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MIRA INFORM REPORT
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Report No. : |
491995 |
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Report Date : |
27.02.2018 |
IDENTIFICATION DETAILS
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Name : |
VF HONG KONG LIMITED |
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Registered Office : |
25/F., C-Bons International Centre, 108 Wai Yip Street, Kwun Tong,
Kowloon |
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Country : |
Hongkong |
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Date of Incorporation : |
15.11.1974 |
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Com. Reg. No.: |
04312453 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter, Wholesaler and Retailer of Garments, Textile
Products. |
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No. of Employees : |
60 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. 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, which took effect in 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.
Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 2.6% in 2016, but slowed to 2.0% in 2017. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.
Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities. In 2017, Chief Executive Lam announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.
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Source
: CIA |
Company name and address
VF HONG KONG LIMITED
ADDRESS: 25/F., C-Bons International Centre,
108 Wai Yip Street, Kwun Tong, Kowloon,
Hong Kong.
PHONE: 852-2265 8922, 2953 1000, 2670 2001
FAX: 852-2390 9250, 2670 2188
MANAGEMENT
Managing Director:
Mr. Naren Varatharajah
SUMMARY
Incorporated on: 15th November, 1974.
Organization: Private Limited Company.
Issued Share Capital: HK$5,000,000.00
Business Category: Importer,
Exporter, Wholesaler and Retailer.
Group Net Sales: US$11,902.3 million (Year ended
31-12-2016)
Employees: 60.
Group Employees: Approx. 69,000. (As at 31-12-2016)
Main Dealing Banker: The
Hongkong and Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
ADDRESS
Registered Head
Office:-
25/F., C-Bons International Centre, 108 Wai Yip Street,
Kwun Tong, Kowloon, Hong Kong.
Holding Company:-
V F Asia Ltd., Hong Kong.
(same address)
Ultimate Holding
Company:-
V. F. Corporation, US.
Associated/Affiliated
Companies:-
VF Group of Companies
20X de Mexico S.A. de C.V., Mexico.
All Crown S.A., Argentina.
Beatle Properties Ltd., Gibraltar.
Beyko Konfeksiyon lc ve Dis Ticaret Limited Sirketi,
Turkey.
Blue Bell Wrangler Do Brasil Indus De Conf Ltda, Brazil.
C.C.R.L. LLC, US.
Eagle Creek Europe Ltd., Ireland.
Eagle Creek Inc., US.
Green Sport Monte Bianco Srl., Italy.
GS Holding Srl., Italy.
H.D. Lee Apparel Ltd., China.
H.D. Lee Spain S.L., Spain.
Imagewear Apparel Corp., US.
Inversiones Inmobiliarias Australes S.A., Argentina.
Inversiones VF Chile Dos Limitada, Chile.
Inversiones VF Chile Limitada, Chile.
JanSport Apparel Corp., US.
Jeanswear de Guatemala Sociedad Anonima, Argentina.
Jeanswear Ventures LLC, US.
Kipling Apparel Corp., US.
LBI Luxembourg Holdings S.a.r.l., Luxembourg.
Lee Bell Inc., US.
Lucy apparel LLC, US.
Majestic Apparel LLC, US.
Majestic Asia Inc., US.
Manufacturera Lee de Mexico S.A. de C.V., Mexico.
Manufacturera WR Alajuela S.A., Costa Rica.
Nautica Apparel LLC, US.
Nautica Retail USA Inc., US.
NII Sales – Texas Inc., US.
North Elm Properties LLC, US.
NV Warehouse Co. Inc., US.
Pro Skate Park Organization LLC, US.
R&R Apparel Inc., US.
Red Kap de Mexico S.de R.L. de C.V., Mexico.
Retail Productivity Management Inc., US.
RKI Honduras S.A., Honduras.
Servicios y Promociones Textiles Limitada, Chile.
South Cone Inc., US.
TBL Investment Holdings GmbH, Switzerland.
TBL Licensing LLC, US.
The H.D. Lee Company Inc, US.
The North Face (Italy) S.r.l., Italy.
The North Face Apparel Corp., US.
The North Face S.a.g.l., Switzerland.
The Recreational Footwear Company, Cayman Islands.
