MIRA INFORM REPORT

 

 

Report No. :

344990

Report Date :

13.10.2015

 

IDENTIFICATION DETAILS

 

Name :

PROTECTIVE  INDUSTRIAL  PRODUCTS  MANUFACTORY  LTD.

 

 

Registered Office :

Flats 8-11, 6/F., Kar Wah Industrial Building, 8 Leung Yip Street, Yuen Long, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

14.04.1978

 

 

Com. Reg. No.:

05570030

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is Manufacturer, Importer and Exporter of All kinds of protective gloves, labour gloves and other industrial safety products such as aprons, rainwear, PE and PVC shoes covers, gloves, cotton gloves, leather gloves, nylon gloves, PVC gloves, goggles, masks, respirators, garden gloves, light reflecting clothes

 

 

No. of Employee :

24

 

 

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 :

Good

 

 

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)

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

 

Company name

                                                                                    

PROTECTIVE  INDUSTRIAL  PRODUCTS  MANUFACTORY  LTD.

 

 

ADDRESS

 

Flats 8-11, 6/F., Kar Wah Industrial Building, 8 Leung Yip Street, Yuen Long, New Territories, Hong Kong.

 

PHONE:                  852-2475 9228,  2477 8472

 

FAX:                       852-2478 9868,  2475 8849

 

E-MAIL:                  ptao@piphkg.com.hk

grace@piphkg.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Tao Ket Chan, Wellson

 

 

SUMMARY

 

Incorporated on:            14th April, 1978.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:              HK$1,000,000.00

                                Issued:               HK$1,000,000.00

 

Business Category:        Protective Glove Trader and Manufacturer.

 

Employees:                  24.

 

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

 

Banking Relation:           Very Good.

 

Registered Head Office:-

Flats 8-11, 6/F., Kar Wah Industrial Building, 8 Leung Yip Street, Yuen Long, New Territories, Hong Kong.

 

Associated/Affiliated Companies:-

Black Pearl Productions Inc., USA.

Emery Enterprises Ltd., Hong Kong.  (Dissolved)

McHenry Manufacturing Inc., USA.

PIP Balkans SA, Greece.

PIP Europe S.r.l., Italy.

PIP Iberica S.L., Spain.

PIP Italy Srl, Italy.

PIP Latin America - GDC S.A., Panama.

PIP Mexico-Productos Industriales de Proteccion S.A. de C.V., Mexico.

PIP Southeast Asia Sdn. Bhd., Malaysia.

PPE Global Sourcing (Shanghai) Ltd., China.

PR Industries Inc., USA.

Protective Industrial Products (Australia) Pty. Ltd., Australia.

Protective Industrial Products (Latin America) S.A., Panama.

Protective Industrial Products AMEA Ltd., Hong Kong.

Protective Industrial Products Asia Pacific (China) Ltd., China.

Protective Industrial Products Asia Pacific Ltd., Hong Kong.

Protective Industrial Products Europe SRL, Spain.

Protective Industrial Products Inc., USA.

Protective Industrial Products Worldwide Ltd., Hong Kong.

Well Gain Fine Chemicals Co. Ltd., Hong Kong.

Wellson Enterprises Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

05570030

 

 

COMPANY FILE NUMBER

 

0059512

 

 

MANAGEMENT

 

Managing Director:  Mr. Tao Ket Chan, Wellson

Director & Sales Contact:  Ms. Tao Jun Ping, Grace

 


CAPITAL

 

Nominal Share Capital: HK$1,000,000.00 (Divided into 10,000 shares of HK$100.00 each)

 

Issued Share Capital: HK$1,000,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 14-04-2014)

Name

 

No. of shares

TAO Ket Chan, Wellson

 

2,500

TAO TANG Yuen Yee

 

2,500

TAO Jun Yan, Amy

 

1,250

TAO Jun Ping, Grace

 

1,250

TAO Jun Hau, Junior

 

1,250

TAO Jun Hwa, Paul

 

1,250

 

 

––––––

 

Total:

10,000

=====

 

 

DIRECTORS

 

(As per registry dated 14-04-2014)

Name

(Nationality)

 

Address

TAO Jun Hau, Junior

22 San Simeon Avenue, Royal Palms, Yuen Long San Tin, New Territories, Hong Kong.

 

TAO Jun Hwa, Paul

Flat 1, 2/F., Block B, Peninsula Heights, 63 Broadcast Drive, Kowloon Tong, Kowloon, Hong Kong.

