MIRA INFORM REPORT

 

 

Report No. :

348326

Report Date :

07.11.2015

 

IDENTIFICATION DETAILS

 

Name :

LAI TAK ENTERPRISES LTD.

 

 

Registered Office :

32/F., Enterprise Square Three, 39 Wang Chiu Road, Kowloon Bay, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

23.01.1992

 

 

Com. Reg. No.:

15369734

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter, Agent of all kinds of Raw Fabrics; Woven Fabrics of Cotton, Corduroy, Denim, Canvas, Twill, Dyed Fabrics; and Linen/Ramie Fabrics.

 

 

No. of Employees :

55

 

 

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)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

HONGKONG - 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

 

 

Company Name and address

 

LAI TAK ENTERPRISES LTD.

 

ADDRESS:                   32/F., Enterprise Square Three, 39 Wang Chiu Road, Kowloon Bay, Kowloon,

                                    Hong Kong.

 

PHONE:                        852-27987998, 24397034, 27512398

 

FAX:                             852-27553669, 27246946

 

E-MAIL:                        textile@laitak.com

textiles@laitak.com.hk

fashion@laitak.com.hk

laitak@netvigator.com

 

 

MANAGEMENT

 

Managing Director:        Mr. Kong Tak Ho

 

 

SUMMARY

 

Incorporated on:            23rd January, 1992.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$65,100,000.00

 

Business Category:       Manufacturer, Importer and Exporter

 

Annual Turnover:           HK$450-500 million.

 

Employees:                  55.

 

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

                                    Standard Chartered Bank, Hong Kong Branch.

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

32/F., Enterprise Square Three, 39 Wang Chiu Road, Kowloon Bay, Kowloon, Hong Kong.

 

China Factory:-

Puning City Lai Tak Textile Corporation Ltd.

Chiwei Town Scientific Park, Puning City, Guangdong Province, China.

[Tel: 86-663-2920 238,   Fax: 86-663-2930 010]

 

Holding Company:-

Lai Tak Holdings Ltd., British Virgin Islands.

 

Associated Companies:-

Beauty Top Enterprises Ltd., Hong Kong.

Koda Development Ltd., Hong Kong.

Lai Tak Fashion Ltd., Hong Kong.

Lai Tak Printing & Dyeing Factory Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

15369734

 

 

COMPANY FILE NUMBER

 

0341737

 

 

MANAGEMENT

 

Managing Director:                    Mr. Kong Tak Ho

 

 

ISSUED SHARE CAPITAL

 

HK$65,100,000.00

 

 

SHAREHOLDERS

(As per registry dated 23-01-2015)

 

Name

 

No. of shares

Lai Tak Holdings Ltd.

Portcullis TrustNet Chambers, P.O. Box 3444, Road Town, Tortola, British Virgin Islands.

 

65,099,999

KONG Tak Ho

 

1

 

 

–––––––––

 

 

65,100,000

========

 

 

DIRECTORS

(As per registry dated 23-01-2015)

 

Name

(Nationality)

 

Address

KONG Tak Ho

11 Fei Ngo Shan Road, Kowloon, Hong Kong.

 

CHAN Shuk Yee

11 Fei Ngo Shan Road, Kowloon, Hong Kong.

 

 

SECRETARY

(As per registry dated 23-01-2015)

 

Name

Address

Co. No.

PA Corporate Advisory Services Ltd.

Flat B, 16/F., Empire Land Commercial Centre, 81-85 Lockhart Road, Wanchai, Hong Kong.

0831055

 

 

HISTORY

 

The company was incorporated on 23rd January, 1992 as a private limited liability company under the Hong Kong Companies Ordinance.

 

It was originally registered under the name of Lightjet Co. Ltd., name changed to the present style on 9th April, 1992.

 

Formerly the subject was located at Unit 2-3, 16/F., Tower I, Enterprise Square, 9 Sheung Yuet Road, Kowloon Bay, Kowloon, Hong Kong, moved to the present address in April, 2006.

 

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter, Agent.

 

Lines:                           All kinds of raw fabrics; woven fabrics of cotton, corduroy, denim, canvas, twill, dyed fabrics; and linen/ramie fabrics

 

Employees:                  55.

 

Commodities Imported: China, other Asian countries, etc.

 

Markets:                        South Korea, Japan, other Asian countries, South Africa, Central & South America.

 

Annual Turnover:           HK$450-500 million.

 

Terms/Sales:                 L/C, T/T or 30 days credit.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

MEMBERSHIP

 

The Chinese General Chamber of Commerce, Hong Kong.

Hong Kong New Territories Commercial & Industrial General Association Ltd., Hong Kong.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$65,100,000.00

 

Mortgage or Charge (Since June 2010):  (See attachment)

 

Profit or Loss:               Business is profitable.

 

Condition:                     Keeping in an active condition.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

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

Standard Chartered Bank, Hong Kong Branch.

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

Hang Seng Bank Ltd., Hong Kong.

 

Standing:                      Very Good.

 

 

GENERAL

 

Lai Tak Enterprises Ltd., incorporated on 23rd January, 1992, is a wholly‑owned subsidiary of Lai Tak Holdings Ltd. which is an offshore company registered in the British Virgin Islands.

