|
Report Date : |
25.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
COCA-COLA
FAR EAST LTD. |
|
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Registered Office : |
18/F., Lincoln House, |
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Country : |
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Date of Incorporation : |
19.10.1979 |
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Com. Reg. No.: |
06323218 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Producing and Marketing of all kinds of Coca-Cola soft drinks |
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No. of Employees : |
150. (Including associates) |
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 |
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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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 levies excise duties on only four commodities,
namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are
no quotas or dumping laws. 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 9.1% of
total system deposits in Hong Kong by the end of 2012, an increase of 59% from
the previous 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 34.9 million in 2012,
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 2012 mainland Chinese companies constituted about 46.6% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit
expansion and tight housing supply conditions caused Hong Kong property prices
to rise rapidly and inflation to rise 4.1% in 2012. 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 |
COCA-COLA FAR EAST LTD.
18/F., Lincoln House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong.
PHONE: 852-2599 1333
FAX: 852-2506 1425
E-MAIL: apang@apac.ko.com
President (Pacific Group): Mr. Glenn German Jordan Schoenbohm
Incorporated on: 19th October, 1979.
Organization: Private Limited Company.
Capital: Nominal: US$250,000.00
Issued: US$5,000.00
Business Category: Non-alcoholic beverages producing and marketing.
Group Net Operating
Sales: US$48,017 million (Year ended 31-12-2012)
Employees: 150. (Including associates)
Main Dealing Banker: Deutsche Bank AG, Hong Kong Branch.
Banking Relation: Good.
Registered Head
Office:-
18/F., Lincoln House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong.
G.P.O. Box 916, Hong Kong.
China Factories:-
Anhui (Hefei), Beijing, Chongqing, Fujian (Xiamen), Gansu (Lanzhou), Guangdong (Dongguan, Guangzhou, Huizhou, Zhanjiang and Zhuhai), Guangxi Zizhiqu (Nanning), Heilongjiang (Harbin), Henan (Zhengzhou), Hubei (Wuhan), Hunan (Changsha), Jiangsu (Nanjing), Jilin (Changchun), Liaoning (Dalian and Shenyang), Shaanxi (Xi’an), Shandong (Qingdao), Shanghai, Shanxi (Taiyuan), Sichuan (Chengdu), Tianjin, Yunnan (Kunming), Zhejiang (Hangzhou), etc.
Holding Company:-
The Coca-Cola Export Corporation, USA.
Ultimate Holding
Company:-
The Coca-Cola Company, USA.
Sister &
Associated Companies:-
Coca-Cola Group of Companies
ACCBC Holding Company, Georgia.
Atlantic Industries, Cayman Islands.
Atlantic Manufacturing, Cayman Islands.
Barlan Inc., USA.
BCI Coca-Cola Bottling Co. of Los Angeles, USA.
Beverage Partners Worldwide (Pacific) Ltd., Hong Kong.
Caribbean Refrescos Inc., USA.
CCHBC Grouping Inc., USA.
Coca-Cola (Japan) Co. Ltd., Japan.
Coca-Cola Beverages (Shanghai) Ltd., China.
Coca-Cola Bottlers Manufacturing Holdings Ltd., Hong Kong.
Coca-Cola Bottlers Philippines Inc., Philippines.
Coca-Cola China Industries Ltd., China.
Coca-Cola China Ltd., Hong Kong.
Coca-Cola de Chile S.A., Chile.
Coca-Cola Erfrischungsgetranke AG, Germany.
Coca-Cola GmbH, Germany.
Coca-Cola Holdings (Asia) Ltd., Hong Kong.
Coca-Cola Holdings (Overseas) Ltd., USA.
Coca-Cola India Private Ltd., India.
Coca-Cola Industrias Ltda., Brazil.
Coca-Cola Industrias Ltda., Costa Rica.
Coca-Cola Midi SAS, France.
Coca-Cola Overseas Parent Ltd., USA.
Coca-Cola Refreshments Canada Co., Canada.
Coca-Cola Refreshments USA Inc., USA.
Coca-Cola Reinsurance Services Ltd., Ireland.
Coca-Cola Servicios de Venezuela C.A., Venezuela.
Coca-Cola South Asia (India) Holdings Ltd., Hong Kong.
COFCO Coca-Cola Beverages Ltd., Hong Kong.
Conco Ltd., Cayman Islands.
Corporacion Inca Kola Peru S.R.L., Peru.
Dulux CBAI 2003 BV, The Netherlands.
Energy Brands Inc., USA.
European Refreshments, Ireland.
Great Plains Coca-Cola Bottling Co., USA.
Hindustan Coca-Cola Beverages Pvt. Ltd., India.
