MIRA INFORM REPORT

Report No. :	301448
Report Date :	08.01.2015

IDENTIFICATION DETAILS

Name :	WINNITEX LTD.
Registered Office :	Unit 1-5, 6A & 7A, 36/F., Cable TV Tower, 9 Hoi Shing Road, Tsuen Wan, New Territories,
Country :	Hong Kong
Date of Incorporation :	24.01.2003
Com. Reg. No.:	33466287
Legal Form :	Private Limited Company
Line of Business :	Importer and Exporter of all kinds of cotton, linen, tencel, polyester, rayon, lycra, spandex and their blends, and cotton yarn dye fabrics.
No. of Employees :	25

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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

WINNITEX LTD.

ADDRESS: Unit 1-5, 6A & 7A, 36/F., Cable TV Tower, 9 Hoi Shing Road, Tsuen Wan, New Territories, Hong Kong.

PHONE: 852-2416 1403

FAX: 852-2413 6019, 2417 9157

E-MAIL: winnitex@winnitex.com

sales@winnitex.com

tracy@winnitex.com

MANAGEMENT

Managing Director: Mr. Wai Chi Kwong, Albert

SUMMARY

Incorporated on: 24th January, 2003.

Organization: Private Limited Company.

Capital: Nominal:HK$10,000.00

Issued: HK$1,000.00

Business Category: Textile Product Trader.

Group Turnover: US$150~155 million.

Group Employees: Over 3,000.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Very Good.

ADDRESS

Registered Head Office:-

Unit 1-5, 6A & 7A, 36/F., Cable TV Tower, 9 Hoi Shing Road, Tsuen Wan, New Territories, Hong Kong.

Godown:-

Unit A-D on 4/F. & 5/F. and Unit A & D on 8/F., Fou Wah Industrial Building, 10-16 Pun Shan Street, Tsuen Wan, New Territories, Hong Kong.

Shanghai Office:-

Room 1709-1710, Haitong Securities Tower, 689 Guangdong Road, Shanghai, China.

[Tel: (86-021) 6341 0102; Fax: (86-021) 6341 0083]

China Factories:-

17 Ning Dong Road, Xiaoshan Economic Technology Development Zone, Hangzhou, Zhejiang, China. [Postal Code: 311215]
[Tel: (86-571) 8283 1000; Fax: (86-571) 8283 1728]
[Operated by Zhejiang Hing Fung Weaving Dyeing & Printing Co. Ltd.]

313 Tang Gong Road, Shaoxing, Paojiang Industrial Zone, Shaoxiang, Zhejiang, China. [Postal Code: 312071]
[Tel: (86-575) 8803 9009; Fax: (86-575) 8803 9088]
[Operated by Zhejiang Qing Mao Weaving Dyeing & Printing Co. Ltd.]

India Office:-

“Kalpataru”, First Floor, No. 4C 908, 9th B Main, 4th Cross, 1st Block, H R B R Layout, Kalyan Nagar, Bangalore 560043, India.

[Tel: 91-80-2542 3557; Fax: 91-80-2542 3559]

Holding Company:-

Winnitex Holdings Ltd., British Virgin Islands.

Associated/Affiliated Companies:-

Winnitex Group of Companies

Chestin Ltd., Hong Kong.

Hing Fung Printing & Dyeing Factory Ltd., Hong Kong.

Hing Fung Wo Finance Co. Ltd., Hong Kong.

JNA Enterprises Co., Hong Kong.

Kinto Investments Ltd., Hong Kong.

Winnitex (Macao Commercial Offshore) Ltd., Macau.

Winnitex China Holdings Ltd., Hong Kong.

Winnitex Investment Co. Ltd., Hong Kong.

Winnitex Properties Ltd., Hong Kong.

Zhejiang Hing Fung Weaving Dyeing & Printing Co. Ltd., China.

Zhejiang Qing Mao Weaving Dyeing & Printing Co. Ltd, China.

etc.

