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MIRA
INFORM REPORT
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Report Date : |
07.08.2010 |
IDENTIFICATION DETAILS
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Name : |
LI & FUNG
(TRADING) LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
06.03.1973 |
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Com. Reg. No.: |
3835715-000 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Export Trading and Investment Holding. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Exists |
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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
LI &
FUNG (TRADING) LTD.
ADDRESS
PHONE: 2300 2300, 2300 2333
FAX: 2300 2000, 2300 2020
E-MAIL: biancatang.adm@lifung.com.hk
MANAGEMENT
President: Mr. Bruce Philip
Rockowitz
SUMMARY
Incorporated on: 6th
March, 1973.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000,200.00
Issued: HK$10,000,200.00
Business Category: Trading and Investment Holding.
Group Turnover: HK$104,478,983,000 (Year ended 31-12-2009)
Group Employees: 13,402. (As at 31-12-2009)
Main Dealing Bankers: The Hongkong & Shanghai Banking Corp. Ltd.,
Citibank N.A., Hong Kong Branch.
Banking Relation: Good.
ADDRESS
Registered Head Office:-
Garment Purchasing Division:-
1/F. - 4/F., Unit A & B on 6/F. & 7/F.,
P.O. Box 150 & 7988,
Trading as:-
LF Beauty,
Immediate Holding Company:-
Li & Fung (B.V.I.) Ltd.,
Penultimate Holding Company:-
Li & Fung Ltd., Bermuda/Hong Kong.
Ultimate Holding Company:-
Li & Fung (1937) Ltd.,
Affiliated Companies:-
Li & Fung
Group of Companies
888
Alster International Trading
American Marketing Enterprises Inc.,
Appleton Holdings Ltd.,
Black Cat Fireworks Ltd.,
Blue Work Trading Co. Ltd.,
Bossini Fashion
Briefly Stated Holdings Inc.,
Briefly Stated Inc.,
C Group
C.D.P. Asia Ltd.,
Camberley Enterprises Ltd.,
Camberley Trading Service (Shenzhen) Ltd.,
Centennial (
CGroup HK Ltd.,
CGroup POP Ltd.,
CGroup Shanghai Consulting Co. Ltd.,
Character Direct Ltd.,
Civati Ltd.,
Colby Group Holdings Ltd.,
Colby Property Holdings Ltd.,
Colourful Express Trading Pte. Ltd.,
Colourful Lifestyle Productions Ltd.,
Comet Feuerwerk
Concept 3 Ltd.,
Costume Ltd.,
Craftworks Ltd.,
Dana International Ltd.,
Dodwell (
Dodwell (
Dongguan LF Beauty Manufacturing Services Ltd.,
Eclat Properties Inc.,
Empire Knight Group Ltd.,
Eslite Design Ltd.,
Fireworks Management Inc.,
Forrestgrove Ltd.,
GB Apparel Ltd.,
GMR (Hong Kong) Ltd.,
Golden Gate Fireworks Inc.,
Golden Horn (III) L.P.,
Golden Horn N.V.,
Goodwest enterprises Ltd.,
GSCM (HK) Ltd., Hong Kong.
Hanson Im-und Export
Homestead International Group Ltd.,
Homeworks (Europe) B.V., The
Homeworks Asia Ltd.,
Imagine POS Ltd.,
International Sources
International Sources Trading Ltd., Hong Kong.
Jac Tissot Fashion
JMI Sportswear Pte. Ltd.,
Kariya Industries Ltd.,
KHQ Investment
Kingsbury International Ltd.,
KVZ International Ltd.,
La Villa Development Ltd.,
Lenci
LF Beauty (
LF Beauty Ltd.,
LF Beauty Pte. Ltd.,
LF Capital (II) Ltd.,
LF Capital Management Ltd.,
LF Centennial Ltd.,
LF Centennial Pte. Ltd.,
LF Centennial Service (
LF Centennial Services (
LF Corporate Capital (I) Ltd.,
LF Credit Ltd.,
LF Credit Pte. Ltd.,
LF Europe (
LF Europe Ltd.,
LF European Capital Ltd.,
LF Home Ltd.,
LF International Inc.,
LF North America Holdings Co. Inc.,
LF USA Inc.,
LFCF Investment I (Europe) Ltd.,
LFCF Investment I (
Li & Fung (
Li & Fung (Europe) Holding Ltd.,
Li & Fung (Exports) Ltd., Hong Kong.
