|
Report Date : |
10.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
TESCO
INTERNATIONAL SOURCING LTD. |
|
|
|
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Formerly Known as: |
Tesco Stores Hong
Kong Ltd. [Tesco HK] |
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Registered Office : |
15/F., Devon House, Taikoo Place, 979 King’s Road, Quarry Bay |
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Country : |
Hong Kong |
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Date of Incorporation : |
23.11.1973 |
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Com. Reg. No.: |
04744957 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Purchasing Office, Importer and Exporter of all kinds of garments and accessories. |
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No. of Employees : |
255 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Hong Kong - ECONOMIC OVERVIEW
Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
|
Source : CIA |
TESCO INTERNATIONAL SOURCING LTD.
15/F., Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong.
PHONE: 2722 5960, 3589 7000
FAX: 2722 5212, 2369 5068, 3575 7553
E-MAIL: hr@tescohk.com
enquiry-hk-hardlines@tescois.com
enquiry-hk-clothing@tescois.com
International Sourcing Director: Mr. Christophe Albert Jean Roussel
Incorporated on: 23rd November, 1973.
Organization: Private Limited Company.
Capital: Nominal: HK$256,010,000.00
Issued: HK$256,000,020.00
Business Category: Purchasing Office; Importer and Exporter.
Group Revenue (sales excluding value added tax):- (52 weeks ended 25-02-2012)
£65,166 million (Whole Group)
£10,828 million (Asia Group)
Employees: 255.
Main Dealing Bankers: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office:-
15/F., Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong.
Business Name:-
Tesco International Sourcing, Hong Kong. [BR No. 04744957-002]
Holding Company:-
Tesco Holdings BV, Netherlands.
Ultimate Holding
Company:-
Tesco plc, UK.
Associated/Affiliated
Companies:-
Tesco Group of
Companies
Anshan Tesco Real Estate Development Co. Ltd., China.
Arena (Jersey) Management Ltd., Jersey.
BLT Properties Ltd., UK.
Dobbies Garden Centres, Scotland.
dunnhumby Ltd., UK.
Ek-Chai Distribution System Co. Ltd., Thailand.
ELH Insurance Ltd., Guernsey.
Fresh & Easy Neighborhood Market Inc., USA.
Fushun Splendor Real Estate Development Co. Ltd., China.
Homeplus Co. Ltd., South Korea.
Homeplus Tesco Co. Ltd., South Korea.
One Stop Stores Ltd., UK.
Shopping Centres Ltd., UK.
Tesco (Fujian) industry Ltd., China.
Tesco Distribution Ltd., UK.
Tesco Fujian Property Ltd., China.
Tesco Ireland Ltd., Ireland.
Tesco Japan Co. Ltd., Japan.
Tesco Kipa Kitle Paza rlama Ticaret ve Gide Sanai A.S., Turkey.
Tesco Management (Shanghai) Co. Ltd., China.
Tesco Mobile Ltd., UK.
Tesco Nanjing Zhongshan Real Estate Development Co. Ltd., China.
Tesco Personal Finance Group Ltd., Scotland. [Trading as Tesco Bank]
Tesco Polska Sp. z o.o., Poland.
Tesco Property Holdings Ltd., UK.
Tesco Qinhuangdo Property Ltd., China.
Tesco Shenyang Property Co. Ltd., China.
Tesco Stores (Malaysia) Sdn. Bhd., Malaysia.
Tesco Stores C R a.s., Czech Republic.
Tesco Stores Ltd., UK.
Tesco Stores S R a.s., Slovakia.
Tesco Underwriting Ltd., UK.
Tesco-Global Stores Privately Held Co. Ltd., Hungary.
The Tesco Aqua Ltd. Partnership, UK.
The Tesco Atrato Ltd. Partnership, UK.
The Tesco Blue Ltd. Partnership, UK.
The Tesco British Land Property Partnership, UK.
The Tesco Coral Ltd. Partnership, UK.
