MIRA INFORM REPORT

 

 

Report No. :

328094

Report Date :

25.06.2015

 

IDENTIFICATION DETAILS

 

Name :

LUEN HING TEXTILE COMPANY LIMITED

 

 

Registered Office :

Block A, 20/F, Excelsior Indu strial Building, 68 Sha Tsui Road, Tsuen Wan, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

05.06.2007

 

 

Com. Reg. No.:

1138463

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trading of textiles.

 

 

No. of Employee :

Not Available

 

NOTE:

 

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

HONG KONG ECONOMIC OVERVIEW

 

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 12.5% of total system deposits in Hong Kong by the end of 2014. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's total trade by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4.4% in 2014. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983. In 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 

Contact Points

 

Company Name (in English):

Luen Hing Textile Company Limited

Supplied Name:

LUEN HING TEXTILE COMPANY LIMITED

Trading Address:

Block A, 20/F, Excelsior Industrial Building, 68 Sha Tsui Road, Tsuen Wan, New Territories, Hong Kong

Supplied Address:

BLOCK A-B, 20/F, EXCELSIOR INDUSTRIAL BUILDING, 68, SHA TSUI ROAD TSUEN WAN HONGKONG

Note: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Luen Hing Textile Company Limited

Registered Address:

Block A, 20/F, Excelsior Industrial Building, 68 Sha Tsui Road, Tsuen Wan, New Territories, Hong Kong

Telephone Number:

+852-2416-0810

Fax Number:

+852-2413-6711

E-mail:

lh@luenhinggroup.com

Date of Registration:

2007-6-5

Registered Number:

1138463

Business Registration No.:

39199072

Paid-up Capital:

HKD 30,000,000 (USD 3,870,000) = 30,000,000 Shares@ HKD 1

HKD 104,000,000 (USD 13,416,000) = 20,000,000 Shares@ HKD 5.2

(As of 2015.06, 1 HKD = 0.129 USD)

Legal Form:

Private Limited Liability Company

SITC Code:

69350-- Cloth (including endless bands), grill, netting and fencing, of ron or steel wire; expanded metal of iron or steel (kg)

Principal Activities:

Trading of textiles and etc.

Staff:

N/A

Listed at Stock Exchange:

No

Date of Last Annual Return:

2014-6-5

Notes: Subject declined to disclose its staff number; from other source we cannot obtain the relevant information, either.

 

 

History

 

Subject was incorporated on 2007-6-5 with the registered number 1138463 as Private Limited Liability Company in Hong Kong.

 

 

 

Corporate Structure

 

Parent Company

Name:

Len Hing Investment Limited

Address:

3rd Floor, J & C Building, P. O. Box 933, Road Town, Tortola, British Virgin Islands VG 1110

 

Related Companies

Yong Lian Spring-Knitting Wear Co., Ltd

Address: Li Wu District, Wang Niu Duen, Dong Guan, Guangdong, PR China

Tel: +86 769 8885 2801

Fax: +86 769 8885 2805

 

Luen Hing Textile (Zhong Shan) Co., Ltd

Address: Gao Ping Chemical Ind. Area, San Jiao Town, Zhong Shan City, Guangdong, PR China

Tel: +86 760 8540 2699

Fax: +86 760 8540 3299

 

 

Shareholders

 

Unit: HKD

Name

Subscription Amount

Proportion of Investment (%)

Len Hing Investment Limited

134,000,000

100%

Total

134,000,000

100%

 

Major Shareholder Information:

Name:

Len Hing Investment Limited

Address:

3rd Floor, J & C Building, P. O. Box 933, Road Town, Tortola, British Virgin Islands VG 1110

 

 

Management Information

 

Core Management

 

Detailed Information of Directors:

1

Name:

Ngan Chun Hang

Address:

Duplex 2, 1/F & 2/F, Block 1, Dynasty Heights, Dynasty Villa, 2 Yin Ping Road, Kowloon, Hong Kong

Position:

Director

ID Number:

Z409256(3)

2

Name:

Ngan Kuen Hing

Address:

Duplex 2, 1/F & 2/F, Block 1, Dynasty Heights, Dynasty Villa, 2 Yin Ping Road, Kowloon, Hong Kong

Position:

Director

ID Number:

E633050(2)

3

Name:

Ngan Wa Hing

Address:

Flat 1504, Block B, Luk Yueng Sun Chuen, 22-66 Wai Tsuen Road, Tsuen Wan, Hong Kong

Position:

Director

ID Number:

E910000(1)

4

Name:

Ngan Chun Ho

Address:

Flat 1504, Block B, Luk Yueng Sun Chuen, 22-66 Wai Tsuen Road, Tsuen Wan, Hong Kong

Position:

Director

ID Number:

Z190228(9)

5

Name:

TLP Corporate Services Limited

Address:

1103-5 Allied Kajima Building, 138 Gloucester Road, Wanchai, Hong Kong

Position:

Corporate Secretary

Registered Number:

829248

 

 

