MIRA INFORM REPORT

 

 

Report No. :

354328

Report Date :

18.12.2015

 

IDENTIFICATION DETAILS

 

Name :

KYOWA INDUSTRIAL CO. LTD.

 

 

Registered Office :

87-89 Fuk Hi Street, Yuen Long Industrial Estate, Yuen Long, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

01.11.1985

 

 

Com. Reg. No.:

09976876

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers and Exporters of All kinds of plastic covers and plastic parts for photocopiers, radio cassette recorders, fax machineries, printers.

 

 

No. of Employee :

40.  (Hong Kong)

 

 

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)

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 12.5% 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

 

KYOWA INDUSTRIAL CO. LTD.

 

 

ADDRESS:                   87-89 Fuk Hi Street, Yuen Long Industrial Estate, Yuen Long, New Territories, Hong Kong.

 

PHONE:                        852-2475 0392

 

FAX:                             852-2479 2370,  2473 0021

 

MANAGEMENT:

 

Managing Director:  Rajan Sharma

 

 

SUMMARY

 

Incorporated on:                         1st November, 1985.

 

Organization:                             Private Limited Company.

 

Issued Share Capital:                 HK$12,000,000.00

 

Business Category:                   Manufacturers and Exporters.

 

Annual Turnover:                        US$150 - 250 million.

 

Employees:                              40.  (Hong Kong)

 

Main Dealing Bankers:               Mizuho Corporate Bank Ltd., Hong Kong Branch.

                                                Sumitomo Mitsui Banking Corporation, Hong Kong Branch.

 

Banking Relation:                      Good.

 

 

ADDRESS

 

Registered Head Office & Factory:-

87-89 Fuk Hi Street, Yuen Long Industrial Estate, Yuen Long, New Territories, Hong Kong.

 

Holding Company:-

Kyowa Co. Ltd., Japan.

 

China Factory:  Bantian, Shenzhen, China.

 

Associated Companies:-

Dalian Daisyo Kyowa Plamold Co. Ltd., China.

Higashi Hyponica Hanbai K.K., Japan.

Izumi K.K., Japan.

Kyosei Industrial Co. Ltd., Hong Kong.

Kyowa Plastics Industrial (Dongguan) Co. Ltd., China.

Kyowa Plastics Industrial (Vietnam) Co. Ltd., Vietnam.

Kyowa Silverstar Plastics (Shenzhen) Co. Ltd., China.

Nachur Hyponica K.K., Japan.

Nissei & Kyowa Tooling Co. Ltd., China.

Shanghai Shengze Agriculture Development Co. Ltd., China.

Unisaeual Co. Ltd., Korea.

 

 

BUSINESS REGISTRATION NUMBER

 

09976876

 

 

COMPANY FILE NUMBER

 

0161048

 

 

MANAGEMENT

 

President:  Mr. Shigeharu Nozawa

Managing Director:  Rajan Sharma

 

 

ISSUED SHARE CAPITAL

 

HK$12,000,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 01-11-2015)

Name

 

No. of shares

Kyowa Co. Ltd.

1-1-5, Shimotanabe-Cho, Takatsuki-City, Osaka, Japan.

 

11,999,999

Shigeharu NOZAWA

 

1

 

 

–––––––––

 

Total:

12,000,000

========

 

 

DIRECTORS

 

(As per registry dated 01-11-2015)

Name

(Nationality)

 

Address

Rajan SHARMA

Flat F, 8/F., Block 1, Woodland Crest, 33 Ting Ping Road, Sheung Shui, New Territories, Hong Kong.

 

Shigeharu NOZAWA

15-14, 1-Chome, Tenjin Machi, Takatsuki City, Osaka, Japan.

 

 

SECRETARY

 

(As per registry dated 01-11-2015)

Name

Address

Co. No.

Hojin SEC Ltd.

Room 301, 3/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong.

0612527

 

 

HISTORY

 

The subject was incorporated on 1st November, 1985 as a private limited liability company under the Hong Kong Companies Ordinance.

