MIRA INFORM REPORT

 

 

Report No. :

334356

Report Date :

31.07.2015

 

IDENTIFICATION DETAILS

 

Name :

HI-P INTERNATIONAL LIMITED

 

 

Registered Office :

11, International Business Parkhi-P Building, 609926,

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

26.12.1980

 

 

Com. Reg. No.:

198004817-H

 

 

Legal Form :

Public

 

 

Line of Business :

Subject is principally engaged in the assembly of telecommunications, consumer electronics and computing products and investment holding companies

 

 

No. of Employees :

412

 

 

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)

Singapore

 

 

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SINGAPORE - ECONOMIC OVERVIEW

 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. Unemployment is very low. The economy depends heavily on exports, particularly of consumer electronics, information technology products, medical and optical devices, pharmaceuticals, and on its vibrant transportation, business, and financial services sectors. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but has continued to grow since 2010 on the strength of renewed exports. Growth in 2014 was slower at 2.9%, largely a result of soft demand for exports amid a sluggish global economy and weak growth in Singapore’s manufacturing sector. The government is attempting to restructure Singapore’s economy by weaning its dependence on foreign labor, addressing weak productivity, and increasing Singaporean wages. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to strengthen its position as Southeast Asia's leading financial and high-tech hub. Singapore is a member of the 12-nation Trans-Pacific Partnership free trade negotiations, the Regional Comprehensive Economic Partnership negotiations with the nine other ASEAN members plus Australia, China, India, Japan, South Korea and New Zealand, and in 2015, Singapore will form, with the other ASEAN members, the ASEAN Economic Community.

 

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

 

 

REGISTRATION NO.

:

198004817-H

COMPANY NAME

:

HI-P INTERNATIONAL LIMITED

FORMER NAME

:

HI-P INTERNATIONAL PTE LTD (10/10/2003)
HI-P SINGAPORE PTE LTD (12/10/2000)
HI-P TOOL & DIE PTE LTD (05/02/1997)

INCORPORATION DATE

:

26/12/1980

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC

LISTED STATUS

:

YES

LISTED DATE

:

17/12/2003

REGISTERED ADDRESS

:

11, INTERNATIONAL BUSINESS PARKHI-P BUILDING, 609926, SINGAPORE.

BUSINESS ADDRESS

:

11, INTERNATIONAL BUSINESS PARK, HI-P BUILDING, 609926, SINGAPORE.

TEL.NO.

:

65-62685459

FAX.NO.

:

65-65641787

EMAIL

:

WB.LEE@HI-P.COM

WEB SITE

:

WWW.HI-P.COM

CONTACT PERSON

:

YAO HSIAO TUNG ( CEO )

PRINCIPAL ACTIVITY

:

ASSEMBLY OF TELECOMMUNICATIONS, CONSUMER ELECTRONICS AND COMPUTING PRODUCTS AND INVESTMENT HOLDING COMPANIES

ISSUED AND PAID UP CAPITAL

:

887,175,000.00 ORDINARY SHARE, OF A VALUE OF SGD 119,725,495.00 
70,872,237.00 TREASURY SHARE, OF A VALUE OF SGD 9,564,306.54 

SALES

:

SGD 951,396,000 [2014]

NET WORTH

:

SGD 606,929,000 [2014]

STAFF STRENGTH

:

412 [2015]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

NO COMPLAINTS

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

                                    

 

HISTORY / BACKGROUND

 

As a public limited company, the Subject must have at least one shareholder but there is no limit on the maximum number of shareholders. The Subject must have at least two directors. A public limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, suing or be sued by other companies. The liabilities of the shareholders are only up to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and must file in its annual return, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) assembly of telecommunications, consumer electronics and computing products and investment holding companies.

 

Share Capital History

Date

Issue & Paid Up Capital

04/12/2014

SGD 129,289,801.54

 

The major shareholder(s) of the Subject are shown as follows :

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

YAO HSIAO TUNG +

3, SWETTENHAM ROAD, 248076, SINGAPORE.

S2201741A

492,576,144.00

55.52

MOLEX INTERNATIONAL INC

222, WELLINGTON COURT LISLE ILLINOIS 60532A, UNITED STATES.

