MIRA INFORM REPORT

 

 

Report No. :

307158

Report Date :

13.02.2015

 

IDENTIFICATION DETAILS

 

Name :

V F ASIA LIMITED

 

 

Registered Office :

1, 2A, 8, 9, 10 and 11B Floor, Kader Building, 22 Kai Cheung Road, Kowloon Bay, Kowloon

 

 

Country :

Hong Kong

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

26.07.1974

 

 

Com. Reg. No.:

04312461

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject operates as a buying office for group members without any production activities.

 

 

No. of Employee :

About 100 Employees (Hong Kong)

About 50,000 Employees (Group)

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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

 

 

Contact Points

 

Company Name (in English):

V F Asia Limited

Supplied Name:

VF Asia Limited

Trading Address:

1, 2A, 8, 9, 10 and 11B Floor, Kader Building, 22 Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong

Supplied Address:

10th Floor KAder Building 22 Kai heung Road Kowloon Bay Kowloon

Note: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

V F Asia Limited

Registered Address:

1, 2A, 8, 9, 10 and 11B Floor, Kader Building, 22 Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong

Telephone Number:

+852-2318-1268

Fax Number:

+852-2318-1825

Date of Registration:

1974-7-26

Registered Number:

39464

Business Registration No.:

04312461

Paid-up Capital:

HKD 15,550,000 (USD 2,005,950) = 15,550,000 Shares@ HKD 1

(As of 2015.02, 1 HKD = 0.129 USD)

Legal Form:

Private Limited Liability Company

SITC Code:

84425--Women's or girls' skirts and divided skirts, knitted or crocheted (no.)

Principal Activities:

Operating as buying office for group members

Staff:

About 100 Employees (Hong Kong)

About 50,000 Employees (Group)

Listed at Stock Exchange:

No

Date of Last Annual Return:

2014-7-26

 

 

History

 

Subject was incorporated on 1974-7-26 with the registered number 39464 as Private Limited Liability Company in Hong Kong.

 

Change of Name:

Date

Change

2004-12-10

V F Asia Limited

1987-5-8

V F Asia Limited

1974-9-13

H.D. Lee (Asia) Limited

1974-7-26

Libre Limited

 

 

Corporate Structure

 

Ultimate Parent Company

Name:

VF Corporation

Address:

105 Corporate Center Blvd. Greensboro, North Carolina 27408, USA

Tel:

+1-336-424-6000

Listed at Stock Exchange:

Yes; (NYSE:VFC)

 

Major Related Companies

Name

Place of Incorporation

Beatle Properties Limited

Gibraltar

Eagle Creek, Inc.

Delaware

Glaudio Belgium BVBA

Belgium

Glaudio Fashion B.V.

Netherlands

H.D. Lee Spain, S.L.

Spain

Imagewear Apparel Corp.

Delaware

JanSport Apparel Corp.

Delaware

Jeanswear Ventures, LLC

Delaware

Kipling Apparel Corp.

Delaware

Lee Bell, Inc.

Delaware

lucy Apparel, Llc

Delaware

Mo Industries, LLC

Delaware

Nautica Apparel, Inc.

Delaware

Nautica Retail USA, Inc.

Delaware

R&R Apparel Company, LLC

Delaware

Ring Company

Delaware

Seven For All Mankind, LLC

Delaware

Smartwool Consumer Direct LLC

Colorado

Smartwool LLC

Colorado

South Cone, Inc.

California

The H. D. Lee Company, Inc.

Delaware

The North face Apparel Corp.

Delaware

The North face (Italy) S.r.l.

Italy

The Recreational Footwear Company

Cayman Islands

The Timberland Company (Asia Pacific) Pte. Ltd.

Singapore

Timberland Asia LLC

Delaware

Timberland Canada Co.

Canada

Timberland España, S. L.

Spain

Timberland Europe B.V.

Netherlands

Timberland Europe Services Ltd.

United Kingdom

Timberland (Gibraltar) Holding Limited

Gibraltar

Timberland GmbH

Austria

Timberland Holding Luxembourg S.àr.l.

Luxembourg

Timberland Hong Kong Limited

Hong Kong

Timberland HK Trading Limited

Hong Kong

Timberland IDC Ltd.

United Kingdom

Timberland International, LLC

Delaware

Timberland Italy Srl.

Italy

Timberland Japan, Inc.

Japan

Timberland Lifestyle Brand Malaysia Sdn.Bhd.