Hindustan Coca-Cola Holdings Pvt. Ltd., India.
Hindustan Coca-Cola Overseas Holdings Pte. Ltd., Singapore.
Luxembourg CB 2002 S.a.r.l., Luxembourg.
Norsa Refrigerantes S.A., Brazil.
Odwalla Inc., USA.
Open Joint Stock Co. Nidan Juices, Russian Federation.
Pacific Refreshments Pte. Ltd., Singapore.
Recofarma Industria do Amazonas Ltda., Brazil.
Refrescos Guararapes Ltda., Brazil.
SA Coca-Cola Services NV, Belgium.
Servicios Integrados de Administracion y Alta Gerencia S.A. de C.V., Mexico.
Servicios y Productos Para Bebidas Refrescantes S.R.L., Argentina.
Soira Investments Ltd., British Virgin Islands.
Swire Beverages Holdings Ltd., Hong Kong.
Swire Beverages Ltd., Hong Kong.
Swire Coca-Cola HK Ltd., Hong Kong.
Swire Coca-Cola Taiwan Ltd., Taiwan.
The Inmex Corporation, USA.
etc.
06323218
0074234
President (Pacific Group): Mr. Glenn German Jordan Schoenbohm
Nominal Share Capital: US$250,000.00 (Divided into 250,000 shares of US$1.00 each)
Issued Share Capital: US$5,000.00
(As per registry
dated 19-10-2012)
|
Name |
|
No.
of shares |
|
The Coca-Cola Export
Corporation One
Coca-Cola Plaza, NW Atlanta, Georgia 30313, USA. |
|
5,000 ==== |
(As per registry
dated 19-10-2012)
|
Name (Nationality) |
Address |
|
Anthony Alexis QUAN-HIN |
1609 Johnson Road NE, Atlanta
GA, 30306, USA. |
|
LEE Yueh Fang |
2675 Birchwood Drive, NE,
Atlanta, GA 30305, USA. |
|
Glenn German JORDAN SCHOENBOHM |
675 West Paces Ferry #10,
Atlanta, GA 30327-2641, USA. |
(As per registry
dated 22-02-2013)
|
Name |
Address |
|
PANG Suet Kwan |
Flat A, 36/F., Block 1, Residence Oasis, 15 Pui Shing Road, Hong Kong. |
The subject was incorporated on 19th October, 1979 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at 38/F., Shell Tower, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong, moved to the present address in December 2006.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Producing and Marketing.
Lines: All kinds of Coca-Cola soft drinks.
Brands Carried:-
|
Brand Owned |
Product |
|
Bing Lu |
Soft Drink |
|
Coca-Cola |
Soft Drink |
|
Coke Light |
Soft Drink |
|
Fanta |
Soft Drink |
|
Lemon Coke Light |
Soft Drink |
|
Minute Maid |
Fruit Cordial and Juice |
|
Modern Tea Workshop |
Tea – Bottled |
|
NesCafe |
Coffee |
|
Nestea |
Tea – Bottled |
|
Powerade |
Soft Drink |
|
Qoo |
Soft Drink |
|
Sensation |
Water |
|
Smart |
Soft Drink |
|
Sprite |
Soft Drink |
|
Sprite Icy Mint |
Soft Drink |
|
Sprite on Fire |
Soft Drink |
|
Tian Yu Di water |
Water |
|
Vanilla Coke |
Soft Drink |
|
Yang Guang
(Hi-C) |
Fruit Cordial and Juice |
Employees: 150. (Including associates)
Commodities Imported: Mainly imported from US.
Markets: Hong Kong, Macau and China.
Group Net Operating Sales:-
· US$31,944 million (Year ended 31-12-2008)
US$30,990 million (Year
ended 31-12-2009)
US$35,119 million (Year
ended 31-12-2010)
US$46,542 million (Year
ended 31-12-2011)
US$48,017 million (Year
ended 31-12-2012)
Terms/Sales: As per contracted.
Terms/Buying: As per contracted.
Nominal Share Capital: US$250,000.00 (Divided into 250,000 shares of US$1.00 each)
Issued Share Capital: US$5,000.00
Group Net Income: US$ 5,807 million (Year ended 31-12-2008)
US$ 6,824 million (Year ended 31-12-2009)
US$11,787 million (Year ended 31-12-2010)
US$ 8,584 million (Year ended 31-12-2011)
US$ 9,019 million (Year ended 31-12-2012)
Group Total Assets: US$40,519 million (As at 31-12-2008)
US$48,671 million (As at 31-12-2009)
US$72,921 million (As at 31-12-2010)
US$79,974 million (As at 31-12-2011)
US$86,174 million (As at 31-12-2012)
Profit or Loss: Business is profitable.
Condition: Keeping in an active and good manner.
