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Report No. : |
340859 |
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Report Date : |
16.09.2015 |
IDENTIFICATION DETAILS
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Name : |
L.K. MACHINERY INTERNATIONAL LTD. |
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Registered Office : |
Unit A, 8/F., Mai Wah Industrial Building, 1-7 Wah Sing Street, Kwai Chung, New Territories, |
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Country : |
Hongkong |
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Date of Incorporation : |
03.11.2004 |
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Com. Reg. No.: |
37649596 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer and Exporter of Microprocessor controlled hot chamber
die-casting machines, microprocessor controlled cold chamber die-casting machines, plastic injection moulding
machines, plastic processing machinery and equipment, metal working machinery
and equipment. |
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No. of Employees : |
12 (Including Associates) Approx. 4,100 (Group) – (As at 31.03.2015) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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) |
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Hongkong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
L.K.
MACHINERY INTERNATIONALLTD.
ADDRESS: Unit A, 8/F., Mai Wah
Industrial Building, 1-7 Wah Sing Street, Kwai Chung, New Territories, Hong Kong.
PHONE: 852-3412
5500, 3412 5592
FAX: 852-3412
5511
E-MAIL: sales@lkmachinery.com.hk
Managing Director:
Mr. Chung Yuk Ming
Incorporated on: 3rd November, 2004.
Organization: Private Limited Company.
Issued Share Capital: HK$49,999,996.00
Business Category: Sale
of Die-Casting Machines and Plastic Injection Moulding Machines.
Group Revenue: HK$3,145,258,000 (Year ended 31-03-2015)
Employees: 12. (Including associates)
Approx.
4,100. (Group) - (As at 31-03-2015)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office:-
Unit A, 8/F., Mai Wah Industrial Building, 1-7 Wah Sing
Street, Kwai Chung, New Territories, Hong Kong.
Immediate Holding
Company:-
Sky River International Ltd., British Virgin Islands.
Intermediate Holding
Company:-
L.K. Technology Holdings Ltd., Cayman Islands/Hong Kong.
Ultimate Holding
Company:-
Girgio Industries Ltd., British Virgin Islands.
Associated &
Affiliated Companies:-
LK Group of Companies
Best Truth Enterprises Ltd., British Virgin Islands.
Charm Energy Ltd., Hong Kong.
Chongqing L.K. Machinery Co. Ltd., China.
Cyberbay Pte. Ltd., Singapore.
Fuxin L.K. Northern Machinery Co. Ltd., China.
Fuxin Lida Steel Casting Co. Ltd., China.
Gold Millennium Ltd., British Virgin Islands.
Gold Progress Ltd., Hong Kong.
Idra S.r.l., Italy.
L.K. Japan Co. Ltd., Japan.
L.K. Machinery (Shenzhen) Co. Ltd., China.
L.K. Machinery Co. Ltd., Hong Kong.
L.K. Machinery Corporation, Taiwan.
L.K. Machinery Inc., USA.
L.K. Precision Machinery (Kunshan) Co. Ltd., China.
L.K. Tech (Tianjin) Co. Ltd., China.
Lucky Prosper Ltd., Hong Kong.
Ningbo L.K. Machinery Co. Ltd., China.
Ningbo L.K. Technology Co. Ltd., China.
Power Excel International Ltd., Hong Kong.
Shanghai Atech Machinery Co. Ltd., China.
Shanghai Prex Mfg. Co. Ltd., China.
Shenzhen Jinggong Microcredit Ltd., China.
Shenzhen Leadwell Technology Co. Ltd., China.
Thai Prex Engineering Co. Ltd., Thailand.
World Force Ltd., British Virgin Islands.
Zhongshan L.K. Machinery Co. Ltd., China.
etc.
