MIRA INFORM REPORT

 

 

Report Date :

16.05.2012

 

IDENTIFICATION DETAILS

 

Name :

INTERNATIONAL SOURCES TRADING LTD.

 

 

Registered Office :

11/F., LiFung Tower, 888 Cheung Sha Wan Road, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

28.03.1995

 

 

Com. Reg. No.:

19683174

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Export trading of Garments, other commodities as entrusted by customers.

 

 

No. of Employees :

29,624.  (As at 31-12-2011) (Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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 and address

 

INTERNATIONAL SOURCES TRADING LTD.

 

Address:          

11/F., 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)

 

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:             28th March, 1995.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:              HK$2.00

 

Business Category:        Export trading.

 

Group Turnover:             US$20,030,271,000  (Year ended 31-12-2011)

 

Group Employees:         29,624.  (As at 31-12-2011)

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Good.


ADDRESS

 

Registered Head Office:-

11/F., 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.  [Tel: 3101 1627;  Fax: 2307 0412]

 

P.O. Box 150 & 7988, Hong Kong.

 

Immediate Holding Companies:-

Appleton Holdings Ltd., British Virgin Islands.

Kingsbury International Ltd., Hong Kong.

 

Penultimate Holding Company:-

Li & Fung Ltd., Bermuda/Hong Kong.

 

Ultimate Holding Company:-

Li & Fung (1937) Ltd., Hong Kong.

 

Associated/Affiliated Companies:-

Li & Fung Group of Companies

888 UK Ltd., UK.

Alster International Trading Co. Pte. Ltd., Singapore.

American Marketing Enterprises Inc., USA.

Black Cat Fireworks Ltd., UK.

Blue Work Trading Co. Ltd., Hong Kong.

Bossini Fashion GmbH, Germany.

Bravado Star Manufacturing LLC, USA.

Briefly Stated Holdings Inc., USA.

Briefly Stated Inc., USA.

C Group US LLC, USA.

Camberley Enterprises Ltd., Hong Kong.

Camberley Trading Service (Shenzhen) Ltd., China.

Centennial (Luxembourg) S.a.r.l., Luxembourg.

CGroup HK Ltd., Hong Kong.

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.

Crimzon Rose Accessories (Shenzhen) Co. Ltd., China.

Crimzon Rose Asia 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., Singapore.

Dodwell (Mauritius) Ltd., Hong Kong.

Dodwell (Singapore) Pte. Ltd., Singapore.

Dongguan LF Beauty Manufacturing Services Ltd., China.

DSG (Hong Kong) Ltd., Hong Kong.

DSG (Shenzhen) Ltd., China.

DSG Services Pte. Ltd., Singapore.

Eclat Properties Inc., British Virgin Islands.

Empire Knight Group Ltd., British Virgin Islands.

Eslite Design Ltd., Hong Kong.

F&T Apparel LLC, USA.

Far East Logistics (Shenzhen) Co. Ltd., China.

Fashion Design (Hong Kong) Ltd., Hong Kong.

Fashion Design NY LLC, USA.

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 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.

HTL Fashion Hazir Giyim Sanayi ve Ticaret Ltd. Sirketi, Turkey.

HTL Fashions (UK) Ltd., UK.

HTP Fashion Ltd., Hong Kong.

IDS (Philippines) Inc., Philippines.

IDS Logistics (Thailand) Ltd., Thailand.

IDS Logistics (UK) Lrd., UK.

IDS Manufacturing Ltd., Thailahnd.

IDS Manufacturing Sdn. Bhd., Malaysia.

IDS Marketing (Thailand) Ltd., Thailahnd.

IDS USA Inc., USA.

IDS USA West Inc., USA.

Imagine POS Ltd., Hong Kong.

Integrated Distribution Services Group Ltd., Bermuda.

International Sources LLC, USA.

Jac Tissot Solutions 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.

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.

KVZ International Ltd., British Virgin Islands.

La Villa Development Ltd., Hong Kong.

LamaLoLi GmbH, Germany.

Lenci Calzature SpA, Italy.

LF Accessories Group LLC, USA.

LF Asia (Hong Kong) Ltd., Hong Kong.

LF Asia (Malaysia) Sdn. Bhd., Malaysia.

LF Asia (Singapore) Pte. Ltd., Singapore.

LF Asia (Taiwan) Ltd., Hong Kong.

LF Asia Sebor (Sabah) Sdn. Bhd., Malaysia.

LF Asia Sebor (Sarawak) Sdn. Bhd., Malaysia.

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 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 Credit Pte. Ltd., Singapore.

LF Europe (Germany) GmbH, Germany.

LF Europe Ltd., UK.

LF European Capital Ltd., British Virgin Islands.

LF Fashion Pte. Ltd., Singapore.

