%20LTD%20%20-%20166013%2014-Jan-2012_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
14.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
LI & FUNG (TRADING) LTD. |
|
|
|
|
Registered Office : |
LiFung Tower, 888 Cheung Sha Wan Road, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
06.03.1973 |
|
|
|
|
Com. Reg. No.: |
03835715-000 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Trading and Investment Holding |
|
|
|
|
No. of Employees : |
Group Employees: 27,542. (As at 30-06-2011) |
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 |
|
Maximum Credit Limit : |
US$600,00 |
|
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 – 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
LI & FUNG
(TRADING) LTD.
(Business name: LF BEAUTY)
Address
LiFung Tower, 888 Cheung Sha Wan Road, Kowloon, Hong Kong.
(Registered Head Office)
And
1/F. - 4/F., Unit A & B on 6/F. & 7/F., Hong Kong Spinners
Industrial Building, Phase I & II, 800 Cheung Sha Wan Road, Kowloon,
Hong Kong.
(Garment Purchasing Division)
Credit Border Line
Good for credit of US$600,000 or less.
Company name
LI & FUNG
(TRADING) LTD.
ADDRESS
LiFung Tower, 888 Cheung Sha Wan Road, Kowloon, Hong Kong.
PHONE:2300 2300, 2300 2333
FAX:2300 2000, 2300 2020
E-MAIL:biancatang.adm@lifung.com.hk
MANAGEMENT
Group President & Chief Executive Officer: 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$124,115,167,000 (Year ended 31-12-2010)
Group Employees: 27,542. (As at 30-06-2011)
Main Dealing Bankers: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Citibank N.A., Hong Kong Branch.
Banking Relation: Good.
ADDRESS
Registered Head
Office:-
LiFung Tower, 888 Cheung Sha Wan Road, Kowloon, Hong Kong.
Garment Purchasing
Division:-
1/F. - 4/F., Unit A & B on 6/F. & 7/F., Hong Kong Spinners
Industrial Building, Phase I & II, 800 Cheung Sha Wan Road, Kowloon,
Hong Kong.
P.O. Box 150 & 7988, Hong Kong.
Business Name:-
LF Beauty, Hong Kong. [BR No.
03835715-006]
Immediate Holding
Company:-
Li & Fung (B.V.I.) Ltd., British Virgin Islands.
Penultimate
Holding Company:-
Li & Fung Ltd., Bermuda/Hong Kong.
Ultimate Holding
Company:-
Li & Fung (1937) Ltd., Hong Kong.
Affiliated
Companies:-
Li & Fung
Group of Companies
888 UK Ltd., UK.
Alster International Trading Co. Pte. Ltd., Singapore.
American Marketing Enterprises Inc., USA.
Appleton Holdings Ltd., British Virgin Islands.
Black Cat Fireworks Ltd., UK.
Blue Work Trading Co. Ltd., Hong Kong.
Bossini Fashion GmbH, Germany.
Branded Lifestyle Taiwan Holdings Ltd., Hong Kong.
Briefly Stated Holdings Inc., USA.
Briefly Stated Inc., USA.
C Group US LLC, USA.
C.D.P. Asia Ltd., Hong Kong.
Camberley Enterprises Ltd., Hong Kong.
Camberley Trading Service (Shenzhen) Ltd., China.
Centennial (Luxembourg) S.a.r.l., Luxembourg.
CGroup HK Ltd., Hong Kong.
CGroup POP Ltd., Hong Kong.
CGroup Shanghai Consulting Co. Ltd., China.
Character Direct Ltd., Hong Kong.
Civati Ltd., Hong Kong.
Colby Group Holdings Ltd., British Virgin Islands.
Colby Property Holdings Ltd., British Virgin Islands.
Colourful Express Trading Pte. Ltd., Singapore.
Colourful Lifestyle Productions Ltd., Hong Kong.
Comet Feuerwerk GmbH, Germany.
Concept 3 Ltd., Hong Kong.
Costume Ltd., Hong Kong.
Craftworks Ltd., Hong Kong.
Dana International Ltd., Hong Kong.
Direct Sourcing Group Holdings Ltd., British Virgin Islands.
Direct Sourcing Group Investment Ltd., British Virgin Islands.
Direct Sourcing Group Pte. Ltd., Sinapore.
Dodwell (Mauritius) Ltd., Hong Kong.
