MIRA INFORM REPORT

 

 

Report Date :

31.10.2014

 

IDENTIFICATION DETAILS

 

Name :

KGS SOURCING LTD

 

 

Formerly Known As :

REDCATS ASIA LTD.

 

 

Registered Office :

20/F., Lu Plaza, 2 Wing Yip Street, Kwun Tong, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

17.01.1997

 

 

Com. Reg. No.:

21144788

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Garment and Household Accessory Trader

 

 

No. of Employees :

30

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 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 and address

           

KGS SOURCING LTD

 

ADDRESS:       20/F., Lu Plaza, 2 Wing Yip Street, Kwun Tong, Kowloon, Hong Kong.

 

PHONE:            852-2316 2628,  2628 1898

 

FAX:                 852-2396 8537,  2628 1803

 

E-MAIL:            webmaster@redcats.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Kwok Chi Kueng

 

 

SUMMARY

 

Incorporated on:            17th January, 1997.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000.00

Issued:                         HK$10,000.00

 

Business Category:       Garment and Household Accessory Trader.

 

Kering Group Revenue:  €9,748 million  (Year ended 31-12-2013)

 

Company Employees:  30.

 

Group Employees:        35,000.  (Year ended 31-12-2013)

 

Main Dealing Banker:     BNP Paribas, Hong Kong Branch.

 

Banking Relation:          Satisfactory.


Company name

 

KGS  SOURCING  LTD.

 

 

ADDRESS

 

Registered Head Office:-

20/F., Lu Plaza, 2 Wing Yip Street, Kwun Tong, Kowloon, Hong Kong.

 

Asia Offices:-

Shanghai Office
9/F., Bank of China Tower, 200 Mid Yin Cheng Road, Pudong New Area, Shanghai, China 200120.
Tel:       (86) 21 5037 2511
Fax:      (86) 21 5037 2461, 5037 2462, 5037 2463

Qingdao Office
Room C-E, 16/F., Everbright International Financial Centre, 67 Hongkong West Road, Qingdao, China 266071.
Tel:       (86) 532 389 0036 (6 lines)
Fax:      (86) 532 389 0038

India Liaison Office
10/F., Tower B, DLF Cyber Greens, DLF City Phase III, Gurgaon-122 022, India.
Tel:       (91) 124 2358936 / 37 / 38
Fax:      (91) 124 2355758

Dhaka Liaison Office
#101 (2/F.), R.M. Centre, Gulshan Avenue, Dhaka 1212, Bangladesh.
Tel:       (880) 2 881 4465, 881 7662, 988 6795
Fax:      (880) 2 988 7931

 

Holding Company:-

Redcats S.A., France.

 

Ultimate Holding Company:-

Kering S.A., France.

 

Associated Companies:-

Redcats Group of Companies

KGS Souring (Shanghai) Ltd., China.

Redcats (Brands) Ltd., UK.

Redcats AS, Norway.

Redcats Asia Global Sourcing Services Ltd., Hong Kong.

Redcats Beteiligung GmbH, Austria.

Redcats Espana SAU, Spain.

Redcats Finance AB, Sweden.

Redcats Finance Ltd., UK.

Redcats India Private Ltd., India.

Redcats International Holding BV, Netherlands.

Redcats Italy S.r.l., Italy.

Redcats Management Consulting (Shanghai) Co. Ltd., China.

Redcats Nordic AB, Sweden.

Redcats Suisse S.A., Switzerland.

Redcats Sverige AB, Sweden.

Redcats UK plc, UK.

Redcats USA Canada Holding Inc., Canada.

Redcats USA Drop Ship Inc., US.

Redcats USA Gift Cards, US.

Redcats USA Inc., US.

Redcats USA LLC., US.

Redcats USA LP., US.

Redcats USA Management Services Lp., US.

Redcats S.A., France.

 

Associated with:-

Kering Group of Companies

 

 

BUSINESS REGISTRATION NUMBER

 

21144788

 

 

COMPANY FILE NUMBER

 

0591120

 

 

MANAGEMENT

 

Managing Director:        Mr. Kwok Chi Kueng

Contact Person:            Mr. Ian Whimarsh

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000.00

 

 


SHAREHOLDER

(As per registry dated 17-01-2014)

 

Name

 

No. of shares

Redcats S.A.

