MIRA INFORM REPORT

 

 

Report No. :

346786

Report Date :

28.10.2015

 

IDENTIFICATION DETAILS

 

Name :

CHEOY LEE SHIPYARDS LTD.

 

 

Registered Office :

89 & 91 Hing Wah Street West, Lai Chi Kok, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

08.11.1974

 

 

Com. Reg. No.:

04466640

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject provides shipbuilding and ship repairing service for all types of Custom yachts, ferries, harbour launches, mega yachts, mooring launches, motor yachts, pilot vessels, sailing yachts, special/multipurpose craft, sport yachts, tugs.

 

 

No. of Employees :

250.  (Hongkong)

 

 

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

 

CHEOY LEE SHIPYARDS LTD.

 

ADDRESS:                   89 & 91 Hing Wah Street West, Lai Chi Kok, Kowloon, Hong Kong.

 

PHONE:                        852-2307 6333

 

FAX:                             852-2307 5577

 

E-MAIL:                        info@cheoylee.com

 

 

MANAGEMENT

 

Managing Director:        Mr. Lo Ngok Yang, Ken

 

 

SUMMARY

 

Incorporated on:            8th November, 1974.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$1,247,000.00

 

Business Category:       Shipyard.

 

Employees:                  250.  (Hong Kong)

 

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

 

Banking Relation:          Good.

 

 

ADDRESS

 

Registered Head Office & Factory:-

89 & 91 Hing Wah Street West, Lai Chi Kok, Kowloon, Hong Kong.

 

China Factory:-

Doumen Harbour, Xinhuan Development Zone, Baijiao Town, Doumen County, Zhuhai SEZ, China.

[Tel: (86) 0756-5513663;  Fax: (86) 0756-5513002]

 

Mailing Address:

P.O. Box 80040, Cheung Sha Wan, Kowloon, Hong Kong.

 

Associated/Affiliated Companies:-

Adforce Ltd., British Virgin Islands.

Cheoy Lee Riviera SARL, France.

Cheoy Lee Shipyards North America Inc., US.

Cheoy Lee Yachts Australia Pty. Ltd., Australia.

General Metal Works Ltd., Hong Kong.  [Dissolved]

Golden Milestone Ltd., Hong Kong.

Hong Kong & Kowloon Ferry Holdings Ltd., Hong Kong.

Lo Brothers (NKML 32) Ltd., Hong Kong.

Lo Brothers (NKML 33) Ltd., Hong Kong.

Lo Brothers Ltd., Hong Kong.

Penny’s Bay Investment Co. Ltd., Hong Kong.

Xianli (Zhuhai) Shipbuilding Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

04466640

 

 

COMPANY FILE NUMBER

 

0040707

 

 

MANAGEMENT

 

Managing Director:  Mr. Lo Ngok Yang, Ken

 

 

ISSUED SHARE CAPITAL

 

HK$1,247,000.00  (Divided into 11,960 Ordinary shares and 510 Management shares of HK$100.00 each)

 

 

SHAREHOLDERS

(As per registry dated 08-10-2014)

 

            Name

 

No. of shares

 

 

Ordinary

Management

LO Shu Yang

 

1,495

64

LO Ngok Yang

 

1,495

64

LO But Yang

 

1,495

64

LO King Ying

 

1,495

64

LO Yen Yang

 

1,495

64

LO Chun Yang

 

1,495

64

James LO

 

1,495

63

LO Long Ying, Martin

 

1,495

63

 

 

–––––

–––

 

Total:

11,960

=====

510

===

 

 

DIRECTORS

(As per registry dated 08-11-2014)

 

            Name

            (Nationality)

 

Address

LO Shu Yang

3 Rutland Quadrant, Kowloon Tong, Kowloon, Hong Kong.

 

LO Chun Yang

3 Rutland Quadrant, Kowloon Tong, Kowloon, Hong Kong.

 

LO But Yang

3 Rutland Quadrant, Kowloon Tong, Kowloon, Hong Kong

 

LO King Ying

3 Rutland Quadrant, Kowloon Tong, Kowloon, Hong Kong

 

LO Long Ying, Martin

3 Rutland Quadrant, Kowloon Tong, Kowloon, Hong Kong

 

LO Yen Yang

3 Rutland Quadrant, Kowloon Tong, Kowloon, Hong Kong

 

James LO

3 Rutland Quadrant, Kowloon Tong, Kowloon, Hong Kong

 

LO Ngok Yang

3 Rutland Quadrant, Kowloon Tong, Kowloon, Hong Kong

 

 

SECRETARY

(As per registry dated 08-11-2014)

 

            Name

            (Nationality)

 

Address

LI Suk Har

Flat C, 34/F., Block 18, Tsinan House, Tsuen Wan Centre, Tsuen Wan, New Territories, Hong Kong.

 

 

HISTORY

 

The company was incorporated on 8th November, 1974 as a private limited liability company under the Hong Kong Companies Ordinance.

 

It moved to the present location from NKML 32 & 33 Po Lun Street (Extension), Lai Chi Kok, Kowloon, Hong Kong in March 1999.