LF Fashion Service Pte. Ltd., Singapore.

LF Home Ltd., Hong Kong.

LF International Inc., USA.

LF Logistics (Hong Kong) Ltd., Hong Kong.

LF Logistics (Taiwan) Ltd., Taiwan.

LF Logistics Services (M) Sdn. Bhd., Malaysia.

LF Logistics Services Pte. Ltd., Singapore.

LF National Brands Group Inc., USA.

LF North America Holdings Co. Inc., USA.

LF Products (Shanghai) Ltd., China.

LF Products Pte. Ltd., Singapore.

LF Sourcing (Millwork) LLC, USA.

LF USA Inc., USA.

LFCF Investment I (Europe) Ltd., British Virgin Islands.

LFCF Investment I (USA) Ltd., British Virgin Islands.

Li & Fung (B.V.I.) 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 (Trading) Ltd., Hong Kong.

Li & Fung (Vietnam) Ltd., Vietnam.

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.

Lloyd Textile Trading Ltd., Hong Kong.

Lux Plush Enterprises Ltd., Hong Kong.

Match Winner Vertriebs GmbH, Germany.

Mercury (BVI) Holdings Ltd., British Virgin Islands.

Meredith Associates Ltd., Hong Kong.

Mesh LLC, USA.

Metro Seven LLC, USA.

Midway Enterprises (Guangzhou) Ltd., China.

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 (Shenzhen) Ltd., China.

Millwork Holdings Co. Inc., USA.

Millwork Pte. Ltd., Singapore.

Modium Konfeksiyon Sanayi ve Ticaret Anonim Sirketi, Turkey.

Momentum Clothing Ltd., UK.

Nanjing LF Asia Co. Ltd., China.

P.T. Direct Sourcing Indonesia, Indonesia.

P.T. Lifung Indonesia, Indonesia.

Pacific Alliance USA Inc., USA.

Paco Trading (International) Ltd., Hong Kong.

Patch Licensing LLC, USA.

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 France SAS, France.

PromOcean GmbH, Germany.

PromOcean No 1 Ltd., UK.

PromOcean Spain SL, Spain.

PromOcean The Netherlands B.V., The Netherlands.

PromOcean UK Ltd., UK.

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.

Shanghai Midway Xiaozhuren Trading Co. Ltd., China.

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.

Sports Brands Italia Ltd., Hong Kong.

STS Shenzhen Testing Service Ltd., China.

T.V.M. Design Services Ltd., Israel.

Tantallon Enterprises Ltd., British Virgin Islands.

Texnorte II-Industrias Texteis Ltda., Portugal.

Texnorte Industrial Ltd., Hong Kong.

TH Success Ltd., Hong Kong.

Toonsland Ltd., Hong Kong.

Toy Island (USA) LLC, USA.

Toy Island Manufacturing Co. Ltd., Hong Kong.

TVM Europe GmbH, Germany.

TVMania Italy S.r.l., Italy.

TVMania UK Ltd., UK.

Upsolut Merchandising GmbH & Co. KG, Germany.

Ventana Bekleidungsfabrikation GmbH, Germany.

Visage (Hong Kong) Ltd., Hong Kong.

Visage Group Ltd., UK.

Visage Holdings (2010) Ltd., UK.

Visage Holdings Ltd., UK.

Visage Ltd., UK.

VZI Investment Corporation, USA.

W S Trading Ltd., Hong Kong.

Wilson Fabric Mart (China) Ltd., Hong Kong.

Wilson Textile Ltd., Hong Kong.

Winco Fireworks International LLC, USA.

Winco Fireworks Mississippi LLC, USA.

Wonderful Wrold Overseas Ltd., British Virgin Islands.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

19683174

 

 

COMPANY FILE NUMBER

 

0509774

 

 

MANAGEMENT

 

Group President & Chief Executive Officer:  Mr. Bruce Philip Rockowitz

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$2.00

 

 


SHAREHOLDERS

(As per registry dated 28-03-2012)

 

Name

 

No. of shares

Appleton Holdings Ltd.

P.O. Box 71, Craigmuir Chambers, Road Town, Tortola, British Virgin Islands.

 

1

Kingsbury International Ltd., Hong Kong.

 

1

 

 

––

 

Total:

2

=

 

 

DIRECTORS  

(As per registry dated 28-03-2012)

 

Name

(Nationality)

 

Address

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.

 

YIM Kam Chuen

House 53B, 10th Street, Hong Lok Yuen, Tai Po, New Territories, Hong Kong.

 

Marc Robert COMPAGNON

House 76, Cedar Drive, The Redhill Peninsula, 18 Pak Pat Shan Road, Tai Tam, Hong Kong.