The Timberland Company (Asia Pacific) Pte. Ltd.,
Singapore.
TI Venture Group Inc., US.
Timberland (Gibraltar) Holding Ltd., Gibraltar.
Timberland Asia LLC, US.
Timberland Aviation LLC, US.
Timberland Canada Co., Canada.
Timberland Espańa S.L., Spain.
Timberland Europe B.V., Netherlands.
Timberland Europe Services Ltd., UK.
Timberland GmbH, Austria.
Timberland HK Trading Ltd., Hong Kong.
Timberland Holding Luxembourg S.ŕ.r.l., Luxembourg.
Timberland Hong Kong Ltd., Hong Kong.
Timberland IDC Ltd., U.K.
Timberland International LLC, US.
Timberland Luxembourg Finance S.a.r.l., Luxembourg.
Timberland Luxembourg Holding Asia S.a.r.l., Luxembourg.
Timberland Luxembourg Holding Europe S.a.r.l.,
Luxembourg.
Timberland Netherlands Holding B.V., Netherlands.
Timberland Switzerland Holding GmbH, Switzerlands.
Timberland Trading (Shanghai) Co. Ltd., China.
Vans Inc., US.
Vans Madeira Lda, Portugal.
Vans Spain S.L., Spain.
VF (J) France S.A., France.
VF (Japan) Ltd., Japan.
VF Apparel (Shenzhen) Co. Ltd., China.
VF Apparel Portugal Lda, Portugal.
VF Asia Pacific Jeanswear Ltd., Hong Kong.
VF Asia Pacific Sourcing S.a.r.l., Luxembourg.
VF Austria GMBH, Austria.
VF Belgium BVBA, Belgium.
VF Biker Built Apparel LLC, US.
VF Brands India Private Ltd., India.
VF Brands Malaysia Sdn. Bhd., Malaysia.
VF Brands Pte. Ltd., Singapore.
VF Brands Taiwan Ltd., Taiwan.
VF Canada Co., Canada.
VF CB Holdings Inc., US.
VF CH Holdings GmbH, Netherlands.
VF Chiina Ltd., China.
VF CH-Mex Holdings LLC, US.
VF CIS (Russia) Limited Liability Company, Russia.
VF Commercializadora Limitada, Chile.
VF Czech S.R.O., Czech Republic.
VF Czech Services S.R.O., Czech Republic.
VF de Argentina S.A., Argentina.
VF Distribution Holdings GmbH, Switzerland.
VF do Brasil Ltda., Brazil.
VF Ege Soke Giyim Sanayi ve Ticaret Ltd., Turkey.
VF Europe B.V.B.A., Belgium.
VF Globel Investments S.a.r.l., Luxembourg.
VF Imagewear Canada Co., Canada.
VF International Holdings LLC, US.
VF Investments S.a.r.l., Luxembourg.
VF Israel (Apprael) Ltd., Israel.
VF Italy Services S.r.l., Italy.
VF Jeanswear Argentina S.R.L., Argentina.
VF Jeanswear de Mexico S.A. de C.V., Mexico.
VF Jeanswear Espana S.L., Spain.
VF Jeanswear Limited Partnership, US.
VF Korea Ltd., Korea.
VF Luxembourg S.ŕ.r.l., Luxembourg.
VF Mauritius Ltd., Mauritius.
VF Northern Europe Ltd., UK.
VF Northern Europe Services Ltd., UK.
VF Outdoor Canada Co, Canada.
VF Outdoor, US.
VF Outlet, US.
VF Polska Distribution Sp. zo.o., Poland.
VF Receivables LP, US.
VF Receivables Services LLC, US.
VF Scandinavia ApS., Denmark.
VF Services LLC., US.
VF Shanghai Ltd., China.
VF Shanghai Sourcing Ltd., China.
VF Sourcing (Thailand) Ltd., Thailand.
VF Sourcing Asia S.a.R.L., Luxembourg.
VF Sourcing Latin America S.a.R.L., Luxembourg.
VF Sportswear Inc, US.
VF Sweden AB, Sweden.
VF Taiwan Ltd., Taiwan.
VF Treasury Services LLC, US.
