MIRA INFORM REPORT

Report No. :	511609
Report Date :	31.05.2018

IDENTIFICATION DETAILS

Name :	DATACOLOR ASIA PACIFIC (HK) LIMITED
Registered Office :	Unit E, 15/F., Billion Plaza 2, 10 Cheung Yue Street, Cheung Sha Wan, Kowloon
Country :	Hongkong
Date of Incorporation :	30.01.2002
Com. Reg. No.:	32373598
Legal Form :	Private Limited Company
Line of Business :	Trader of all kinds of Colour Related Equipment and Products.
No. of Employees :	13

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 :	No Complaints
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

DATACOLOR ASIA PACIFIC (HK) LIMITED

ADDRESS: Unit E, 15/F., Billion Plaza 2, 10 Cheung Yue Street, Cheung Sha Wan, Kowloon,

Hong Kong.

PHONE: 852-2420 8283

FAX: 852-2420 8320

E-MAIL: asiamarketing@datacolor.com

MANAGEMENT

Managing Director: Mr. Lam Wai Chung, Willian

SUMMARY

Incorporated on: 30th January, 2002.

Organization: Private Limited Company.

Issued Share Capital: HK$10,000.00

Business Category: Colour Technology Trader.

Net Sales of Group: US$72,805,000 (Year ended 30-09-2017)

Employees: 13.

Main Dealing Banker: Standard Chartered Bank Hong Kong Ltd., Hong Kong.

Banking Relation: Very Good.

ADDRESS

Registered Head Office:-

Unit E, 15/F., Billion Plaza 2, 10 Cheung Yue Street, Cheung Sha Wan, Kowloon, Hong Kong.

Holding Company:-

Datacolor Holding AG, Switzerland.

Ultimate Holding Company:-

Datacolor AG, Switzerland.

Associated Companies:-

Datacolor AG Europe, Switzerland.

Datacolor Belgium BVBA, Belgium.

Datacolor Colour Technologies Trading and Service LLC, Turkey.

Datacolor Gestao de Solucoes em Cores e Imagens Ltda., Brazil.

Datacolor GmbH, Germany.

Datacolor Inc., US.

Datacolor Industrial S.r.l., Italy. (Formerly known as Mediacol s.r.l.)

Datacolor International France SAS, France.

Datacolor International Ltd., UK.

Datacolor Italia S.r.l., Italy.

Datacolor Logistik AG, Switzerland.

Datacolor Solutions Private Ltd., India.

Datacolor Technology (Suzhou) Co. Ltd., China.

Datacolor Trading (Shanghai) Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

32373598

COMPANY FILE NUMBER

0784723

MANAGEMENT

Managing Director: Mr. Lam Wai Chung, Willian

ISSUED SHARE CAPITAL

HK$10,000.00

SHAREHOLDER

(As per registry dated 30-01-2018)

Name	No. of shares
Datacolor Holding AG Waldstaetterstrasse 12, 6003 Luzern, Switzerland.	10,000 =====

DIRECTORS

(As per registry dated 30-01-2018)

Name (Nationality)	Address
Albertus J. BUSCH	105 Bedens Brook Road, Skillman, N.J. 08558, U.S.A.
LAM Wai Chung	House 19, 4th Street, Section J, Fairview Park, Yuen Long, New Territories, Hong Kong.
Helen H JEN	7 Cottage Lane, Marlboro, NJ 07746, U.S.A.
Annet VAN DER LAAN	Zuercherstrasse 162a, 8800 Thalwil, Switzerland.

SECRETARY

(As per registry dated 30-01-2018)

Name	Address	Co. No.
Tricor Strath Ltd.	Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong.	0004873

HISTORY

The subject was incorporated on 30th January, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Room 4301, 43/F., Tower 2, Metroplaza, 223 Hing Fong Road, Kwai Chung, New Territories, Hong Kong, moved to “Flat 11, 9/F., Wing On Plaza, 62 Mody Road, Tsimshatsui East, Kowloon, Hong Kong” in October 2013 and further moved to the present address in late 2016.

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

OPERATIONS

Activities: Colour Technology Trader.

Lines: All kinds of colour related equipment and products.

Employees: 13.

Commodities Imported: Europe, etc.

Markets: China, North America, Other Asian Countries, Southeast Asia, Western Europe, etc.

