MIRA INFORM REPORT

 

 

Report No. :

308834

Report Date :

04.03.2015

 

IDENTIFICATION DETAILS

 

Name :

YUE FAT INTERNATIONAL LTD.

 

 

Registered Office :

Unit 9, 9/F., Siu Wai Industrial Centre, 29-33 Wing Hong Street, Cheung Sha Wan, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

20.08.1996

 

 

Com. Reg. No.:

20147476

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Wholesaler and Re-exporter of Glazed goat skins, goat nappa, goat suede and mesh leather.

 

 

No. of Employee :

6

 

 

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 :

Slow but correct

 

 

Litigation :

Clear

 

 

NOTES :

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

 

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

HONG KONG - ECONOMIC OVERVIEW

 

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 12% of total system deposits in Hong Kong by the end of 2013. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's total trade by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for 

 

Source : CIA

 

 

Company name & address

 

YUE  FAT  INTERNATIONAL  LTD.

 

ADDRESS:       Unit 9, 9/F., Siu Wai Industrial Centre, 29-33 Wing Hong Street, Cheung Sha Wan, Kowloon, Hong Kong.

 

PHONE:            852-2959 2282,  852-2959 2001

 

FAX:                 852-2785 3050

 

 

MANAGEMENT:

 

Managing Director:  Mr. Chan Chui Chi

 

 

SUMMARY

 

Establishment:              8th September, 1988.  (Sole Proprietorship)

 

Incorporated on:            20th August, 1996.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$1,280,000.00

 

Business Category:       Importer, Wholesaler and Re-exporter.

 

Employees:                  6.

 

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

 

Banking Relation:          Satisfactory.

 

 

BUSINESS REGISTRATION NUMBER: 

 

20147476

 

 

COMPANY FILE NUMBER:

 

 0562501

 

 

MANAGEMENT:

 

Managing Director:  Mr. Chan Chui Chi

 

 

ISSUED SHARE CAPITAL:

 

 HK$1,280,000.00

 

 

SHAREHOLDERS:    

 

(As per registry dated 20-08-2014)

 

Name

 

No. of shares

CHAN Chui Chi                 [Husband]

 

1,267,200

HO Kit Fong                    [Wife]

 

12,800

 

 

––––––––

 

Total:

1,280,000

=======

 

 

DIRECTORS: 

 

(As per registry dated 20-08-2014)

Name

(Nationality)

 

Address

CHAN Chui Chi

   (Chinese)

Flat K, 5/F., 23 Broadway, Mei Foo Sun Chuen, Kowloon, Hong Kong.

 

HO Kit Fong

   (Chinese)

Flat K, 5/F., 23 Broadway, Mei Foo Sun Chuen, Kowloon, Hong Kong.

 

 

SECRETARY:

 

HO Kit Fong  (As per registry dated 20-08-2014)

 

 

HISTORY:

 

The subject’s predecessor Yue Fat Trading Co. was established on 8th September, 1988 as a partnership jointly owned by Mr. Tsang Hoi Kau and Mr. Chan Chui Chi under the Hong Kong Business Registration Regulations.  Changed to a sole proprietorship firm solely owned by Mr. Chan Chui Chi on 20th December, 1991.  Re-organized and incorporated on 20th August, 1996 as a private limited liability company under the Hong Kong Companies Ordinance.

 

The subject’s moved from Flat A, 12/F., Hai Tan Mansion, 145‑149 Hai Tan Street, Shamshuipo, Kowloon, Hong Kong to Flat K, 5/F., 23 Broadway, Mei Foo Sun Chuen, Kowloon, Hong Kong in November 1990, and further to the present location in September 1994.

 

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

 

 

OPERATIONS:

 

Activities:          Importer, Wholesaler and Re-exporter.

 

Lines:   Glazed goat skins, goat nappa, goat suede and mesh leather.

 

Agents for:-

 

Maximo Mor S.A.

Avda. lo De Mayo, 14, 08160 Montmelo, Barcelona, Spain.

[Lambskins and goatskins for shoe, clothing and morocco leather industries.]

 

Vidal Bosch S.A.

Baja San Antonio, 75, 08700 - Igualada, Spain.

[Double butts of polyurethane splits for belts and leather goods.]

 

Employees:      6.

 

Commodities    Imported:          Mainly imported from Spain, Italy and India.

 

Markets:            Hong Kong, China, other Asian countries

 

Terms/Sales:     L/C or as per contracted.

 

Terms/Buying:  L/C, T/T, D/P

MEMBERSHIP: 

 

The Hong Kong Hide & Leather Traders’ Association Ltd., Hong Kong.

 

 

FINANCIAL INFORMATION:

 

Issued Share Capital: HK$1,280,000.00

 

Indebtedness:  HK$1,432,217 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 20-08-2014)

 

Mortgage or Charge:  (See attachment)

 

Profit & Loss:   Making a small profit every year.