T08UF4592

178,236,020.00

20.09

DBS NOMINEES PTE LTD

-

993504T

25,771,062.00

2.90

RAFFLES NOMINEES (PTE) LIMITED

STANDARD CHARTERED @ CHANGI, 03-00, 7, CHANGI BUSINESS PARK CRESCENT, 486028, SINGAPORE.

193700032R

22,182,499.00

2.50

CITIBANK NOMINEES SINGAPORE PTE LTD

8, MARINA VIEW, 21-00, ASIA SQUARE, TOWER 1, 018960, SINGAPORE.

198801936

14,719,000.00

1.66

UNITED OVERSEAS BANK NOMINEES (PRIVATE) LIMITED

-

196800520

4,836,500.00

0.55

HSBC (SINGAPORE) NOMINEES PTE. LTD.

21, COLLYER QUAY, 10-02, HSBC BUILDING, 049320, SINGAPORE.

194600097

2,877,560.00

0.32

RODERICK SER PHUAY KEE

-

-

2,600,000.00

0.29

DBSN SERVICES PTE LTD

12, MARINA BOULEVARD, MARINA BAY, FINANCIAL CENTRE, 018982, SINGAPORE.

200602090

2,531,700.00

0.29

LIN CHIEN +

2, MAKEWAY AVENUE, 02-01, MAKEWAY VIEW, 228599, SINGAPORE.

S2196728I

2,000,000.00

0.23

WEE BEE HOON

-

-

1,587,000.00

0.18

PHILLIP SECURITIES PTE LTD

-

197501035Z

1,575,400.00

0.18

SOH SAI KIANG

-

-

1,480,000.00

0.17

REMAINING SHAREHOLDERS

-

-

134,202,115.00

15.13

---------------

------

887,175,000.00

100.00

============

=====

+ Also Director


The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :



Local No

Country

Company

(%)

As At

201425550M

SINGAPORE

HI-P HOLDINGS PTE. LTD.

100.00

29/07/2015

200913762W

SINGAPORE

HI-P FLEX PTE. LTD.

100.00

29/07/2015

200107567C

SINGAPORE

HI-P (SINGAPORE) TECHNOLOGY PTE. LTD.

100.00

29/07/2015

200008125D

SINGAPORE

HI-P ELECTRONICS PTE. LTD.

100.00

29/07/2015

 


DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

YEO TIONG ENG

Address

:

44, PEMIMPIN PLACE, 576041, SINGAPORE.

IC / PP No

:

S0111311I

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/04/1987

 

DIRECTOR 2

 

Name Of Subject

:

LEONG LAI PENG

Address

:

13, LENGKOK MARIAM, CHANGI GROVE, 509116, SINGAPORE.

IC / PP No

:

S1297526J

Nationality

:

SINGAPOREAN

Date of Appointment

:

09/11/2006

 

DIRECTOR 3

 

Name Of Subject

:

WONG HUEY FANG

Address

:

3, SWETTENHAM ROAD, 248076, SINGAPORE.

IC / PP No

:

S2201742Z

Nationality

:

SINGAPOREAN

Date of Appointment

:

21/01/1988

 

 

DIRECTOR 4

 

Name Of Subject

:

GERALD LIM THIEN SU

Address

:

12, JALAN KEMBANG MELATI, CHIP HOCK GARDENS, 258773, SINGAPORE.

IC / PP No

:

S1245443J

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/11/2010

 

 

 

DIRECTOR 5

 

Name Of Subject

:

LIN CHIEN

Address

:

2, MAKEWAY AVENUE, 02-01, MAKEWAY VIEW, 228599, SINGAPORE.

IC / PP No

:

S2196728I

Nationality

:

SINGAPOREAN

Date of Appointment

:

04/08/2004

 

DIRECTOR 6

 

Name Of Subject

:

YAO HSIAO TUNG

Address

:

3, SWETTENHAM ROAD, 248076, SINGAPORE.