Facilities: Making use of general banking facilities.
Payment: Reliable and prompt.
Commercial Morality: Very good.
Banker: Deutsche Bank AG, Hong Kong Branch.
Standing: Very Good.
Coca-Cola Far East Ltd. is a wholly-owned subsidiary of The Coca-Cola Export Corporation, a US-based firm which is owned by The Coca-Cola Company [Coca-Cola], also a US-registered company.
Coca-Cola is a listed firm in the United States.
The subject is the division office of Coca-Cola in Asia and the Asia Pacific Region besides China, Hong Kong, Taiwan and Macau. The business of China, Hong Kong, Taiwan and Macau is handled by Coca-Cola China Ltd. which is also located at the same address.
The subject works closely with Swire Coca-Cola HK Ltd., which is a local licensed bottler and is responsible for the production, sales, marketing of Coca-Cola products in Hong Kong.
Coca-Cola, incorporated in September 1919, is a beverage company. Coca-Cola owns or licenses and markets more than 500 non-alcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks.
Coca-Cola’s segments include Eurasia and Africa, Europe, Latin America, North America, Pacific, Bottling Investments and Corporate.
The Coca-Cola Pacific Group includes a diverse group of rapidly developing markets such as China, the Philippines, Thailand, Indonesia, Vietnam and other Southeast Asian nations, as well as the markets of Australia, New Zealand, Japan, South Korea and countries in the South Pacific.
The Pacific Group employs approximately 2,900 Company associates who work with over 30,000 bottler employees to refresh more than 240 million people across the Pacific region each day.
Coca-Cola has been expanding into China for over eight decades. It opened its first bottling plants in Tianjin and Shanghai in 1927, and by 1948, Shanghai was the first market outside of the US to post annual sales of more than one million cases of Coca-Cola®.
The ultimate holding company, Coca-Cola, was incorporated in September 1919 under the laws of the State of Delaware, the United States, and succeeded to the business of a Georgia corporation with the same name that had been organized in 1892. Coca-Cola is the largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world. Finished beverage products bearing its trademarks, sold in the United States since 1886, are now sold in more than 200 countries. Along with “Coca‑Cola”, which is recognized as the world’s most valuable brand, Coca‑Cola markets four of the world’s top five non-alcoholic sparkling beverage brands, including “Diet Coke”, “Fanta” and “Sprite”. Coca-Cola now has more than 500 brands and 3,500 beverage products and sell 1.7 billion servings per day in over 200 countries. Products include diet and regular sparkling beverages, and still beverages such as 100% juices, juice drinks, waters, sports and energy drinks, teas and coffees, and milk- and soy-based beverages. Shares of Coca-Cola are listed on New York Stock Exchange with Ticker Symbol: KO.
When Coca-Cola re-entered China in 1979, it was the first international consumer company to grasp the opportunities offered by the open-door policy. Since opening its Beijing bottling plant in 1981, the Coca-Cola system has spread across the country by way of its 35 bottling plants. Today, Coca-Cola has become China’s leading beverage manufacturer.
In 2004, the production of its 100 billionth bottle of Coca-Cola Company product is a landmark that highlights the growth and success of Coca-Cola in China. Over the last 25 years, brands of Coca-Cola have become major household names in China. Coca-Cola has witnessed double digit growth in recent years as brand Coca-Cola and Sprite® have become the top two sparkling soft drinks in the country.
Not only does Coca-Cola provide a wide variety of quality beverages to China’s consumers, it also contributes significantly to the local economy. At Coca-Cola China, 100% of the concentrate used is locally produced and over 95% of the raw materials used are sourced locally.
Over the past several years, the still beverage market has become an area of great success and potential for Coca-Cola. Many innovative teas and juice drinks have been launched including Nestea®, Modern Tea Workshop®, Qoo Lactic®, Minute Maid® and Healthworks®. It continues to innovate to meet the ever-changing beverage needs and desires of Chinese consumers.
Coca-Cola is committed to maintaining its position as China’s number one total beverage company. China’s soft drink market is now the 4th largest in the world and is growing every day.
The Coca-Cola system’s product range in China includes “Bing Lu”, “Coca‑Cola”, “Coke Light”, “Fanta”, “Lemon Coke Light”, “Minute Maid”, “Modern Tea Workshop”, “NesCafe”, “Nestea”, “Powerade”, “Qoo”, “Sensation”, “Smart”, “Sprite”, “Sprite Icy Mint”, “Sprite on Fire”, “Tian Yu Di water”, “Vanilla Coke” and “Yang Guang (Hi-C)”, etc.
Swire Coca-Cola Taiwan Ltd. is the first of Coca-Cola’s plants in the Greater China Region to obtain ISO 14000 certification.
