%20LTD-%2025-Jul-2008_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
25.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
LI & FUNG TRADING LTD |
|
|
|
|
Registered Office : |
Lifung Center 888 Cheung Sha Wan Rd, Cheung Sha Wan Kowloon, Hong
Kong. |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
06.03.1973 |
|
|
|
|
Com. Reg. No.: |
0032289 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Import and Local Purchase of Toys, Office Equipment, Footwear and
Ready-Made Clothes. Sales and Distribution to Local and Overseas Market. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 5,000,000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
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Litigation : |
Exists |
Name & address
LI & FUNG
(TRADING) LTD
LIFUNG CENTER 888 CHEUNG SHA WAN RD
CHEUNG SHA WAN KOWLOON, HONG KONG.
TEL: 852-23002300
FAX: 852-23002000
EXECUTIVE SUMMARY
INCORPORATION DATE :
MARCH 6, 1973
REGISTRATION NO. :
0032289
LEGAL FORM :
PRIVATE
CHIEF EXECUTIVE :
DR. VICTOR KWOK-KING FUNG (CHAIRMAN)
STAFF STRENGTH :
3,000
CAPITAL :
US$ 1,283,723
BUSINESS LINE :
TRADER
TURNOVER :
HKD 68,010,257,000 (CONSOLIDATED, AS OF DEC. 31, 2006)
EQUITIES :
HKD 8,266,845,000 (CONSOLIDATED, AS OF DEC. 31, 2006)
PAYMENT :
ABOVE AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 5,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
FAIRLY GOOD
EXCHANGE RATE :
HKD 7.78129 = US$1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
M - million
HKD –Hong Kong Dollars
%20LTD-%2025-Jul-2008_files/image003.gif){kind=small}
*Company Registration*
==================
(1)
License number : 0032289
Date issued : 6 March,
1973
Issuing authority : Companies
Registry
Legal form : Private
Limited Company
Type of license : Corporate
(2)
License number : 03835715-000
Issuing authority : Business
Registration Office - Inland Revenue Dept
Type of license : Business
(3)
License number : 03835715-006
Issuing authority : Business
Registration Office - Inland Revenue Dept
Type of license : Business
(4)
License number : 03835715-005
Issuing authority : Business
Registration Office - Inland Revenue Dept
Type of license : Business
(5)
License number : 03835715-004
Issuing authority : Business
Registration Office - Inland Revenue Dept
Type of license : Business
*Capital Details*
=============
Share value : HKD
100.00/-each
Authorized capital : HKD 10,000,200.00 divided into 100,000 non-voting
deferred shares and 2 ordinary shares, fully paid
*Corporate & Organization Structure*
============================
A large sized company operated and managed by an experienced team of
professionals.
*Auditors*
==========
PRICEWATERHOUSE COOPERS LTD
*Legal Advisors*
=============
JOHNSON STOKES & MASTER
*Approved Signatures*
=================
Only Mr. Terry Mei-Chow Wan can sign on behalf of the company with seal
affixed.
%20LTD-%2025-Jul-2008_files/image004.gif){kind=small}
www.lifung.com The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: ir@lifung.com.hk
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Litigation ( 1 )
Position : Defendant
Other Parties Involved : Position Country Party's Name
Plaintiff Hong Kong TRANSFIT
PACIFIC LTD
Case Issue : A petition to the Court claiming a sum of money amounting
to HKD 3,499,045.65 (filed under case no A2354/2001)
Court : High Court, Hong Kong
Date Commenced : 28 May, 2001
Status : Not stated
Summary : Remarks : 2 September, 2002 - for stay.
