MIRA INFORM REPORT

 

 

Report No. :

304641

Report Date :

30.01.2015

 

IDENTIFICATION DETAILS

 

Name :

NICE DYEING FACTORY LTD.

 

 

Registered Office :

16/F., Metroplaza, Tower II, 223 Hing Fong Road, Kwai Chung, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

09.01.1976

 

 

Com. Reg. No.:

04640163

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is Trader f Knitted fabric and dyed yarn.

 

 

No. of Employee :

About 16,000 (30-09-2014) (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 – 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

 

NICE  DYEING  FACTORY  LTD.

 

ADDRESS:             16/F., Metroplaza, Tower II, 223 Hing Fong Road, Kwai Chung, New Territories, Hong Kong.

 

PHONE:                  852-2481 8018

 

FAX:                       852-2233 1111

 

E-MAIL:                  sales@texwinca.com

 

 

MANAGEMENT

 

Executive Chairman:      Mr. Poon Bun Chak

 

 

SUMMARY

 

Incorporated on:          9th January, 1976.

 

Organization:               Private Limited Company.

 

Capital:                  Nominal:  HK$3,500,000.00

                         Issued:     HK$3,126,000.00

 

Business Category: Knitted fabric and dyed yarn Trader.

 

Group Turnover:     HK$9,859.6 million  (Year ended 31-03-2014)

 

Group Employees:  About 16,000.  (As at 30-09-2014)

 

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

 

Banking Relation:  Good.

 


 

ADDRESS

 

Registered Head Office:-

16/F., Metroplaza, Tower II, 223 Hing Fong Road, Kwai Chung, New Territories, Hong Kong.

 

Godown:-

G/F. - 3/F., LMK Development Estate, 10-16 Kwai Ting Road, Kwai Chung, New Territories, Hong Kong.

 

China Factory: 

Dongguan, Guangdong Province, China.

 

 

Immediate Holding Company

 

Trustland Inc., British Virgin Islands.

 

 

Ultimate Holding Company

 

Texwinca Holdings Ltd., Bermuda/Hong Kong.

 

 

Subsidiary & Affiliated Companies

 

Texwinca Group of Companies

Baleno Holdings Ltd., British Virgin Islands.

Baleno Kingdom Ltd., Hong Kong.

Beijing Xingyu Baleno Garment & Decoration Co. Ltd., China.

Bigpoint Ltd., British Virgin Islands/China.

Billion Global Ltd., British Virgin Islands/Taiwan.

Chongqing Dasheng Baleno Co. Ltd., China.

Dalian Baleno Decoration Co. Ltd., China.

Dongguan Texwinca Textile & Garment Ltd., China.

Excel Billion Inc., British Virgin Islands/Taiwan.

Guangzhou Friendship Baleno Co. Ltd., China.

Highrich Corporation, British Virgin Islands/China.

Megawell Industrial Ltd., Hong Kong/China & Vietnam.

Nice Dyeing Factory (Macao Commercial Offshore) Ltd., Macau.

Silver Kingdom Ltd., British Virgin Islands/Taiwan.

Successful Channel Corporation, British Virgin Islands/China.

Texwinca Enterprises (China) Ltd., British Virgin Islands/Hong Kong.

Texwinca Enterprises Ltd., Hong Kong.

Win Ready Industrial Ltd., Hong Kong.

Winca (Dongguan) Motor Service Ltd., China.

Winlife Trading Ltd., Hong Kong.

etc.

 

 

BUSINESS REGISTRATION NUMBER: 

 

04640163

 

 

COMPANY FILE NUMBER:

 

0045573

 

 

MANAGEMENT

 

Executive Chairman:              Mr. Poon Bun Chak

Chief Executive Officer:           Mr. Ting Kit Chung

 

 

CAPITAL

 

Nominal Share Capital: HK$3,500,000.00 (Divided into 3,750 Ordinary shares and 31,250 Non-voting Deferred shares of HK$100.00 each)

 

Issued Share Capital: HK$3,126,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 09-01-2014)

Name

 

No. of shares

 

 


Ordinary

Non-voting Deferred

POON Kei Chak

 

1

-

Trustland Inc.

East Asia Chambers, P.O. Box 901, Road Town, Tortola, British Virgin Islands.

