3decades

MIRA INFORM REPORT

Report No. :	486030
Report Date :	18.01.2018

IDENTIFICATION DETAILS

Name :	YAMATO (HONG KONG) CO., LIMITED

Registered Office :	Unit 2817-2818, 28/F., Metroplaza Tower 1, 223 Hing Fong Road, Kwai Chung, New Territories

Country :	Hongkong

Date of Incorporation :	16.12.1988

Com. Reg. No.:	12525470

Legal Form :	Private Limited Company

Line of Business :	Importer and Exporter of all kinds of Industrial Sewing Machines and Equipment.

No. of Employees :	7

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Acceptable Risk

Business dealings permissible with moderate risk of default

Status :	Good

Payment Behaviour :	Regular

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Hongkong

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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, effective 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 4.4% in 2014, but slowed to 2.9% in 2015. 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.

Source : CIA

COMPANY NAME AND ADDRESS

YAMATO (HONG KONG) CO., LIMITED

ADDRESS: Unit 2817-2818, 28/F., Metroplaza Tower 1, 223 Hing Fong Road, Kwai Chung, New Territories, Hong Kong.

PHONE: 852-2721 0251-4

FAX: 852-2723 0444

E-MAIL: yamato@yamato-sewing.com.hk

MANAGEMENT

Managing Director: Mr. Lo Ka Fu

SUMMARY

Incorporated on: 16th December, 1988.

Organization: Private Limited Company.

Issued Share Capital: HK$4,000,000.00

Business Category: Sewing Machine Trader.

Employees: 7.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Good.

ADDRESS

Registered Head Office:-

Unit 2817-2818, 28/F., Metroplaza Tower 1, 223 Hing Fong Road, Kwai Chung, New Territories, Hong Kong.

Dongguan Office:-

7/F., Zhonghui Building, Renmin Zhong Road, Humen Town, Dongguan City, Guangdong Province, China.

[Tel: 86-769-8623 1363; Fax: 86-769-8623 1362]

Holding Company:-

Yamato Sewing Machine Manufacturing Co. Ltd., Japan.

Associated Companies:-

Yamato Europe GmbH, Germany.

Yamato Mexico Office, Mexico.

Yamato Sewing Machine (Ningbo) Co. Ltd., China.

Yamato Sewing Machine Manufacturing Co. Ltd. Qingdao Office, China.

Yamato Sewing Machine Manufacturing Co. Ltd. Shanghai Office, China.

Yamato Singapore Pte. Ltd. Bangladesh Liaison Office, Bangladesh.

Yamato Singapore Pte. Ltd. India Liaison Office New Delhi Branch, India.

Yamato Singapore Pte. Ltd., Singapore.

Yamato U.S.A. Inc., US.

etc.

BUSINESS REGISTRATION NUMBER

12525470

COMPANY FILE NUMBER

0236086

MANAGEMENT

Managing Director: Mr. Lo Ka Fu

ISSUED SHARE CAPITAL

HK$4,000,000.00 (4,000 fully paid ordinary shares)

SHAREHOLDERS

(As per registry dated 16-12-2016)

Name		No. of shares
Yamato Sewing Machine Manufacturing Co. Ltd. 4-12, Nishi, Tenma 4-chome, Kita-ku, Osaka 530, Japan.		3,998
Shogo KONDO		2
		–––––
	Total:	4,000 ====

DIRECTORS

(As per registry dated 16-12-2016)

Name (Nationality)	Address
LO Ka Fu	Room 2509, 25/F., Cheung Tai House, Chun Tai Court, Tsing Yi, New Territories, Hong Kong.
Akiyuki NAKAOKA	3-7-14, Kurotsu, Otsu-City, Shiga, Japan.
Shogo KONDO	16-43, Asahigaoka-Machi, Ashiya-City, Hyogo, Japan.
Kenji YAGAMI	501 Valley Run Drive, waxhaw North Carolina, 28173-8548 U.S.A.

SECRETARY

(As per registry dated 16-12-2016)

Name	Address	Co. No.
D.M. Secretarial Services Ltd.	Suite 702-704, 7/F., Rightful Centre, 12 Tak Hing Street, Kowloon, Hong Kong.	0619078

HISTORY

The subject was incorporated on 16th December, 1988 as a private limited liability company under the Hong Kong Companies Ordinance.

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

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of industrial sewing machines and equipment.

Trade Mark: Yamato.

Employees: 7.

Commodities Imported: Japan, China, etc.