IC / PP No

:

S2201741A

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/10/1991

 

 

MANAGEMENT

 

1)

Name of Subject

LIM THIEN SU

Position

CHAIRMAN

 

2)

Name of Subject

TAY EWEE LIANG

Position

DEPUTY CEO

 

3)

Name of Subject

YAO HSIAO TUNG

Position

CEO, MANAGING DIRECTOR

 

                 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG LLP

Auditor' Address

:

N/A

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

CHAN WAN MEI

IC / PP No

:

S7268474E

Address

:

577, PASIR RIS STREET 53, 06-96, 510577, SINGAPORE.

 

2)

Company Secretary

:

TAY CHEE WAH

IC / PP No

:

S6968275H

Address

:

1, BEDOK SOUTH AVENUE, 1, 09-921, 460001, SINGAPORE.

 

 

BANKING


No Banker found in our databank. 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation. 

                                  

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the subject has been involved in any litigation.

No legal action was found in our databank.

No winding up petition was found in our databank.

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

40%

Overseas

:

YES

Percentage

:

60%



The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE   

 

Local

:

YES

 

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

WORLDWIDE

Credit Term

:

N/A

Payment Mode

:

CHEQUES
LETTER OF CREDIT (LC)

 

OPERATIONS

 

Products manufactured

:

TELECOMMUNICATIONS, CONSUMER ELECTRONICS AND COMPUTING PRODUCTS

Services

:

INVESTMENT HOLDING COMPANIES

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2015

2014

2013

 

GROUP

N/A

N/A

N/A

COMPANY

412

412

412

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) assembly of telecommunications, consumer electronics and computing products and investment holding companies. 

The Subject is listed international corporation providing integrated and turnkey contract manufacturing services to some of the biggest world-class Multinational Companies in the consumer electronics, disk drive, medical and telecommunications industries.

The Subject is a global vertically integrated contract manufacturer serving the wireless telecommunications, consumer electronics and computing and automotive industries.

The Subject's main product are:
- wireless product 
- Consumer electronic 

 

RECENT DEVELOPMENT


Jun 24 2015


The Board of Directors of Hi-P International Limited announced that the company and its wholly-owned subsidiaries, Hi-P Electronics Pte Ltd. (Hi-P Electronics) and Hi-P (Singapore) Technology Pte Ltd. (Hi-P (Singapore) Technology) have on June 24, 2015 accepted an offer from DBS Bank Ltd. (the Bank) to revise its banking facilities to $130,000,000 and SGD 1,100,000 (the Increased Facilities). The Increased Facilities comprise of overdraft facility, letters of credit, fixed advanced facility, short term loan, and letters of guarantee. The Increased Facilities are uncommitted and unsecured. The Bank has the right to review the Increased Facilities from time to time and to demand repayment of all outstanding Increased Facilities, actual or contingent. The Company, Hi-P Electronics, and Hi-P (Singapore) Technology are jointly and severally liable to the Bank for the outstanding Facilities.


May 4 2015


Hi-P International Limited announced consolidated earnings results for the first quarter ended March 31, 2015. For the quarter, the company's revenue was SGD 279.8 million compared with SGD 178.9 million a year ago. Loss before tax was SGD 11.9 million compared with SGD 12.3 million a year ago. Loss attributable to owners of the company was SGD 13.8 million or 1.69 cents per basic and diluted share compared with SGD 12.3 million or 1.50 cents per basic and diluted share a year ago. Revenue increased by 56.4%, contributed by: ODM & other high component content assembly products and orders from new customers. Net loss due to: Startup costs for Nantong plant, labour and depreciation costs incurred for plant under renovation pending new projects ramp up in second half of 2015 and higher inventory write-off and provisions. Net debt was SGD 65.4 million. Net cash flows used in operating activities was SGD 18.332 million compared with net cash flows generated from operating activities of SGD 67.71 million a year ago. Capex amounted to SGD 50.3 million. Barring any other unforeseen circumstances, the group expects higher revenue in second quarter of 2015 as compared to second quarter of 2014. The group expects to record a loss in second quarter of 2015. The group expects higher revenue in second half of 2015 as compared to first half of 2015. The group expects to be profitable in second half of 2015. The group expects higher revenue and profit in fiscal year 2015 as compared to fiscal year 2014.