Dodwell (Singapore) Pte. Ltd., Singapore.
Dongguan LF Beauty Manufacturing Services Ltd., China.
DSG (Hong Kong) Ltd., Hong Kong.
DSG Services Pte. Ltd., Singapore.
Eclat Properties Inc., British Virgin Islands.
Empire Knight Group Ltd., British Virgin Islands.
Eslite Design Ltd., Hong Kong.
F&S Express (S) Pte. Ltd., Singapore.
Fashion Design (Hong Kong) Ltd., Hong Kong.
Fashion Design NY LLC, USA.
Fenix Fashion Ltd., Hong Kong.
Fireworks Management Inc., USA.
Forrestgrove Ltd., Hong Kong.
GB Apparel Ltd., UK.
GMR (Hong Kong) Ltd., Hong Kong.
Golden Gate Fireworks Inc., USA.
Golden Horn (III) L.P., Cayman Islands.
Golden Horn N.V., Netherlands Antilles.
Goodwest enterprises Ltd., Hong Kong.
GSCM (HK) Ltd., Hong Kong.
Gulf Coast Fireworks Sales LLC, USA.
Hanson Im-und Export GmbH, Germany.
Heusel Textilhandelsgesellschaft mbH, Germany.
Homestead International Group Ltd., USA.
Homeworks (Europe) B.V., The Netherlands.
Homeworks Asia Ltd., Hong Kong.
HTP Fashion Ltd., Hong Kong.
IDS (Hong Kong) Ltd., Hong Kong.
IDS (Philippines) Inc., Philippines.
IDS Logistics (Hong Kong) Ltd., Hong Kong.
IDS Logistics (Taiwan) Ltd., Taiwan.
Imagine POS Ltd., Hong Kong.
International Sources LLC, USA.
International Sources Trading Ltd., Hong Kong.
Jac Tissot Fashion GmbH, Germany.
Jackel Cosmetics Ltd., Hong Kong.
Jackel France SAS, France.
Jackel Inc., USA.
Jackel International (Asia) Ltd., Hong Kong.
Jackel International Europe SAS, France.
Jackel International Ltd., Hong Kong.
Jackel Vision Ltd., Hong Kong.
Jimlar Corporation, USA.
JMI Sportswear Pte. Ltd., Singapore.
Just Jamie & Paulrich Ltd., UK.
JV Cosmetics (Dongguan) Co. Ltd., China.
JV Cosmetics Co. Ltd., Hong Kong.
Kariya Industries Ltd., Hong Kong.
Kenas Pacific Trading (Pte.) Ltd., Singapore.
KHQ Investment LLC, USA.
Kingsbury International Ltd., Hong Kong.
KVZ International Ltd., British Virgin Islands.
La Villa Development Ltd., Hong Kong.
Lenci Calzature SpA, Italy.
LF Accessories Group LLC, USA.
LF Beauty (Shenzhen) Ltd., China.
LF Beauty (UK) Ltd., UK.
LF Beauty Inc., USA.
LF Beauty Ltd., Hong Kong.
LF Beauty Pte. Ltd., Singapore.
LF Capital (II) Ltd., British Virgin Islands.
LF Capital Management Ltd., British Virgin Islands.
LF Centennial Pte. Ltd., Singapore.
LF Centennial Service (Singapore) Pte. Ltd., Singapore.
LF Centennial Services (Hong Kong) Ltd., Hong Kong.
LF Corporate Capital (I) Ltd., British Virgin Islands.
LF Credit Ltd., Bermuda.
LF Europe (Germany) GmbH, Germany.
LF Europe Ltd., UK.
LF European Capital Ltd., British Virgin Islands.
LF Home Ltd., Hong Kong.
LF International Inc., USA.
LF National Brands Group Inc., USA.
LF North America Holdings Co. Inc., USA.
LF Products Pte. Ltd., Singapore.
LF USA Inc., USA.
LFCF Investment I (Europe) Ltd., British Virgin Islands.
LFCF Investment I (USA) Ltd., British Virgin Islands.
Li & Fung (Bangladesh) Ltd., Bangladesh.
Li & Fung (Cambodia) Ltd., Cambodia.
Li & Fung (Europe) Holding Ltd., UK.
Li & Fung (Exports) Ltd., Hong Kong.