Malaysia

Timberland Luxembourg Finance S.àr.l.

Luxembourg

Timberland Luxembourg Holding Asia S.àr.l.

Luxembourg

Timberland Luxembourg Holding Europe S.àr.l.

Luxembourg

Timberland Management Services GmbH

Switzerland

Timberland Netherlands Holding B.V.

Netherlands

Timberland Retail, LLC

Delaware

Timberland SAS

France

Timberland Spain S.àr.l.

Luxembourg

Timberland Switzerland GmbH

Switzerland

Timberland Switzerland Holding GmbH

Switzerland

Timberland Taiwan Limited

Taiwan

Timberland Trading (Shanghai) Company Limited

China

Timberland Trading Switzerland GmbH

Switzerland

Timberland (UK) Ltd.

United Kingdom

Timberland World Trading GmbH

Germany

TBL Licensing LLC

Delaware

TBL Investment Holdings GmbH

Switzerland

TBL International Properties LLC

Delaware

Timberland LLC

Delaware

Vans, Inc.

Delaware

Vans Madeira, S.L.

Portugal

VF Apparel (Shenzhen) Co., Ltd.

China

VF Arvind Brands Private Limited

India

VF Canada, Inc.

Canada

VF Contemporary Brands Canada Corp.

Canada

VF Chile S.A.

Chile

VF Contemporary Brands, Inc.

Delaware

VF de Argentina S.A.

Argentina

VF do Brasil Ltda.

Brazil

VF Ege Soke Giyim Sanayi ve Ticaret A.S.

Turkey

VF Enterprises S.a.R.L.

Luxembourg

VF Europe B.V.B.A.

Belgium

VF Germany Textil-Handels GmbH

Germany

VF Global Investments S.a.R.L.

Luxembourg

VF Imagewear, Inc.

Delaware

VF Imagewear (Canada), Inc.

Canada

VF International S.a.g.l.

Switzerland

VF Investments S.à.r.l.

Luxembourg

VF Italia, S.r.l.

Italy

VF Investments Italy S.à.r.l.

Luxembourg

VF Italy Services S.r.l.

Italy

VF (J) France, S.A.

France

VF Jeanswear Argentina

Argentina

VF Jeanswear de Mexico S.A. de C.V.

Mexico

VF Jeanswear Espana S.L.

Spain

VF Jeanswear Limited Partnership

Delaware

VF Jeanswear Nicaragua y Compania Limitada

Nicaragua

VF Korea Limited

Korea

VF Luxembourg S.à.r.l.

Luxembourg

VF Mauritius Ltd.

Mauritius

VF Northern Europe Ltd.

United Kingdom

VF Northern Europe Services Ltd.

United Kingdom

VF Outdoor, Inc.

Delaware

VF Outdoor (Canada), Inc.

Canada

VF Outlet, Inc.

Delaware

VF Polska Sp. zo.o.

Poland

VF Receivables, LP

Delaware

VF Receivables Services LLC

Delaware

VF Scandinavia A/S

Denmark

VF Services, LLC

Delaware

VF Sourcing India Private Limited

India

VF Sourcing Latin America S.a.R.L.

Luxembourg

VF Sourcing (Thailand) Ltd.

Thailand

VF Sportswear, Inc.

Delaware

VF Treasury Services LLC

Delaware

VFJ Ventures, LLC

Delaware

Wrangler Apparel Corp.

Delaware

 

 

Shareholder

 

Name

Subscription Shares

Proportion of Investment (%)

VF Sourcing Asia S.A.R.L.

15,550,000

100%

Total

15,550,000

100%

 

Major Shareholder Information:

Name:

VF Sourcing Asia S.A.R.L.

Address:

2,Rue Joseph Hackin, L-1746, Luxembourg

 

 

Management Information

 

Core Management

 

Detailed Information of Directors:

1

Name:

Glaser Thomas Anthony

Address:

Via Ai Ronchi, 6936 Cademario, Switzerland

Position:

Director

Passport Number:

710543263

Issuing Country:

United States of America

2

Name:

Salzburger Karlheinz

Address:

Via Moltrasio 12 22010 Cernobbio (Como) Italy

Position:

Director

Passport Number:

YA2132903

Issuing Country:

Italy

3

Name:

Guido Patrick Joseph

Address:

3955 Old Atlanta Stn Ct., Smyrna, GA 30080-7386, U.S.A.

Position:

Director

Passport Number:

426130523

Issuing Country:

U.S.A.

