|
|
|
MIRA INFORM REPORT
|
Report No. : |
507719 |
|
Report Date : |
11.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
HIGHSCENE LIMITED |
|
|
|
|
Registered Office : |
Block A, 6/F., Eastern Sea Industrial Building, 29-39 Kwai Cheong
Road, Kwai Chung, New Territories |
|
|
|
|
Country : |
Hongkong |
|
|
|
|
Date of Incorporation : |
01.02.1985 |
|
|
|
|
Com. Reg. No.: |
09561257 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Wholesaler of Raw Yarns. |
|
|
|
|
No. of Employees : |
9,345 (Group) (As at 31-12-2017) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
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 (30.09.2017) |
Current Rating (31.12.2017) |
|
Hongkong |
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 |
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.
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 and address
HIGHSCENE LIMITED
ADDRESS: Block A, 6/F., Eastern Sea
Industrial Building, 29-39 Kwai Cheong Road, Kwai
Chung, New
Territories, Hong Kong.
PHONE: 852-2421 9368, 2619 1776,
2426 2180
FAX: 852-2481 1497, 2619 1567
E-MAIL: sales@fshl.com
MANAGEMENT
Group Honorary Chairman:
Mr. Ha Chung Fong
SUMMARY
Incorporated on: 1st February, 1985.
Organization: Private Limited Company.
Issued Share Capital: HK$3,000,000.00
Business Category: Yarn
Trader.
Group Revenue: HK$6,913.8 million (Year ended 31-12-2017)
Group Employees: 9,345.
(As at 31-12-2017)
Main Dealing Bankers: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Bank of China (Hong Kong) Ltd.,
Hong Kong.
Banking Relation: Good.
ADDRESS
Registered Head
Office:-
Block A, 6/F., Eastern Sea Industrial Building, 29-39
Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.
Holding Company:-
Fountain Set (Holdings) Ltd., Hong Kong. [Same address]
Immediate Holding
Company:-
Chinatex Yieldfull Investments Co. Ltd., China.
Ultimate Holding
Company:-
Chinatex Corporation Ltd., China.
Associated
Companies:-
Fountain
Set Group of Companies
Dongguan Fuyi Apparel Co. Ltd., China.
Dongguan Shatin Lake Side Textiles Printing & Dyeing
Co. Ltd., China.
Folktune Ltd., Hong Kong.
Fountain Set (Europe) Ltd., U.K.
Fountain Set (Singapore) Pte. Ltd. Vietnam Representative
Office., Vietnam.
Fountain Set Ltd. Japan Representative Office, Japan.
Fountain Set Ltd. Korean Liaison Office, Korea.
Fountain Set Ltd., Hong Kong.
Fountain Set Textiles (Ontario) Ltd., Canada.
Hiway Textiles Ltd., Hong Kong.
Jiangyin Fuhui Textiles Ltd., China.
Lake Side Printing Factory Ltd., Hong Kong.
Ningbo Young Top Garments Co. Ltd., China.
Ocean Lanka (Private) Ltd., Sri Lanka.
Ocean Yarn Dyeing Factory Ltd., Hong Kong.
Oceanstar Textiles International Ltd., Hong Kong.
P.T. Sandang Mutiara Cemerlang, Indonesia.
Prosperlink (Macao Commercial Offshore) Ltd., Macao.
Shanghai Fuhui Textiles Trading Co. Ltd., China.
Shenzhen Faun Textiles Ltd., China.
Suqian Young Top Garments Co. Ltd., China.
Triumph Luck Ltd., Hong Kong.
Yancheng Fuhui Textiles Ltd., China.
etc.
BUSINESS REGISTRATION NUMBER
09561257
COMPANY FILE NUMBER
0146739
MANAGEMENT
Group Honorary Chairman: Mr. Ha Chung Fong
ISSUED SHARE CAPITAL
HK$3,000,000.00
SHAREHOLDERS
(As per registry dated 01-02-2018)
|
Name |
|
No. of shares |
|
Fountain Set (Holdings) Ltd., Hong Kong. |
|
2,999,999 |
|
Fountain Set Ltd., Hong Kong. |
|
1 |
|
|
|
–––––––– |
|
|
Total: |
3,000,000 ======= |
DIRECTORS
(As per registry dated 01-02-2018)
|
Name (Nationality) |
Address |
|
HA Chung Fong (British
HK) |
Flat D, 35/F., Block 3, The Victoria Towers, 188 Canton
Road, Tsimshatsui, Kowloon, Hong Kong. |
|
HE Zhongling |
Flat H, 26/F., Po Shan Mansion, Kao Shan Terrace, 1
Taikoo Shing Road, Taikoo, Hong Kong. |
SECRETARY
(As per registry dated 01-02-2018)
|
Name |
Address |
|
Cheng Wai Han, Charmaine |
Block A, 6/F., Eastern Sea Industrial Building, |
HISTORY
The subject was
incorporated on 1st February, 1985 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 Wholesaler.