 

 

SECRETARY

(As per registry dated 28-03-2012)

 

Name

Address

WAN Mei Chow, Terry

Flat B, 16/F., Block 9, Villa Athena, Ma On Shan, New Territories, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 28th March, 1995 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Win Certain Ltd., name changed to the present style on 15th October, 2003.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

OPERATIONS

 

Activities:                      Export trading.

 

Lines:                           Garments, other commodities as entrusted by customers.

 

Group Employees:         29,624.  (As at 31-12-2011)

 

Commodities Imported:   China, other Asian countries, etc.

 

Markets:                       Europe, North America, etc.

 

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)

US$15,912,201,000  (Year ended 31-12-2010)

US$20,030,271,000  (Year ended 31-12-2011)

 

Note:    With effect from 1st January, 2011, the Group has changed its functional currency from Hong Kong dollars to US dollars.

 

Terms/Sales:                  As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$2.00

 

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)

US$548,491,000  (Year ended 31-12-2010)

US$681,229,000  (Year ended 31-12-2011)

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)

US$   3,626,029,000  (As at 31-12-2010)

US$   3,933,793,000  (As at 31-12-2011)

 

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

 

International Sources Trading Ltd. is equally-owned by Appleton Holdings Ltd., a BVI-registered firm, and Kingsbury International Ltd., a Hong Kong-registered firm.  The subject has just issued 2 ordinary shares of HK$1.00 each while each of the holding companies holds a single share.  The subject belongs to the Li & Fung Group.

Li & Fung Ltd. [Li & Fung], incorporated in Bermuda on 25th October, 1991 as a holding company of the Li & Fung Group – Export Trading Section, was listed on The Stock Exchange of Hong Kong Ltd. bearing 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 subject’s operating office is located at 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 where is the Group’s Purchasing Department.

Li & Fung Group has signed contracts with the following firms in supplying them with garments and other commodities: WAL-Mart, Target Corporation, Marks & Spencer, Esprit, Liz Caiborne, Inditex SA & Toys, “R” US Inc., etc.

In order to do the sourcing business smoothly, Li & Fung Group has set up Direct Sourcing Group [DSG].  Besides the subject, the DSG includes the following firms:-

·         Direct Sourcing Group Holdings Ltd., British Virgin Islands

·         Direct Sourcing Group Investment Ltd., British Virgin Islands

·         Direct Sourcing Group Pte. Ltd., Singapore

·         DSG (Hong Kong) Ltd., Hong Kong

·         DSG (Shenzhen) Ltd., China

DSG Services Pte. Ltd., Singapore

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 largest markets are the United States and Western Europe.

The Group’s turnover in 2011 increased by 26% to US$20,030 million (approximately HK$156 billion), reflecting continued market share gains by its business through organic growth and earlier acquisitions as well as the synergistic dynamics of the new structure of three Business Networks, notwithstanding global economic uncertainties.

Asia has become an important growth platform for Li & Fung’s businesses and sourcing activities, as brands and retailers around the world are increasingly focusing on the region.  With the addition of the LF Asia platform in this fast-growing consumer market, Li & Fung completed its global Distribution Network in 2011, contributing to the expansion of its distribution business.  LF Asia accounted for 26% of total Distribution Network’s turnover in 2011.  At the same time, sourcing volume from Asia reached US$14,713 million. Asia represented 92% of the Group’s total sourcing activities, spanning 20 economies in the region, including China, Vietnam, Indonesia, India, Cambodia, Thailand and the Philippines, as the Group continues to expand its sourcing network.  The followings are the highlights of the Group for the year of 2011:-

·         Core operating profit increased by 22% to US$882 million; core operating profit margin decreased from 4.6% to 4.4%

·         Total margin increased by 37% to US$3,074 million, increasing as a percentage of turnover from 14.1% to 15.3%

·         Profit attributable to shareholders reached US$681 million, representing an increase of 24% compared to 2010

FY 2011 was the first year of the current Three-Year Plan (2011-2013).  The targets of this new Three-Year Plan 2011-2013 are to achieve Core Operating Profit of US$1.5 billion by 2013, with Trading, Logistics and Distribution expected to contribute US$0.7 billion, US$0.1 billion and US$0.7 billion respectively.  The Group’s long-established market position across the supply chain network puts us in an unique position to optimize opportunities for remarkable growth in the future.

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.

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 31st December, 2011, the Group had a total workforce of 29,624, of whom 4,518 were based in Hong Kong and 25,106 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.

The subject is fully supported by the Li & Fung Group.

On the whole, in view of the background and parentage of the subject, consider it good for normal business engagements.

 

 


REMARKS

 

            Brief information of the principal director:-

Mr. Bruce Philip ROCKOWITZ (Group President and Chief Executive Officer [CEO]), aged 53.  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 centre 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.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.84

UK Pound

1

Rs.86.72

Euro

1

Rs.69.13

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

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