 

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

 

 

OPERATIONS

 

Activities:                      Shipbuilding and Shiprepairing.

 

Lines:                           Custom yachts, ferries, harbour launches, mega yachts, mooring launches, motor  yachts, pilot vessels, sailing yachts, special/multipurpose craft, sport yachts, tugs.

 

Trade Mark:                   “CHEOY LEE”.

 

Employees:                  250.  (Hong Kong)

500.  (PRC)

 

Materials Imported:        Mainly bought from Japan, Europe, Taiwan, US and UK, etc.

 

Markets:                        Hong Kong, South East Asia, US, Australia, Europe, etc.

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               L/C, T/T, O/A, D/P or D/A.

 

 

MEMBERSHIP

 

The Chinese Manufacturers’ Association of Hong Kong, Hong Kong.

The Hong Kong General Chamber of Commerce, Hong Kong.

Federation of Hong Kong Industries, Hong Kong.

 

 

GOVERNMENT CONTRACTS AWARDED SINCE 1990

 

Date

GN No.

Tender Board - Department

Amount

29-06-1990

GN2330

Central Tender Board - Marine Dept.

HK$      2,125,957

26-04-1991

GN1452

Central Tender Board - Marine Dept.

HK$      4,107,766

27-09-1991

GN3462

Central Tender Board - Marine Dept.

HK$      3,640,727

27-09-1991

GN3462

Central Tender Board - Marine Dept.

HK$      11,023,321

27-09-1991

GN3462

Central Tender Board - Government Supplies Dept.

HK$      52,800

28-08-1992

GN3111

Central Tender Board - Marine Dept.

HK$      8,562,906

27-11-1992

GN4273

Government Supplies Dept. Tender Board

HK$      154,996
(Jointly)

29-01-1993

GN309

Central Tender Board - Marine Dept.

HK$      4,986,000

29-01-1993

GN309

Central Tender Board - Marine Dept.

-

27-08-1993

GN3134

Central Tender Board - Marine Dept.

HK$      2,999,848

29-10-1993

GN3992

Government Supplies Dept. Tender Board

HK$      300,000

25-02-1994

GN684

Marine Dept. Tender Board

HK$      1,342,500

24-06-1994

GN2302

Central Tender Board - Marine Dept.

HK$      3,590,000

28-10-1994

GN4092

Central Tender Board - Marine Dept.

HK$      19,499,595

27-01-1995

GN334

Central Tender Board - Marine Dept.

HK$      7,245,900

27-01-1995

GN334

Central Tender Board - Marine Dept.

HK$      4,958,350

27-01-1995

GN334

Central Tender Board - Marine Dept.

HK$      7,461,000

28-04-1995

GN1524

Central Tender Board - Marine Dept.

HK$      7,247,969

28-04-1995

GN1524

Central Tender Board - Marine Dept.

HK$      6,784,469

25-08-1995

GN3428

Central Tender Board - Marine Dept.

HK$      4,326,040

29-08-1997

GN1037

Marine Dept.

HK$      14,815,111

29-05-1998

GN2669

Marine Dept.

HK$      8,617,021
(Estimated Contract)

25-06-1999

GN3595

Marine Dept.

HK$      42,914,263

25-06-1999

GN3595

Marine Dept.

HK$      14,339,246

28-04-2000

GN2677

Marine Dept.

HK$      7,455,340

25-08-2000

GN5677

Marine Dept.

HK$      35,222,283

23-01-2001

GN515

Marine Dept.

HK$      7,961,000

23-01-2001

GN515

Marine Dept.

HK$      6,890,300

31-10-2003

GN7873

Marine Dept.

HK$      7,196,260

30-12-2005

GN7020

Marine Dept.

HK$      18,960,000

27-01-2006

GN652

Marine Dept.

HK$      1,022,000

 

 

FINANCIAL INFORMATION

 

Issued Share Capital: 

HK$1,247,000.00  (Divided into 11,960 Ordinary shares and 510 Management shares of HK$100.00 each)

 

Alternation of Capital:-

08-11-1974

paid up

HK$      61,000.00

01-08-1975

paid up

HK$      102,500.00

11-03-1976

paid up

HK$      500,000.00

15-01-1977

paid up

HK$      387,500.00

28-02-1979

paid up

HK$      98,000.00

09-02-1980

paid up

HK$      49,000.00

26-03-1985

paid up

HK$      49,000.00

 

 

            –––––––––––––––

Total:

paid up

HK$      1,247,000.00

            ==============

 

 

Indebtedness:               HK$121,030,660.00  (Total amount outstanding on all mortgages and charges as                                                 per last Annual Return dated 08-11-2014)

 

Mortgage or Charge:     (See attachment)

 

Profit or Loss:               Business is profitable.

 

Condition:                     Keeping in a normal manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

Bank of America (Asia) Ltd., Hong Kong.

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

The Daiwa Bank Ltd., Hong Kong Branch.

BNP Paribas, Hong Kong Branch.

Citibank N.A., Hong Kong Branch.

