MIRA INFORM REPORT

 

 

Report No. :

340712

Report Date :

11.09.2015

 

IDENTIFICATION DETAILS

 

Name :

BROTHER  MACHINERY  (ASIA)  LTD.

 

 

Formerly Known As :

Mizuho Corporation (HK) Ltd.

 

 

Registered Office :

12/F., Park Building, 476 Castle Peak Road, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

18.01.1996

 

 

Com. Reg. No.:

19626336

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is trader of office machine like all kinds of printers, office machinery and equipment

 

 

No. of Employee :

32

 

 

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

                             

BROTHER  MACHINERY  (ASIA)  LTD.

 

 

ADDRESS

 

 

12/F., Park Building, 476 Castle Peak Road, Kowloon, Hong Kong.

 

PHONE:                  852-2777 0010

 

FAX:                       852-2808 1644

 

 

MANAGEMENT

 

Managing Director:  Mr. Koichi Naganuma

 

 

SUMMARY

 

Incorporated on:      18th January, 1996.

 

Organization:           Private Limited Company.

 

Paid Up Capital:      US$37,000,000.00

 

Business Category: Office Machine trader.

 

Group Net Sales:     ¥707,237 million  (Year ended 31-03-2015)

 

Employees:            32.

 

Main Dealing

Banker:                   The Bank of Tokyo-Mitsubishi UFJ Ltd., Hong Kong Branch.

 

Banking Relation:  Good.

 

Registered Head Office:-

 

12/F., Park Building, 476 Castle Peak Road, Kowloon, Hong Kong.

 

Tsimshatsui Repairing Centre:-

Room 626, 6/F., Ocean Centre, 5 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

 

Shumshuipo Repairing Centre:-

Room 201-204, 2/F., New Golden Computer Square, 85-95 Yuen Chau Street, Shumshuipo, Kowloon, Hong Kong

 

Holding Company:-

Brother Industries, Ltd., Japan.

 

Associated Companies:-

 

Betop Staff Ltd., Japan.

Brother (China) Ltd., China.

Brother Commercial (Thailand) Ltd., Thailand.

Brother Enterprise Ltd., Japan.

Brother Finance (Japan) Ltd., Japan.

Brother Industries (Philippines) Inc., Philippines.

Brother Industries (Shenzhen) Ltd., China.

Brother Industries (Vietnam) Ltd., Vietnam.

Brother Industries Saigon Ltd., Vietnam.

Brother Industries Technology (M) Sdn. Bhd., Malaysia.

Brother International (Aust.) Pty. Ltd., Australia.

Brother International (Gulf) FZE Turkey Branch, Turkey.

Brother International (Gulf) FZE, USA.

Brother International (HK) Ltd., Hong Kong.

Brother International (India) Private Ltd., India.

Brother International (Malaysia) Sdn. Bhd., Malaysia.

Brother International (NZ) Ltd., New Zealand.

Brother International (Vietnam) Co. Ltd., Vietnam.

Brother International Corporation, Japan.

Brother International Korea Co. Ltd., Korea.

Brother International Philippines Corporation, Philippines.

Brother International S.A. (Pty) Ltd., South Africa.

Brother International Singapore Pte. Ltd., Singapore.

Brother International Taiwan Ltd., Taiwan.

Brother Living Service Co. Ltd., Japan.

Brother Logitech Ltd., Japan.

Brother Machinery Shanghai Ltd., China.

Brother Machinery Vietnam Co. Ltd., Vietnam.

Brother Machinery Xian Co. ltd., China.

Brother Real Estate Ltd., Japan.

Brother Sales Ltd., Japan.

Brother System Technology Development (Hangzhou) Ltd., China.

Brother Technology (Shenzhen) Ltd., China.

Mie Brother Precision Industries Ltd., Japan.

Nissei Corporation, Japan.

PT Brother International Sales Indonesia, Indonesia.

Standard Corp., Japan.

Taiwan Brother Industries Ltd., Taiwan.

Xing Inc., Japan.

Zhuhai Brother Industries Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

19626336

 

 

COMPANY FILE NUMBER

 

0536318

 

 

MANAGEMENT

 

Managing Director:  Mr. Koichi Naganuma

 

 

PAID UP CAPITAL

 

US$37,000,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 18-01-2015)

Name

 

No. of shares

Brother Industries, Ltd.

15-1, Naeshiro-Cho, Mizuho-Ku, Nagoya-Shi, 467-8561, Japan.

 

37,000,000

 

 

–––––––––

 

Total:

37,000,000

========

 

DIRECTORS

 

(As per registry dated 18-01-2015)

Name

(Nationality)

 

Address

Yasuyuki HASEGAWA

15 Daito, Kochino Cho, Konan City, Aichi Prefecture, Japan.

 

Tatsuya KITAMURA

805-2 Yagoto-Tendo, Tenpaku-Ku, Nagoya-City, Aichi, Japan.