VF Ventures LLC, US.
Wrangler Apparel Corp., US.
etc.
BUSINESS REGISTRATION NUMBER
04312453
COMPANY FILE NUMBER
0040808
MANAGEMENT
Managing Director:
Mr. Naren Varatharajah
ISSUED SHARE CAPITAL
HK$5,000,000.00
SHAREHOLDER
(As per registry
dated 15-11-2017)
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Name |
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No. of shares |
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Ordinary A |
Ordinary B |
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V F Asia Ltd., Hong Kong. |
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2,500,000 ======= |
2,500,000 ======= |
DIRECTORS
(As per registry
dated 15-11-2017)
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Name (Nationality) |
Address |
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Karl Heinz SALZBURGER |
Via Tesserete 69, 6942 Savosa, Switzerland. |
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Naren VARATHARAJAH |
Flat D, 65/F., Tower 2, Sorrento, 1 Austin Road West,
Kowloon, Hong Kong. |
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Kevin Dennis BAILEY |
Flat 1704, 17/F., Block B, Queen’s Garden, 9 Old Peak
Road, Mid-Levels, Hong Kong. |
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Patrick Joseph GUIDO |
3955 Old Atlanta Stn CT, Smyrna, GA 30080-7386, U.S. |
SECRETARY
(As per registry
dated 15-11-2017)
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Name |
Address |
Co. No. |
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Tricor Corporate Secretary Ltd. |
Level 54, Hopewell Centre, 183 Queen’s Road East, Hong
Kong. |
0714799 |
HISTORY
The subject was
incorporated on 15th November, 1974 as a private limited liability company
under the Hong Kong Companies Ordinance.
Originally the
subject was registered under the name of H. D. Lee (Hong Kong) Ltd., name
changed to the present style on 14th February, 2006.
Formerly the subject
was located at Flat B, 10/F., Kader Building, 22 Kai Cheung Road, Kowloon Bay,
Kowloon, Hong Kong, moved 27/F., C-Bons International Centre, 108 Wai Yip
Street, Kwun Tong, Kowloon, Hong Kong with effect from 5th December, 2011. The
subject moved to 25/F. of the same building in October 2015.
Apart from these,
neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Exporter, Wholesaler and
Retailer.
Lines: Garments, textile
products.
Employees: 60.
Group Employees: Approx. 69,000. (As at 31-12-2016)
Commodities Imported: Europe,
US, etc.
Markets: Hong Kong, Europe, North America,
etc.
Group Net Sales: US$11,757.4
million (Year ended 03-01-2015)
US$11,909.6 million
(Year ended 02-01-2016)
US$11,902.3 million
(Year ended 31-12-2016)
Terms/Sales: COD or as per contracted.
Terms/Buying: Various terms.
FINANCIAL INFORMATION
Issued Share Capital: HK$5,000,000.00
Group Net Income: US$1,047.5
million (Year ended 03-01-2015)
US$1,231.6 million
(Year ended 02-01-2016)
US$1,074.1 million
(Year ended 31-12-2016)
Profit or Loss: Making a profit every year.
Condition: Keeping in a satisfactory and
active manner.
Facilities: Making very active use of
general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Good.
Banker: The Hongkong and Shanghai
Banking Corp. Ltd., Hong Kong.
Standing: Very Good.
GENERAL
VF Hong Kong Limited
is a wholly owned subsidiary of V F Asia Ltd. which is a Hong Kong-registered
firm located at the operating address of the subject. The ultimate holding company is V. F.
Corporation [VF], a US-based and listed firm.
VF is the holding company of the VF Group.
VF, organized in
1899, is a worldwide leader in branded lifestyle apparel and related products. The
subject is trading in the same commodities as its holding company.
Lifestyle brands
generally extend across multiple product categories and have higher than
average gross margins. Accordingly, this
transformation has included the acquisitions of many lifestyle brands,
including Timberland, Vans, Reef, Kipling, Napapijr,
7 For All Mankind, lucy, Splendid and
Ella Moss. At the same
time, the Grou has continued to invest in all of its businesses through
geographic expansion, retail store openings, product line extensions, product
innovation, consumer research and advertising.