 

TAO Ket Chan, Wellson

House 7, Ping Shan Garden, D.D. 122, Lot 1705, Yuen Long, New Territories, Hong Kong.

 

TAO Jun Yan, Amy

Flat C, 3/F., Block 3, The Eldorado, 11 Sha Tseng Road, Ping Shan, Yuen Long, New Territories, Hong Kong.

 

SECRETARY

 

(As per registry dated 14-04-2014)

Name

Address

Co. No.

Busiaid Management Services Ltd.

Room 401-402, 4/F., Tung Ming Building, 40-42 Des Voeux Road Central, Hong Kong.

0033062

 

 

HISTORY

 

The subject was incorporated on 14th April, 1978 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject registered its Chinese name in September 1987.

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

 

 

OPERATIONS

 

Activities:                Manufacturer, Importer and Exporter.

 

Lines:                     All kinds of protective gloves, labour gloves and other industrial safety products such as aprons, rainwear, PE and PVC shoes covers, gloves, cotton gloves, leather gloves, nylon gloves, PVC gloves, goggles, masks, respirators, garden gloves, light reflecting clothes.

 

Employees:            24.

 

Raw Materials:         Imported from European countries and finished products from China.

 

Markets:                  US, Canada, Europe, China, Japan, South Korea, Taiwan, Mexico and other Southeast Asian countries.

 

Terms/Sales:           L/C, T/T and D/P.

 

Terms/Buying:         As per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$1,000,000.00 (Divided into 10,000 shares of HK$100.00 each)

 

Issued Share Capital: HK$1,000,000.00

 

Mortgage or Charge (since 1992):  (See attachment)

 

Profit or Loss:         Business is profitable.

 

Condition:               Keeping in a satisfactory and active condition.

 

Facilities:                Making active use of general banking facilities.

 

Payment:  Met trade commitments as contracted.

 

Commercial Morality:  Satisfactory.

 

Bankers:-

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

Citibank, N.A., Hong Kong.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

 

Standing:  Very Good.

 

 

GENERAL

 

Protective Industrial Products Manufactory Ltd. [PIPM] was incorporated in April 1978 as a private limited company wholly-owned by the Tao family.  Set up by a couple Mr. Wellson Tao Ket Chan and Mrs. Tao Tang Yuen Yee with an issued share capital of HK$1,000,000.00, PIPM is now under the management of their sons and daughters.

PIPM is a member of the PIP Group.

PIPM is a gloves trader.  It carries all kinds of protective gloves and labour gloves.  Products are principally manufactured by its affiliated or associated manufacturers in Guangdong Province, China.  Finished products are exported to the United States, Mexico, Canada, Europe and Southeast Asia.  PIPM is responsible for supplying its factories in China with raw materials which are mainly imported from Europe.

The operating office of PIPM is also the Asia headquarters of the PIP Group.

Before 1994, PIPM had got quotas in garments allocated by the Hong Kong Government in exporting its products to the United States and Europe.  At the end of 2001, as China joined in the World Trade Organization [WTO] and the US and European Union trade quota restrictions were abolished by 2005.

PIPM has been one of the significant glove traders in Hong Kong.  Its associated company in the United States is Protective Industrial Products Inc. [PIP].

PIP is jointly owned by Joe Milot, PIP’s president, and Wellson Tao, his partner.  Since 1984, PIP has operated as a supplier of work gloves which are distributed throughout the United States.  In recent years, operations in Mexico, Australia, China and Panama have been developed to meet the needs of those countries.  On 1st October, 2008 saw the inception of PIP Europe based Rome, Italy.  This firm is also a glove distributor.

PIP is the exclusive supplier of “Marigold®” industrial gloves in the United States and Mexico.  PIP is a supplier of gloves to industrial distributors throughout the United States.  Over the years, PIP has grown from a specialist in inspection gloves to a full line provider of work gloves.  PIP is now one of the leading companies supplying work gloves to industrial distributors nationally.

PIP is owned equally by its two shareholders, Mr. Joseph Milot and Mr. Wellson Tao.  Mr. Milot is President of PIP and Mr. Tao is Managing Director and the largest shareholder of PIPM.  Mr. Milot and Mr. Tao formed PIP in 1984.  Over the years, PIP has grown from a specialist in inspection gloves to a provider of a full line of work gloves.

