Guess, Halogen, J.Lo, Jillian Jones, Jones New York, Kenneth Cole, Lands END, Leon Levin, Loft, Makelet, Michel Klein, Mng Jeans, Natural Beauty, Nautica, Next, Nine West, Nordstrom, Polo Jeans Co. Ralph Lauren, Pure Stuff, Reilmans, Rickis, Robert Talbott, Rubbish, Rw&Co., Sablier, Stephanie Parks, T.B.D., Texwood, Viyella, etc.
In the early 1980’s, the Group founded Nan Feng Knitting Factory in Kwan Qiao Town, Nan An City of Fujian Province, China and pioneered as the forerunner of foreign investors in Fujian Province.
Concerning property investment, in 1988, the Group built the South Asia Building at 108 How Ming Street, Kwun Tong, Hong Kong, as the Group’s headquarters. It is an 18-storey high building with a total area of 110,000 square metres. Moreover, in 2003 the Group expanded the capacity and purchased a neighbouring 13-storey industrial building. The building was then renamed as South Asia Industrial Centre, which suitably providing ample space to meet the continued growth of the Group.
The Group is one of the largest enterprises in Quanzhou City, Fujian Province, China. Its total turnover of the textile business of South Asia ranks in the first ten place among over 3,800 textile enterprises in Hong Kong and as one of the leaders in the industry.
The subject is chiefly owned by Mr. Lu Sin and his family. The Lu family and their associated companies are also large shareholders of Safety Godown Co. Ltd. which is a listed firm in Hong Kong.
The history of the subject in Hong Kong is over 45 years. Business is active.
On the whole, in view of the subject’s background and history, consider it good for normal business engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.06 |
|
|
1 |
Rs.99.61 |
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Euro |
1 |
Rs.88.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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 |
|
-- |
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.