Litigation ( 2 )
Position : Defendant
Other Parties Involved : Position Country Party's Name
Defendant Japan AVON COSMETICS
LTD
Defendant Germany AVON COSMETICS
GMBH
Defendant Malaysia AVON
COSMETICS (MALAYSIA) SDN BHD
Defendant Canada AVON CANADA INC
Defendant Australia AVON
PRODUCTS PTY LTD
Defendant USA AVON PRODUCTS INC
Plaintiff Hong Kong TOMMY CP SZE
& CO
Case Issue : A petition to the court claiming overdue payment amounting
to HKD 516,287.43 (filed under case no A4348/2001)
Court : High Court, Hong Kong
Date Commenced : 4 October, 2001
Status : Not stated
Litigation ( 3 )
Position : Defendant
Other Parties Involved : Position Country Party's Name
Defendant Malaysia AVON
COSMETICS (MALAYSIA) SDN BHD
Defendant Australia AVON
PRODUCTS PTY LTD
Defendant Germany AVON COSMETICS
GMBH
Defendant Canada AVON CANADA INC
Defendant Japan AVON COSMETICS
INC
Defendant USA AVON PRODUCTS INC
Plaintiff Hong Kong FIGURE
DEVELOPMENT LTD
Plaintiff Hong Kong TOMMY C P
SZE & CO
Case Issue : Construction & arbitration proceedings amounting to HKD
516,287.43 (filed under case no HCCT29/2002)
Court : High Court, Hong Kong
Date Commenced : 15 March, 2002
Status : Not stated
Summary : Remarks : 28 October, 2002 - Handing down judgment.
Litigation ( 4 )
Position : Defendant
Other Parties Involved : Position Country Party's Name
Plaintiff Hong Kong WING FUNG CO
Case Issue : A petition to the court to rule over a dispute on goods
sold and delivered (filed under case no SCTC79096/2003).
Court : District Court, Hong Kong
Date Commenced : 17 October, 2003
Status : Not stated
Litigation ( 5 )
Position : Defendant
Other Parties Involved : Position Country Party's Name
Plaintiff Hong Kong MERIMO LTD
Plaintiff Hong Kong SEE JEE CO
LTD
Plaintiff South Korea MERIM CORP
Case Issue : A petition to the court to rule over a breach of contract
(filed under case no HCCL65/2004)
Court : High Court, Hong Kong
Date Commenced : 13 December, 2004
Status : Not stated
Litigation ( 6 )
Position : Defendant
Other Parties Involved : Position Country Party's Name
Plaintiff Hong Kong Lim-Lee Zee
Case Issue : A petition to the court to rule over a labour dispute
(filed under action no LBTC3198/2005)
Court : District Court, Hong Kong
Date Commenced : 22 July, 2005
Status : Pending
Litigation ( 7 )
Position : Defendant
Other Parties Involved : Position Country Party's Name
Plaintiff Hong Kong T & R
INT'L (TRADING) CO
Plaintiff Hong Kong T & R
INT'L (TRADING) CO
Plaintiff Hong Kong T & R
INT'L (TRADING) CO
Plaintiff Hong Kong CHAN WING
MAN (T/A T & R INT'L (TRADING) CO
Case Issue : A petition to the court to rule over a dispute on goods
sold and delivered amounting to HKD 51,230.00 (filed under case no
DCCJ43/2004).
Court : District Court, Hong Kong
Date Commenced : 5 January, 2004
Status : Not stated
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*Major Shareholders*
================
Total number of shareholders : 2
Total number of shares
: 100,002
Shareholders' Name
Type of Shares No. of
Shares Amount of Shares (HKD) %of Shares
-------------------------- ------------------- ------------------
---------------------------------
----------
LI & FUNG (BVI) LTD Non-Voting
99,980
9,998,000.00
99.98
Ordinary
1
100.00
LI & FUNG (PROPERTIES) LTD
Non-Voting
20
2,000.00
0.02
Ordinary
1
100.00
%20LTD-%2025-Jul-2008_files/image007.gif){kind=small}
Management: Mr. Edward Kam-chuen
Yim, Accountant
Mr. Robert Ernest Adams, Chief Operating Officer
Mr. James Kai-lau Siu, Compliance Officer
Name Nationality
Job Description
Mr. Edward Kam-chuen Yim Hong
Kong Accountant
Mr. Robert Ernest Adams Hong
Kong Chief Operating Officer
Mr. James Kai-lau Siu Hong
Kong Compliance Officer
Mr. Danny Sai-wing Lau Hong
Kong Executive Director
Mr. Henry Chan Hong
Kong Executive Director
Mr. Thomas Morton Haugen Hong
Kong Executive Director
Ms. Annabella Wai-ping Leung Hong
Kong Executive Director
Dr. William Kwok-lun Fung Hong
Kong Managing Director
Dr. Victor Kwok-king Fung Hong
Kong Non-Executive Director
Mr. Allan Chi-yun Wong Hong
Kong Non-Executive Director
Mr. Butt-farn Lau Hong
Kong Non-Executive Director
Mr. Franklin Warren McFarlan Hong
Kong Non-Executive Director
Mr. Makoto Yasuda Japanese
Non-Executive Director
Mr. Paul Edward Selway-Swift Hong
Kong Non-Executive Director
Mr. Bruce Philip Rockowitz Hong
Kong President -
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*Main Products & Services*
=====================
Specializes in the following areas of work:
1. Import and local purchase of toys, office equipment, footwear and
ready-made clothes.