 


May 5 2014


Hi-P International Limited reported earnings results for the first quarter ended March 31, 2014. For the quarter, the company reported net loss of SGD 12.3 million mainly due to lower sales, change in product mix, slower pace of decrease in labour costs as compared to the decrease in sales, as well as net fair value loss on forex hedging. Revenue decreased by SGD 88.7 million or 33.1% year over year to SGD 178.9 million. The decrease was mainly due to lower sales volumes from key customers. The decrease was partially offset by orders from new customers, which was in line with its strategy to diversify its customer base. Earnings per share were 1.50 cents against 0.83 cents a year ago. Net asset value per share was 70.18 cents against 71.90 cents a year ago. The Group expects lower revenue in the second quarter of 2014 as compared to second quarter of 2013, and expects to record a loss in the second quarter of 2014. The Group expects higher revenue and lower loss in the second quarter of 2014 as compared to first quarter of 2014. The Group expects lower revenue but higher profit in fiscal year 2014 as compared to fiscal year 2013.



Apr 29 2014


Hi-P International Ltd., Special/Extraordinary Shareholders Meeting, Apr 29, 2014., at 15:15 Singapore Standard Time. Location: Ficus 3 Room, Level 2. Agenda: To propose share purchase mandate; to propose adoption of the company employee share option scheme 2014; to propose grant of authority to grant options and issue shares under the company 2014; to propose grant of authority to offer and grant options at a discount under the company 2014; to propose participation by Mr. Yao Hsiao Tung, a controlling shareholder, in the company 2014; to propose participation by Madam Wong Huey Fang, an associate of the controlling shareholder, Mr. Yao Hsiao Tung, in the company 2014; to proposed participation by Mr. Yao Hsiao Kuang, an associate of the controlling shareholder, Mr. Yao Hsiao Kuang, in the company 2014; to propose grant of an award of 96,315 shares to Mr. Yao Hsiao Kuang under the hi-p employee share award scheme; to propose grant of an award of 11,986 shares to Madam Wong Huey Fang under the hi-p employee share award scheme; and to propose grant of an award of 2,476 to Mr. Yao Hsiao Kuang under the hi-p employee share award scheme.

 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-62685459

Match

:

N/A

Address Provided by Client

:

11, INTERNATIONAL BUSINESS PARK, JURONG EAST, SINGAPORE 609926

Current Address

:

11, INTERNATIONAL BUSINESS PARK, HI-P BUILDING, 609926, SINGAPORE.

Match

:

YES

 

Other Investigations


We contacted one of the staff from the Subject and she provided some information.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

1.72%

]

Return on Net Assets

:

Unfavourable

[

2.84%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Unfavourable

[

86 Days

]

Debtor Ratio

:

Unfavourable

[

106 Days

]

Creditors Ratio

:

Unfavourable

[

110 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity

Liquid Ratio

:

Acceptable

[

0.94 Times

]

Current Ratio

:

Unfavourable

[

1.29 Times

]

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Favourable

[

10.31 Times

]

Gearing Ratio

:

Favourable

[

0.35 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

Overall Assessment :

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

Overall financial condition of the Subject : LIMITED

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

 

 

Major Economic Indicators :

2009

2010

2011

2012

2013

 

Population (Million)

4.98

5.08

5.18

5.31

5.40

Gross Domestic Products ( % )

(0.8)

14.5

4.9

1.3

3.7

Consumer Price Index

0.6

2.8

5.2

4.6

2.4

Total Imports (Million)

356,299.3

423,221.8

459,655.1

474,554.0

466,762.0

Total Exports (Million)

391,118.1

478,840.7

514,741.2

510,329.0

513,391.0

 

Unemployment Rate (%)

3.2

2.2

2.1

2.0

1.9

Tourist Arrival (Million)

9.68

11.64

13.17

14.49

15.46

Hotel Occupancy Rate (%)

75.8

85.6

86.5

86.4

86.3

Cellular Phone Subscriber (Million)

1.37

1.43

1.50

1.52

1.97

 

Registration of New Companies (No.)

26,414

29,798

32,317

31,892

37,288

Registration of New Companies (%)

4.3

12.8

8.5

(1.3)

9.8

Liquidation of Companies (No.)