Li & Fung (Guatemala) S.A., Guatemala.
Li & Fung (Honduras) Ltd., Honduras.
Li & Fung (India) Private Ltd., India.
Li & Fung (Korea) Ltd., Korea.
Li & Fung (Mauritius) Ltd., Mauritius.
Li & Fung (Morocco) SARL, Morocco.
Li & Fung (Nicaragua) Sociedad Anonima, Nicaragua.
Li & Fung (Philippines) Inc., The Philippines.
Li & Fung (Portugal) Ltd., UK.
Li & Fung (Properties) Ltd., Hong Kong.
Li & Fung (Singapore) Pte. Ltd., Singapore.
Li & Fung (Taiwan) Ltd., Taiwan.
Li & Fung (Thailand) Ltd., Thailand.
Li & Fung (Vietnam) Ltd., Vietnam.
Li & Fung (Zhanjiang) Ltd., China.
Li & Fung Agencia de Compras em Portugal Ltda., Portugal.
Li & Fung Mumessillik Pazarlama Ltd. Sirketi, Turkey.
Li & Fung Pakistan (Private) Ltd., Pakistan.
Li & Fung South Africa (Proprietary) Ltd., South Africa.
Li & Fung Taiwan Holdings Ltd., Taiwan.
Li & Fung Taiwan Investments Ltd., British Virgin Islands.
Li & Fung Trading (Italia) S.r.l., Italy.
Li & Fung Trading (Shanghai) Ltd., China.
Li & Fung Trading Service (Shanghai) Co. Ltd., China.
Li & Fung Trading Service (Shenzhen) Ltd., China.
Lion Rock (Hong Kong) Ltd., Hong Kong.
Lion Rock Far East (1972) Ltd., Hong Kong.
Lion Rock International Trading & Co., Hong Kong.
Lion Rock Services (Far East) & Co., Hong Kong.
Lion Rock Services (Switzerland) AG, Switzerland.
Lion Rock Trading (Switzerland) GmbH, Switzerland.
Lloyd Textile Trading Ltd., Hong Kong.
Lux Plush Enterprises Ltd., Hong Kong.
Match Winner Vertriebs GmbH, Germany.
Mercury (BVI) Holdings Ltd., British Virgin Islands.
Metro Seven LLC, USA.
Mighty Hurricane Holdings Inc., USA.
Miles Fashion Asia Pte. Ltd., Singapore.
Miles Fashion GmbH, Germany.
Miles Fashion Group France EURL, France.
Miles Fashion USA Inc., USA.
Millwork Holdings Co. Inc., USA.
Millwork Pte. Ltd., Singapore.
Momentum Clothing Ltd., UK.
Nanjing IDS Marekting Co. Ltd., China.
P.T. Lifung Indonesia, Indonesia.
Pacific Alliance USA Inc., USA.
Paco Trading (International) Ltd., Hong Kong.
Perfect Trading Inc., Egypt.
Peter Black Footwear & Accessories Ltd., UK.
Peter Black Holdings Ltd., UK.
Peter Black International Ltd., UK.
Peter Black Overseas Holdings Ltd., UK.
Phil Henson GmbH, Germany.
Product Development Partners Ltd., Hong Kong.
PromOcean CIS, Russia.
PromOcean France SAS, France.
PromOcean GmbH, Germany.
PromOcean No 1 Ltd., UK.
PromOcean Polska Sp. z o.o., Poland.
PromOcean Spain SL, Spain.
PromOcean The Netherlands B.V., The Netherlands.
PromOcean UK Ltd., UK.
PromOcean Werbeartikel GmbH, Austria.
Ralsey Group Ltd., USA.
Ratners Enterprises Ltd., British Virgin Islands.
Region Giant Holdings Ltd., USA.
Rhodes Ltd., Hong Kong.
Rosetti Asia Ltd., Hong Kong.
Rosetti Handbags & Accessories Ltd., USA.
RT Sourcing (Shenzhen) Co. Ltd., China.
RT Sourcing Asia Ltd., Hong Kong.
RT Sourcing USA Inc., USA.
RWW Apparel LLC, USA.
Shiu Fung Fireworks Co. Ltd., Hong Kong.
Shiu Fung Fireworks Trading (Changsha) Ltd., China.
Shubiz Ltd., UK.
Shutoo Ltd., UK.