VF’s businesses are
organized primarily into product categories, and by brands within those
categories, for both management and internal financial reporting purposes. These groupings of businesses are called
“coalitions” and consist of the following: Outdoor & Action Sports,
Jeanswear, Imagewear, Sportswear and Contemporary Brands. These coalitions are our reportable segments
for financial reporting purposes.
Coalition management has responsibility to build and operate their
brands, with certain financial, administrative and systems support and
disciplines provided by central functions within VF.
VF considers its Outdoor and Action Sports, Sportswear
and Contemporary Brands coalitions to be its lifestyle coalitions.
The following table summarizes VF’s primary owned and
licensed brands by coalition:-
|
Coalition |
Primary Brands |
Primary Products |
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Outdoor & Action Sports |
The North Face |
High performance outdoor apparel, footwear, equipment,
accessories |
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Timberland |
Outdoor lifestyle footwear, apparel, accessories |
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Vans |
Youth culture/action sports-inspired footwear,
apparel accessories |
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Kipling |
Handbags, luggage, backpacks, totes, accessories
(outside North America) |
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Napapijri |
Premium outdoor apparel, footwear, accessories |
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Reef |
Surf-inspired footwear, apparel, accessories |
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Eastpak |
Backpacks, luggage |
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JanSport |
Backpacks, luggage, apparel |
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SmartWool |
Performance-based merino wool socks, apparel,
accessories |
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lucy |
Women’s activewear |
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Eagle Creek |
Luggage, backpacks, travel accessories |
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Jeanswear |
Wrangler |
Denim, casual apparel, footwear, accessories |
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Lee |
Denim, casual apparel |
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Lee Casuals |
Denim, casual apparel |
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Riders by Lee |
Denim, casual apparel |
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Rustler |
Denim, casual apparel |
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Timber Creek by Wrangler |
Denim, casual apparel |
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Rock & Republic |
Denim, casual apparel, accessories |
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Imagewear |
Red Kap |
Occupational apparel |
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Bulwark |
Protective occupational apparel |
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Horace Small |
Occupational apparel |
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Majestic |
Athletic apparel, fanwear |
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MLB (licensed) |
Licensed athletic apparel |
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NFL (licensed) |
Licensed athletic apparel |
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Harley-Davidson (licensed) |
Licensed apparel |
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Sportwear |
Nautica |
Sportswear apparel, luggage, accessories |
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Kipling |
Handbags, luggage, backpacks, totes, accessories
(within North America) |
|
Contemporary Brands |
7 For All Mankind |
Premium denim and casual bottoms, sportswear,
accessories |
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Splendid |
Premium women’s sportswear |
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Ella Moss |
Premium women’s sportswear |
The Group’s
direct-to-consumer business includes full-price stores, outlet stores, and
e-commerce.
VF operates
manufacturing facilities in Mexico, Central and South America, the Caribbean, Europe and
the Middle East. A significant
percentage of denim bottoms and occupational apparel are manufactured in these
plants, as well as a smaller percentage of footwear. For these owned production facilities, it
purchases raw materials from numerous domestic and international suppliers to
meet our production needs. Raw materials
include products made from cotton, leather, rubber, wool, synthetics and blends
of cotton and synthetic yarn, as well as thread and trim (product
identification, buttons, zippers, snaps, eyelets and laces). In some instances, it contracts the sewing of
VF-owned raw materials into finished product with independent contractors. Manufacturing in the United States includes
all Major League Baseball uniforms, along with screen printing and embroidery
of jerseys, T-shirts and fleece products.
Fixed price commitments for fabric and certain supplies are generally
set on a quarterly basis for the next quarter’s purchases.
For the FY year 2016,
the sales of the Group amounted to US$11.90 billion, almost the same as FY 2015
which was US$11.91 billion; net income was US$1.1 billion, decreased by 8.3% as
compared with US1.2 billion in FY 2015.
The subject is fully
supported by VF. History in Hong Kong is
over 43 years and three months.
On the whole,
consider the subject good for normal business engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.66 |
|
|
1 |
INR 90.65 |
|
Euro |
1 |
INR 79.70 |
|
HKD |
1 |
INR 8.29 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
NIS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.