22,393

15,126

19,005

17,218

17,369

Liquidation of Companies (%)

113.4

(32.5)

25.6

9.4

(5.3)

 

Registration of New Businesses (No.)

26,876

23,978

23,494

24,788

22,893

Registration of New Businesses (%)

8.15

(10.78)

2.02

5.51

1.70

Liquidation of Businesses (No.)

23,552

24,211

23,005

22,489

22,598

Liquidation of Businesses (%)

11.4

2.8

(5)

(2.2)

0.5

 

Bankruptcy Orders (No.)

2,058

1,537

1,527

1,748

1,992

Bankruptcy Orders (%)

(11.5)

(25.3)

(0.7)

14.5

14.0

Bankruptcy Discharges (No.)

3,056

2,252

1,391

1,881

2,584

Bankruptcy Discharges (%)

103.7

(26.3)

(38.2)

35.2

37.4

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

3.25

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(1.93)

(10.5)

12.10

(0.5)

-

 

Manufacturing *

71.5

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

90.4

96.4

100.0

103.5

103.5

Textiles

145.9

122.1

100.0

104.0

87.1

Wearing Apparel

211.0

123.3

100.0

92.1

77.8

Leather Products & Footwear

79.5

81.8

100.0

98.6

109.8

Wood & Wood Products

101.4

104.0

100.0

95.5

107.4

Paper & Paper Products

95.4

106.1

100.0

97.4

103.2

Printing & Media

100.9

103.5

100.0

93.0

86.1

Crude Oil Refineries

96.4

95.6

100.0

99.4

93.5

Chemical & Chemical Products

80.3

97.6

100.0

100.5

104.1

Pharmaceutical Products

49.1

75.3

100.0

109.7

107.2

Rubber & Plastic Products

101.2

112.3

100.0

96.5

92.9

Non-metallic Mineral

91.9

92.5

100.0

98.2

97.6

Basic Metals

92.6

102.2

100.0

90.6

76.5

Fabricated Metal Products

90.8

103.6

100.0

104.3

105.1

Machinery & Equipment

57.3

78.5

100.0

112.9

114.5

Electrical Machinery

86.8

124.1

100.0

99.3

108.5

Electronic Components

85.2

113.6

100.0

90.6

94.3

Transport Equipment

96.0

94.0

100.0

106.3

107.5

 

Construction

(36.9)

14.20

20.50

28.70

-

Real Estate

1.4

21.3

25.4

31.9

-

 

Services

Electricity, Gas & Water

1.70

4.00

7.00

6.30

-

Transport, Storage & Communication

3.90

12.80

7.40

5.30

-

Finance & Insurance

(16.4)

(0.4)

8.90

0.50

-

Government Services

4.50

9.70

6.90

6.00

-

Education Services

0.10

(0.9)

(1.4)

0.30

-

 

* Based on Index of Industrial Production (2011 = 100)

 

 

INDUSTRY ANALYSIS

 

INDUSTRY :

ECONOMY

The Ministry of Trade and Industry (MTI) announced that it expects the Singapore economy to grow by around 3.0% in 2014, and by 2.0 to 4.0% in 2015. Besides that in 2013, the economy grew by 4.1%, higher than the 1.9% growth in 2012. This was mainly due to strong growth in the services producing industries, particularly the finance & insurance, as well as wholesale & retail trade sectors.

In 2013, all sectors contributed positively to growth. Finance & insurance was the largest contributor (1.2 percentage-points), followed by wholesale & retail trade (0.8 percentage-points) and business services (0.6 percentage-points). Growth in the manufacturing sector was improved by 1.7%, on the back of strong growth in the electronics and transport engineering clusters. By contrast, growth in the construction sector moderated to 5.9%, from 8.6% in 2012.

Growth in the services producing industries picked up to 5.3% in 2013, from 2.0% in 2012. This was mainly due to stronger growth in the finance & insurance and wholesale & retail trade sectors. The finance & insurance sector grew by 11%, up from 1.3% in the previous year. The wholesale & retail trade sector has expanded by 5.0%, after declining by 1.4% the year before.

