MIRA INFORM REPORT

Report No. :	338639
Report Date :	28.08.2015

IDENTIFICATION DETAILS

Name :	KING KONG LEATHER WARE LTD.

Registered Office :	Unit 1305-1309, 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road, Kwai Chung, New Territories

Country :	Hongkong

Date of Incorporation :	29.11.1985

Com. Reg. No.:	10010409

Legal Form :	Private Limited Company

Line of Business :	Manufacturer of all kinds of ladies’ leather shoes and snake skin shoes.

No. of Employees :	30. (Hongkong)

RATING & COMMENTS

MIRA’s Rating :

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, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hongkong

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

HONGKONG - 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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

Source : CIA

Company Name and address

KING KONG LEATHER WARE LTD.

ADDRESS: Unit 1305-1309, 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.

PHONE: 2481 6863, 2481 4307, 2481 4516, 2489 8707

FAX: 2481 6895, 2481 6981

E-MAIL kingkong@kingkong.com.hk

MANAGEMENT

Managing Director: Mr. Fong Hoy Loon

SUMMARY

Incorporated on: 29th November, 1985.

Organization: Private Limited Company.

Issued Share Capital: HK$2,500,000.00

Business Category: Leather Shoe Manufacturer.

Annual Turnover: HK$100-150 million.

Employees: 30. (Hong Kong)

Main Dealing Banker: Bank of China (Hong Kong) Ltd., Hong Kong.

Banking Relation: Good.

ADDRESS

Registered Head Office & Factory:-

Unit 1305-1309, 13/F., Kwai Cheong Centre, 40-52 Kwa i Cheong Road, Kwai Chung, New Territories, Hong Kong.

China Factory: Shenzhen Special Economic Zone, China.

Holding Company:-

Plantation Assets Ltd., British Virgin Islands.

Associated Companies:-

Kingford Co. Ltd., Hong Kong.

Konstant Leather Ware, Hong Kong.

Silvercord Leather Shoes Factory Ltd., Hong Kong.

Smart Crown Ltd., Hong Kong.

BUSINESS REGISTRATION NUMBER

10010409

COMPANY FILE NUMBER

0162368

MANAGEMENT

Managing Director: Mr. Fong Hoy Loon

ISSUED SHARE CAPITAL

HK$2,500,000.00

SHAREHOLDERS

(As per registry dated 29-11-2014)

Name		No. of shares
Plantation Assets Ltd. P.O. Box 71, Craigmuir Chambers, Road Town, Tortola, British Virgin Islands.		21,000
LING Chi Hung		2,400
FONG Hoy Loon		1,600
		––––––
	Total:	25,000 =====

DIRECTORS

(As per registry dated 29-11-2014)

Name (Nationality)	Address
FONG Tsz Ling, Chilly	Unit 1306, 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.
LING Chi Hung	Unit 1306, 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.
FONG Hoy Loon	Unit 1306, 13/F., Kwai Cheong Centre, 40-52 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.

SECRETARY

FONG Hoy Loon (As per registry dated 29-11-2014)

HISTORY

The subject was incorporated on 29th November, 1985 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at 7/F., Wong’s Building, 33 Hung To Road, Kwun Tong, Kowloon, Hong Kong, moved to the present address in October 1997.

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

OPERATIONS

Activities: Leather Shoe Manufacturer.

Lines: All kinds of ladies’ leather shoes and snake skin shoes.

Employees: 30. (Hong Kong)

600. (China)

Raw Materials: Imported from Europe, India, etc.

Markets: Australia, Japan, US and Europe.

Annual Turnover: HK$100-150 million.

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

Terms/Buying: Various terms.

MEMBERSHIP

The Federation of Hong Kong Footwear Ltd., Hong Kong.
[Membership No. PMF1118]

FINANCIAL INFORMATION

Issued Share Capital: HK$2,500,000.00

Mortgage or Charge (since 2008): (See attachment)

Profit or Loss: Business is profitable.

Condition: Keeping in an active and satisfactory condition.

Facilities: Adequate for current running.

Payment: So far so good.

Commercial Morality: Good.

Bankers:-

Bank of China (Hong Kong) Ltd., Hong Kong.

Hang Seng Bank Ltd., Hong Kong.

China Construction Bank (Asia) Corporation Ltd., Hong Kong.

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

Standing: Good.

GENERAL

King Kong Leather Ware Ltd. is a private limited company jointly held by Plantation Assets Ltd. [Plantation Assets], a BVI-registered firm holding 84.0% interests, Mr. Ling Chi Hung holding 9.6% and Mr. Fong Hoy Loon, 6.4%.

The directors of the subject are Mr. Ling Chi Hung, Mr. Fong Hoy Loon and Ms. Fong Tsz Ling, Chilly.

The subject is a well-established leather shoe manufacturer in Hong Kong. It has got an affiliated factory in China employing about 600 persons. The factory is in Shenzhen Special Economic Zone, China. Most of its products are ladies’ leather shoes and ladies’ snake-skin shoes. The followings are its main products:-

· Boots - Leather (For ladies, OEM);

· Sandals - Leather (For ladies include evening sandals, OEM);

· Shoes - Leather (For ladies, OEM); &

· Shoes - Suede (For ladies, OEM).

Principal markets are the European countries, Japan, Australia and North America. Raw materials, mainly leather, are imported from Spain, Italy and India. Business is satisfactory.

The annual sales turnover of the subject ranges from HK$100 to 150 million. Making a small profit every year. It has got ISO9001:2000 certification.

Plantation Assets has got another subsidiary company Silvercord Leather Shoes Factory Ltd. [Silvercord] which is also a Hong Kong-registered firm. This firm is 75% held by Plantation Assets. Silvercord is also trading in leather shoes. Mr. Fong Hoy Loon is also a director of Silvercord. However, Silvercord is located at a different address.

The directors of Silvercord are Mr. Fong Hoy Loon and Mr. Chan Man Hung.

Having a history of about twenty-nine years and nine months, the subject is considered good for normal business engagements.

REMARKS

Property information of the company and affiliate:-

1. Property Location: 7/F. & Roof (including structures thereon), 33 Hung To Road, Kowloon, Hong Kong.