MIRA INFORM REPORT

Report No. :	515168
Report Date :	26.06.2018

IDENTIFICATION DETAILS

Name :	GRATEFUL TEXTILES COMPANY LIMITED
Registered Office :	Flat B7, 11/F., Hong Kong Industrial Centre, 489-491 Castle Peak Road, Kowloon
Country :	Hong Kong
Date of Incorporation :	05.02.1980
Com. Reg. No.:	06456128
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of All Kinds of Piecegoods, Fabrics.
No. of Employees :	18

RATING & COMMENTS

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

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	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 (31.12.2017)	Current Rating (01.04.2018)
Hong Kong	A1	A1

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

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 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.

Excess liquidity, low interest rates and a tight housing supply have caused Hong Kong property prices to rise rapidly. The lower and middle-income segments of the population increasingly find housing unaffordable.

Hong Kong's open economy has left it exposed to the global economic situation. Its continued reliance on foreign trade and investment makes it vulnerable to renewed global financial market volatility or a slowdown in the global economy.

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 surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. After peaking in 2014, overall tourist arrivals dropped 2.5% in 2015 and 4.5% in 2016. The tourism sector rebounded in 2017, with visitor arrivals rising 3.2% to 58.47 million. Travelers from Mainland China totaled 44.45 million, accounting for 76% of the total.

The Hong Kong Government is promoting the Special Administrative Region (SAR) as the preferred business hub for 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, RMB trade settlement is allowed, and investment schemes such as the Renminbi Qualified Foreign Institutional Investor (RQFII) Program was first launched in Hong Kong. Offshore RMB activities experienced a setback, however, after the People’s Bank of China changed the way it set the central parity rate in August 2015. RMB deposits in Hong Kong fell from 1.0 trillion RMB at the end of 2014 to 559 billion RMB at the end of 2017, while RMB trade settlement handled by banks in Hong Kong also shrank from 6.8 trillion RMB in 2015 to 3.9 trillion RMB in 2017.

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 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 66% 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 (CEPA), 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. On the basis of the Guangdong Agreement, the Agreement on Trade in Services signed in November 2015 further enhanced liberalization, including extending the implementation of the majority of Guangdong pilot liberalization measures to the whole Mainland, reducing the restrictive measures in the negative list, and adding measures in the positive lists for cross-border services as well as cultural and telecommunications services. In June 2017, the Investment Agreement and the Agreement on Economic and Technical Cooperation (Ecotech Agreement) were signed under the framework of CEPA.

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 Hong Kong- Shenzhen Stock Connect the Mutual Recognition of Funds, and the Bond Connect scheme are all important steps towards opening up the Mainland’s capital markets and have reinforced Hong Kong’s role as China’s leading offshore RMB market. Additional connect schemes such as ETF Connect (for exchange-traded fund products) are also under exploration by Hong Kong authorities. In 2017, Chief Executive Carrie 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.

Source : CIA

Company name & address

GRATEFUL TEXTILES COMPANY LIMITED

ADDRESS: Flat B7, 11/F., Hong Kong Industrial Centre, 489-491 Castle Peak Road, Kowloon, Hong Kong.

PHONE: 852-2745 5222

FAX: 852-2786 2691

E-MAIL: sales@grateful.com.hk

MANAGEMENT

Managing Director: Mr. Wilson Hsu

SUMMARY

Incorporated on: 5th February, 1980.

Organization: Private Limited Company.

Issued Share Capital: HK$4,200,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 18.

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

Banking Relation: Satisfactory.

Company name

GRATEFUL TEXTILES COMPANY LIMITED

ADDRESS

Registered Head Office:-

Flat B7, 11/F., Hong Kong Industrial Centre, 489-491 Castle Peak Road, Kowloon, Hong Kong.

Associated Company:-

Blooming Workshop Ltd., Hong Kong.