For the whole of 2013, growth in total demand was 3.1%, similar to the pace of growth in 2012. External demand was the key contributor to total demand growth, accounting for 2.7 percentage-points, or almost 90%, of the increase. External demand grew at a faster pace of 3.6%, compared to the 1.4% growth in 2012. This was supported mainly by growth in the exports of machinery & transport equipment, miscellaneous manufactures, and transport services. Total domestic demand rose by a modest 1.7%, following the 8.6% increase in 2012. The slower growth in total domestic demand was primarily due to the decline in gross fixed capital formation (GFCF).

For the full year, total consumption expenditure grew by 4.4% in 2013, faster than the 2.8% growth in 2012. Public consumption expenditure increased by 11%, a strong rebound from the 1.9% decline in 2012. Private consumption expenditure recorded gains of 2.7%, moderating from the 4.1% increase in the preceding year.

Furthermore, in the first three quarters of 2014, the Singapore economy grew by 3.3% on a year-on-year basis. For the rest of the year, growth is expected to ease slightly on a year-on-year basis, in line with a projected slowdown in the global economy. Externally-oriented sectors such as the manufacturing and transportation & storage sectors are likely to slow, whereas growth in the construction sector will continue to be weighed down by the weakness in private sector construction activities. On the other hand, domestically-oriented sectors like business services are likely to remain resilient.

Additionally, the labour market in Singapore is expected to remain tight in 2015, with low unemployment and rising vacancy rates. Against this global and domestic backdrop, the growth outlook for the Singapore economy remains modest. In tandem with the expected pick-up in external demand, externally-oriented sectors such as manufacturing, wholesale trade and finance & insurance are likely to provide support to growth. While some domestically-oriented sectors such as businesses services are expected to remain resilient, labour-intensive ones like construction, retail and food services may see their growth weighed down by labour constraints.

OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH

 

 

PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

HI-P INTERNATIONAL LIMITED

 

Financial Year End

2014-12-31

2013-12-31

2012-12-31

2011-12-31

2010-12-31

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

SGD

SGD

SGD

SGD

SGD

TURNOVER

951,396,000

1,262,467,000

1,166,741,000

1,203,909,000

957,702,000

Other Income

19,677,000

11,091,000

13,306,000

28,065,000

20,361,000

----------------

----------------

----------------

----------------

----------------

Total Turnover

971,073,000

1,273,558,000

1,180,047,000

1,231,974,000

978,063,000

Costs of Goods Sold

(881,387,000)

(1,164,916,000)

(1,068,890,000)

(1,073,145,000)

(776,153,000)

----------------

----------------

----------------

----------------

----------------

Gross Profit

89,686,000

108,642,000

111,157,000

158,829,000

201,910,000

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) FROM OPERATIONS

15,556,000

11,217,000

22,227,000

59,357,000

88,047,000

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

157,000

(30,000)

325,000

31,000

220,000

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

15,713,000

11,187,000

22,552,000

59,388,000

88,267,000

Taxation

(5,244,000)

(4,785,000)

(4,599,000)

(14,428,000)

(21,332,000)

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

10,469,000

6,402,000

17,953,000

44,960,000

66,935,000

Minority interests

(5,000)

(4,000)

(5,000)

29,000

334,000

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

10,464,000

6,398,000

17,948,000

44,989,000

67,269,000

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

10,464,000

6,398,000

17,948,000

44,989,000

67,269,000

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

469,249,000

474,409,000

477,068,000

463,701,000

432,016,000

----------------

----------------

----------------

----------------

----------------

As restated

469,249,000

474,409,000

477,068,000

463,701,000

432,016,000

----------------

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

479,713,000

480,807,000

495,016,000

508,690,000

499,285,000

TRANSFER TO RESERVES - Statutory

(224,000)

(1,650,000)

(783,000)

(1,811,000)

(9,522,000)

DIVIDENDS - Ordinary (paid & proposed)

(4,910,000)

(9,908,000)

(19,824,000)

(29,811,000)

(26,062,000)

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

474,579,000

469,249,000

474,409,000

477,068,000

463,701,000

=============

=============

=============

=============

=============

INTEREST EXPENSE (as per notes to P&L)