 

Banking:-

One source reports they maintain a very active and satisfactorily conducted current account opened in December 1975. They negotiate their export bills under documentary credits with satisfactory results.

 

Another source informs subject maintains a properly conducted account with them since August 1975. They have handled their export and import bills with satisfactory results.  Considerable banking facilities granted have been used to their entire satisfaction.

 

Standing:                      Good.

 

 

GENERAL

 

Cheoy Lee Shipyards Ltd. [Cheoy Lee], incorporated in November 1974, is a family concern of the Los. The founder, the late Mr. Lo To had eight sons with him in the business.  There had been no business of substantial nature until it took over the business from Cheoy Lee Shipyard in late 1975.  Mr. Lo came to Hong Kong in 1937 with his father and two brothers, Mr. Lo Sum and Law Tsoi.  He established the first shipyard in Hong Kong in 1937 named Chean Lee Shipyard.  The second one named Hip Hing Cheung Shipyard was opened in 1945 in Laichikok while the third one named Cheoy Lee Shipyard was set up in 1946 in Ngau Chi Wan.  Cheoy Lee Shipyard had been expanded greatly since then, although the type of work done in the yard changed over the years.  By hard work and perseverance, he developed the firm into one of the leading manufacturers of pleasure boats in Hong Kong.  In 1975, there were some complicities happened among Lo brothers and Mr. Lo To transferred the shipbuilding business to his own concern, Cheoy Lee Shipyards Ltd.  The new company under his guidance continues to play a vital role in this field.  Dealers/distributors/agents are spread in various parts of the world.  It is specialized in all types of vessels under 300 feet and has over forty models of different specifications.

 

Cheoy Lee is also a big supplier of coastal vessels for local customers – Hong Kong Government, Hongkong Yaumati Ferry Co., Hong Kong Pilot Association, Hong Kong Resort Co. and other transport companies.  With good production technic in hands, the company is active in the world markets.

 

Presently, Cheoy Lee provides shipbuilding and ship repairing service for all types of vessels, fibre glass craft, sailing yachts and shipping service and operator of mild/alloy steel foundry.

 

Today, with a new state-of-the-art-technology production facility on the Pearl River at Doumen, Zhuhai Special Economic Zone, China, the shipyard is currently able to build large, one-of-a-kind custom motor-yachts, like the Frank Mulder-designed 172 ft. “SeaShaw”, launched in 2004.  In over 130 years of family-owned shipbuilding, Cheoy Lee has made everything from ferries to tugboats to today’s selection of large motor-yacht models.  And Cheoy Lee plans to stay in the forefront of the shipbuilding industry for many more years - with future family generations to carry on the heritage.

 

The 30-acre Cheoy Lee Zhuhai facility also includes a 1,000-ton railway lift, 150-ton travel lift, dedicated paint sheds, and onsite dormitories to house up to 1,000 employees.  The new facility is capable of producing vessels in excess of 200 feet.

 

Besides, Cheoy Lee has set up a new shipyard in Zhuhai SEZ known as Xianli (Zhuhai) Shipbuilding Co. Ltd.  This new company makes the production capacity of Cheoy Lee increase by 35%.

 

The history of Cheoy Lee in Hong Kong is about 41 years.

 

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

 

 

REMARKS

 

Court case:-

Date

Plaintiff

Defendant

Cause

Amount

Feb. 1990

Li Mei Pong

Cheoy Lee Shipyards Ltd.

Damages

Not stated

Aug. 1993

Jael Canavan

Cheoy Lee Shipyards Ltd.

Amount due

US$      142,810

Sept. 1993

Siu Luk

Cheoy Lee Shipyards Ltd. and others

Personal injury

Not stated

 

Property information of the principal and affiliates:-

Property Location

Owner

Date of Purchase

Purchased
Price

3 Rutland Quadrant, Kowloon Tong, Kowloon, Hong Kong.

Lo Leung Ling Chai (Mother of Mr. Ken Lo)

20-10-1955

HK$165,000

New Kowloon Marine Lot No. 32, Off Stone-Cutters Island, Kowloon, Hong Kong.

Lo Brothers (NKML 32) Ltd.

(Held under Conditions of Grant No. 12257)

New Kowloon Marine Lot No. 33, Off Stone-Cutters Island, Kowloon, Hong Kong.

Lo Brothers (NKML 33) Ltd.

(Held under Conditions of Grant No. 12258)

 

(No mortgage record registered against the property)

 

 

MORTGAGE OR CHARGE

 

Date

Description of Instrument

 

Mortgagee

24-07-2000

Charge on Deposit

BNP Paribas, Hong Kong Branch

19-03-2007

Charge Over Deposits

KBC Bank N.V., Hong Kong Branch

18-11-2008

Charge Over Account

China Construction Bank (Asia) Corporation Ltd., Hong Kong.

01-03-2011

Security Over Deposits with the Bank

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

21-01-2013

Security over Deposit in respect of Obligations of the Depositor

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.96

UK Pound

1

Rs.99.73

Euro

1

Rs.71.84

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.