2. Sales and distribution to local and overseas market.
Products: Baby clothes
Baby clothing
Baby foods
Baby formula
Baby personal
care
*Payment Terms*
=============
Sales
-------
Local : Cash or credit
Export : Letter of Credit (L/C)
Telegraphic
Transfer (T/T)
Purchases
--------------
Local : Cash or credit
Import : Letter of Credit (L/C)
Telegraphic
Transfer (T/T)
*Associations*
============
Member of:
- Hong Kong Exporter's Association
*Domestic Suppliers*
================
Some of the products are purchased locally.
*Imports*
========
Some of the products are imported.
*Local Distribution Network*
======================
10% of the annual turnover is attributed to local sales.
*Export Markets*
=============
90% of the annual turnover is attributed to export.
%20LTD-%2025-Jul-2008_files/image009.gif){kind=small}
*LOCAL BRANCHES & MANAGEMENT *
==================================
Branch: LI & FUNG (TRADING) LTD - KOWLOON
Branch Address : 1Fl Hong Kong Spinners Industrial Bldg - Phase 1 &
2, 800-818 Cheung Sha Wan Rd Cheung Sha Wan, Kowloon,
Branch : LI & FUNG (TRADING) LTD - NEW TERRITORIES
Branch Address : Lifung Centre 2 On Ping St Shatin, New
Territories,
*Subsidiaries, Joint-ventures & Affiliates*
=================================
Maintains a global network of 70 offices in 40 countries &
territories with nearly 10,000 international suppliers.
Europe & TheMediterranean
---------------------------------------
- Amersfoort
- Amsterdam
- Barcelona
- Bremerhaven
- Bucharest
- Cairo
- Denizli
- Dusseldorf
- Huddersfield
- Istanbul
- Izmir
- Leeds
- London
- Madrid
- Oporto
- Paris
- Turin
- Vienna
- Warsaw
South Africa
-------------------
- Antananarivo
- Durban
- Moka
North Asia
---------------
- Beijing
- Chengdu
- Dalian
- Guangzhou
- Hangzhou
- Hepu
- Hong Kong
- Liuyang
- Longhua
- Macau
- Nanjing
- Ningbo
- Qingdao
- Seoul
- Shanghai
- Shantou
- Shenzhen
- Suzhou
- Taipei
- Tokyo
- Zhanjiang
Southeast Asia
---------------------
- Bangkok
- Hanoi
- Ho Chi Minh City
- Jakarta
- Makati
- Phnom Penh
- Saipan
- Shah Alam
- Singapore
South Asia
----------------
- Amman
- Bangalore
- Chennai
- Colombo
- Delhi
- Dhaka
- Faisalabad
- Karachi
- Lahore
- Mumbai
- Sharjah
- Tirupur
The Americas
--------------------
- Boston
- Guadalajara
- Guatemala City
- Managua
- Mexico City
- New York City
- San Francisco
- San Pedro Sula
- Santo Domingo
*Strategic Partners & Alliances*
=========================
Group name : LI & FUNG Group
Group chairman : Victor Kwok-king Fung
Details : As a
group, it employs 9,700 staff worldwide.