Net Sales of Group: US$61,209,000 (Year ended 30-09-2013)

US$69,989,000 (Year ended 30-09-2014)

US$66,785,000 (Year ended 30-09-2015)

US$69,344,000 (Year ended 30-09-2016)

US$72,805,000 (Year ended 30-09-2017)

US$34,926,000 (6 months ended 31-03-2017)

US$41,000,000 (6 months ended 31-03-2018)

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Issued Share Capital: HK$10,000.00

Group Profit: US$4,541,000 (Year ended 30-09-2013)

US$4,100,000 (Year ended 30-09-2014)

US$3,157,000 (Year ended 30-09-2015)

US$6,028,000 (Year ended 30-09-2016)

US$6,812,000 (Year ended 30-09-2017)

US$3,359,000 (6 months ended 31-03-2017)

US$2,338,000 (6 months ended 31-03-2018)

Profit or Loss: Business is profitable.

Condition: Keeping in a good manner.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitment as contracted.

Commercial Morality: Very Good.

Banker: Standard Chartered Bank Hong Kong Ltd., Hong Kong.

Standing: Very Good.

GENERAL

Datacolor Asia Pacific (HK) Limited is a wholly-owned subsidiary of Datacolor Holding AG which is a Germany-based firm. Its ultimate holding company Datacolor AG [Datacolor] is a Switzerland-based firm. Datacolor is a listed firm in Switzerland and is significant in the country.

The subject changed its directors in early 2017.

The subject is trading in the following commodities and offering clients with the following services:-

· Scientific Testing Equipment (Textile & Garments Colour Testing Equipment);

· Quality/Laboratory Testing Services (Colour management and communications solutions for automobile [inner and outer colour coating] and for plastic pigment);

· Electrical & Electronic Products Testing (LCD monitor, plasma, projector colour management and communications solutions); &

· Textile & Garments Testing (Colour management and communications solutions).

Datacolor makes instruments and software that control colour measuring, matching, and quality control for use in textile, paint, automotive, printing, photography, and home theatre applications. Its “Spyder” brand targets the consumer market.

Datacolor sells directly to consumers online and through resellers. It also integrates its products with those of partners such as Lectra, Fongs, and Lawer.

Datacolor is a global leader in colour management solutions and colour communication technology.

The world’s leading brands, manufacturers, creative professionals and consumers, have been choosing Datacolor’s innovative technology and solutions to consistently achieve the right colour for 40 years.

A Swiss-held company, Datacolor’s global presence encompasses a sales, service and support network serving customers in more than 65 countries throughout Europe, the Americas and Asia, along with 13 worldwide operation and production facilities. This combination has given the company an intimate understanding of its core markets and how they depend on colour, thus allowing Datacolor to provide cost-effective solutions to manage colour globally throughout its customers’ workflows – enabling them to realize their vision, save time, improve quality, reduce costs, and excite their customers. Industries served include apparel and textile, paint and coatings, automotive, plastics, photography, digital imaging, home theatre, ink, printing, paper, leather and others.

Datacolor provides sales, service and support in over 100 countries throughout Europe, the Americas and Asia. Industries served include textile and apparel, paint and coatings, automotive, plastics, photography and design.

For the year ended 30th September, 2017, the net sales of the Group amounted to US$72.8 million (2016: US$69.3 million), increased by 5.1% as compared with previous year. Group profit was US$6.8 million, grew by 13.3% as compared with previous year which was just US$6.0 million.

For the half year ended 31st March, 2018, the net sales of the Group amounted to US$41.0 million (2016/17: US$34.9 million), increased by 17.5% as compared with previous year. Group profit was US$2.3 million, decreased by 32.4% as compared with previous year which was US$3.4 million.

As one of the world’s leading manufacturers of paint, coatings and powder coatings, the Jotun Group’s products are held to the highest standards, and this starts with the colour formulation.

The Sales Director of the Asia Pacific Region of Datacolor is Mr. Lam Wai Chung. He joined in the subject on 10th October, 2013.

For the half year 17/18, the Group had 413 employees in average.

The subject is fully supported by the Group.

On the whole, consider the subject good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.63
UK Pound	1	INR 89.70
Euro	1	INR 78.20
HKD	1	INR 8.61

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

INFORMATION DETAILS

Analysis Done by :	VAR
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)

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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.