Silvereed (Hong Kong) Ltd., Hong Kong.
Sky Million International Ltd., Hong Kong.
Social Compliance Management & Audit Pte. Ltd., Singapore.
Sports Brands Italia Ltd., Hong Kong.
STS Shenzhen Testing Service Ltd., China.
Tantallon Enterprises Ltd., British Virgin Islands.
Texnorte II-Industrias Texteis Ltda., Portugal.
Texnorte Industrial Ltd., Hong Kong.
TH Success Ltd., Hong Kong.
Toy Island (USA) LLC, USA.
Toy Island Manufacturing Co. Ltd., Hong Kong.
Universal Pharmaceutical Laboratories Ltd., Hong Kong.
Upsolut Merchandising GmbH & Co. KG, Germany.
Ventana Bekleidungsfabrikation GmbH, Germany.
Verity Enterprises Ltd., Hong Kong.
Visage (Hong Kong) Ltd., Hong Kong.
Visage Group Ltd., UK.
VZI Investment Corporation, USA.
W S Trading Ltd., Hong Kong.
Wilson Textile Ltd., Hong Kong.
Winco Fireworks International LLC, USA.
Winco Fireworks Mississippi LLC, USA.
etc.
BUSINESS REGISTRATION NUMBER
03835715-000
COMPANY FILE NUMBER
0032289
MANAGEMENT
Group Non-Executive Chairman: Dr.
Fung Kwok King, Victor
Group Executive Deputy Chairman:
Dr. Fung Kwok Lun, William
Group President & Chief Executive Officer: 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 |
|
|
|
|
|
Non-voting Deferred |
|
Li & Fung (Properties) Ltd., Hong Kong. |
|
1 |
20 |
|
Li & Fung (B.V.I.) Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola,
British Virgin Islands. |
|
1 |
99,980 |
|
|
|
–– |
––––––– |
|
|
Total: |
2 = |
100,000 ====== |
DIRECTORS
(As per registry
dated 31-12-2010)
|
Name (Nationality) |
Address |
|
Henry CHAN (Canadian) |
Flat B, 6/F., The Somerset, 67 Repulse Bay Road, Hong Kong. |
|
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, 11 Magazine Gap Road, Hong Kong. |
|
FUNG Kwok Lun, William (British) |
30 A & B, The Harbourview, 11 Magazine Gap Road, Hong Kong. |
|
Spencer Theodore FUNG |
32A, The Harbourview, 11 Magazine Gap Road, Hong Kong. |
|
Lale KESEBI |
House 143, Palm Drive, The Redhill Peninsula, 18 Pak Pat Shan
Road, Tai Tam, Hong Kong. |
|
LEUNG Wai Ping, Annabella (British) |
31B, Broadwood Park, 38 Broadwood Road, Hong Kong. |
|
MOK Oi Wai, Emily |
House 10, 2nd Street, Hong Lok Yuen, Tai Po, New Territories,
Hong Kong. |
|
Bruce Philip ROCKOWITZ |
Flat C1-3, 9-11 Horizon Drive, Chung Hom Kok, Hong Kong. |
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, Hong Kong. |
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 LiFung Tower in June 1999.
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: 27,542. (As at 30-06-2011)
Commodities
Handled: Bought from various sources.
Markets: USA, Canada,
Europe, Australia, South Africa and Japan.
Group Turnover:-
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)
HK$124,115,167,000 (Year ended
31-12-2010)
US$ 6,639,990,000 (6 months ended 30-06-2010) – Unaudited
US$ 8,798,218,000 (6 months ended 30-06-2011) – Unaudited
Note: With effect from 1st January, 2011, the
Group has changed its functional currency from Hong Kong dollars to US dollars.
Terms/Sales: Various terms.
Terms/Buying: As per contracted.
MEMBERSHIP
Federation of Hong Kong Industries, Hong Kong. [Member No. A0202]
The American Chamber of Commerce in Hong Kong.
The Hong Kong Exporters’ Association,
Hong Kong.
[Membership No. 319]
The Hong Kong General Chamber of Commerce,
Hong Kong.
[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 ============== |
Group Profit
Attributable to Shareholders:-
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)
HK$4,278,221,000 (Year ended
31-12-2010)
US$ 278,371,000 (6 months ended 30-06-2010) – Unaudited
US$ 235,523,000 (6 months ended 30-06-2010) – Unaudited
Note: With effect from
1st January, 2011, the Group has changed its functional currency from Hong Kong
dollars to US dollars.