37649596
0931438
Group Chairperson:
Ms. Chong Siw Yin
Managing Director:
Mr. Chung Yuk Ming
HK$49,999,996.00
(As per registry dated 03-11-2014)
|
Name |
|
No. of shares |
|
Sky River International Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town,
Tortola, British Virgin Islands. |
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10,000,000 ======== |
(As per registry dated 03-11-2014)
|
Name (Nationality) |
Address |
|
CHONG Siw Yin |
Flat A, 35/F., Tower 1, ARIA, 51 Fung Shing Street,
Kowloon, Hong Kong. |
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CHUNG Yuk Ming |
Flat E, 46/F., Block 8, East Point City, Tseung Kwan O,
New Territories, Hong Kong. |
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CHAN Kwok Keung |
Room 11, 5/F., Southorn Garden, 2 O’Brien Road,
Wanchai, Hong Kong. |
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FUNG Chi Yuen |
Flat E, 22/F., Tower 2, Tierra Verde, Tsing Yi,
New Territories, Hong Kong. |
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LIU Zhuo Ming |
Flat A, 35/F., Tower 1, ARIA, 51 Fung Shing Street,
Kowloon, Hong Kong. |
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HONG Ka Kei |
Flat D, 7/F., Block 25, Parc Oasis, Kowloon Tong,
Kowloon, Hong Kong. |
(As per registry dated 03-11-2014)
|
Name |
Address |
|
WONG Kin Ming |
Flat D, 35/F., Tower 6, Sky Tower, 38 Sung Wong Toi
Road, Tokwawan, Kowloon, Hong Kong. |
The subject was incorporated on 3rd November, 2004 as a
private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of
L.K. Technology Holdings Ltd., name changed to LKM (Hong Kong) Ltd. on 15th
September, 2006 and further to the present style on 23rd January, 2007.
Apart from these, neither material change nor amendment
has been ever traced and noted.
Activities: Manufacturer
and Exporter.
Lines: Microprocessor
controlled hot chamber die-casting machines, microprocessor controlled cold chamber die-casting machines,
plastic injection moulding machines, plastic processing machinery and
equipment, metal working machinery and equipment.
Trade Marks: “L.K.”
and “POTENZA” brands.
Total Floor Space: 1,300
sq.m. – owned by the company and the Group.
Employees: 12. (Including associates)
Approx.
4,100. (Group) - (As at 31-03-2015)
Raw Materials: Imported
from Japan, Germany, Sweden, etc. and also bought in Hong Kong.
Markets: Europe,
US, Canada, Australia, Hong Kong, China, Taiwan, Japan, Thailand, Indonesia,
etc.
Group Revenue: HK$2,602,564,000 (Year ended 31-03-2011)
HK$3,011,636,000 (Year ended 31-03-2012)
HK$2,559,969,000 (Year ended 31-03-2013)
HK$2,653,436,000 (Year ended 31-03-2014)
HK$3,145,258,000 (Year ended 31-03-2015)
Terms/Sales: L/C or as per contracted.
Terms/Buying: Various terms.
Hong Kong Critical Components Manufacturers Association,
Hong Kong.
Issued Share Capital: HK$49,999,996.00
Mortgage or Charge: (See
attachment)
Group Net Profit/(Loss): HK$259,138,000 (Year ended 31-03-2011)
HK$200,130,000 (Year ended 31-03-2012)
HK$ 33,331,000 (Year
ended 31-03-2013)
HK$ 70,002,000 (Year
ended 31-03-2014)
HK$105,084,000 (Year ended 31-03-2015)
Profit or Loss: Group
business is profitable.
Condition: Business is active.
Facilities: Making active use of general
banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Satisfactory.
Bankers:-
The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
The Bank of East Asia
Ltd., Hong Kong.
Hang Seng Bank Ltd.,
Hong Kong.
Standard Chartered
Bank (Hong Kong) Ltd., Hong Kong.
The Bank of
Tokyo-Mitsubishi UFJ Ltd., Hong Kong Branch.
Industrial &
Commercial Bank of China (Asia) Ltd., Hong Kong.
DBS Bank
(Hong Kong) Ltd., Hong Kong.
Public Bank
(Hong Kong) Ltd., Hong Kong.
Bank of China
(Hong Kong) Ltd., Hong Kong.