Lease interest

173,000

219,000

267,000

331,000

387,000

Term loan / Borrowing

1,515,000

1,857,000

3,686,000

1,134,000

12,000

----------------

----------------

----------------

----------------

----------------

1,688,000

2,076,000

3,953,000

1,465,000

399,000

=============

=============

=============

=============

=============

DEPRECIATION (as per notes to P&L)

77,749,000

86,561,000

69,749,000

59,487,000

45,777,000

AMORTIZATION

1,675,000

1,179,000

-

-

-

----------------

----------------

----------------

----------------

----------------

79,424,000

87,740,000

69,749,000

59,487,000

45,777,000

=============

=============

=============

=============

=============

 

 

BALANCE SHEET

 

 

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

384,130,000

346,382,000

363,912,000

284,392,000

255,549,000

Associated companies

2,089,000

1,930,000

1,886,000

2,328,000

2,355,000

Deferred assets

26,566,000

21,121,000

12,740,000

13,974,000

11,537,000

Others

67,000

151,000

223,000

87,000

-

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

28,722,000

23,202,000

14,849,000

16,389,000

13,892,000

Concession rights

12,498,000

12,564,000

1,365,000

-

-

Others

4,531,000

5,689,000

12,000

12,000

12,000

----------------

----------------

----------------

----------------

----------------

TOTAL INTANGIBLE ASSETS

17,029,000

18,253,000

1,377,000

12,000

12,000

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

429,881,000

387,837,000

380,138,000

300,793,000

269,453,000

Short term quoted/unquoted investments

-

-

-

-

3,906,000

Stocks

223,082,000

163,417,000

145,509,000

124,832,000

100,472,000

Trade debtors

276,895,000

277,310,000

291,675,000

257,913,000

229,267,000

Other debtors, deposits & prepayments

30,091,000

44,232,000

35,856,000

34,599,000

6,902,000

Short term deposits

85,315,000

50,073,000

39,601,000

131,607,000

35,177,000

Amount due from related companies

900,000

998,000

788,000

806,000

764,000

Amount due from associated companies

-

-

150,000

-

-

Cash & bank balances

122,831,000

81,548,000

126,416,000

132,455,000

179,801,000

Others

79,382,000

21,057,000

31,055,000

93,088,000

31,949,000

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

818,496,000

638,635,000

671,050,000

775,300,000

588,238,000

----------------

----------------

----------------

----------------

----------------

TOTAL ASSET

1,248,377,000

1,026,472,000

1,051,188,000

1,076,093,000

857,691,000

=============

=============

=============

=============

=============

CURRENT LIABILITIES

Trade creditors

265,615,000

189,283,000

217,877,000

207,307,000

185,650,000

Other creditors & accruals

141,752,000

109,737,000

60,023,000

104,048,000

38,818,000

Hire purchase & lease creditors

-

-

541,000

583,000

572,000

Short term borrowings/Term loans

209,130,000

100,992,000

141,687,000

116,109,000

-

Other liabilities & accruals

-

-

32,189,000

33,467,000

35,965,000

Amounts owing to subsidiary companies

-

-

-

-

36,000

Provision for taxation

12,379,000

16,379,000

10,597,000

10,742,000

19,858,000

Lease payables

3,347,000

640,000

-

-

-

Other liabilities

3,352,000

7,338,000

5,049,000

2,835,000

296,000

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

635,575,000

424,369,000

467,963,000

475,091,000

281,195,000

----------------

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

182,921,000

214,266,000

203,087,000

300,209,000

307,043,000

----------------

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

612,802,000

602,103,000

583,225,000

601,002,000

576,496,000

=============

=============

=============

=============

=============

SHARE CAPITAL

Ordinary share capital

119,725,000

119,725,000

119,725,000

119,725,000

119,725,000

----------------

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

119,725,000

119,725,000

119,725,000

119,725,000

119,725,000

Capital reserve

169,000

169,000

169,000

169,000

-

Exchange equalisation/fluctuation reserve

2,221,000

(4,065,000)

(31,775,000)

(11,089,000)