Group Net Worth: 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)
HK$28,330,199,000 (As at 31-12-2010)
US$
3,626,029,000 (As at 31-12-2010)
– Unaudited
US$
3,690,159,000 (As at 31-12-2011)
– Unaudited
Note: With effect from
1st January, 2011, the Group has changed its functional currency from Hong Kong
dollars to US dollars.
Profit
or 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., Hong Kong.
Citibank N.A., Hong Kong Branch.
JPMorgan Chase Bank N.A., Hong Kong Branch.
Dah Sing Bank Ltd., Hong Kong.
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
The Royal Bank of Scotland 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
Bermuda on 25th October, 1991 as a holding company of the Li & Fung
Group – Export Trading Section, and was listed on The Stock Exchange of
Hong Kong Ltd. with stock code 494 in 1992. Li & Fung has become one of the 33
constituent stocks of the Hong Kong Hang Seng Index with effect from
2nd August, 2000.
The Li & Fung Group has been trading since 1906 and is now the
market leader amongst export trading and sourcing companies in Hong Kong and
even Asia Pacific region. Main activity
of Li & Fung is investment holding.
Its subsidiaries are principally engaged in the export of consumer
products, including garments and textiles, fashion accessories, toys and games,
sporting goods, home furnishings, handicrafts, shoes, travel goods and
tableware. The Group is also engaged in
property investment, including the development of two industrial parks at Panyu
and Heshan, China. Its biggest markets
are the United States and Western Europe.
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 Hong Kong in 1937, is the
ultimate holding company of the Li & Fung Group which is now controlled by
Dr. Victor Fung Kwok King and Dr. William Fung Kwok Lun – the third
generation of the founder. Li & Fung
was founded in Guangzhou, China in 1906 as a traditional Chinese family company
engaged in trading. Li & Fung (1937)
Ltd. is 100%-owned subsidiary of King Lun Holdings Ltd., a private company incorporated
in the British Virgin Islands being the investment arm of the two Fung
brothers. The Li & Fung Group is now
a large multinational consumer product trading group comprising three distinct
core businesses: Export Trading – conducted by Li & Fung Ltd. group,
Retailing – conducted by Li & Fung (Retailing) Ltd. group, and Distribution
– conducted by Li & Fung (Distribution) Ltd. group.
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 Heshan, China. Its biggest markets are the United States and
Western Europe. The Group offers a wide
range of services to its customers to complement its traditional role as a
sourcing and purchasing agent for overseas buyers.
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 Mexx Europe BV [Mexx] entered
into a Buying Agency Agreement whereby Li & Fung acts as the primary global
apparel sourcing agent for the “MEXX”
brand. Mexx’s existing buying offices
now has integrated into the Li & Fung Group.
For the year ended 31st December, 2010, the Group’s turnover increased
by 18.8% to HK$124.1 billion (FY 2009: HK$104.5 billion). Group profit attributable to shareholders was
HK$4.3 billion, an increase of 27.3% as compared with HK$3.4 billion in FY
2009.
During the year of FY 2010, the Group has made total of three large
acquisitions (Visage Group Ltd., Jimlar Corporation and Integrated Distribution
Services Group Ltd.) and eight roll-up acquisitions (e.g. Heusel
Textilhandelsgesellschaft mbH, Jackel Group, HTP Group, Cipriani Accessories
Inc., Kenas Furniture Group, Just Jamie & Paulrich Ltd., Oxford Apparel and
Fenix Knitwear Group).
With effect from 1st January, 2011, the Group and its subsidiaries have
changed their functional currency from Hong Kong dollars to US dollars. US dollars have also been adopted as the
presentation currency of the Group’s interim financial report.
For the half year ended 30th June, 2011, Group turnover increased by 33%
to US$8,798 million. Profit attributable
to shareholders was US$236 million, a decrease of 15% compared to the same
period of previous year (US$278 million for 2010).
During the first half of 2011, the Group signed ten deals which included
seven acquisitions for the Group’s Trading Network and three acquisitions for
its Distribution Network. Turnover and
profit before tax of the ten newly acquired companies were approximately US$800
million and US$100 million respectively for previous year.
