MIRA INFORM REPORT

Report Date :

04.01.2011

IDENTIFICATION DETAILS

Name :	IKEA TRADING (HONG KONG) LTD
Registered Office :	Room 1601-1608, 16/F., Tai Yau Building, 181 Johnston Road, Wanchai
Country :	Hong Kong
Date of Incorporation :	23.11.1979
Com. Reg. No.:	06353411
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Buying Office; Finance and Administration of Furniture, rugs, carpets, textiles, etc.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
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)
Hong Kong	a2	a2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

IKEA TRADING (HONG KONG) LTD.

company ADDRESS

Room 1601-1608, 16/F., Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong.

PHONE: 2833 2837, 2891 4788

FAX: 2834 5723, 2891 9200

E-MAIL: enquiry@ikea.com.hk

ids@ikea.com.hk

MANAGEMENT

Managing Director: Mr. Leung Tai Yin, Ben

SUMMARY

Incorporated on: 23rd November, 1979.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,100.00

Issued: HK$1,000,100.00

Business Category: Buying Office of furniture and furnishings; Finance and Administration.

Employees: 30. (Office Staff)

Main Dealing Bankers: BNP Paribas, Hong Kong Branch.

Credit Agricole Corporate & Investment Bank, Hong Kong Branch.

Banking Relation: Satisfactory.

company ADDRESS

Registered Head Office:-

Room 1601-1608, 16/F., Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong.

China Representative Offices: Shenzhen, Qingdao, Shanghai, Wuhan, etc.

Holding Company:-

INGKA Pro Holding B.V.

Hullenbergweg 2, 1101 BL, Amsterdam ZO, the Netherlands.

Ultimate Holding Company:-

INGKA Holding Europe B.V., the Netherlands.

Affiliated Companies:-

IKEA Group of Companies

IKEA Asia Pacific Pte. Ltd., Singapore.

IKEA Belgium, Belgium.

IKEA Damansara, Malaysia.

IKEA Humlebaek, Denmark.

IKEA International A/S, Denmark.

IKEA of Sweden AB, Sweden.

IKEA Trading (I) Pvt. Ltd., India.

IKEA Trading Far East Ltd., Hong Kong.

Inter IKEA Finance S.A., Luxembourg.

Inter IKEA Systems A/B, Sweden.

Inter IKEA Systems B.V., the Netherlands.

Swedwood International AB, Sweden.

Swedspan Holding B.V., the Netherlands.

Swedspan International s.r.o., Slovak Republic.

etc.

BUSINESS REGISTRATION NUMBER

06353411

COMPANY FILE NUMBER

0075500

MANAGEMENT

Managing Director: Mr. Leung Tai Yin, Ben

CAPITAL

Nominal Share Capital: HK$1,000,100.00 (Divided into 100,010 shares of HK$10.00 each)

Issued Share Capital: HK$1,000,100.00

SHAREHOLDERS

(As per registry dated 23-11-2010)

Name		No. of shares
INGKA Holding Europe B.V. Hullenbergweg 2, 1101 BL, Amsterdam ZO, the Netherlands.		10,001
INGKA Pro Holding B.V. Hullenbergweg 2, 1101 BL, Amsterdam ZO, the Netherlands.		90,009
		–––––––
	Total:	100,010 ======

DIRECTORS

(As per registry dated 23-11-2010)

Name (Nationality)	Address
Johan Carl Fredrik HEGETHORN (Swedish)	Building 5, Estate 39, Leningradska Street, Khimki 141400, Moscow Region, Russia.
Michael NIELSEN	Storchenweg 14, 4104 Oberwil BL, Switzerland.
LEUNG Tai Yin, Ben	Flat G, 35/F., Block 1, Hoi Sing Court, South Horizons, Ap Lei Chau, Hong Kong.
Enar Leif Gunnar JOHANSSON (Swedish)	Sjögatan 1 Helsingborg 25225, Sweden.
Erik Oster PEDERSEN	Tiendagwandstraat 2, B-3080 Tervuren, Belgium.
Jesper Mattias BRODIN	48 Headland Drive, Headland Village, Discovery Bay, Lantau Island, Hong Kong.