BUSINESS REGISTRATION NUMBER

06456128

COMPANY FILE NUMBER

0078198

MANAGEMENT

Managing Director: Mr. Wilson Hsu

Contact Person: Mr. Hsu Shiu Tung, Kenrick

ISSUED SHARE CAPITAL

HK$4,200,000.00 (42,000 fully paid ordinary shares)

SHAREHOLDERS

(As per registry dated 05-02-2018)

Name		No. of shares
Wilson HSU		31,500
CHAN Fung Yee, Carrie		6,300
HSU Shiu Tung, Kenrick		4,200
		––––––
	Total:	42,000 =====

DIRECTORS

(As per registry dated 05-02-2018)

Name (Nationality)	Address
HSU Shiu Tung, Kenrick	Flat E, 30/F., Tower 2, Sorrento, 1 Austin Road West, Tsimshatsui, Kowloon, Hong Kong.
Wilson HSU	Flat B, 15/F., Block 2, 2 & 3 Garden Terrace, 8A Old Peak Road, Hong Kong.
CHAN Fung Yee, Carrie	Flat A, 2/F., Block 2, Meridian Hill, 81 Broadcast Drive, Kowloon Tong, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 05-02-2018)

Name	Address
WU Yuk Lin	Flat B7, 11/F., Hong Kong Industrial Centre, 489-491 Castle Peak Road, Kowloon, Hong Kong.

HISTORY

The subject was incorporated on 5th February, 1980 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, Exporter and Wholesaler.

Lines: All kinds of piecegoods, fabrics.

Employees: 18.

Commodities Imported: Europe, China, other Asian countries, etc.

Markets: China, other Asian countries, Europe, North America, Australia, etc.

Terms/Sales: L/C, T/T, etc.

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

MEMBERSHIP

The Chinese General Chamber of Commerce, Hong Kong.

FINANCIAL INFORMATION

Issued Share Capital: HK$4,200,000.00 (42,000 fully paid ordinary shares)

Mortgage or Charge:-

Date: 12-02-2018

Description of Instrument: Tripartite Second Legal Charge/Mortgage

Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory status.

Facilities: Making active use of general banking facilities.

Payment: Regular.

Commercial Morality: Good.

Bankers:- Bank of China (Hong Kong) Ltd., Hong Kong.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Standing: Good.

GENERAL

Having issued 42,000 ordinary shares of HK$100.00 each, Grateful Textiles Company Limited is jointly owned by Mr. Wilson Hsu, holding 75% interests; Ms. Chan Fung Yee, Carrie, holding 15%; Mr. Wilson Hsu Shiu Tung, Kenrick, 10%. They are also directors of the subject. The Hsu family are Taiwan by origin. Now they have become Hong Kong citizens.

The subject has had an associated company located at the same address known as Blooming Workshop Ltd. [BWL]. The managing director of BWL is also Wilson Hsu. This company was incorporated on 21st November, 2012.

Incorporated in February 1980, the subject is trading in the following commodities:-

Clothing Accessories;

Jeans;

Labels for Garments;

All kinds of garments;

Piecegoods ‑ Blended;

Piecegoods – Synthetic, such as T/C;

Piecegoods ‑ Vegetable fibre; &

Piecegoods ‑ Woollen Woven.

The subject’s garments traded including men’s shirts, lady blouses, dresses, lady chequer shirts and tops, etc. It is also significant for its woven fabrics of cotton T/C.

According to the subject, it has had an associated factory in Jiangsu Province, China.

Commodities are imported from Europe, China, Taiwan, Bangladesh, Cambodia, other Asian countries, etc. Prime markets are China, the other Asian countries, Europe, North America, Australia, Egypt, etc. Business is active. Regular suppliers and customers have been maintained.

The subject is a member of The Chinese General Chamber of Commerce, Hong Kong.

The subject’s business is chiefly handled by Mr. Wilson Hsu himself.

As the history of the subject is over 38 years and four months in Hong Kong, on the whole, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 68.15
UK Pound	1	INR 90.27
Euro	1	INR 79.35
HKD	1	INR 8.68

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

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

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)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.