Li & Fung (
Li & Fung (
Li & Fung (
Li & Fung (
Li & Fung (
Li & Fung (
Li & Fung (
Li & Fung (
Li & Fung (
Li & Fung (Properties) Ltd., Hong Kong.
Li & Fung (
Li & Fung (
Li & Fung (
Li & Fung (
Li & Fung (
Li & Fung Agencia de Compras em
Li & Fung Mumessillik Pazarlama Ltd.
Li & Fung
Li & Fung
Li & Fung Taiwan Holdings Ltd.,
Li & Fung Taiwan Investments Ltd.,
Li & Fung Trading (Italia)
Li & Fung Trading (
Li & Fung Trading Service (
Li & Fung Trading Service (Shenzhen) Ltd.,
Lion Rock (Hong Kong) Ltd.,
Lion Rock (
Lion Rock Far East (1972) Ltd.,
Lion Rock International Trading &
Lion Rock Services (Far East) & Co.,
Lion Rock Services (
Lion Rock Trading (
Lloyd Textile Trading Ltd., Hong Kong.
Lux Plush Enterprises Ltd.,
Match Winner Vertriebs
Mercury (BVI) Holdings Ltd.,
Metro Seven
Mighty Hurricane Holdings Inc.,
Miles Fashion
Miles Fashion GmbH,
Miles Fashion Group
Miles Fashion USA Inc.,
Millwork Holdings Co. Inc.,
Millwork Pte. Ltd.,
Momentum Clothing Ltd.,
P.T. Lifung
Pacific Alliance USA Inc.,
Paco Trading (International) Ltd.,
Perfect Trading Inc.,
Peter Black Footwear & Accessories Ltd.,
Peter Black Holdings Ltd.,
Peter Black International Ltd.,
Peter Black Overseas Holdings Ltd.,
Phil Henson GmbH,
Product Development Partners Ltd.,
PromOcean
PromOcean
PromOcean No 1 Ltd.,
PromOcean Polska Sp. z o.o.,
PromOcean
PromOcean The
PromOcean UK Ltd.,
PromOcean Werbeartikel
Ralsey Group Ltd.,
Ratners Enterprises Ltd.,
Region Giant Holdings Ltd.,
Rosetti Asia Ltd.,
Rosetti Handbags & Accessories Ltd.,
RT Sourcing (Shenzhen) Co. Ltd.,
RT Sourcing Asia Ltd., Hong Kong.
RT Sourcing USA Inc.,
RWW Apparel
Shiu Fung Fireworks Co. Ltd.,
Shiu Fung Fireworks Trading (
Shubiz Ltd.,
Shutoo Ltd.,
Silvereed (Hong Kong) Ltd.,
Sky Million International Ltd.,
Social Compliance Management & Audit Pte. Ltd.,
Sports Brands Italia Ltd.,
STS Shenzhen Testing Service Ltd.,
Tantallon Enterprises Ltd.,
Texnorte II-Industrias
Texnorte Industrial Ltd.,
TH Success Ltd.,
Toy Island Manufacturing Co. Ltd.,
Upsolut Merchandising GmbH & Co. KG,
Ventana Bekleidungsfabrikation
Verity Enterprises Ltd.,
VZI Investment Corporation,
W S Trading Ltd., Hong Kong.
Wilson Textile Ltd.,
Winco Fireworks International
Winco Fireworks
etc.
BUSINESS REGISTRATION NUMBER
3835715-000
COMPANY FILE NUMBER
32289
MANAGEMENT
Group Non-Executive Chairman: Dr.