SECRETARY

(As per registry dated 23-11-2010)

Name	Address	Co. No.
Sekots Secretarial Services Ltd.	16/F. - 19/F., Prince’s Building, 10 Chater Road, Central, Hong Kong.	0028739

HISTORY

The subject was incorporated on 23rd November, 1979 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, Exporter and Buying Office; Finance and Administration.

Lines: Furniture, rugs, carpets, textiles, etc.

Employees: 30. (Office Staff)

Commodities Imported: China and other Asian countries.

Markets: Hong Kong, China, etc.

Terms/Sales: COD or as per contracted.

Terms/Buying: Various terms.

MEMBERSHIP

Swedish Chamber of Commerce in Hong Kong, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$1,000,100.00 (Divided into 100,010 shares of HK$10.00 each)

Issued Share Capital: HK$1,000,100.00

Profit or Loss: Operation is profitable.

Condition: Business is active and steady.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments on time.

Commercial Morality: Satisfactory.

Bankers:-

BNP Paribas, Hong Kong Branch.

Credit Agricole Corporate & Investment Bank, Hong Kong Branch.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Standing: Normal.

GENERAL

IKEA Trading (Hong Kong) Ltd. [IKEA HK], incorporated in November 1979, was formerly a wholly-owned subsidiary of Inter IKEA Holding S.A. [Inter IKEA] which was a Luxembourg-registered firm. On 19th October, 2001, Inter IKEA transferred all its shares to INGKA Holding Europe B.V. [INGKA] and INGKA Pro Holding B.V. [INGKA Pro], both are Netherlands‑based firms. Since then, IKEA HK has been jointly held by INGKA, holding 10% stakes, and INGKA Pro, holding 90% of IKEA HK. In fact, INGKA is the ultimate holding company of the IKEA Group.

The IKEA Group is a private group of companies owned by a Dutch charitable foundation. It was founded in Älmhult, Sweden in 1943 by Mr. Ingvar Kamprad at the age of 17. The company name, IKEA, is a composite of the first letters in his name in addition to the first letters of the names of the property and the village in which he grew up — Ingvar Kamprad Elmtaryd Agunnaryd. In May 2006, the business magazine “The Economist” reported that the foundation was the world’s wealthiest charity with a net worth estimated at exceeding US$36 billion (more than the Bill & Melinda Gates Foundation), although the foundation’s purpose is largely corporate tax-avoidance and anti-takeover protection for IKEA.

The IKEA Group distributes its goods through its retail outlets, which sell contemporary furniture.

Despite IKEA’s Swedish roots, the owner/franchiser of the “IKEA” trademark and concept is a Dutch-registered company, Inter IKEA Systems B.V.

IKEA retailers worldwide operate on a franchise basis. Most of the IKEA retailers belong to the IKEA Group. The IKEA Group includes most of the IKEA retailers, the product development centre IKEA of Sweden AB and IKEA trading and wholesaling companies. The IKEA Group activities are coordinated by IKEA International A/S in Denmark. IKEA of Sweden AB is responsible for the entire IKEA product range on behalf of Inter IKEA Systems B.V. All products in the IKEA range are distinguished by the label “Design and Quality, IKEA of Sweden.”.

IKEA is internationally renowned for its worldwide chain of colourful retail outlets, but its operations also span product design, distribution, retailing and purchasing – and rely heavily on computer technology. In 2009, the chain had 301 stores in 39 countries; most of them were in Europe, the rest in the United States, Canada, the Middle East, Asia and Australia. IKEA is one of the few store chains to have locations both in Israel, Kuwait, Saudi Arabia and the United Arab Emirate.