4

Name:

Cheung Elaine June

Address:

Unit 61, 7/F., Block 3, Middleton Towers, 140 Pokfulam Road, Hong Kong

Position:

Director

ID Number:

P409911(0)

5

Name:

Browne Colin

Address:

Flat C, 25/F., Fairlane Tower, 2B Bowen Road, Mid-Levels, Hong Kong

Position:

Director

ID Number:

R456288(6)

6

Name:

Chan Shu Sang Gary

Address:

1,2A, 8, 9, 10 and 11B Floor, Kader Building, 22 Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong

Position:

Secretary

ID Number:

C426396(9)

 

 

Operation Information

 

Offices & Factories

 

 

Office

Address:

1, 2A, 8, 9, 10 and 11B Floor, Kader Building, 22 Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong

 

Premises Information

 

The subject is located at 1, 2A, 8, 9, 10 and 11B Floor, Kader Building, 22 Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong. However, we cannot get any related registration information for this address in the official authorities.

 

Production Information

 

Subject operates as a buying office for group members without any production activities.

 

Purchase Information

 

Subject purchases raw materials and garments from China, Bangladesh, Vietnam, Indonesia, Thailand, Cambodia, Pakistan and India,

 

Sales Information

 

Subject is engaged in sale of garments

Subject’s major products include jacket, blouses, jeans, dresses, skirts, shirts, trousers, slacks, sweat shirts, sport suits

Subject sells garments with the brands “Wrangler”, “Lee”, “Riders”, “The North Face”, “Timberland”, “Vans”, “Reef”, “Eagle Creek”, “Eastpak”, “JanSport”, “Napapijri, Nautica”, “Kipling”, “7 For All Mankind”, “lucy”, “Majestic”, “Lee Sport” and “Red Kap

Subject’s sales regions include Asia, Australia, Japan, South Korea, North America and Europe,

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Raw materials and apparels,

Payment Terms

Cash, T/T,

 

Import

Products

Raw materials and apparels

Payment Terms

T/T,

 

Sales

 

Domestic Markets

Product

Apparels,

Selling Terms

Cash, T/T

 

Export

Product

Apparels,

Selling Terms

Interior Settlement, T/T,

 

 

Financial Information

 

The subject has no obligation to supply its financial statement to the third party according to the relevant policy in Hong Kong and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff rejected to disclose the financial information; we found the consolidated financial information of subject’s ultimate parent company (VF Corporation) for reference.

 

Consolidated Balance Sheet

Unit: USD/000

 

2013-12-31

2012-12-31

Current assets

 

 

Cash and equivalents

776,403

597,461

Accounts receivable, less allowance for doubtful accounts of 45,350 in 2013 and 48,998 in 2012

1,360,443

1,222,345

Inventories

1,399,062

1,354,158

Deferred income taxes

169,321

140,515

Other current assets

177,753

135,104

Total current assets

3,882,982

3,449,583

Property, plant and equipment

932,792

828,218

Intangible assets

2,960,201

2,917,058

Goodwill

2,021,750

2,009,757

Other assets

517,718

428,405

Total assets

10,315,443

9,633,021

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Current liabilities

 

 

Short-term borrowings

18,810

12,559

Current portion of long-term debt

5,167

402,873

Accounts payable

638,732

562,638

Accrued liabilities

905,292

754,142

Total current liabilities

1,568,001

1,732,212

Long-term debt

1,426,829

1,429,166

Other liabilities

1,243,575

1,346,018

Commitments and contingencies

 

 

Stockholders’ equity

 

 

Preferred Stock, par value 1; shares authorized, 25,000,000; no shares outstanding in 2013 and 2012

--

--

Common Stock, stated value 0.25; shares authorized, 1,200,000,000; 440,310,370 shares outstanding in 2013 and 440,818,936 in 2012

110,078

110,205

Additional paid-in capital

2,746,590

2,527,868

Accumulated other comprehensive income (loss)

-211,720

-453,895

Retained earnings

3,432,090

2,941,447

Total stockholders’ equity

6,077,038

5,125,625

Total liabilities and stockholders’ equity

10,315,443

9,633,021

 

Consolidated Profit and Loss Account

Unit: USD/000

 

2013

2012

Net sales

11,302,350

10,766,020

Royalty income

117,298

113,835

Total revenues

11,419,648

10,879,855

Costs and operating expenses

 

