MIRA INFORM REPORT

 

 

Report No. :

352583

Report Date :

09.12.2015

 

IDENTIFICATION DETAILS

 

Name :

WAH FUNG LABEL CO. LTD.

 

 

Registered Office :

Unit A, 4/F., Unit A & B, 10/F., Phase 1, Yee Lim Factory Building,
32-40 Kwai Ting Road, Kwai Chung, New Territories

 

 

Country :

Hongkong

 

 

Date of Incorporation :

08.01.1985

 

 

Com. Reg. No.:

09424764

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of garment accessories.

 

 

No. of Employees :

40

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hongkong

A1

A1

 

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

 

WAH FUNG LABEL CO. LTD.

 

 

ADDRESS:                   Unit A, 4/F., Unit A & B, 10/F., Phase 1, Yee Lim Factory Building,
                                    32-40 Kwai Ting Road, Kwai Chung, New Territories, Hong Kong.

 

(Formerly located at:

Unit A, 10/F., Phase 1, Yee Lim Factory Building,

32-40 Kwai Ting Road, Kwai Chung, New Territories, Hong Kong.)

 

PHONE:                        852-2343 7472

 

FAX:                             852-2341 6776

 

E-MAIL:                        sales@ronnex.com.hk

 

 

MANAGEMENT

 

Managing Director:        Mr. Ko Shing

 

 

SUMMARY

 

Incorporated on:            8th January, 1985.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$2,428,572.00

 

Business Category:       Importer, Exporter and Wholesaler.

 

Employees:                  40.

 

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

 

Banking Relation:          -

 

 

ADDRESS

 

Registered Head Office:-

Unit A, 4/F., Unit A & B, 10/F., Phase 1, Yee Lim Factory Building, 32‑40 Kwai Ting Road, Kwai Chung, New Territories, Hong Kong.

 

Holding Company:-

Wah Fung Labels Weaving Factory Ltd., Hong Kong.

 

Associated Companies:-

Eastern Label Ltd., Hong Kong.

Ronnex (Far East) Ltd., Hong Kong.

Sanxing (Wuxi) Garment Accessories Co. Ltd., China.

Sanxing Label Weaving (Xianghe) Co. Ltd., China.

Shanghai Sanxing Thread & Ribbon Co. Ltd., China.

Shenzhen Wah Sing Label Co. Ltd., China.

Wah Sing Labels Ltd., Hong Kong.

WFL Packaging Ltd., Hong Kong.

WFL Printing & Packaging Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

09424764

 

 

COMPANY FILE NUMBER

 

0145579

 

 

MANAGEMENT

 

Managing Director:                    Mr. Ko Shing

 

 

ISSUED SHARE CAPITAL

 

HK$2,428,572.00

 

 

SHAREHOLDER

(As per registry dated 08-01-2015)

 

Name

 

No. of shares

Wah Fung Labels Weaving Factory Ltd., Hong Kong.

 

2,428,572

=======

 

 

DIRECTORS

(As per registry dated 08-01-2015)

 

Name

(Nationality)

 

Address

CHOI Yee Wan, Sharly

Room B, 14/F., Beverley Heights, 56 Cloud View Road, Hong Kong.

 

KO Shing

Room E, 30/F., Block 2, Serene Garden, 77 Tsing King Road, Tsing Yi, New Territories, Hong Kong.

 

NG Sau Yee

Flat 1, 9/F., Lion Building, 113-117 Shek Yam Road, Kwai Chung, New Territories, Hong Kong.

 

 

SECRETARY

(As per registry dated 08-01-2015)

 

Name

Address

Co. No.

Vincent Secretarial Services (Nominee) Ltd.

11/F., Wheelock House, 20 Pedder Street, Central, Hong Kong.

0513164

 

 

HISTORY

 

The subject was incorporated on 8th January, 1985 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Musak Co. Ltd., name changed to the present style on 19th March, 1985.

 

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of garment accessories.

 

Employees:                  40.

 

Commodities Imported: China, other Asian countries, etc.

 

Markets:                        Asian countries, North America, Europe, etc.

 

Terms/Sales:                 L/C, Advanced T/T, etc.

 

Terms/Buying:              L/C, D/P, O/A, etc.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$2,428,572.00

 

Mortgage or Charge:     (See attachment)

 

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.

 

Bankers:-

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

DBS Bank (Hong Kong) Ltd., Hong Kong.

 

Standing:                      Good.

 

 

GENERAL

 

Wah Fung Label Co. Ltd. is a wholly-owned subsidiary of Wah Fung Labels Weaving Factory Ltd. which is a Hong Kong-registered company.

 

The subject has had an associated company Ronnex (Far East) Ltd. [Ronnex] which is also a Hong Kong-registered company.  Ronnex and the subject are engaged in the same lines of business.

 

The subject has been in the woven label manufacturing industry since 1953.  Growing from a small family-run business to an established corporation that owns and operates manufacturing facilities in five locations, the subject has been engaged in maintaining woven labels for local and international customers for a very long time.

As a leading manufacturer of woven labels based in Hong Kong, the subject services the textile and apparel industries world-wide.  It has kept a solid record of steady growth in sales.

 

The subject also offers customers with one-stop service from the very beginning to finished products, including packaging, labelling and customs document preparation.

 

The subject is able to get its exclusive supply of raw material from its own yarn suppliers, and this is able to guarantee the quality of its products.

 

The following companies are the subject’s main associated factories and companies in China:

·         Shanghai Sanxing Thread & Ribbon Co. Ltd.

·         Shenzhen Wah Sing Label Co. Ltd.

·         Sanxing (Wuxi) Garment Accessories Co. Ltd.

 

As one of the leading garment accessories manufacturers in Hong Kong, Ronnex provides customers with its service and comprehensive package service at a reasonable price.  Its label, printing, and button factories in Hong Kong and China are all renowned for “Tailor-Made” services.  Ronnex chiefly receives OEM orders from local and abroad.

 

Apart from its Hong Kong sales service, Ronnex’s products are exported to the other Asian countries, the United States, Canada, Europe, etc.

 

The business of the subject is chiefly handled by the three directors.  History in Hong Kong is over thirty years.

 

On the whole, consider the subject good for normal business engagements.

 

 

MORTGAGE OR CHARGE

 

Date

Description of Instrument

 

Mortgagee

02-08-1994

General Letter of Hypothecation

The Kwangtung Provincial Bank, Hong Kong Branch.  [Merged into Bank of China (Hong Kong) Ltd.]

01-11-2001

Charge

Dao Heng Bank Ltd., Hong Kong.  [Merged into DBS Bank (Hong Kong) Ltd.]

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.80

UK Pound

1

Rs.100.49

Euro

1

Rs.72.52

HKD

1

Rs.8.62

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               


 

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.