The Tesco Jade Ltd. Partnership, UK.
The Tesco Navona Ltd. Partnership, UK.
The Tesco Passaic Ltd. Partnership, UK.
The Tesco Property (No. 2) Ltd. Partnership, Jersey.
The Tesco Property Ltd. Partnership, UK.
The Tesco Sarym Ltd. Partnership, UK.
The TescoRed Ltd. Partnership, UK.
Valiant Insurance Co. Ltd., Ireland.
Xiamen Hete Property Co. Ltd., China.
etc.
04744957
0036278
International Sourcing Director: Mr. Christophe Albert Jean Roussel
Nominal Share Capital: HK$256,010,000.00 (Divided into 25,601,000 shares of HK$10.00 each)
Issued Share Capital: HK$256,000,020.00
(As per registry
dated 23-11-2012)
|
Name |
|
No. of shares |
|
Tesco Holdings BV Atrium-Business Suite 6.1.34, Strawinskylaan 33105, 1077 ZX Amsterdam, Netherlands. |
|
25,600,002 ======== |
(As per registry
dated 01-01-2013)
|
Name (Nationality) |
Address |
|
Philippa Mary FARRALL |
Unit 402, 4/F., Tower A, Queen’s Garden, 9 Old Peak Road, Hong Kong. |
|
Christophe Albert Jean ROUSSEL |
Flat A, 4/F., Manhattann Tower, 63 Repulse Bay Road, Hong Kong. |
|
Laurent MADELAINE |
5/F., Estella Court, 70C MacDonnell Road, Hong Kong. |
|
Colin Thomas SYNNOTT |
Flat B, 3/F., Block 3, Pacific View, 38 Tai Tam Road, Hong Kong. |
|
Patxi Pierre GUERACAGUE |
Basement, 5G & 5H Bowen Road, Hong Kong. |
|
Christophe BATAILLE |
Flat C, 12/F., Seaview Mansion, 34 Kennedy Road, Hong Kong. |
(As per registry
dated 23-11-2012)
|
Name |
Address |
Co.
No. |
|
East Asia Sentinel Services Ltd. |
22/F., Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong. |
0509562 |
The subject was incorporated on 23rd November, 1973 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Tesco Enterprises Ltd., name changed to Tesco Stores Hong Kong Ltd. on 7th October, 1977, and further to the present style on 17th December, 2005.
The subject’s registered office was formerly located at 22/F., Prince’s Building, Central, Hong Kong, moved to Room 901, 9/F., East Ocean Centre, 98 Granville Road, Tsimshatsui East, Kowloon, Hong Kong with effect from 22nd May, 2000. Its registered office has been relocated in order to combine with its head office since late 2005.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Purchasing Office; Importer and Exporter.
Lines: All kinds of garments and accessories.
Office Space: 37,000 sq.ft.
Employees: 255.
Commodities Imported: Imported from Europe and Asian countries.
Markets: UK, Europe and Asia.
Group Revenue
(sales excluding value added tax):-
|
FY |
Whole Group |
Asia Group |
|
52 weeks ended 23-02-2008 |
£47,298 million |
£ 5,552 million |
|
53 weeks ended 28-02-2009 |
£53,898 million |
£ 7,048 million |
|
52 weeks ended 27-02-2010 |
£56,910 million |
£ 8,439 million |
|
52 weeks ended 26-02-2011 |
£61,174 million |
£10,241 million |
|
52 weeks ended 25-02-2012 |
£65,166 million |
£10,828 million |
|
26 weeks ended 25-08-2011 |
£31,812 million |
--- |
|
26 weeks ended 25-08-2012 |
£32,311 million |
--- |
Terms/Sales: CAD, or as per contracted.
Terms/Buying: L/C, D/P and T/T.