 

9

31,250

 

 

––

––––––

 

Total:

10

==

31,250

=====

 

 

DIRECTORS

           

(As per registry dated 09-01-2014)

Name

(Nationality)

 

Address

POON Kei Chak

 

House 5, 28 La Salle Road, Kowloon, Hong Kong.

TING Kit Chung

 

23A, Broadwood Park, 38 Broadwood Road, Hong Kong.

POON Ho Wa

Flat H, 28/F., Tower 1, The Belcher’s, 89 Pok Fu Lam Road, Hong Kong.

 

POON Bun Chak

22 Perkins Road, Jardine’s Lookout, Hong Kong.

 

 

SECRETARY

 

POON Kei Chak  (As per registry dated 09-01-2014)

 

 

HISTORY

 

The subject was incorporated on 9th January, 1976 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 & Lines:        Sale of finished knitted fabric and dyed yarn.

 

Group Employees:       About 16,000.  (As at 30-09-2014)

 

Raw Materials:             Bought from Europe and US.

 

Markets:                       Hong Kong, etc.

 

Group Revenue:    HK$10,537,966,000  (Year ended 31-03-2010)

                              HK$11,861,780,000  (Year ended 31-03-2011)

                              HK$13,765,827,000  (Year ended 31-03-2012)

                              HK$11,250,843,000  (Year ended 31-03-2013)

                              HK$  9,859,613,000  (Year ended 31-03-2014)

                              HK$  4,692,956,000  (6 months ended 30-09-2013)

                              HK$  4,464,318,000  (6 months ended 30-09-2014)

 

Terms/Sales:  Various terms.

 

Terms/Buying:  As per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$3,500,000.00 (Divided into 3,750 Ordinary shares and 31,250 Non-voting Deferred shares of HK$100.00 each)

 

Issued Share Capital: HK$3,126,000.00

 

Group Net Profit:    HK$1,105,241,000  (Year ended 31-03-2010)

                              HK$1,259,353,000  (Year ended 31-03-2011)

                              HK$   966,659,000  (Year ended 31-03-2012)

                              HK$   680,763,000  (Year ended 31-03-2013)

                              HK$   589,452,000  (Year ended 31-03-2014)

                              HK$   334,416,000  (6 months ended 30-09-2013)

                              HK$   388,191,000  (6 months ended 30-09-2014)

 

Group Net Worth:   HK$4,580,106,000  (As at 31-03-2010)

                              HK$5,241,699,000  (As at 31-03-2011)

                              HK$5,563,352,000  (As at 31-03-2012)

                              HK$5,862,334,000  (As at 31-03-2013)

                              HK$5,956,471,000  (As at 31-03-2014)

                              HK$6,036,522,000  (6 months ended 30-09-2014)

 

Profit & Loss:         Traded at a profitable angle.

 

Condition:              Keeping in an active and good manner.

 

Facilities:               Making active use of general banking facilities.

 

Payment:               So far so good.

 

Commercial Morality:  Good.


 

Bankers

 

DBS Bank (Hong Kong) Ltd., Hong Kong.

BNP Paribas, Hong Kong Branch.

 

Standing:  Very Good.

 

 

GENERAL

 

Nice Dyeing Factory Ltd. [NDFL] is a wholly-owned subsidiary of Trustland Inc., a BVI-registered firm, which is in turn a subsidiary of Texwinca Holdings Ltd. [THL/Company], a Bermuda-registered firm.  THL, the holding company of the Texwinca Group, is the second fabric dyeing and knitted company with shares listed on The Stock Exchange of Hong Kong Ltd. bearing stock code 321 in August 1992.

The Texwinca Group is principally engaged in the production, dyeing and sale of knitted fabric and yarn; and the retailing and distribution of casual apparel and accessory.  It also has subsidiaries to take part in garment production, apparel retailing, generators and motor sales and servicing.  The production processes are fully and vertically integrated with various working functions to offer great flexibility to its customers in choosing from any one or a combination of its services and a variety of raw fabrics and finished knitted fabrics according to customers’ requirements.  It has an immense sales network covering the United States, Europe and Asia.  The sales team has cordial relationships and close contacts with the customers, which include many popular international brandnames.  The Group was founded by Mr. Poon Bun Chak, the Chairman and Chief Executive Officer of THL.