BUSINESS REGISTRATION NUMBER

33466287

COMPANY FILE NUMBER

0831225

MANAGEMENT

Managing Director: Mr. Wai Chi Kwong, Albert

Contact Person: Ms. Mabel Yeung

CAPITAL

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

Issued Share Capital: HK$1,000.00

SHAREHOLDERS: (As per registry dated 24-01-2014)

Name		No. of shares
WAI Tien Ching		1
Winnitex Holdings Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.		999
		–––––
	Total:	1,000 ====

DIRECTORS: (As per registry dated 01-12-2014)

Name (Nationality)	Address
WAI Tien Ching (Chinese) [Father]	Unit B, 3/F., Flora Villa, 1 Marigold Road, Yau Yat Chuen, Kowloon, Hong Kong.
WAI Chi Wah, Nelson (British) [Son]	Flat A, 61/F., Tower 7, The Palazzo, 28 Lok King Street, Shatin, New Territories, Hong Kong.
WAI Chi Kwok, Jacob (British) [Son]	Flat A, 3/F., Takshing Terrace, 1 Cox’s Road, Kowloon, Hong Kong.
WAI Chi Kwong, Albert (British) [Son]	8 Hampshire Road, Kowloon Tong, Kowloon, Hong Kong.

SECRETARY: (As per registry dated 24-01-2014)

Name	Address	Co. No.
Tricor Strath Ltd.	Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong.	0004873

HISTORY

The subject was incorporated on 24th January, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

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

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of cotton, linen, tencel, polyester, rayon, lycra, spandex and their blends, and cotton yarn dye fabrics.

Office Floor Space: 25,712 sq.m. – shares with associates.

Group Employees: Over 3,000.

Commodities Bought from: Bought in Hong Kong, from China, Pakistan, India, Europe, etc.

Markets: Hong Kong, other Asian countries, US, Canada and Europe.

Group Turnover: US$150~155 million.

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

Terms/Buying: Various terms.

MEMBERSHIP: Federation of Hong Kong Industries, Hong Kong. [Member No. A5074]

Hong Kong Productivity Council, Hong Kong.

The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKW0247]

FINANCIAL INFORMATION

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

Issued Share Capital: HK$1,000.00

Profit or Loss: Operation is conducted on a profitable basis.

Condition: Business remains active.

Facilities: Is making use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Very Good.

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

Standing: Very Good.

GENERAL

Incorporated in January 2003, Winnitex Ltd. is a wholly-owned subsidiary of Winnitex Holdings Ltd. which is a BVI-registered firm.

The subject is a member of the Winnitex Group which is an integrated textiles group specialized in weaving, dyeing and finishing of cotton, linen, corduroy, woven, yarn-dyed and other cotton/blended fabrics. The subject is the flagship company of the Group’s fabric business.

The history of the Winnitex Group dates back to 1964 when the President of the Group Mr. Wai Tien Ching founded the first member of Winnitex Group which is Hing Fung Printing & Dyeing Factory Ltd. [Hing Fung]. Hing Fung is a Hong Kong-registered firm. Spurred by the rapid development of the textiles industry in Hong Kong during the 1980’s, Hing Fung grew from a small dyeing and finishing business into one of the reputable dyeing factories in Hong Kong.

Now, the Winnitex Group has set up two main mills in China, namely, Zhejiang Hing Fung Printing & Dyeing Factory Ltd. [Hing Fung] and Zhejiang Qing Mao Weaving, Dyeing & Printing Co. Ltd. [Qing Mao]. Both firms are in Zhejiang Province, China. Qing Mao was set up in China in 2002.

Hing Fung has become one of the significant company in Hangzhou City, Zhejiang Province, China. It is located at ‘17 Ning Dong Road, Xiaoshan Economic Technology Development Zone, Hangzhou, Zhejiang, China’.

Now, the legal representative of Qing Mao is Wai Chi Kwok, Jacob. He is also president of the Group.

The Winnitex Group took a major step in 1978 and established Hing Mou Textiles Ltd. which was the first weaving mill of the Group. But this business was dissolved on 11th January, 2002.

Another milestone was laid in 1989 when Hing Fung was upgraded into a continuous dyeing mill. The site (approximately 20,000 sq.ft.) where the old dyeing and finishing plant had situated, was redeveloped into a 3-storey production facility with a total floor area of 60,000 sq.ft. This redevelopment has brought the Group’s total production floor area to 150,000 sq.ft.