Fung Kwok King, Victor [Elder Brother]
Group Managing Director: Dr. Fung
Kwok Lun, William [Younger Brother]
President: Mr. Bruce Philip
Rockowitz
CAPITAL
Nominal Share Capital: HK$10,000,200.00 (Divided into 2 Ordinary shares
and 100,000 Non-voting Deferred shares of HK$100.00 each)
Issued Share Capital: HK$10,000,200.00
SHAREHOLDERS
(As per registry dated 06-03-2010)
|
Name |
|
No. of shares |
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|
|
|
|
Non-voting Deferred |
|
Li & Fung (Properties) Ltd., Hong Kong. |
|
1 |
20 |
|
Li & Fung (B.V.I.) Ltd. |
|
1 |
99,980 |
|
|
|
–– |
––––––– |
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|
Total: |
2 = |
100,000 ====== |
DIRECTORS
(As per registry dated 06-03-2010)
|
Name (Nationality) |
Address |
|
Henry CHAN (Canadian) |
Flat B, 6/F., The |
|
Marc Robert COMPAGNON |
House 76, Cedar Drive, The Redhill Peninsula, 18 Pak Pat Shan
Road, Tai Tam, Hong Kong. |
|
Dow Peter FAMULAK |
House 34, Cedar Drive, The Redhill Peninsula, 18 Pak Pat Shan
Road, Tai Tam, Hong Kong. |
|
FUNG Kwok King, Victor (American) |
32A, The Harbourview, |
|
FUNG Kwok Lun, William (British) |
30 A & B, The Harbourview, |
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Spencer Theodore FUNG |
32A, The Harbourview, |
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Lale KESEBI |
Flat B6, 2/F., |
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LAU Sai Wing, Danny (British) |
Flat B, 14/F., Tower 1, |
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LEUNG Wai Ping, Annabella (British) |
31B, |
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MOK Oi Wai, Emily |
House 10, |
|
Bruce Philip ROCKOWITZ |
Flat C1-3, |
SECRETARY
(As per registry dated 06-03-2010)
|
Name (Nationality) |
Address |
|
WAN Mei Chow, Terry (Chinese) |
Flat B, 16/F., Block 9, Villa Athena, Ma On Shan, Shatin, New
Territories, |
HISTORY
The subject was incorporated on 6th March, 1973 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at 7/F. - 8/F. & 10/F. - 16/F.,
Lifung Tower, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hong
Kong, moved to LiFung Centre, 888 Cheung Sha Wan Road, Kowloon, Hong Kong in
early 1998. The LiFung Centre was
renamed as
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Export
Trading and Investment Holding.
Lines: Men’s,
ladies’ and children’s knit and woven wears, garments, fashion accessories,
handicrafts, fireworks and firecrackers, plastic flowers, electronic and metal
products, toys and games, sporting goods, timepieces, sundries, etc.
Trade Mark: LI
& FUNG.
Group Employees:- (As at 31-12-2009)
Overseas 10,357
Total 13,402
Commodities Handled: Bought from various sources.
Markets: US,
Group Turnover: HK$ 55,617,374,000 (Year ended 31-12-2005)
HK$ 68,010,257,000 (Year ended 31-12-2006)
HK$ 92,459,949,000 (Year ended 31-12-2007)
HK$110,722,117,000 (Year ended
31-12-2008)
HK$104,478,983,000 (Year ended
31-12-2009)
Terms/Sales:
Various terms.
Terms/Buying: As per contracted.
MEMBERSHIP: Federation of
The American Chamber of Commerce in
The Hong Kong Exporters’ Association,
[Membership No. 319]
The Hong Kong General Chamber of Commerce,
[Membership No. HKL0066]
FINANCIAL INFORMATION
Nominal Share Capital: HK$10,000,200.00
(Divided into 2 Ordinary shares and 100,000 Non-voting Deferred shares of
HK$100.00 each)
Issued Share Capital: HK$10,000,200.00
Alternation of Capital:-
|
17-04-1973 |
paid up |
HK$ 1,000,000.00 |
|
30-12-1986 |
paid up |
HK$ 9,000,000.00 |
|
26-05-1992 |
paid up |
HK$ 200.00 |
|
|
|
––––––––––––––– |
|
Total: |
paid up |
HK$ 10,000,200.00 ============== |
Mortgage or Charge:-
Date of Non-Notification
Factoring Agreement: 28-07-2003
Amount: To
secure the payment and performance of the Obligations
Property:
1) By
way of assignment and grant to CIT a continuing security interest in all of the
Company’s right, title and interest in and to all of the Company’s existing and
future [the Collateral]
2) By
way of security of any reserves or balances to the Company’s credit and any
other assets collateral or property of the Company in CIT’s possession
Mortgagee: TheCIT
Group / Commercial Services Inc. [CIT],
Group Profit Attributable to Shareholders:-
HK$1,790,279,000 (Year ended 31-12-2005)
HK$2,201,819,000 (Year ended 31-12-2006)
HK$3,060,036,000 (Year ended 31-12-2007)
HK$2,421,936,000 (Year ended 31-12-2008)
HK$3,369,107,000 (Year ended 31-12-2009)
Group Net Worth: HK$
4,624,801,000 (As at 31-12-2005)
HK$
8,266,845,000 (As at 31-12-2006)
HK$
9,864,264,000 (As at 31-12-2007)
HK$13,382,354,000 (As at 31-12-2008)
HK$17,726,191,000 (As at 31-12-2009)
Profit & Loss: Traded at a profitable angle.
