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MIRA INFORM REPORT
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Report No. : |
510294 |
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Report Date : |
18.05.2018 |
IDENTIFICATION DETAILS
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Name : |
L.K. MACHINERY INTERNATIONAL LIMITED |
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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 : |
Hong Kong |
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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. 4,000.
(Group) - (As at 30-09-2017) |
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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Hong Kong |
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 |
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.
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Source
: CIA |
COMPANY
NAME AND ADDRESS
L.K. MACHINERY
INTERNATIONAL LIMITED
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
MANAGEMENT
Managing Director:
Mr. Liu Zhuo Ming
SUMMARY
Incorporated on: 3rd November, 2004.
Organization: Private Limited Company.
Issued Share Capital: HK$151,417,696.00
Business Category: Sale
of Die-Casting Machines and Plastic Injection Moulding Machines.
Group Revenue: HK$3,224,781,000 (Year ended 31-03-2017)
Employees: 12. (Including associates)
Approx.
4,000. (Group) - (As at 30-09-2017)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
ADDRESS
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.
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.
BUSINESS
REGISTRATION NUMBER
37649596
COMPANY
FILE NUMBER
0931438
MANAGEMENT
Group Chairperson:
Ms. Chong Siw Yin
Managing Director:
Mr. Liu Zhuo Ming
ISSUED
SHARE CAPITAL
HK$151,417,696.00 (45,000,000 fully paid ordinary shares)
SHAREHOLDER
(As per registry dated 03-11-2017)
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Name |
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No. of shares |
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Sky River
International Ltd. Vistra Corporate Services
Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands. |
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45,000,000 ======== |
DIRECTORS
(As per registry dated 03-11-2017)
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Name (Nationality) |
Address |
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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 C, G/F., Block
3, Court B, Dragons Range, 33 Lai Ping Road, Shatin, New Territories, Hong
Kong. |
SECRETARY
(As per registry dated 03-11-2017)
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Name |
Address |
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WONG Kin Ming |
Flat D, 35/F.,
Tower 6, Sky Tower, 38 Sung Wong Toi Road, Tokwawan, Kowloon, Hong Kong. |
HISTORY
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.
OPERATIONS
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.
4,000. (Group) - (As at 30-09-2017)
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.
Group Revenue: 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)
HK$2,822,824,000 (Year ended 31-03-2016)
HK$3,224,781,000 (Year ended 31-03-2017)
HK$1,631,226,000 (6 months ended 30-09-2016)
HK$1,898,063,000 (6 months ended 30-09-2017)
Terms/Sales: L/C or as per contracted.
Terms/Buying: Various terms.
MEMBERSHIP
Hong Kong Critical Components Manufacturers Association,
Hong Kong.
FINANCIAL
INFORMATION
Issued Share Capital: HK$151,417,696.00
(45,000,000 fully paid ordinary shares)
Indebtedness: HK$5,447,591 (Total amount outstanding
on all mortgages and charges as per last
Annual Return
dated 03-11-2017)
Mortgage or Charge: (See Attachment)
Group Net Profit/(Loss): HK$ 33,331,000 (Year
ended 31-03-2013)
HK$ 70,002,000 (Year
ended 31-03-2014)
HK$105,084,000 (Year ended 31-03-2015)
HK$ 223,000 (Year
ended 31-03-2016)
HK$136,641,000 (Year ended 31-03-2017)
HK$ 71,617,000 (6
months ended 30-09-2016)
HK$128,633,000 (6 months ended 30-09-2017)
Profit or Loss: Group
business is profitable.
Condition: Business is active.
Facilities: Making active use of general
banking facilities.
Payment: Regular.
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: Very Good.
GENERAL
L.K. Machinery
International Limited 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. It is
the world’s largest die-casting machines manufacturer. The Group designs, manufactures and sells
three product lines, i.e. die-casting machines, plastic injection moulding
machines and computerised numerical controlled (CNC) machining centres. The Group has manufacturing bases and R&D
centres in Shenzhen, Zhongshan, Ningbo, Shanghai, Fuxin and Kunshan in China
and in Taiwan and Italy. In order to
capture overseas markets, the Group has established sales and services
companies in the United States and India.
The Group also operates a casting factory in Fuxin for the production of
cast iron/steel components.
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 recorded
revenue of HK$3.2 billion for the year ended 31st March, 2017,
representing an increase of 14.3% as compared with HK$2.8 million of previous
year. The increase in revenue was mainly
attributable to the China market. Profit
for the year amounted to HK$136.6 million, representing a substantial increase
as compared with HK$0.2 million of previous year.
For the six months
ended 30th September, 2017 (the “Period under Review”), the Group recorded a
revenue of HK$1.9 billion representing an increase of approximately 18.8% as
compared with that of the same period last year which was HK$1.6 billion. During the Period under Review, the profit of
LKTH was HK$129.3 million, representing an increase of approximately 73.0% as
compared with that of the same period last year which was HK$71.6 million.
The increase in
revenue was mainly due to the significant increase in sales income of the Group
in the PRC market. During the Period
under Review, the Group’s revenue in the PRC market was HK$1.5 billion,
representing an increase of 26.1% compared with that of the same period last
year.
As at 30th September,
2017, the Group employed approximately 4,000 full time staff.
The subject is fully
supported by the LK Group. History in
Hong Kong is over 13 years and a month.
On the whole,
consider the subject good for normal business engagements.
REMARKS
Brief information of
directors:-
Ms. CHONG Siw Yin, aged 61, 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 29 years of management experience.
Mr. LIU Zhuo Ming, aged 31, is the Chief Executive Officer and
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 and was appointed as the Chief Executive
Officer in April 2017. 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
experience in business operations and management.
MORTGAGE
OR CHARGE
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Date |
Description
of Instrument |
Mortgagee |
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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. |
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10-01-2014 |
Charge Over Account |
China Construction Bank (Asia) Corporation Ltd.,
Hong Kong. |
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03-11-2014 |
Mortgage |
Hang Seng Bank Ltd., Hong Kong. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 67.72 |
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1 |
INR 91.65 |
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Euro |
1 |
INR 79.89 |
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HKD |
1 |
INR 8.66 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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.