For the year ended 31st December, 2012, the net operating sales of the Coca-Cola Group amounted to US$48,017 million (2011: US$46,542 million), grew by 3.2% as compared with previous years, while its net income for the year was US$9,019 million (2011: US$8,584 million), grew by 5.1% as compared with previous years,.
The Coca-Cola Company reported worldwide volume growth of 4% for the full year of 2012 and 3% in the 4th quarter. The Company reported solid growth for the full year in key developed markets, including North America (+2%) and Japan (+2%). Europe volume declined 1% for the full year, reflecting ongoing uncertain macroeconomic conditions. In addition, the Company delivered strong volume growth in key emerging markets such as Thailand (+22%), India (+16%) and Russia (+8%) for the full year. Its China business delivered 4% volume growth for the full year, cycling double-digit growth in the prior year, and was impacted by the further effects of a slowing economy, poor weather and a later Chinese New Year. Solid growth continued in countries with per capita consumption of Company brands less than 150 eight-ounce servings per year, with volume up 7% for the full year.
Its Pacific Group’s volume grew 2% in the 4th quarter and 5% for the full year, cycling 5% growth in both the prior year quarter and full year. All business units in the Pacific Group delivered volume growth for full-year 2012, with 11% growth in the ASEAN region, 5% growth in the Greater China and Korea region, 2% growth in Japan and 1% growth in the South Pacific region. Reported net sales for the quarter declined 1%, reflecting a 1% decline in concentrate sales and even price/mix. After adjusting for unit case sales without concentrate sales equivalents and the effect of two additional selling days, concentrate sales in the quarter lagged unit case sales, primarily due to timing, including a later Chinese New Year in 2013. Comparable currency neutral net sales were even in the quarter. Reported operating income increased 11% in the quarter, reflecting operating leverage as a result of two additional selling days in the quarter and ongoing productivity initiatives, as well as positive geographic mix, partially offset by shifts in product and channel mix. In addition, fourth quarter reported operating income reflects a 2% currency benefit. Comparable currency neutral operating income increased 10% in the quarter. For the full year, reported net sales increased 3%, reflecting 3% concentrate sales growth and a 1% currency benefit, partially offset by a 1% impact due to structural changes and the cycling of prior year one-time items related to the natural disasters in Japan. Price/mix for the full year was even. After adjusting for unit case sales without concentrate sales equivalents, full-year concentrate sales lagged unit case sales, primarily due to timing, including a later Chinese New Year in 2013. Comparable currency neutral net sales grew 2% for the full year. Reported operating income increased 13% for the full year, reflecting operating leverage as a result of productivity initiatives, as well as positive geographic mix, partially offset by shifts in product and channel mix. Full-year reported operating income also includes a 2% currency benefit. Comparable currency neutral operating income increased 6% for the full year.
As the Group
looks ahead to 2013, it continues
to expect China’s recent economic slowdown to have a short-term effect on its industry
and on its business, although it does expect to see some improvement in consumer
disposable income as the year progresses.
As such, the Group expects its China business to deliver sequential
improvement as it moves through the rest of 2013. It has every confidence in the long-term
resilience of its China business and it remains very excited about its
opportunities in this region.
The
subject is fully supported by its parent which is of great renown. The history of the subject in Hong Kong is
over 33 years
On the whole, consider it good for normal business engagements.
REMARKS
Brief information
of the principal director:-
Mr. Glenn German JORDAN SCHOENBOHM, aged 55, is President of the Pacific Group. Mr. Jordan joined Coca-Cola in 1978 as a field representative for Coca-Cola de Colombia where, for several years, he held various positions, including Region Manager from 1985 to 1989. Mr. Jordan served as Marketing Operations Manager, Pacific Group from 1989 to 1990 and as Vice President of Coca-Cola International and Executive Assistant to the Pacific Group President from 1990 to 1991. Mr. Jordan served as Senior Vice President, Marketing and Operations, for the Brazil Division from 1991 to 1995; as President of the River Plate Division, which comprised Argentina, Uruguay and Paraguay, from 1995 to 2000; and as President of South Latin America Division, comprising Argentina, Bolivia, Chile, Ecuador, Paraguay, Peru and Uruguay, from 2000 to 2003. In February 2003, Mr. Jordan was appointed Executive Vice President and Director of Operations for the Latin America Group and served in that capacity until February 2006. Mr. Jordan was appointed President of the East, South Asia and Pacific Rim Group in February 2006. The East, South Asia and Pacific Rim Group was reconfigured and renamed the Pacific Group, effective 1st January, 2007.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.73 |
|
UK Pound |
1 |
Rs.91.82 |
|
Euro |
1 |
Rs.78.23 |
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.