The Group is managed by its headquarters located in Hong Kong, with all its knitting and dyeing operations being carried out in Dongguan, Guangdong Province, China.  Its production is fully and vertically integrated, from the treatment of raw yarns to the production of finished knitted fabric.

Presently, the Group is a major fabric supplier of many internationally known fashion brandnames.  Major customers include local labels such as “Giordano”, “U2”, “G2000” and “Bossini”, as well as foreign brands such as “Polo”, “Fred Perryand “Miarks & Spencer”.  It is also engaged in the retailing and distribution of casual apparel and accessories under “BALENO” trademarks, the provision of repair and maintenance services of motors and generators, the trading in generators, and the provision of franchise services.

Besides “BALENO”, the Group also carries the following brand names: “S&K”, “I.P. Zone”, “ebase”, etc.

NDFL is one of the principal members of the Group and was originally responsible for the dyeing and sale of finished knitted fabric.

For management purposes, the Group is organised into business units based on their products and services and has three reportable operating segments as follows:

the production, dyeing and sale of knitted fabric and yarn segment;

the retailing and distribution of casual apparel and accessory segment; and

the “others” segment principally comprises the provision of repair and maintenance services for motor vehicles, the provision of franchise services and properties investment.

For this financial year ended 31st March 2014, the Group’s total revenue decreased by 12.4% to HK$9,860 million (2013: HK$11,251 million).  Profit for the year was HK$589 million (2013: HK$681 million).

Profit for the year attributable to the ordinary equity holders of the Company was HK$668 million (2013: HK$734 million), a drop of 9.0%.

The Group’s gross profit margin was 33.3% (2013: 30.9%), an increase of 2.4 percentage points from last year.

For the six months ended 30th September 2014, the Group’s total revenue decreased by 4.9% to HK$4,464 million (six months ended 30th September 2013: HK$4,693 million).  Profit for the period amounted to HK$388.2 million (same period of previous year: HK$334.4 million).

Profit for the period attributable to the ordinary equity holders of the Company amounted to HK$392 million (six months ended 30th September 2013: HK$380 million), an increase of 3.2%.  In the period, the Group’s gross profit margin was 34.0%, slightly higher than last year’s 33.9%. Income tax expense increased to HK$54 million (six months ended 30th September 2013: HK$19 million) mainly due to higher provision for mainland China.

As at 30th September, 2014, the Group had about 16,000 employees.

NDFL is fully supported by the Group.

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

 

 

REMARKS

 

Brief personal history of the directors:-

 

Mr. POON Bun Chak, aged 65, is the Executive Chairman of THL overseeing the planning and development of THL.  He founded the Group in 1975 and has more than 42 years experience in the textile field.

 

Mr. POON Kei Chak, aged 61, is the Executive Vice Chairman of THL and a younger brother of Mr. Poon Bun Chak.  He joined THL on its establishment in 1975 and has more than 39 years experience in the field.  He is responsible for the purchases, sales and management of THL.

 

Mr. TING Kit Chung, aged 58, is the Chief Executive Officer of THL.  He is responsible for the general administration and financial management of THL.  He joined THL in 1991 and has more than 10 years banking experience.  He holds a Bachelor of Arts degree from The University of Hong Kong.

 

Mr. POON Ho Wa, aged 36, is a son of Mr. Poon Kai Chak, an executive director of THL and a nephew of Mr. Poon Bun Chak and Mr. Poon Kei Chak, both of whom are executive directors of THL.  He is responsible for helping the management of the textile business and production development.  He joined the Group in 2002 and has extensive experience in the investment banking industry.  He holds a Bachelor of Science degree in management from The London School of Economics and Political Science.

 

Court case:-

Action Date

Case No.

Plaintiff

Defendant

Cause

Amount

Apr. 1993

-

Li Kin Hung

Nice Dyeing Factory Ltd.

Breach of Contract

Not stated

May 2002

H1819

King Star Garment Honuras S. de R.L.

Nice Dyeing Factory Ltd.

Money Due/Owing

US$374,700

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.50

UK Pound

1

Rs. 93.12

Euro

1

Rs. 69.33

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 


 

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.