China CITIC Bank
Corporation Ltd., Hong Kong.
Australia & New
Zealand Banking Group Ltd., Hong Kong Branch.
etc.
Standing: Good.
L.K. Machinery
International Ltd. is a wholly-owned subsidiary of Sky River International Ltd.
[Sky River] which is a BVI-registered firm.
In turn, Sky River is a wholly-owned subsidiary of L.K. Technology
Holdings Ltd. [LKTH], a Cayman Islands-registered firm.
LKTH is a listed
company in Hong Kong. Its shares have
been listed on The Stock Exchange of Hong Kong Ltd. bearing stock code 558
since 16th October, 2006. LKTH is an
investment holding company of the LK Group.
The LK Group is
principally engaged in designing, manufacturing and marketing hot chamber and
cold chamber die-casting machines, CNC Machining Centres, and plastic injection
moulding machines. The products of the Group are sold mainly to the
manufacturers of different industries in China. The Group’s products featuring
80 different models in 15 series under three major product categories.
Die-casting machines are used for the die-casting of non-ferrous molten metals
into different types of metallic consumer and industrial products such as
automotive parts and components, computer, communication and consumer products,
and household electrical products.
The subject is
engaged in marketing die-casting machines and plastic injection moulding
machines. Prime markets are Hong Kong, China, and the other Asian countries.
The Group’s three
product series, namely die-casting machines, plastic injection moulding
machines and CNC machining centres, have wide application in the production of
various sectors of the manufacturing industry and are popular among customers.
The Group recorded a
revenue of HK$3,145,258,000 for the Year ended 31st March, 2015,
representing an increase of approximately 19% as compared with HK$2,653,436,000
for the same period of previous year, which was mainly attributable to the
growth of the US market and the European market.
Profit for the year
was HK$105,084,000, grew by 50% as compared with HK$70,002,000 of previous
year.
Profit attributable
to owners of the Group amounted to HK$105,159,000, representing an increase of
49% compared with HK$70,624,000 for the same period of previous year.
In overseas market,
the US market continues to recover while the economy of Eurozone also remains
its trend of gradual improvement. The
Group’s revenue from overseas market amounted to HK$823,359,000 for the Year,
representing a substantial increase of 70% compared with HK$485,088,000 of the
same period last year, which was mainly due to the significant increase in the
revenue for the Year of IDRA [IDRA], its Italy-based wholly owned subsidiary,
from the US market and the European market.
As at 31st March,
2015, the Group employed approximately 4,100 full time staff.
The subject is fully
supported by the LK Group. History in
Hong Kong is over ten years and ten months.
On the whole,
consider the subject good for normal business engagements.
Brief information of directors:-
Ms. CHONG Siw Yin, aged 59,
is the Chairperson of the Board and an Executive Director of LKTH. Ms. Chong joined the Group in March 1988, and
was appointed as an Executive Director in August 2004. She is also a director of certain
subsidiaries of LKTH. Ms. Chong is
responsible for the strategic planning, administration and human resources
management of the Group and has over 27 years of management experience.
Mr. LIU Zhuo Ming, aged 29,
is an Executive Director of LKTH.
Mr. Liu joined the Group in October 2008 and has served a number of
positions in the Group. He was appointed
as an Executive Director in April 2014.. Mr. Liu is also a director of certain
subsidiaries of LKTH. He graduated from
Oregon State University, USA with a bachelor degree in Computer Science. Mr. Liu has extensive expreience in business operations
and management.
|
Date |
Description
of Instrument |
Mortgagee |
|
23-12-2010 |
Assignment of DC Proceeds |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
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18-09-2012 |
Trade Finance Security Assignment |
CITIC Bank International Ltd., Hong Kong. |
|
10-01-2014 |
Charge Over Account |
China Construction Bank (Asia) Corporation Ltd.,
Hong Kong. |
|
03-11-2014 |
Mortgage |
Hang Seng Bank Ltd., Hong Kong. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.44 |
|
|
1 |
Rs.102.41 |
|
Euro |
1 |
Rs.75.05 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.