Nominal Share Capital: HK$256,010,000.00 (Divided into 25,601,000 shares of HK$10.00 each)
Issued Share Capital: HK$256,000,020.00
Alternation of
Capital:-
|
Initially |
paid up |
HK$ 20.00 |
|
23-11-2000 |
paid up |
HK$ 28,000,000.00 |
|
31-10-2001 |
paid up |
HK$228,000,000.00 |
|
|
|
–––––––––––––––––– |
|
Total: |
paid up |
HK$256,000,020.00 ================ |
Increases of
Nominal Capital:-
|
From |
HK$ 10,000.00 |
to |
HK$ 28,010,000.00 |
on |
15-08-2000 |
|
From |
HK$28,010,000.00 |
to |
HK$256,010,000.00 |
on |
31-10-2001 |
Group Operating
Profit:-
|
FY/Period |
Whole Group |
Asia Group |
|
52 weeks ended 23-02-2008 |
£2,791 million |
£304 million |
|
53 weeks ended 28-02-2009 |
£3,169 million |
£355 million |
|
52 weeks ended 27-02-2010 |
£3,457 million |
£440 million |
|
52 weeks ended 26-02-2011 |
£3,917 million |
£570 million |
|
52 weeks ended 25-02-2012 |
£3,985 million |
£737 million |
|
26 weeks ended 27-08-2011 |
£1,937 million |
--- |
|
26 weeks ended 25-08-2012 |
£1,809 million |
--- |
Profit or Loss: Group business is profitable.
Condition: Keeping in an active manner.
Facilities: Making active use of general banking facilities.
Payment: So far good.
Commercial Morality: Satisfactory.
Principal
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong
· Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Standing: Very Good.
Formerly Tesco International Sourcing Ltd. [TIS] was known as Tesco Stores Hong Kong Ltd. [Tesco HK] which was incorporated in November 1973. At that time, it was equally held by two Hong Kong-registered firms, namely, Tesco Stores Holdings (International) Ltd. [TSHI] and Shareg Nominees Ltd. In November 2000, Tesco HK was re-organized and became a wholly-owned subsidiary of TSHI. In June 2003, TSHI changed name to Green Peak Ltd. Since late 2005, Tesco HK has been shifted under the control of a Netherlands-based firm Tesco Holdings BV, and Green Peak Ltd. was dissolved by members’ voluntary winding up on 2nd December, 2005. On 17th December, 2005, Tesco HK changed name to TIS which is the present style.
TIS is one of the world’s largest retailers with stores in the United Kingdom, Europe and Asia. It is a purchasing office in Hong Kong for Tesco plc [Tesco] which is the ultimate holding company of TIS.
TIS works directly with the manufacturer to ensure the competitive prices and uniquely differentiated products, while maintaining the required quality. Since 1999, TIS has broadened its sourcing portfolio to cover not only apparel and toys from Southern China, but also products such as electrical, household, homeware, outdoor furniture, baby and sports equipment.
TIS is responsible for buying over 100,000 non-food products for the Group. The international sourcing operation has rapidly grown in the last few years and now sources 60% of its clothing in the United Kingdom and 40% of hardlines, including electricals, homewares, entertainment, toys and books. In Europe, it provides over 25% of its hardlines and 85% of its clothing and it has recently started to source products for Asia.
TIS’s international sourcing team shipped all kinds of products from 54 ports. It also has sourcing hubs in China, India, Sri Lanka, Bangladesh and Turkey, with smaller offices in Thailand, Czech Republic and Italy.
Tesco is a public limited company incorporated in the United Kingdom under the Companies Act 1985 with registration number 445790. It is listed on the London Stock Exchange with ticker symbol “TSCO” and has a level 1 OTC American Depositary Receipt Programme in the United States with ticker “TSCDY”. Tesco is one of the world’s leading international retailers. It started trading in China in 2004. Tesco now has more than 50 hypermarkets, mostly around Shanghai. Its first stores in Beijing and Shenzhen SEZ and Guangzhou are also proving popular with local people. Tesco is the holding company of the Tesco Group.