Every year, about 200 million copies of the “IKEA Catalogue”, containing about 9,500 products, are distributed to end-users free of charge. The catalogue was printed in the 56th edition and in 27 languages.

For the year ended 31st August, 2009, sales of the IKEA Group reached €22,713 million in 39 countries, grew by 1.0% as compared with €22,498 million in 2008. Of the sales, Europe accounted for 80% of the sales; North America accounted for 12%, Asia, the Middle East and Australia, 8%.

IKEA has 16 Trading Areas in Europe, Asia and North America working with 1,380 suppliers in 54 countries. The top five purchasing countries of the Group include China (51%), Poland (17%), Italy (8%), Sweden (6%) and Germany (6%).

IKEA has a large number of distribution centres in many countries, supplying goods to IKEA stores. There are about 45 trading service offices in 31 countries. This enables IKEA to develop close relationships with its 1,350 suppliers in 50 countries. IKEA headquartered its regional purchasing operations in Hong Kong in the early 1980s.

IKEA HK is responsible for manufacturing and supplying furnishings from such countries as China, Taiwan, Thailand, Indonesia, South Korea, India, Pakistan, Japan, the Philippines and Malaysia. To support its suppliers and manufacturers (the later manufacture IKEA-designed furnishings under licence), IKEA set up supporting offices in Taipei, Bangkok, New Delhi, Seoul, Shanghai and Qingdao.

IKEA HK’s latest branches and representative offices are the following three:-

Ikea Trading (Hong Kong) Ltd. India Branch

Ikea Trading (Hong Kong) Ltd. Qingdao Representative Office

Ikea Trading (Hong Kong) Ltd. Shanghai Representative Office

In China, IKEA HK has had associated shops in Beijing, Chengdu, Dalian, Guangzhou, Nanjing, Shanghai, Shenzhen Special Economic Zone, etc.

In Hong Kong, IKEA opened its first retail shop in Chatham Road, Kowloon in 1987. In 1988, the IKEA retail operation was taken over by Dairy Farm International Ltd. (a member of Jardine Matheson Group), which now holds IKEA exclusive franchise for Hong Kong, Macau and Taiwan in furniture and home accessories retailing. The combination of IKEA concepts and Jardines’ management has resulted in business more than doubling since the buy-out.

Now, in Hong Kong, there are three IKEA stores located at Shatin, Kowloon Bay and Causeway Bay with a total retail area of 210,000 sq.ft. IKEA HK has about 300 staff. The Store Manager of Shatin Store is Ms. Lucy So, Causeway Bay Store is Mr. Decky Chan while Kowloon Bay Store is Mr. Bobby Ng.

There is also a warehouse in Sheung Shui, New Territories, Hong Kong that offers customers with furniture pick-up or delivery services.

The main function of IKEA HK is to provide finance and administrative services and to act as buying office of furniture and household goods in Asia for IKEA companies in Europe. IKEA HK is also responsible for the administration of IKEA branches and China representative offices.

IKEA has been one of the significant furniture and household accessories traders of the world.

In Hong Kong, IKEA HK’s product range focuses on good design and function at a low price. It offers home furnishing solution for every householder. However, the price of IKEA HK’s products have increased a little bit in recent years due to inflation.

The history of IKEA HK is over thirty-one years in Hong Kong.

On the whole, in view of the parentage and size of IKEA HK, consider it good for normal business engagements.

REMARKS:

Court case:-

Date	Plaintiff	Defendant	Cause	Amount
Dec. 1994	Jebsen & Co. Ltd.	IKEA Trading (Hong Kong) Ltd.	Amount due	HK$167,808
Aug. 1996	Ansen Electronics Co. operated by Shine Profit Development Ltd.	IKEA Trading (Hong Kong) Ltd.	Amount due	US$495,591

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.67
UK Pound	1	Rs.69.45
Euro	1	Rs.59.37

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
----	NB	New Business	----

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.