Lines: Raw Yarns.
Group Employees: 9,345. (As at 31-12-2017)
Commodities Handled: Imported
from China, India, Pakistan, Taiwan, Korea, etc.
Markets: Hong Kong, China and Southeast Asia.
Group Revenue:-
HK$6,942.8
million (Year ended 31-12-2013)
HK$6,891.1
million (Year ended 31-12-2014)
HK$6,653.1
million (Year ended 31-12-2015)
HK$6,328.7
million (Year ended 31-12-2016)
HK$6,913.8
million (Year ended 31-12-2017)
Terms/Sales: 30-60 days credit, COD or L/C.
Terms/Buying: As per contracted.
FINANCIAL INFORMATION
Issued Share Capital:
HK$3,000,000.00
Group Net Profit/(Loss):-
HK$100.7 million (Year ended 31-12-2013)
HK$ 95.8 million
(Year ended 31-12-2014)
HK$128.1 million (Year ended 31-12-2015)
HK$150.0 million (Year ended 31-12-2016)
HK$175.9 million (Year ended 31-12-2017)
Group Net Worth:
HK$3,278.6
million (Year ended 31-12-2013)
HK$3,325.6
million (Year ended 31-12-2014)
HK$3,394.8 million (Year ended 31-12-2015)
HK$3,453.6
million (Year ended 31-12-2016)
HK$3,556.4
million (Year ended 31-12-2017)
Profit or Loss: Group made profits in past years.
Condition: Keeping in an active and
satisfactory manner.
Facilities: Making active use of banking
facilities.
Payment: So far so good.
Commercial Morality:
Satisfactory.
Bankers:-
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Bank of China
(Hong Kong) Ltd., Hong Kong.
Standard Chartered
Bank (Hong Kong) Ltd., Hong Kong.
Industrial &
Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Very
Good.
GENERAL
Highscene Limited
[Highscene] is a wholly-owned subsidiary of Fountain Set (Holdings) Ltd.
[Fountain Set], a listed company which is the holding company of a leading
textile finishing group in Hong Kong.
The Fountain Set
Group is principally engaged in the manufacturing and sales of finished knitted
fabrics, sewing threads and dyed yarns.
It also provides knitting, dyeing, printing and finishing services and
is engaged in the trading of raw yarns and garments. Fountain Set is one of the world’s largest
circular knit manufacturers with highly vertically-integrated operations,
encompassing yarn spinning fabric, knitting yarn and fabric, dyeing, and fabric
printing.
The Group is a major
fabric supplier to garment manufacturers in over 20 countries with the
United States, Europe and Japan as the major markets. The Group was founded in 1969 as a commission
dye house founded in 1969 by Mr. Ha Chung Fong and his partners in Hong
Kong with just over twenty workers and an annual fabric dyeing and finishing
capacity of less than 2 million pounds.
The Group has since grown into one of the leading manufacturers and
suppliers of knitted fabrics in the world.
The shares of Fountain Set were listed on The Stock Exchange of
Hong Kong Ltd. in 1988. Its stock
code is 420.
Highscene, a member
of the Fountain Set Group, is responsible for the sourcing and trading of raw
yarns.
The Group has had
relocated all the production lines from Hong Kong to Guangdong Province, China
by December 1998.
Now, the Fountain Set
Group has 8 production facilities in China, Sri Lanka and Indonesia, with
marketing and representative offices in 5 countries.
Chinatex Corporation
Limited, a wholly-owned subsidiary of COFCO Corporation, has become the largest
shareholder of the Company since 2012. COFCO Corporation is a
state-wholly-owned enterprise established in the PRC and a direct wholly-owned
subsidiary of the State-owned Assets Supervision and Administration Commission
of the State Council of the PRC.
Chinatex Corporation
is under direct administration of the State-owned Assets Supervision and
Administration Commission of the State Council of the PRC and is one of the 500
largest enterprises in the PRC.
The Group’s
production capacity maintained at about 25 million pounds of fabric dyeing per
month, which was diversified among four fabric mills in both China and Sri
Lanka.
The Group’s revenue
for the year ended 31st December, 2017 approximately amounted to HK$6.9 billion
(2016: HK$6.3 billion). Group net profit
for the year was HK$175.9 million (2016: HK$ 150.0 million).
As at 31st December,
2017, the Group had 9,345 (2016: 9,900) full time employees.
The subject is fully
supported by Chinatex Corporation. The
history of the subject in Hong Kong is over 33 years and three months.
On the whole, in view
of Highscene’s parentage and history consider it good for normal business
engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.38 |
|
|
1 |
INR 91.39 |
|
Euro |
1 |
INR 79.89 |
|
HKD |
1 |
INR 8.55 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
|
|
|
|
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.