Operation Information

 

Offices & Factories

 

 

Office

Address:

Block A, 20/F, Excelsior Industrial Building, 68 Sha Tsui Road, Tsuen Wan, New Territories, Hong Kong

 

Premises Information

 

Office address:

Address:

Factory Unit A On 20th Floor

Excelsior Industrial Building

Nos.68-76 Sha Tsui Road

Tsuen Wan New Territories

Owners:

Luen Hing Elastic Band Company Limited

Memorial Number:

UB8812133

Date of Instrument:

2002-10-18

Date of Registration:

2002-11-9

Consideration Value:

HKD 920,000.00

 

History of Premises Owners’

 

1

Memorial No.:

13050701980030

Date of Instrument:

2013-4-30

Date of Registration:

2013-5-7

Nature:

Rental Assignment

In Favor of:

Standard Chartered Bank (Hong Kong) Limited

2

Memorial No.:

13050701980026

Date of Instrument:

2013-4-30

Date of Registration:

2013-5-7

Nature:

Tripartite Legal Charge/Mortgage

In Favor of:

Standard Chartered Bank (Hong Kong) Limited

Consideration:

All Moneys

3

Memorial No.:

UB8760313

Date of Instrument:

2002-8-17

Date of Registration:

2002-8-22

Nature:

Agreement For Sale And Purchase

In Favor of:

Luen Hing Elastic Band Company Limited

Consideration:

HKD 920,000.00

 

Production Information

 

The subject is a trader of textiles and etc without any production activities.

It is introduced that subject’s related companies has factories in Dongguan City and Zhongshan City, Guangdong Province, the mainland of China for productions.

 

Purchase Information

 

It is introduced that subject purchases its products mainly from the factories of subject’s related companies in Dongguan City and Zhongshan City, Guangdong Province, the mainland of China.

 

Sales Information

 

The subject is mainly engaged in sales of textiles and etc.

Subject’s major products are lace, woven elastic, medical gauze, elastic band, banding, printed webbing, velvet ribbon, cotton yarn, polyester silk and etc.

Subject’s selling territory includes Asia, Europe, America and etc.

Subject’s major customers are manufacturers and designers of garment, underwear, medical products and etc.

 

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Textiles

Payment Terms

Cash, T/T

 

Import

 

It is introduced that subject has little import.

 

Sales

 

Domestic Markets

Product

Textiles

Selling Terms

Cash, T/T

 

Export

Product

Textiles

Selling Terms

L/C, 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, from other sources we could not obtain such information, either.

 

 

Bankers

 

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

 

 

Public

 

Mortgage Record

 

Company Name:

Luen Hing Textile Company Limited (“The Chargor”)

Instrument of Creating Mortgage:

Charge over deposits/securities (2-parties)

Date of Creating Mortgage:

2013-11-21

Amount Secured:

To secure owing all monies in any currency by the Company to Hang Seng Bank Limited at any time, actually or contingently, in any capacity, alone or jointly with any other person.

Name of Mortgagee:

Hang Seng Bank Limited (“The Bank")

Address of Mortgagee:

83 Des Voeux Road Central Hong Kong

Description of Property Mortgaged:

The Chargor charges by way of first fixed charge to the Bank all the right, title and interest of the Chargor in and to the Charged Assets

 

 

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

Department:

Sales Department

 

 

Industry Information

 

69350-- Cloth (including endless bands), grill, netting and fencing, of ron or steel wire; expanded metal of iron or steel (kg)

Unit: HKD/000

 

2014.12

2014.01~2014.12

 

Quantity

Value

Quantity

Value

Imports

The Mainland of China

1,465,508

10,035

14,949,458

101,009

Germany

995

128

20,572

4,596

Japan

790

1,333

11,040

11,969

South Korea

18,768

162

61,262

595

Malaysia

142

82

2,068

1,157

Exports

The Mainland of China

308,165

3,892

1,099,355

29,930

Japan

145

16

1,716

96

Malaysia

145

37

1,273

417

Singapore

372

120

1,520

1,434

USA

110

23

53,951

1,011

 

 

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

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

2014

4,219,046

55,283

3,617,468

3,672,751

+3.2

-546,295

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

2014.07

368,293

5,120

321,040

326,160

+6.8

-42,132

2014.08

358,750

5,289

321,937

327,225

+6.4

-31,525

2014.09

382,355

4,153

327,833

331,986

+4.5

-50,369

2014.10

381,569

4,392

327,335

331,727

+2.7

-49,842

2014.11

378,946

4,701

322,082

326,783

+0.4

-52,163

2014.12

372,007

4,050

308,705

312,755

+0.6

-59,253

 

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

 

 

Attachment

 

We contacted with the subject through the telephone number +852-2416-0810, the relevant staff who answered the phone confirmed the subject’s address for us.

Since our on-site visit has not returned yet, we cannot provide the photos at this stage.

We will update as soon as possible.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.66

UK Pound

1

Rs.100.50

Euro

1

Rs.71.31

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.