In 1994, the Winnitex Group made an investment of US$30 million to set up a 100%-owned and is also the Group’s first weaving and dyeing plant in Zhejiang Province, China, known as Zhejiang Hing Fung Weaving, Dyeing & Printing Co. Ltd. In April 2000, this plant got the ISO 9002 certification.

Hing Fung has been one of the 500 largest enterprises in China.

In 2003, the Group set up Fouhang (Shanghai) International Trading Ltd. which has become the Group’s trading arm in China. This firm is one of the main buying offices of the Group.

Now, the Group is trading in the following products:-

COTTON SPUN YARNS, Open End - Carded

COTTON SPUN YARNS, Ring Spun - Carded

COTTON SPUN YARNS, Ring Spun - Combed

COTTON WOVEN FABRICS, 100% COTTON WOVEN FABRICS - (Bottom Weight)

COTTON WOVEN FABRICS, Corduroy (Bottomweight) - (Bottom Weight)

COTTON WOVEN FABRICS, Dobbies (Topweight) - (Top Weight)

COTTON WOVEN FABRICS, Doublecloth ( Bottomweight) - (Bottom Weight)

COTTON WOVEN FABRICS, Doublecloth (Topweight) - (Top Weight)

COTTON WOVEN FABRICS, Drills ( Bottomweight) - (Bottom Weight)

COTTON WOVEN FABRICS, Herringbone ( Bottomweight) - (Bottom Weight)

COTTON WOVEN FABRICS, Herringbone (Topweight) - (Top Weight)

COTTON WOVEN FABRICS, Oxfords (Bottomweight) - (Bottom Weight)

COTTON WOVEN FABRICS, Oxfords (Topweight) - (Top Weight)

COTTON WOVEN FABRICS, Poplin ( Bottomweight) - (Bottom Weight)

COTTON WOVEN FABRICS, Poplin (Topweight) - (Top Weight)

COTTON WOVEN FABRICS, Sateens (Topweight) - (Top Weight)

COTTON WOVEN FABRICS, Sheeting ( Bottomweight) - (Bottom Weight)

COTTON WOVEN FABRICS, Special Purpose Fabrics - (Bottom Weight)

COTTON WOVEN FABRICS, Terry ( Bottomweight) - (Bottom Weight)

COTTON WOVEN FABRICS, Twill - (Bottom Weight)

In 2005, the Group set up representative offices in New York and Tokyo.

The subject’s fabrics are made from fine yarns imported from Pakistan, India, Taiwan and China. The Group also produces different types of materials including 100% cotton, linen, tencel, polyester, rayon, lycra, spandex, etc. It also produces 100% cotton dyed fabric too.

Currently the Group is able to produce fabrics that weigh from 4 oz. to 14 oz. This range covers those fabrics for manufacturing men’s shirts, dresses, pants, denim skirts and outer jackets. The Group produces corduroy, dobby, twills, canvas, herringbone, sheeting, bedford cord, poplin, sateen, matting, ottoman, rib-stop and many other materials as well.

The Group is a certified AZO-Free company according to Oeko-Tex Standard 100. It is also compliant with the ordinances of Hong Kong’s Environmental Protection Department and China’s Government Authorities on Environmental Practices and is scrutinized by them yearly.

The Group established a new laboratory in June 2009 which has been well-equipped.

The Group also has got the Marks and Spencer laboratory accreditation.

According to the subject, the Group’s monthly dyeing capacity is 10 million metres with products ranging from shirts, trousers, formal wear, casual wear, outerwear, colour denim and different kinds of uniforms.

In recent years, the Group has set up an office in Macau known as Winnitex (Macao Commercial Offshore) Ltd. which is a Macau-registered firm.

Now, the Winnitex Group has had over 3,000 employees in Hong Kong, New York, Tokyo, Shanghai, Shaoxing, Hangzhou, Shenzhen Special Economic Zone, Macau and India. Annual sales turnover of the Group ranges from US$150 to 155 million, making a small profit every year.

The subject has about 25 employees in Hong Kong.

The history of the subject in Hong Kong is about twelve years while the history of the Group is over forty-nine years.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.45
UK Pound	1	Rs.95.99
Euro	1	Rs.63.45

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	NIS

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.