Condition:
Business is actively conducted.
Facilities:
Making active use of general banking facilities.
Payment:
Prompt and reliable.
Commercial Morality: Good.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd.,
Citibank N.A., Hong Kong Branch.
JPMorgan Chase Bank N.A., Hong Kong
Branch.
Dah Sing Bank Ltd.,
Standard Chartered Bank (Hong Kong)
Ltd.,
ABN AMRO Bank N.V., Hong Kong Branch.
etc.
Standing:
Good.
GENERAL
Li & Fung (Trading) Ltd. [Li & Fung Trading] is a wholly-owned
subsidiary of Li & Fung Ltd. [Li & Fung] which was incorporated in
The Li & Fung Group has been trading since 1906 and is now the
market leader amongst export trading and sourcing companies in
The trading business of the Group is conducted through Li & Fung
Trading and its affiliates. Li & Fung
Trading is primarily an exporter of a wide variety of goods manufactured in
Hong Kong and acts as a purchasing agent for importer, department stores, chain
stores and specialty stores throughout the world and in particular North
America and Western Europe. Its
principal exports are ready-to-wear garments and textiles, toys, electronic and
mechanical products, artificial flowers, household ware, gift and art
items. It is not substantially
dependent on any one of those categories of exports.
In December 2000, Li & Fung successfully acquired the entire issued
share capital of Colby Group Holdings Ltd. [Colby], a BVI-registered firm, for
a total consideration of up to HK$2,199,993,000.00. Colby is the holding company of the Colby
Group, which commenced business in 1975 and since that time has been
principally engaged in the sourcing of apparel and hardline products for
retailers. Today, through its global
network, the Colby Group sources apparels and hardline products and monitors
the production of such goods with over 4,200 suppliers in 59 countries.
Li & Fung (1937) Ltd., established in
As a Supply Chain Manager across many producers and countries, Li &
Fung provides the convenience of a one-stop shop for customers through a Total
Value-Added Package: from product design and development, through raw material
and factory sourcing, production planning and management, quality assurance and
export documentation to shipping consolidation.
The Group now services its customers globally through a sourcing network
of 80 offices in more than 40 economies.
The Group is also engaged in property investment, including the
development of two industrial parks at Panyu and
In February 2008, Li & Fung Group acquired the Silvereed Group and
in July 2008, acquired Wilson & Wong Trading Co. Ltd. Both firms are engaged in manufacturing and
designing ladies fashion garments.
In November 2008, Li & Fung Group and
For the year ended 31st December, 2009, the turnover of the Group
increased by 5.6% to HK$104,479.0 million (FY 2008: HK$110,722.1 million). Profit attributable to shareholders amounted
to HK$3,369.1 million, representing a 39.1% increase over the HK$2,421.9
million of 2008.
Meanwhile, the opening of its state-of-the-art, 7,100-sq.m. European hub
in
In March 2009, the Group acquired JMI, based in
In October 2009, the Group acquired substantially all of the assets of
Wear Me Apparel LLC, a leading designer, marketer and seller of young men’s and
children’s apparel in the
The Group made a number of landmark outsourcing deals in 2009, including
Liz Claiborne Inc., Talbots Inc., Hudson’s Bay Trading Company and Wolverine
Worldwide Inc.
