MIRA INFORM REPORT

 

 

Report Date :

23.02.2012

 

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.

 

 

No. of Employees :

30.  (Office Staff)

 

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 :

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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.

 

Group Revenue:             €23,539 million  (Year ended 31-08-2010)

 

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., the Netherlands.

 

Ultimate Holding Company:-

INGKA Holding Europe B.V., the Netherlands.

 

Associated/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 23-11-2011)

 

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 23-11-2011)

 

Name

(Nationality)

 

Address

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.

Jesper Mattias BRODIN

Styrbordsvägen 6, 252 85 Helsingborg, Sweden.

 

Raj-inder Singh RAI

Flat 1, 4/F., Block B, No. 7 South Bay Close, Repulse Bay, Hong Kong.

 

Erik Johan Magnus HOLMQUIST

Am Muhlebach 12, CH-4104 Oberwil, Switzerland.

 

 

SECRETARY

(As per registry dated 23-11-2011)

 

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.

 

Group Revenue: €21,846 million  (Year ended 31-08-2009)

€23,539 million  (Year ended 31-08-2010)

 

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

 

Group Net Income:         €2,534 million  (Year ended 31-08-2009)

€2,688 million  (Year ended 31-08-2010)

 

Profit or Loss:                Operation is profitable.

 

Condition:                      Business is active and good.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Good.

 

Bankers:-

BNP Paribas, Hong Kong Branch.

Credit Agricole Corporate & Investment Bank, Hong Kong Branch.

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

 

Standing:                      Good.

 

 

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.

As of August 2010, there are IKEA stores in more than 38 countries, with 280 stores in 26 countries belonging to the IKEA Group.  All IKEA stores are operated under franchise from Inter IKEA Systems B.V.

Now, the IKEA Group has grown into a global retail brand with 127,000 co-workers in 41 countries.

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, 2010, sales of the IKEA Group reached €23,539 million in 38 countries, grew by 7.7% as compared with €21,846 million in 2009.  Net income for the year was €2,688 million, grew by 6.1% as compared with €2,534 million in FY 2009.

FY 2010 was an unpredictable year with the effects of the financial crisis in 2009 still a reality for many of its customers.  The conditions in its markets ranged from favourable to difficult.  FY 2010 turned out to be a very good year for its retail operations, with growth in most markets, further increasing our market shares.

The growth in sales in FY 2010 came both from existing stores, which grew by 2.4% and new stores.  Sales grew in almost all countries, with China, Russia and Portugal showing the strongest increase.

Total assets increased from €37.1 billion to €41.3 billion, mainly due to investments in properties and a further increase in cash and securities.

The increase in property, plant and equipment is related to the establishment of 12 new stores and additional investments in IKEA stores and factories.

The Group has also invested an amount of €66 million in wind farms in accordance with its strategy on renewable energy.  The total investment in tangible fixed assets amounted to €2.1 billion, staying flat compared to the previous year.

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-two 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.49.25

UK Pound

1

Rs.76.75

Euro

1

Rs.65.16

 

 

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.