Now, PIP and PIPM are marketing the following gloves:-

New Styles

·                     Tomorrow’s Hand Protection Today.

Unsupported Liquid Proof Gloves

·         General Purpose Unsupported Latex by “Marigold®”;

·         Heavy Weight Unsupported Latex by “Marigold®”;

·         Unsupported Chemical Resistant Gloves by “Marigold®”; &

·         Unsupported Chemical Resistant Gloves by “TOWA®”.

Coated Gloves

·         Nitrotough™” Series Premium Nitrile Dipped;

·         ArmorCoat™” Series Nitrile Coated;

·         ActivGrip™” Coated Gloves by “TOWA®”;

·         PVC Coated Gloves on Seamless Liner by “TOWA®”;

·         ProCoat™” PVC Coated Gloves;

·         General Purpose Coated Gloves;

·         Excalibur™” Cut and Sewn Nitrile; &

·         Latex Rubber and Neoprene Coated Gloves.

Disposable Gloves

·         Ambidex™” Disposable Vinyl Gloves;

·         Ambidex™” Disposable Nitrile, Latex and Synthetic Gloves.

Cut Resistant Gloves

·         Cut Resistant Gloves and Sleeves.

String Knit Gloves

·         Coated String Knit Gloves;

·         Specialty Coated String Knit Gloves; &

·         String Knit Gloves.

Leather Gloves

·         Cowhide Drivers Gloves;

·         Pigskin and Goatskin Gloves;

·         Insulated Cowhide and Pigskin Drivers;

·         Insulated Work Gloves;

·         Leather Palms; &

·         Welders and Foundry Gloves.

Ergonomic Gloves

·         Maximum “Safety™” Mechanics’ and Anti-Vibration Gloves.

Cotton Gloves

·         Cotton Canvas Gloves;

·         Cotton Jersey and Terry Cloth Gloves.

Critical Environment Gloves

·         CleanTeam™” Cotton Inspection Gloves;

·         CleanTeam™” Low Lint Inspection Gloves;

·         CleanTeam™” Parts Handler Gloves; &

·         CleanTeam™” Critical Environment Gloves.

Parade Gloves

·         Cabaret™” Parade Gloves.

Besides gloves, PIPM also trades in the following products:-

1.     Protective clothing (Hi-Visi Clothing);

2.     Apron (Industrial) (leather included);

3.     Industrial rainwear;

4.     Shoe cover ‑ PE and PVC;

5.     Work gloves, gloves ‑ Industrial, Cotton;

6.     Gloves ‑ Industrial, Leather;

7.     Gloves ‑ Industrial , Nylon;

8.     Gloves ‑ Industrial, PVC;

9.     Goggles ‑ Industrial;

10.     Mask and Respirator ‑ Industrial;

11.     Gloves ‑ Garden, Transport Equipment;

12.     Others (Floor jack, chain block);

13.     Garage Equipment (Car jack);

14.     Industrial Chemicals (Fine chemicals); &

15.     Dyeing, tanning and colouring materials
(Pearlescent pigments from the United States).

Now, PIPM has set up an associated company PPE Global Sourcing (Shanghai) Ltd. in Shanghai, China.  This firm is responsible for sourcing all kinds of productive products in China and exports to the United States and Europe.

In March 2012, PIP Group was appointed as the newest DuPont licensee of DuPont™ Kevlar® fibre for use in gloves, sleeves and garments.  Lightweight, cut resistant and durable, Kevlar® provides workers superior protection from cuts and career-ending accidents.  PIP has two manufacturing facilities in the United States that produce gloves, sleeves, and garments made with Kevlar®.

Now, the Group has over 320 employees worldwide.  Global presence in the America, Europe and Asia Pacific region.  The annual sales turnover of the Group is over US$200 million.  The Group has over 3,500 products available from distribution centres totalling 500,000 sq.ft in the United States alone.

The business of PIPM is active and satisfactory.  The annual sales turnover of PIPM is also very significant.  History in Hong Kong is about thirty-seven years.

PIPM operates from its own office.

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

 

 

REMARKS

 

Property information of the company:-

1.  Property Location:      Unit 6 & 7 on 4/F., Unit 1-11 on 6/F. and Car Parking Space No. P7 & P8 on G/F., Kar Wah Industrial Building, 8 Leung Yip Street, Yuen Long, New Territories, Hong Kong.