 

Condition:  Business is normal.

 

Facilities:  Making rather active use of general banking facilities.

 

Payment:  Delay payment experienced in 1993.

 

Commercial Morality:  Satisfactory.

 

Bankers:-

 

Bank of Communications, Hong Kong Branch.

Bank of China (Hong Kong) Ltd., Hong Kong.

 

Standing:  Normal.

 

 

GENERAL:

 

Yue Fat International Ltd. is a private limited company jointly owned by Mr. Chan Chui Chi, holding 99% interests, and his wife Ms. Ho Kit Fong, just holding 1%.

 

The subject is a successor to Yue Fat Trading Co., a sole proprietorship firm founded by Mr. Chan Chui Chi in 1988.  The present style has been adopted since August 1996.

 

The subject is a small trading company engaged in importing and marketing of raw leather and hide.  Currently, the subject is the agents for two Spain Suppliers, Maximo Mor S.A. and Vidal Bosch S.A.  In recent ten years, India has become a large supplier.  Hong Kong and China are its prime markets. 

 

Most of its customers are shoe, leather product, leather garment manufacturers in Hong Kong and China.

In order to penetrate the China market further, the subject has participated many exhibitions and fairs held in China.  The followings are some of the significant fairs:

 

  • China Dongguan International Fair for Shoes, Leather Products and Accessories
  • Wenzhou International Leather Exhibition

 

These exhibitions are held in Dongguan City and Wenzhou City of China annually.

 

Formerly, the owner operated his business in his own residence and in September 1994, the subject moved to an industrial building where is the present address.  The premises located at the present address belongs to the subject.

 

In October 1993, a Hong Kong firm Vimeda Co. Ltd. made a claim against the subject in an amount due in US dollar.

 

The business of the subject is chiefly handled by the couple.  History in Hong Kong is over 18 years and six months.

 

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

 

 

REMARKS:

 

Court case record in the past:-

Date

Plaintiff

Defendant

Cause

Amount

Oct. 1993

Vimeda Co. Ltd.

Chan Chui Chi trading as Yue Fat Trading Co.

Amount due

US$85,799 &
US$61,292

 

Property information of directors:-

 

1.Property Location:      Workshop Unit No. 9 on 9/F., Siu Wai Industrial Centre, 29‑33 Wing Hong Street / 68 King Lam Street, Kowloon, Hong Kong.

Owner:  Chan Chui Chi & Ho Kit Fong

Date of Purchase:  13-05-1994

Purchased Price:  HK$2,450,000

 

Incumbrances:-

 

Date of Mortgage

Amount Consideration

Mortgagee

Nature

13-05-1994

-

Bank of Communications, Hong Kong Branch.

Legal charge to secure general banking facilities

 

2.Property Location:      Flat K on 5/F., 23 Broadway, Mei Foo Sun Chuen, Kowloon, Hong Kong.

Owner:  Chan Chui Chi & Ho Kit Fong

Date of Purchase:  10-10-1990

Purchased Price:  HK$853,000

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

20-02-1992

-

Bank of Communications, Hong Kong Branch.

Mortgage to secure general banking facilities

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

23 02 2000

Instrument:      Deed of Indemnity, Charge Over Deposit(s) and Set-Off

Property:

By way of Fixed Charge to the Bank all the Company’s estate, right, title, claim, benefit and interest to and in the Deposit Account Nos. 02753310423413 & 02753392058514 and all interest

Mortgagee:      Bank of Communications, Hong Kong Branch.

All actions, suits, proceedings, claims, demands, losses, damages, costs, fees, expanses and/or liabilities

27-12-2006

Instrument:      Equitable Mortgage

Property:

2,478th/1,762,675th parts or shares of and in Section A of New Kowloon Marine Lot No. 3 (Flat B on 33/F. and Carpark Space No. 2098 on 2/F. of Tower 2, Manhattan Hill, 1 Po Lun Street, Kowloon, Hong Kong.)

Mortgagee:      Bank of China (Hong Kong) Ltd., Hong Kong.

All moneys in respect of general banking facilities and interest

25-07-2007

Instrument:      Equitable Mortgage

Property:

2,478th/1,762,675th parts or shares of and in Section A of New Kowloon Marine Lot No. 3 (Flat B on 33/F. and Carpark Space No. 2098 on 2/F. of Tower 2, Manhattan Hill, 1 Po Lun Street, Kowloon, Hong Kong.)

Mortgagee:      Bank of China (Hong Kong) Ltd., Hong Kong..

All moneys in respect of general banking facilities and interest

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.85

UK Pound

1

Rs.94.96

Euro

1

Rs.69.10

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

VNT

 

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.