2009 was the second year of the current Three-Year Plan 2008-2010. While the turnover target of US$20 billion
and core operating profit target of US$1 billion seem challenging at present,
the Group remains committed to them.
As of the end of 2009, the Group had a total workforce of 13,402, of
whom 3,045 were based in
Li & Fung Trading is fully supported by the Li & Fung Group.
On the whole, in view of the background and parentage of Li & Fung
Trading, consider it good for normal business engagements.
REMARKS
Brief information of the principal directors:-
Dr. Victor FUNG Kwok King (Group Non-Executive Chairman, Chairman of
Nomination Committee and Risk Management Committee), aged 64. Brother of Dr. William Fung Kwok Lun and
father of Mr. Spencer Theodore Fung.
Group Chairman of Li & Fung group companies including Li & Fung
and the publicly listed Integrated Distribution Services Group Ltd.,
Convenience Retail Asia Ltd. and Trinity Ltd. (which was listed on The Stock
Exchange of Hong Kong Ltd. on 3rd November, 2009). A director of King Lun Holdings Ltd. and its
wholly owned subsidiary, Li & Fung (1937) Ltd., substantial shareholders of
Li & Fung. Joined the Group in 1973
as Manager and became Managing Director of the Group’s export trading business
in 1977. Became Group Managing Director
in 1981 and Group Chairman in 1989.
Holds Bachelor and Master Degrees in Electrical Engineering from the
Massachusetts Institute of Technology, and a Doctorate in Business Economics
from Harvard University. An independent
non-executive director of BOC Hong Kong (Holdings) Ltd. in Hong Kong,
CapitaLand Ltd. in Singapore and Baosteel Group Corporation in the PRC. Retired as independent non-executive director
of Orient Overseas (International) Ltd., and non-executive director of Hup Soon
Global Corporation Ltd. both in April 2009.
Chairman of International Chamber of Commerce. A member of Chinese People’s Political
Consultative Conference. Vice chairman
of China Centre for International Economic Exchanges since March 2009. A member of the Commission on Strategic
Development of the Hong Kong Government.
Chairman of the Greater
Dr. William FUNG Kwok Lun (Group Managing Director), aged 61. Brother of Dr. Victor Fung Kwok King and
uncle of Mr. Spencer Theodore Fung.
Group Managing Director since 1986.
Joined the Group in 1972 and became a Director of the Group’s export
trading business in 1976. Graduated from
Mr. Bruce Philip ROCKOWITZ (President), aged 51. An Executive Director since 2001 and
President of the Group since 2004 when he took over day to day oversight of the
Group’s operations. In 1981, co-founded
Colby International Ltd. [Colby], a large
Court case:-
|
Action Date |
Case No. |
Plaintiff |
Defendant |
Cause |
Amount |
|
June 1990 |
- |
Wong Tzi-Ki, David |
Li & Fung (Trading) Ltd. |
Amount due |
HK$846,463 |
|
Apr. 1996 |
- |
The Dai-Ichi Kangyo Bank Ltd.,
Hong Kong Branch. [Merged into
Mizuho Corporate Bank Ltd.] |
Li & Fung (Trading) Ltd. |
Amount due |
¥61,030,240 |
|
May 2001 |
H2354 |
Transfit Pacific Ltd. |
Li & Fung (Trading) Ltd. |
Amount due |
HK3,499,045 |
|
Oct. 2001 |
H4348 |
Tommy C P Sze & Co., the liquidator of
Figure Development Ltd. (In creditors’ voluntary liquidation) |
Li & Fung (Trading) Ltd. and others |
Money due/owing |
US$492,937 |
|
Dec. 2004 |
H65 |
Merim Corporation, Merimo Ltd. and Sejee
Co. Ltd. |
Li & Fung (Trading) Ltd. |
Breach of Contract |
Not stated |
|
Sept. 2006 |
H1893 |
Shanghai Kidstar Children’s Products Co.
Ltd. |
Li & Fung (Trading) Ltd. and others |
Appointment of Tax |
Not stated |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.02 |
|
|
1 |
Rs.73.21 |
|
Euro |
1 |
Rs.60.70 |
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 |
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 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.