*(Subsidiaries, Joint-ventures & Affiliates)
=================================
Company Name : BLUE WORK TRADING CO LTD
Address : 8Fl Lifung Center 888 Cheung Sha Wan Rd Kowloon Hong Kong
Country : Hong Kong
Relationship : Subsidiary
Legal Form : Private company with limited liability
Company Type : Trader
Industry : Garments & Accessories
Company Name : IDS (HONG KONG) LTD
Address : 15Fl Li Fung Centre 2 On Ping St Siu Lek Yuen Hong Kong Hong
Kong
Country : Hong Kong
Relationship : Affiliate
Legal Form : Private company with limited liability
Company Type : Trader
Industry : Consumer Products
Company Name : LI & FUNG (1937) LTD
Country : Hong Kong
Relationship : Affiliate
Legal Form : Private company with limited liability
Company Type : Service
Industry : Financial Services - General
Company Name : LI & FUNG (TRADING) LTD
Address : 18Fl Harbour View Tower 35 Nguyen Hue St Ben Nghe Ward
District 1 Ho Chi Minh Vietnam
Country : Vietnam
Relationship : Subsidiary
Legal Form : Liaison/Representative office of overseas company
Company Type : Trader
Industry : Consumer Products
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PAYMENT RATING : 2 OBTAINED SCORES :
75
|
Implication |
Implications |
|
|
1 |
Scores 85–100 |
Excellent |
|
2 |
Scores 75 – 84 |
Above Average |
|
3 |
Scores 50 – 74 |
Average |
|
4 |
Scores 35 – 49 |
Fair |
|
5 |
Scores 15 – 34 |
Below Average |
|
6 |
Scores 01 – 14 |
Poor |
|
NR |
No Data |
No Data |
The rating indicates the
payment pattern of SC based upon our Payment Database, comments from suppliers of
SC, information from banks (if available), as well as industrial sources.
Dealings on open terms may be possible for FAIRLY LARGE amounts
depending on individual judgement experience.
%20LTD-%2025-Jul-2008_files/image011.gif){kind=small}
*BANK DETAILS*
===============
Bank Name : CITIBANK NA
Branch : Central,Hong Kong
Branch Address : 50Fl Citibank Plaza - Citibank Tower 3 Garden Rd
Central Hong Kong (Head Office)
SWIFT Code : CITIHKHX
Bank Name : HONG KONG & SHANGHAI BANKING CORP LTD, THE
Branch : Central,Hong Kong
Branch Address : 9Fl HSBC Main Bldg 1 Queen's Rd Central Hong Kong (Head
Office)
SWIFT Code : HSBCHKHH
Bank Name : STANDARD CHARTERED BANK
Branch : Central,Hong Kong
Branch Address : 13Fl Standard Chartered Bank Bldg 4-4A Des Voeux Rd Central
Hong Kong (Head Office)
SWIFT Code : SCBLHKHH
Bank Name : JP MORGAN CHASE & CO
Branch : Central,Hong Kong
Branch Address : 41Fl One Exchange Square 8 Connaught Rd Central Hong
Kong (Head Office)
SWIFT Code : This bank does not have a SWIFT Code
Consolidated
Balance Sheet of LI & FUNG LTD
Currency : HKD
Denomination : in thousands
31
December, 2006 31 December, 2005
-------------------------
-------------------------
Non-current assets
Intangible assets 4,713,163 2,809,380
Fixed assets 1,114,368 947,608
Prepaid premium for land leases 681,179 765,771
Associated companies 13,930 7,102
Available-for-sale financial assets 81,605 Z
91,721
Deferred tax assets 105,982 118,419
------------------------- -------------------------
6,710,227
4,740,001
Current assets
Inventories 628,121
Due from related companies 61,977 24,982
Derivative financial instruments -- 3,769
Trade and bills receivable 9,231,482 7,738,518
Other receivables, prepayments
and deposits
1,316,053 884,704
Cash and bank balances 2 3,394,085 1,247,920
-------------------------
-------------------------
15,334,855 10,528,014
Current liabilities
Due to related companies -- 98
Derivative financial instruments 4,413 --
Trade and bills payable 7,544,176 6,058,717
Accrued charges and sundry payables 1,315,691 1,006,181
Balance of purchase consideration
payable for acquisitions
760,221
647,492
Taxation 320,632 391,415
Bank advances for discounted bills 123,282 1,554,367
Short term bank loans 2,776,968 --
Bank overdrafts 91,744 204,007
-------------------------
-------------------------
12,937,127 9,862,277
Net current assets 2,397,728 665,737
Total assets less current liabilities 9,107,955 5,405,738
Financed by:
Share capital
85,239
73,414
Reserves
6,883,215 3,540,450