-

Statutory reserve

50,838,000

50,616,000

48,967,000

48,202,000

-

General reserve

-

-

3,890,000

-

21,263,000

Retained profit/(loss) carried forward

474,579,000

469,249,000

474,409,000

477,068,000

463,701,000

Employee share option reserve

9,422,000

8,705,000

7,727,000

5,893,000

-

Others

(51,035,000)

(46,324,000)

(44,285,000)

(44,235,000)

(34,040,000)

----------------

----------------

----------------

----------------

----------------

TOTAL RESERVES

486,194,000

478,350,000

459,102,000

476,008,000

450,924,000

MINORITY INTEREST

1,010,000

984,000

923,000

962,000

942,000

----------------

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

606,929,000

599,059,000

579,750,000

596,695,000

571,591,000

Hire purchase creditors

2,785,000

1,601,000

2,073,000

2,725,000

3,377,000

Deferred taxation

3,088,000

1,443,000

1,402,000

1,582,000

1,528,000

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

5,873,000

3,044,000

3,475,000

4,307,000

4,905,000

----------------

----------------

----------------

----------------

----------------

612,802,000

602,103,000

583,225,000

601,002,000

576,496,000

=============

=============

=============

=============

=============

 


FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

208,146,000

131,621,000

166,017,000

264,062,000

214,978,000

Net Liquid Funds

208,146,000

131,621,000

166,017,000

264,062,000

214,978,000

Net Liquid Assets

(40,161,000)

50,849,000

57,578,000

175,377,000

206,571,000

Net Current Assets/(Liabilities)

182,921,000

214,266,000

203,087,000

300,209,000

307,043,000

Net Tangible Assets

595,773,000

583,850,000

581,848,000

600,990,000

576,484,000

Net Monetary Assets

(46,034,000)

47,805,000

54,103,000

171,070,000

201,666,000

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

0

13,263,000

26,505,000

60,853,000

88,666,000

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

96,825,000

101,003,000

96,254,000

120,340,000

134,443,000

BALANCE SHEET ITEMS

Total Borrowings

211,915,000

102,593,000

144,301,000

119,417,000

3,949,000

Total Liabilities

641,448,000

427,413,000

471,438,000

479,398,000

286,100,000

Total Assets

1,248,377,000

1,026,472,000

1,051,188,000

1,076,093,000

857,691,000

Net Assets

612,802,000

602,103,000

583,225,000

601,002,000

576,496,000

Net Assets Backing

606,929,000

599,059,000

579,750,000

596,695,000

571,591,000

Shareholders' Funds

606,929,000

599,059,000

579,750,000

596,695,000

571,591,000

Total Share Capital

119,725,000

119,725,000

119,725,000

119,725,000

119,725,000

Total Reserves

486,194,000

478,350,000

459,102,000

476,008,000

450,924,000

LIQUIDITY (Times)

Cash Ratio

0.33

0.31

0.35

0.56

0.76

Liquid Ratio

0.94

1.12

1.12

1.37

1.73

Current Ratio

1.29

1.50

1.43

1.63

2.09

WORKING CAPITAL CONTROL (Days)

Stock Ratio

86

47

46

38

38

Debtors Ratio

106

80

91

78

87

Creditors Ratio

110

59

74

71

87

SOLVENCY RATIOS (Times)

Gearing Ratio

0.35

0.17

0.25

0.20

0.01

Liabilities Ratio

1.06

0.71

0.81

0.80

0.50

Times Interest Earned Ratio

10.31

6.39

6.71

41.54

222.22

Assets Backing Ratio

4.98

4.88

4.86

5.02

4.82

PERFORMANCE RATIO (%)

Operating Profit Margin

1.65

0.89

1.93

4.93

9.22

Net Profit Margin

1.10

0.51

1.54

3.74

7.02

Return On Net Assets

2.84

2.20

4.54

10.13

15.38

Return On Capital Employed

2.76

2.13

4.52

10.10

15.34

Return On Shareholders' Funds/Equity

1.72

1.07

3.10

7.54

11.77

Dividend Pay Out Ratio (Times)

0.47

1.55

1.10

0.66

0.39

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.01

UK Pound

1

Rs.99.83

Euro

1

Rs.70.07

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TRU

 

               

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.