 

Yoshimi ITO

404 Cen 18 Road 101 Gulshan2 Dhaka 1212 Bangladesh.

 

Koichi NAGANUMA

Kameshiro 4-12, Mizuho-Ku, Nagoya, Aichi, Japan.

 

 

SECRETARY

 

(As per registry dated 18-01-2015)

Name

Address

Co. No.

Prime Professional Services Ltd.

Unit 2405, 24/F., World Wide House, 19 Des Voeux Road Central, Hong Kong.

1124542

 

 

HISTORY

 

The subject was incorporated on 18th January, 1996 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Mizuho Corporation (HK) Ltd., name changed to Brother International (HK) Ltd. on 26th March, 1999, and further to the present style on 10th March, 2014.

 

Formerly the subject was located at ‘Unit 620-2 & 6, 6/F., Ocean Centre, 5 Canton Road, Tsimshatsui, Kowloon, Hong Kong’, moved to the present address in April 2015.

 

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

OPERATIONS

 

Activities:                Office Machine trader.

 

Lines:                     All kinds of printers, office machinery and equipment

 

Employees:            32.

 

Commodities

Imported:                China, Japan, etc.

 

Markets:                  Hong Kong, China, other Asian countries, Europe.

 

Group Net Sales:   

 

¥502,830 million  (Year ended 31-03-2011)

¥497,390 million  (Year ended 31-03-2012)

¥516,067 million  (Year ended 31-03-2013)

¥616,835 million  (Year ended 31-03-2014)

¥707,237 million  (Year ended 31-03-2015)

 

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

 

Terms/Buying:  L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Paid Up Capital: HK$37,000,000.00

 

Group Net Income:

¥26,238 million  (Year ended 31-03-2011)

¥19,525 million  (Year ended 31-03-2012)

¥17,826 million  (Year ended 31-03-2013)

¥19,221 million  (Year ended 31-03-2014)

¥53,969 million  (Year ended 31-03-2015)

 

Profit or Loss:         Making a small profit every year.

 

Condition:               Keeping in an active manner.

 

Facilities:                Making rather active use of general banking facilities.

 

Payment:                Met trade commitments as required.

 

Commercial

Morality:                 Satisfactory.

 

Banker:                   The Bank of Tokyo-Mitsubishi UFJ Ltd., Hong Kong Branch.

 

Standing:                Good.

 

 

GENERAL

 

Brother Machinery (Asia) Ltd. formerly was jointly owned by Brother International Corp. [BIC], holding 8.1%, and Brother Industries, Ltd. [Brother], holding 91.9%.  Both were Japan-based companies.  On 1 April, 2014, BIC transferred all its shares to Brother and since then, the subject has become a wholly-owned subsidiary of Brother.

 

The subject moved to the present new address in April 2015.  This is also the industrial sewing machine department of the subject.

 

However its repairing centre is still located at Tsimshatsui, Kowloon, Hong Kong.  Another repairing centre has been set up in Shumshuipo, Kowloon, Hong Kong.

 

The subject is trading in the following commodities:

·         Laser Printer

·         Fax Machine

·         Multi-Purpose Printer

·         Bar Code Machine

·         Scanner

·         ScanCut

·         Digital Textile Printer, Labeller

·         Household Sewing Machine

·         Industrial Sewing Machine

·         Lathe

·         Spare parts and Consumables, etc.

Brother is a listed company in Japan.

The subject is an office machinery and equipment trader.  It is a member of the Brother Group of companies

For more than a century, Brother has won recognition as a brand synonymous with delivering product innovation and customer satisfaction.  Being a Japanese company founded in 1908, Brother has 16 production facilities and 51 sales companies operating in 44 countries in different regions today.

 

Brother is now a leading brand that produces quality innovative products for the print and imaging, labelling and sewing markets.

 

Now, overseas sales of the Group account for about 80% of the Group’s total sales.

 

For the year ended 31st March, 2015, the net sales of the Group amounted to ¥707,237 million (2014: ¥616,835 million), grew by 14.7% as compared with previous year.  Net income amounted to ¥53,969 million (2014: ¥19,221 million), grew by 180.8%.

 

For the year ended 31st March, 2015, over 60% of the Group’s employees are in Asia, Oceania, the Middle East and Africa.

 

The Group’s China factory is chiefly in Xi’an, Shaanxi Province, China while the Group’s China sales company is in Shanghai, China.  The CEO and Chairman of the Shanghai Company is Mr. Yasuyuki Hasegawa.

 

The Managing Director of the subject in Hong Kong is Mr. Koichi Naganuma who is a Japanese.

 

As the history of the subject is over 19 years and seven months in Hong Kong, on the whole, consider it good for normal business engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.58

UK Pound

1

Rs.102.29

Euro

1

Rs.74.71

 

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%)

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