110, Rue De Blanchemaille, 59100 Roubaix, France.

 

10,000

=====

 

 

DIRECTORS

(As per registry dated 17-01-2014)

 

Name

(Nationality)

 

Address

FONG Kit Shan, Priscilla

1/F., 19 Sun Lau Street, Sha Tau Kok, New Territories, Hong Kong.

 

KWOK Chi Kueng

Emperor Garden, Yung Chi, 7/F., Zhang Mu Tou, Dongguan, Guangdong, China.

 

WEE Poh Gek, Glenda

106 Kampong Java Road, Singapore 228871.

 

 

SECRETARY

(As per registry dated 17-01-2014)

 

Name

Address

Co. No.

Tricor Secretaries Ltd.

Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong.

0014900

 

 

HISTORY

 

The subject was incorporated on 17th January, 1997 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Grand Gold Holdings Ltd., name changed to Redoute Asia Ltd. on 8th August, 1997, changed Redcats Asia Ltd. on 17th March, 2000 and further to the present style on 16th October, 2013.

 

Formerly the subject was located at 21/F., One Mong Kok Road Commercial Centre, 1 Mong Kok Road, Mongkok, Kowloon, Hong Kong, moved to the present address in November 2000.

 

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           Garments, home furnishings, leisure and household goods.

 

Company Employees:  30.

 

Group Employees:        35,000.  (Year ended 31-12-2013)

 

Commodities Imported: Imported from China and other Asian countries, and acquired in Hong Kong.

 

Markets:                       France, other European countries, US, etc.

 

Kering Group Revenue:  €8,062 million  (Year ended 31-12-2011)

€9,736 million  (Year ended 31-12-2012)

€9,748 million  (Year ended 31-12-2013)

 

Redcats Group Revenue:€3,047.9 million  (Year ended 31-12-2011)

€3,016.9 million  (Year ended 31-12-2012)

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000.00

 

Kering Group Net Income Attributable to Owners:-

   986 million  (Year ended 31-12-2011)

€1,048 million  (Year ended 31-12-2012)

     50 million  (Year ended 31-12-2013)

 

Profit or Loss:               Operation is profitable.

 

Condition:                     Business is active.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Satisfactory.

 

Banker:                         BNP Paribas, Hong Kong Branch.

 

Standing:                      Good.

 

 

GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, KGS Sourcing Ltd. is a private limited company wholly-owned by Redcats S.A. [Redcats], a France-based firm.  The ultimate holding company of the subject is PPR S.A. [PPR], also a France-incorporated company.  Now, PPR S.A. has changed name to Kering S.A. [Kering/Kering Group].

 

The subject is a buying office.  It has sourcing offices in South China, North China, Dhaka, Istanbul, Karachi and New Delhi.  The offices are sourcing garments, furniture, toys, household products, home textiles, etc.

 

Redcats is a core member of the Redcats Group of which head office is in Paris, France.  The Group is retailing fashions, home furnishings, accessories, leisure and household goods in Europe and the United States.  The Redcats Group will be sold by Kering Group step by step in future.  Now, Redcats USA’s operations have been sold since February 2013.

 

In Hong Kong, the subject is sourcing and marketing the following commodities:-

 


Product/Service

Product/Service Remarks

Suits and Jackets – Men’s

From China, Japan, South East Asia and other Asian countries

Jacket – Men (Excluding Ski-Jacket)

From Hong Kong and China

Suit – Men

From Hong Kong and China

Suits and Jackets – Women’s

From China, Japan, South East Asia and other Asian countries

Jacket – Ladies (Excluding Ski-Jacket)