The principal activity of the Tesco Group is food retailing and associated activities in the United Kingdom, the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia, Turkey, Thailand, South Korea, Taiwan, Malaysia, Japan, as well as China.
For the 52 weeks ended 25th February, 2012, the Group’s sales (excluding value added tax) rose by 6.5% to £65,166 million (2011: £61,174 million). The Group’s operating profit for the year was £3,985 million (2011: £3,917 million), increased by 1.7%.
For the 26 weeks ended 25th August, 2012, the Group’s sales (excluding value added tax) rose by 1.6% to £32,311 million (same period of 2011: £31,812 million). The Group’s operating profit for the period was £1,809 million (same period of 2011: £1,937 million), decreased by 6.6%.
For the 26 weeks ended 25th August, 2012, the Group’s total sales (including VAT) in Asia increased by 6.0% at constant rates and by 5.4% at actual rates.
It made good progress in Thailand and Malaysia but its performance in the region as a whole was held back by the unhelpful effect of new shopping hour regulation in its key Asian market, Korea. Like-for-like sales declined by (1.4)% for the region as a whole.
Its business in Thailand delivered a strong performance in the first half, with total sales up by more than 14% at both actual and constant rates, including like‑for-like sales growth of 1.7% on top of a very strong performance in the first half last year. Malaysia also continued its run of improving like-for-like performance, delivering positive like-for-like sales growth in the second quarter.
The followings are
the business update of the Group in the first half of FY2013:-
· UK plan implementation underway, with improvements in UK sales performance, including like-for-like sales growth in second quarter;
· Reduced new UK space programme on track; greater focus on Express, with 60 new stores in H1;
· Grocery online business continues to outperform, growing by 11% in the UK; dotcom now launched in Poland and Slovakia, with Thailand and Malaysia launching soon;
· Tesco Bank migration successfully completed onto new, modern platforms; mortgages launched;
· Majority of businesses in Asia and Europe gained or held share, in tough external environment;
· United States losses reduced slightly to £(72)m at constant rates; actions taken to reduce losses further in the second half;
· Successful property transactions completed in Thailand and Korea, raising c.£700m proceeds; &
· Japanese market exit deal agreed with Aeon.
Whilst there is a long way to go, the Group believes that its investment in “Building a Better Tesco” in the UK will continue to strengthen its competitiveness by delivering further improvements in the shopping trip for customers. Consistent with its previous guidance, it expects trading margins in the UK to be similar in the second half to the first.
It is planning on the basis that the global economic environment continues to be very challenging, with customers facing real financial pressures and its businesses bearing the burden of higher costs.
In Korea, the new regulations restricting opening hours for large retailers are having an immediate, unhelpful effect on its performance and are expected to impact its profit performance by around £100m for the year, weighted towards the second half.
Having a history of about 39 years in Hong Kong, TIS is fully supported by the Tesco Group.
On the whole, in view of the parentage of TIS, consider it good for normal business engagements.
REMARKS:
Court case:-
|
Action
Date |
Case
No. |
Plaintiff |
Defendant |
Cause |
Amount |
|
19-09-2003 |
D8255 |
Park Faith Investment Ltd. |
Tesco Stores Hong Kong Ltd. [Now known as Tesco International Sourcing Ltd.] |
Rent |
HK$157,000 |
|
03-07-2006 |
D879 |
Yiu Tin Ho |
Tesco International Sourcing Ltd. |
Injury |
Not stated |
|
02-06-2007 |
D667 |
Yiu Tin Ho |
Tesco International Sourcing Ltd. |
Injury |
Not stated |
|
20-07-2007 |
D667 |
Yiu Tin Ho |
Tesco International Sourcing Ltd. |
ECC Application (Callover) |
Not stated |
|
22-04-2008 |
D1660 |
Chao Feng Handbag Co. Ltd. |
Tesco International Sourcing Ltd. |
Hire Purchase |
US$77,127 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.46 |
|
UK Pound |
1 |
Rs.83.13 |
|
Euro |
1 |
Rs.70.99 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.