Owner:     Protective Industrial Products Manufactory Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

16-09-1994

-

The Kwangtung Provincial Bank, Hong Kong Branch.  [Merged into Bank of China (Hong Kong) Ltd.]

Collateral and further charge (jointly with Tao Tang Yuen Yee and Tao Jun Hau, Junior)

 

2.  Property Location:      Unit 17, 18 & 19 on 6/F., Kar Wah Industrial Building,
8 Leung Yip Street, Yuen Long, New Territories, Hong Kong.

Owner:     Protective Industrial Products Manufactory Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

18-06-2010

-

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

Mortgage to secure general banking facilities

 

3.     Property Location:      House 7 including Garage on Lower G/F., Turfing Garden, Terrace on G/F. & Roof immediately thereover 1/F., Ping Shan Gardens, Yuen Long, New Territories, Hong Kong.

Owner:     Protective Industrial Products Manufactory Ltd.

Date of Purchase:  05-05-1989

Purchased Price:  HK$2,000,000

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

05-05-1989

-

Overseas Trust Bank Ltd., Hong Kong.  [Merged into DBS Bank (Hong Kong) Ltd.]

Mortgage to secure general banking facilities

 

 

MORTGAGE OR CHARGE

 

(Since 1992)

 

Date

Particulars

Amount

16-09-1994

Instrument:      Collateral and Further Charge (Jointly with Tao Tang Yuen Yee and Tao Jun Hau, Junior)

Property:

1)   12,879/200,000th parts or shares of and in Yuen Long Town Lot No. 356 (Unit 6 & 7 on 4/F., Unit 1-11 on 6/F. and Car Parking Space No. P7 & P8 on G/F. of Kar Wah Industrial Building, 8 Leung Yip Street, Yuen Long, New Territories, Hong Kong.)

2)   3,107/200,000th parts or shares of and in Yuen Long Town Lot No. 356 (Unit 1 & 2 on 8/F. and Portions of Main Roof of Kar Wah Industrial Building, 8 Leung Yip Street, Yuen Long, New Territories, Hong Kong.)  [Released on 07-06-2010]

Mortgagee:      The Kwangtung Provincial Bank, Hong Kong Branch.  [Merged into Bank of China (Hong Kong) Ltd.]

To secure banking facilities

12-01-2010

Instrument:      Deposit Deed

Property:

By way of a first fixed charge and as a continuing security for the Obligations, the Company charges and assigns absolutely all its rights, title to and interest in the Accounts and all Deposits from time to time in the Accounts

Mortgagee:      Citibank N.A., Hong Kong Branch.

All moneys

18-06-2010

Instrument:      Mortgage

Property:

2,745/200,000th parts or shares of and in Yuen Long Town Lot No. 356 (Unit 17, 18 & 19 on 6/F. of Kar Wah Industrial Building, 8 Leung Yip Street, Yuen Long, New Territories, Hong Kong.)

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

General banking facilities to the extent of all sums of money and interest thereon

27-07-2012

Instrument:      Charge on Cash Deposit(s) to secure Liabilities of the Depositor(s)

Property:

1)   By way of first fixed charge and agreement to charge:-

The Deposit and all right, title and interest of the Company whatsoever, present and future, thereto and therein, together with any certificates of deposit or other instruments or securities evidencing title, or otherwise relating, thereto and any account to which the same is credited

2)   By way of set-off:-

Any sum standing to the credit of any one or more of the accounts of the Company with the Bank

Mortgagee:      DBS Bank (Hong Kong) Ltd., Hong Kong.

All sums of money and liabilities whether actual or contingent

04-06-2013

Instrument:      Security Over Deposit in respect of Obligations of the Deposit

Property:

By way of first fixed charge to the Chargee the account No. 701600015668 and all deposits

Mortgagee:      Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

All monies and liabilities

19-11-2012

Instrument:      Deed of Indemnity, Charge Over Deposit 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 No. 012-588-5-194484-7, Amount: US$1,499,326) and all interest from time to time payable thereon and together with all title deeds and documents relating thereto

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

All moneys in respect of general banking facilities

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.73

UK Pound

1

Rs.99.30

Euro

1

Rs.73.60

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.