From Hong Kong and China

Suit – Ladies

From Hong Kong and China

Children’s Wear

From China, Japan, South East Asia and other Asian countries

Anoraks, Parkas and Carcoats

From Hong Kong and China

Blouses

From China, Japan, South East Asia and other Asian countries

Coats

From China, Japan, South East Asia and other Asian countries

Jeans

From China, Japan, South East Asia and other Asian countries

Down Filled Jackets and Coats

From China, Japan, South East Asia and other Asian countries

Dresses and Skirts

From China, Japan, South East Asia and other Asian countries

Raincoats

From Hong Kong and China

Shirts

From China, Japan, South East Asia and other Asian countries

Trousers

From China, Japan, South East Asia and other Asian countries

Slacks

From China, Japan, South East Asia and other Asian countries

Cardigan, Sweater and Pullover

From China, Japan, South East Asia and other Asian countries

Knitted Garments

From China, Japan, South East Asia and other Asian countries

Tee and Sweat Shirts

From China, Japan, South East Asia and other Asian countries

Underwear – Men’s

From China, Japan, South East Asia and other Asian countries

Underwear – Women’s

From China, Japan, South East Asia and other Asian countries

Underwear – Silk

From Hong Kong and China

Underwear – Children’s

From China, Japan, South East Asia and other Asian countries

Nightwear and Pyjamas

From China, Japan, South East Asia and other Asian countries

Sport Suits

From China, Japan, South East Asia and other Asian countries

Winter Sports Apparel

From China, Japan, South East Asia and other Asian countries

Belts

From China, Japan, South East Asia and other Asian countries

Hosiery

From China, Japan, South East Asia and other Asian countries

Footwear – Leather

From China, Japan, South East Asia and other Asian countries

Sport Shoes

From China, Japan, South East Asia and other Asian countries

Handbags

From China, Japan, South East Asia and other Asian countries

Games and Toys – Electronic

From Hong Kong and China

Games and Toys – Non-Electronic

From Hong Kong and China

Battery Operated Toys

From Hong Kong and China

Soft Toys

From Hong Kong and China

Toys, Others

From Hong Kong and China

Furniture – Western Style

From Hong Kong and China

Babies’ Wear

From China, Japan, South East Asia and other Asian countries

Floor Covering

From Hong Kong and China

 

The subject is responsible for exporting commodities to Western Europe, Scandinavia and North America.  In total more than 120 countries of the world are selling the products of Kering Group.

 

The subject is the sourcing office of Home Shopping Division of Kering Group.

 

Kering, through its subsidiaries, is engaged in the design, manufacture, and distribution of apparel and accessories worldwide.  The company’s Luxury segment designs, manufactures, and distributes luxury products, which primarily include handbags, small leather goods, luggage, shoes, men and women’s ready‑to-wear, silks, watches, fine jewellery, eyewear, lingerie, fragrances and cosmetics, furniture, kids wear, and other accessories under the brand names of Gucci, Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, Qeelin, Stella McCartney, Sergio Rossi, Boucheron, Girard-Perregaux, and JeanRichard through a network of directly-operated stores, franchisees, department stores, multi-brand boutiques, and e-commerce sites.  Its Sport and Lifestyle segment designs and produces various sport and lifestyle products, such as T-shirts, track jackets, bags, boardshorts, polo shirts, denim, swim, outerwear, and sandals; footwear; sunglasses, snow goggles, backpacks, luggage, and accessories under the Puma, Volcom, Cobra, Electric, and Tretorn brand names.  This segment also produces and sells music and films.  The company was formerly known as PPR SA and changed its name to Kering SA in June 2013. Kering SA was founded in 1963 and is headquartered in Paris, France.

 

The Redcats Group was originally founded by Mr. Joseph Pollet in Roubaix, France, in 1873.  Now, it is part of the Kering.

 

For the year ended 31st December, 2013, the revenue of the Group amounted to €9,748 million (2012: €9,736 million); net income attributable to owners amounted to € 50 million (2012: €1,048 million).  The net income of the Group dropped substantially in FY 2013 as compared with 2012.

 

The revenues of the Redcats Group became insignificant.

 

For the year ended 31st December, 2013, Kering Group had 35,000 employees in total while 60% are women.

Having a history of over seventeen years in Hong Kong and fully backed up by its parent, the subject’s business is rather active and lucrative.

 

On the whole, in view of the subject’s background, parentage and lines of business, consider it good for normal business engagements.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.46

UK Pound

1

Rs.98.21

Euro

1

Rs.77.45

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SHG

 

               

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.