 

The subject is a member of the Lai Tak Group.  It is actually owned by the Kong family headed by Mr. Kong Tak Ho who is a Hong Kong.  Kong and his wife Ms. Chan Shuk Yee are also directors of the subject.

 

The subject is mainly trading in grey fabrics, woven fabrics of cotton, corduroy, denim, canvas, twill, dyed fabrics, and linen/ramie fabrics, etc.

 

The followings are the main products of the subject:-

·         Blended (From China, Pakistan, India);

·         Corduroy - Cotton Blended;

·         Corduroy - Cotton;

·         Fabric - Blended;

·         Fabric - Linen & Ramie (From China, Pakistan, India);

·         Fabric - Linen & Ramie;

·         Knitted (From China, Pakistan, India);

·         Piecegoods - Synthetic (From China, Pakistan, India);

·         Woven (From China, Pakistan, India); &

·         Woven (From China, Pakistan, India)

 

It is mainly purchasing products from China and supplying to garment factories in South Korea, Japan, Taiwan, the other Asian countries, South Africa, Central & South America, etc.

 

Through its associate Lai Tak Printing & Dyeing Factory Ltd., the subject had operated a dyeing and printing factory in Shantou SEZ in Guangdong Province.  Now, the factory has moved to Puning, Guangdong Province, China.

 

Long time ago, a dyeing factory was set up by the subject at Kiu Tau Wai, Ping Shan, Yuen Long, New Territories, Hong Kong.  In the early 2000’s, all the machinery equipment at Yuen Long, Hong Kong was moved to its Shantou factory then further to Puning factory.  The Yuen Long factory in Hong Kong now has become a warehouse.

 

The registered capital of the Puning factory was US$35 million and with a total investment of about US$52 million.  The factory, known as Puning City Lai Tak Textile Corporation Ltd., covers an area of about 150,000 sq.m.  It has six workshops.  The followings are the annual production capacity of the factory:-

·         Dyed & Printed Fabric --- 50 million metres;

·         Garment --- 120,000 dozens; &

·         Woven Fabric --- 30 million metres.

 

The total annual output amounts to US$50 million.  It has over 500 employees in the factory.

 

Besides the Puning factory, the subject has got an associated factory in Jiangsu Province, China.

 

Most of the products are marketed in China and exported to the other Asian countries, South Africa and South America.  Business is active and steady.

 

The subject has developed its own brand Mastina.  It operates Mastina Shops in Hong Kong retailing all kinds of garments.  Its main products are contemporary executive wear and causal wear for fashionable metropolitan office ladies.  According to the subject, its Mastina Shops have been expanded to Taiwan and Singapore and will penetrate the China market in the years ahead.

 

The subject in Hong Kong is responsible for shipping and marketing the products of the Puning factory in China.

 

The director of the subject is a significant and rich person in Hong Kong.  He has made good profits in his property investments.

 

For instance, in September 2015, Mr. Kong Tak Ho and Lai Tak Holdings sold ‘Park Building’ to Nimble Run Ltd., a Hong Kong-registered company, at a consideration of HK$993 million.  Kong Tak Ho bought the premises in June 2012 at a consideration of HK$625 million.  He made a net profit of HK$368 million in this sale.  The premises is located at 476 Castle Peak Road, Cheung Sha Wan, Kowloon, Hong Kong.

 

The subject operates from its own office located at the present address.  The Lai Tak Group also owns the other premises in Hong Kong.  The total value of the premises owned amount to over HK$850 million.

 

As the history of the subject is over 23 years and nine months in Hong Kong, on the whole, consider it good for normal business engagements.

 

 

MORTGAGE OR CHARGE

(Since June 2010)

 

Date

Particulars

 

Amount

08-06-2010

Instrument:        Charge Over Securities (2-Party)

Property:

A)         Any interests, right or property owned by the company which, at any time and for any reason, are transferred in the name of the Bank or any nominee or agent of the Bank and stand to the credit of the company’s securities account No. 339-017261

B)         All dividends, interest, distributions and other moneys derived therefrom

C)         All accretion, allotments, and other benefits accruing or arising in respect thereof.

D)         All stock, securities, moneys or property accruing or offered at any time

E)         All present and other party in respect of any of the foregoing including any rights which the chargor may have to require delivery by such clearance system or party of any of the foregoing to or to the order of, the chargor.

Mortgagee:        Hang Seng Bank Ltd., Hong Kong.

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

08-06-2010

Instrument:        Charge Over Securities (2-Party)

Property:

All monies & deposits now or hereafter in the time deposit account No. 379-056500 kept by the company with the Bank

Mortgagee:        Hang Seng Bank Ltd., Hong Kong.

To secure all monies & liabilities which are now or at any time hereafter may be outstanding owing or payable by the company to the Bank

03-12-2010

Instrument:        Security Over Deposits

Property:

Deposit & the interest thereon together with any other moneys or deposits placed with the Bank from time to time at any offices

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

Amount secured

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.79

UK Pound

1

Rs.99.95

Euro

1

Rs.71.55

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.