Markets: China, Japan, other Asian countries, Europe, South America, etc.

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

Terms/Buying: As per contracted.

FINANCIAL INFORMATION

Issued Share Capital: HK$4,000,000.00 (4,000 fully paid ordinary shares)

Mortgage or Charge:-

Date of Debenture: 02-08-1994

Amount: All monies, obligations and liabilities

Property: A first floating charge over: (a) all sewing machines and related apparatus, equipment parts, and systems which are sold by Kanematsu and purchased by the Company from time to time, whether pursuant to Sale Documents or otherwise, and including without limitation those machines and systems; (b) all book debts and all other monetary debts and claims, in each case in any currency, both present and future, actual or contingent, including things in action which give rise or may give rise to a debt or debts due owing to the Company by each of the Distributors, and the benefit of all rights relating thereto including, without limitation, reservation of property rights, rights of tracing and unpaid vendors’ liens and similar or associated rights.

Mortgagee: Kanematsu (Hong Kong) Ltd., Hong Kong.

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory condition.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Good.

Bankers:-

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

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

Standing: Very Good.

GENERAL

Having issued 4,000 ordinary shares of HK$1,000.00 each, Yamato (Hong Kong) Co., Limited is wholly owned by Yamato Sewing Machine Manufacturing Co. Ltd. [Yamato] which is a Japan-based firm.

A Director of the subject Shogo Kondo is holding an insignificant amount of stake. Shogo Kondo is also the president and CEO of Yamato.

The subject is a sewing machine and equipment trader. All the products bear the brand name “Yamato”.

In order to penetrate the Southern China market, the subject has set up a representative office in Dongguan City, Guangdong Province, China. The Dongguan Representative Office offers customers with after sales services.

The subject is trading in the same products as Yamato such as the following sewing machines:-

· Overlock / Safety Stitch Machines:-

Overlock / Safety Stitch Machines;

Overlock / Safety Stitch Machines with Top Feed Mechanism;

Cylinder Bed Overlock Machines; &

Cylinder Bed Overlock Machines with Top Feed Mechanism.

· Interlock / Double Chain Stitch Machines:-

Short Cylinder Bed Interlock Stitch Machines;

Cylinder Bed Interlock Stitch Machines;

Extra Small Cylinder Bed Interlock Stitch Machines;

Flat Bed Interlock Stitch Machines;

Interlock Stitch Machines with Top Feed Mechanism;

Feed-Off-The-Arm Flatseamer;

Multi Needle Double Chain Stitch Machines;

Looper in Line of Feed, Multi Needle Double; &

Chain Stitch Machines.

· Chain Stitch Machines:-

Blind Stitch Machines / CM Series.

· Automatic Unit:-

Automatic Serging Unit;

Automatic Blind Hemmer;

Automatic Lapel Sewer;

Automatic Pocket Facing Setter;

Automatic Open Hemmer;

“No Trim” Sleeve Hemmer;

Automatic Placket Setter; &

Automatic Pocket Welter.

China is one of the largest markets of Yamato’s sewing machines.

The manufacturing plant of Yamato in China is Yamato Sewing Machine (Ningbo) Co. Ltd. [Yamato Ningbo]. This factory is in Ningbo City, Zhejiang Province, China. The products of this factory is marketed throughout China and exported to foreign countries such as India, Bangladesh, Mexico, Pakistan, etc. by the subject.

Founded in 2000, Yamato Ningbo has about 500 full-time employees and generates US$45 – 50 million in annual revenue.

Besides Yamato Ningbo, Yamato has five more production facilities in Japan.

Yamato’s business in Central and Northern China is handled by Yamato Sewing Machine Manufacturing Co. Ltd. Shanghai Office and Yamato Sewing Machine Manufacturing Co. Ltd. Qingdao Office respectively.

One of the significant branch companies of Yamato in Asia is Yamato Singapore Pte. Ltd. [Singapore Yamato], a Singapore-based company.

In order to penetrate the India and Bangladesh markets further, Singapore Yamato has set up liaison offices in India and Bangladesh respectively.

The subject is also responsible for marketing Yamato’s products in Asian countries apart from Southern China. Its business is profitable and active.

The business of the subject is chiefly handled by Mr. Lo Ka Fu who is a Hong Kong merchant.

On the whole, as the history of the subject is over 29 years and a month in Hong Kong, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.98
UK Pound	1	INR 88.13
Euro	1	INR 78.35
HKD	1	INR 8.17

Note: Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VIV

Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
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)

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.