 

It was formerly registered under the name of Brigden Enterprises Ltd., name changed to the present style on 18th March, 1986.

 

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

 

 

OPERATIONS

 

Activities:                      Manufacturers and Exporters.

 

Lines:                           All kinds of plastic covers and plastic parts for photocopiers, radio cassette recorders, fax machineries, printers, etc.

 

Employees:                  40.  (Hong Kong)

500.  (PRC)

 

Raw Materials:               Importing plastic materials from Europe

 

Markets:                        Hong Kong (main) and Japan.

 

Terms/Sales:                 CAD, L/C, T/T or 30 days credit.

 

Terms/Buying:               T/T, L/C

 

 

MAIN JAPANESE SUPPLIER:  Mitsui & Co. (Hong Kong) Ltd., Hong Kong.

 

 

FINANCIAL INFORMATION

           

Issued Share Capital:     HK$12,000,000.00

 

Mortgage or Charge:     (See attachment)

 

Profit & Loss:               Making a small profit every year.

 

Condition:                     Business remains active.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met as contracted.

 

Commercial Morality:     Good.

 

Bankers:-

Mizuho Corporate Bank Ltd., Hong Kong Branch.

Sumitomo Mitsui Banking Corporation, Hong Kong Branch.

UFJ Bank Ltd., Hong Kong Branch.

The Bank of Kyoto Ltd., Hong Kong.

DBS Kwong On Bank Ltd., Hong Kong.

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

 

Standing:                      Good.

 

 


GENERAL

 

Kyowa Industrial Co. Ltd. [KICL] is a wholly-owned subsidiary of Kyowa Co. Ltd. [Kyowa], one of the medium-sized multi-industry company in Japan.

 

The managing director of the subject Mr. Rajan Sharma is a Japanese who is holding a Hong Kong ID.  He is responsible for the business of the subject, and the production in China.

 

The parent company was established in 1949 as a sole proprietorship concern and incorporated on 22nd July, 1953 with an issued share capital of ¥48 million.  Now, it headquarters are in Osaka, Japan.

 

The products of Kyowa has been awarded “Good Quality Mark” by Japanese Government.

 

KICL, the second overseas branch of Kyowa, acts as the headquarters of the Southeast Asia region.  KICL has leased a site (located at Yuen Long Town Lot No. 313, Sec. 1, Ss. 1) in Yuen Long Industrial Estate from Hong Kong Industrial Estate Corp.  The building was completed in late 1986 and costed HK$10 million.

 

Business started in the middle of November 1986, KICL is engaged in manufacturing plastic covers, plastic parts and housing for photocopiers, radio cassette recorders, fax machineries, printers, etc.  Its major customers include Mita Industrial Co. Ltd., etc.

Most of its products are sold to Hong Kong, China and exported to Japan.  In view of the high production cost in Hong Kong, KICL has moved its production line to Bantian, Shenzhen, China where it has a workforce of 500.  An associated factory was set up in Dongguan City, Guangdong Province, China, in the following years.

 

The current president of Kyowa is Mr. Shigeharu Nozawa.

 

As at end of 2014, Kyowa had 2,039 employees.

 

For over 50 years, Kyowa has contributed to industr

y by combining the skill of plastic moulding with other related areas.  It has developed a new technology for farming called “HYPONICA” that has attracted attention from all over Japan and from abroad.  Using “HYPONICA”, Kyowa hopes to stimulate the evolution of modern farming and avert any future food crisis.  In March 2011, Kyowa set up Shanghai Shengze Agriculture Development Co. Ltd. in China which is engaged in the farming technology improving.

 

The main functions of KICL are raw materials sourcing, products packaging and shipping, new products marketing, and payments settling for its associated factories in China.  History in Hong Kong is over 30 years.

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.65

UK Pound

1

Rs.99.61

Euro

1

Rs.72.33

HKD

1

Rs.8.57

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

HNA

 

 

Report Prepared by :

ANK

 


 

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.