The Group has maintained its strong credit ratings from Moody’s and
Standard & Poor’s at A3 (stable) and A- (stable) respectively. It continues to enjoy healthy cash flows and
has strong credit ratios.
As of 30th June, 2011, the Group had a total workforce of 27,542, of
whom 4,506 were based in Hong Kong and 23,036 were located overseas.
In the years ahead, with the increased shift towards outsourcing by
customers worldwide, the Group expects to increase market share. This expansion coupled with Li & Fung’s
strong financial position lays a solid foundation for the Group to emerge even
stronger when the economic downturn recedes.
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 Risk
Management and Substainability Committee), aged 65. 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 Convenience Retail Asia Ltd. and Trinity Ltd. 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 and
Baosteel Group Corporation in the PRC.
An independent non-executive director of Koc Holding A.S. since 7th
April, 2011. Honorary Chairman of
International Chamber of Commerce. A
member of Chinese People’s Political Consultative Conference. A vice chairman of China Centre for
International Economic Exchanges. A
member of the Commission on Strategic Development of the Hong Kong
Government. Chairman of the Greater
Pearl River Delta Business Council. From
1991 to 2000, Chairman of the Hong Kong Trade Development Council. From 1996 to 2003, the Hong Kong
representative on the APEC Business Advisory Council. From 1999 to 2008, Chairman of the Hong Kong
Airport Authority. From 2001 to November
2009, Chairman of The Council of The University of Hong Kong. From July 2008 to June 2010, Chairman of the
International Chamber of Commerce. From
September 2004 to September 2010, Chairman of the Hong Kong-Japan Business Co‑operation
Committee. Awarded the Gold Bauhinia
Star in 2003 and Grand Bauhinia Medal in 2010 for distinguished service to the
community.
Dr. William FUNG Kwok Lun (Group Executive Deputy Chairman), aged
62. Brother of Dr. Victor Fung Kwok King
and uncle of Mr. Spencer Theodore Fung.
Group Managing Director since 1986 until becoming Executive Deputy
Chairman in May 2011. Joined the Group
in 1972 and became a Director of the Group’s export trading business in
1976. Graduated from Princeton
University with a Bachelor of Science degree in Engineering. Holds an MBA degree from the Harvard Graduate
School of Business. Degrees of Doctor of
Business Administration, honoris causa,
were conferred by the Hong Kong University of Science & Technology and by
the Hong Kong Polytechnic University. An
independent non-executive director of VTech Holdings Ltd., Shui On Land Ltd.,
Sun Hung Kai Properties Ltd. and The Hongkong and Shanghai Hotels Ltd. An independent director of Singapore Airlines
Ltd. A non-executive director of various
companies within the Li & Fung Group including Convenience Retail Asia Ltd.
and Trinity Ltd. A director of King Lun
Holdings Ltd. and its wholly owned subsidiary, Li & Fung (1937) Ltd.,
substantial shareholders of Li & Fung.
Past Chairman of the Hong Kong General Chamber of Commerce, the
Hong Kong Exporters’ Association and the Pacific Economic Cooperation
Committee. Awarded the Silver Bauhinia
Star by the Hong Kong Special Administrative Region Government in 2008.
Mr. Bruce Philip ROCKOWITZ (Group President and Chief Executive Officer
[CEO]), aged 52. Group President and CEO
since May 2011. An Executive Director
since 2001 and in 2004, took over day to day oversight of the Group’s
operations as President. In 1981,
co-founded Colby International Ltd. [CIL], a large Hong Kong buying agent, and
was the CEO until 2000 when CIL was acquired by Li & Fung. Member of the Advisory Board for the Wharton
School’s Jay H Baker Retailing Initiative, an industry research center for
retail at the University of Pennsylvania.
Board member of the Educational Foundation for the Fashion Industries,
the private fund-raising arm of the Fashion Institute of Technology. In December 2008, ranked first by
Institutional Investor for the Asia’s Best CEOs in the consumer category. In the years 2010 and 2011, ranked as one of
the world’s 30 best CEOs by Barron’s.
Non‑executive Chairman of the Pure Group, a lifestyle, fitness and
yoga group operating in Hong Kong, Singapore and Taiwan. An independent non-executive director of Wynn
Macau Ltd.
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.51.43 |
|
|
1 |
Rs.79.10 |
|
Euro |
1 |
Rs.66.17 |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.