Proposed dividend 1,330,754 1,042,995
-------------------------
-------------------------
8,213,969 4,583,445
Shareholders' funds 8,299,208 4,656,859
Minority interest (32,363) (32,058)
Total equity
8,266,845
4,624,801
Non-current liabilities
Long-term liabilities 797,487 753,192
Post-employment benefit obligations 25,464 19,821
Deferred taxation 18,159 7,924
------------------------- -------------------------
9,107,955
5,405,738
Consolidated Profit
and Loss Account of LI & FUNG LTD
Currency : HKD
Denomination : in thousands
31
December, 2006 31 December, 2005
------------------------- -------------------------
Turnover
68,010,257
55,617,374
Cost of sales
(60,674,807) (49,956,433)
Gross profit
7,335,450
5,660,941
Other revenues 311,553 264,384
Total margin
7,647,003
5,925,325
Selling expenses (1,234,610) (973,874)
Merchandising expenses
(3,564,277) (2,666,214)
Administrative expenses (503,890) (424,569)
Core operating profit 2,344,226 1,860,668
Gain on disposal of properties and
property holding
subsidiaries
71,794
27,832
Net investment loss (3,700) (3,900)
Operating profit 2,412,320 1,884,600
Interest income 98,491 69,539
Interest expenses (148,070) (21,376)
Share of profits less losses of
associated companies
10,603
9,062
Profit before taxation 2,373,344 1,941,825
Taxation
(171,682)
(151,248)
Profit for the year 2,201,662 1,790,577
Attributable to:
Shareholders of the Company 2,201,819 1,790,279
Minority interest (157) 298
-------------------------
-------------------------
2,201,662
1,790,577
Earnings per share for profit
attributable to the
shareholders
of the Company during the year
- basic HKD cents
67.1
55.6
- diluted HKD cents 66.5 55.2
Dividends
1,850,006
1,468,432
%20LTD-%2025-Jul-2008_files/image012.gif){kind=small}
SC is considered large-sized in its line with a long history. Taking
into consideration of SC’s general performance, a credit line up to USD
5,000,000 would appear to be within SC’s capacities.
Attached:
trade references
SIC PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Trading 2000 Food and
Kindred Products
Trading 2032 Canned
specialties
Trading 2035 Pickled
fruits and vegetables, vegetable sauces and seasonings, and salad dressings
Trading 2037 Frozen
fruits, fruit juices, and vegetables
Trading 2043 Cereal
breakfast foods
Trading 2064 Candy and
other confectionery products
Trading 2066 Chocolate
and cocoa products
Trading 2084 Wines,
brandy, and brandy spirits
Trading 2086 Bottled and
canned soft drinks and carbonated waters
Trading 2095 Roasted
coffee
HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Trading 0900 Coffee,
tea, mate & spices
Trading 1000 Cereals
Trading 1704100000 Chewing
gum, whether or not sugar coated
Trading 1704907000 Sugar
confectionery (including white chocolate), not containing cocoa
Trading 1806 Chocolate
& other food products containing cocoa
Trading 1901107500 Preparations
for infant use, put up for retail sale, infant formula containing
oligosaccharides
Trading 1905909030 Corn
chips and similar crisp savory snack foods
Trading 2009 Fruit
juices (& grape must) & veg juice, no spirit
Trading 2103 Sauces
& prep; mixed condiments, mustard flour etc
Trading 2103906060 Mixed
condiments and mixed seasonings
DETAILED PRODUCT
CLASSIFICATION & ACTIVITY
Activity Product/Service Description
Trader Beverages
Trader Canned
foods
Trader Cereals
Trader Chewing
gums
Trader Chocolates
Trader Cleaners
Trader Coffee
Trader Colorants
Trader Condiments
Trader Conditioners
INTERNATIONAL
TRADE: ACTIVITY & MARKETS
Exporting to Asia
Exporting to Canada
Exporting to Europe
Exporting to Japan
Exporting to North America
Exporting to USA
Importing from Asia
Importing from Canada
Importing from China
Importing from Europe
Importing from India
Importing from Japan
Importing from Mexico
Importing from Middle East
Importing from North America
Importing from South Korea
Importing from Taiwan
Importing from Turkey
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.41.96 |
|
UK Pound |
1 |
Rs.83.78 |
|
Euro |
1 |
Rs.65.82 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)