 

Cost of goods sold

5,931,469

5,817,880

Selling, general and administrative expenses

3,841,032

3,596,708

 

9,772,501

9,414,588

Operating income

1,647,147

1,465,267

Interest income

4,141

3,353

Interest expense

-84,773

-93,605

Other income (expense), net

-4,025

46,860

Income before income taxes

1,562,490

1,421,875

Income taxes

352,371

335,737

Net income

1,210,119

1,086,138

Net (income) loss attributable to noncontrolling interests

--

-139

Net income attributable to VF Corporation common stockholders

1,210,119

1,085,999

 

Bankers

 

Subject declined to disclose its bank details; from other source we could not obtain the relevant information, either.

 

Public

 

Mortgage Record

 

No mortgage record of subject was found.

 

Lawsuits

 

Up to now, no present or latent litigation of the subject has been found.

High Court Action:

Clear

High Court Baukufty Bankruptcy Proceedings:

Clear

High Court Commercial Action:

Clear

High Court Construction & Arbitration Proceedings:

Clear

High Court Companies Winding-Up:

Clear

 

 

Special Note

 

Interview Details

Name

Ms. Chen

 

 

Industry Information

 

84425 -- Women's or girls' skirts and divided skirts, knitted or crocheted (no.)

Unit: HKD/000

 

2014.05

2014.01~2014.05

 

Quantity

Value

Quantity

Value

Imports

United Arab Emirates

4

56

1,225

188

Bangladesh

16,063

246

95,048

1,974

The Mainland of China

1,363,559

37,852

5,526,624

162,187

Germany

785

1,152

13,484

3,288

Spain

10,659

655

51,456

4,046

Indonesia

9,714

339

23,552

933

Italy

22,515

6,731

92,245

41,195

Japan

5,007

863

17,708

3,405

South Korea

8,014

448

32,348

2,720

Vietnam

10,595

556

32,967

2,217

Exports

United Arab Emirates

6

17

29

86

Canada

12

30

23

35

The Mainland of China

17

2

112

16

UK

57

19

57

19

Italy

--

--

642

315

Japan

74

62

415

245

South Korea

46

87

476

263

Netherlands

137

63

174

87

USA

547

183

1,437

420

External Trade Information:

 

External Merchandise Trade Aggregate Figures

Unit: HKD/ Million

 

Imports

Domestic Exports

Re-exports

Total exports

Year-on-year % change of Total exports

Merchandise trade balance

2011

3,764,596

65,662

3,271,592

3,337,253

+10.1

-427,343

2012

3,912,163

58,830

3,375,516

3,434,346

+2.9

-477,817

2013

4,060,717

54,364

3,505,322

3,559,686

+3.6

-501,031

2013.03

340,857

5,073

286,638

291,711

+11.2

-49,146

2013.04

332,963

4,503

285,763

290,267

+9.0

-42,696

2013.05

335,809

4,818

286,724

291,542

-1.0

-44,267

2013.06

327,309

4,476

273,161

277,637

-0.2

-49,673

2013.07

342,565

4,783

300,630

305,413

+10.6

-37,152

2013.08

347,059

4,932

302,558

307,490

-1.3

-39,570

2013.09

359,841

4,395

313,436

317,830

+1.5

-42,010

2013.10

361,196

4,458

318,686

323,144

+8.8

-38,052

2013.11

370,104

4,587

320,935

325,522

+5.8

-44,581

2013.12

365,228

4,596

306,281

310,877

0.0

-54,351

2014.01

323,436

4,299

299,157

303,456

-0.4

-19,979

2014.02

266,587

3,276

209,638

212,914

-1.3

-53,673

2014.03

351,889

5,120

296,403

301,523

+3.4

-50,365

2014.04

340,972

4,867

280,816

285,682

-1.6

-55,290

2014.05

348,323

5,299

300,673

305,973

+4.9

-42,350

2014.06

352,316

4,802

304,409

309,211

+11.4

-43,105

 

*Total exports figures have been rounded to the nearest final digit after summing up the constituent trade figures.

 

 

Attachment

 

Kader Building, 22 Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong

 

 

Kader Building, 22 Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong

 

 

1/F., Kader Building, 22 Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong

 

 

1/F., Kader Building, 22 Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.43

UK Pound

1

Rs.95.02

Euro

1

Rs.70.63

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.