MIRA INFORM REPORT

 

 

Report Date :

09.10.2013

 

IDENTIFICATION DETAILS

 

Name :

WM MORRISON (HK) LTD.

 

 

Registered Office :

27/F., Railway Plaza, 39 Chatham Road South, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

14.01.2011

 

 

Com. Reg. No.:

53617898

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of All kinds of baby products, non-food products, home and leisure products.

 

 

No. of Employees :

22

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – 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

Restricted

 

C2

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

 


Company name

 

WM MORRISON (HK) LTD.

 

 

ADDRESS

 

27/F., Railway Plaza, 39 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            852-2164 3400

 

FAX:                 852-2164 3410,  2300 2000

 

E-MAIL:            info@wmmorrison.com.hk

 

 

MANAGEMENT

           

Managing Director:        Mr. Nicholas Dieter Chilcott

 

 

SUMMARY

 

Incorporated on:            14th January, 2011.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$42,000,000.00

Issued:                         HK$37,000,000.00

 

Business Category:       Importer, Exporter and Wholesaler.

 

Group Turnover:            GBP 18,116 million  (Year ended 03-02-2013)

 

Employees:                  22.

 

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

 

Banking Relation:          Good.


Company name

 

WM MORRISON (HK) LTD.

 

 

ADDRESS

 

Registered Office:-

c/o HT Secretaries Ltd.

4304, 43/F., China Resources Building, 26 Harbour Road, Wanchai, Hong Kong.

 

Operating Office:-

27/F., Railway Plaza, 39 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company:-

Wm. Morrison Supermarkets P.L.C., UK.

 

Associated Companies:-

Farmers Boy (Deeside) Ltd., UK.

Farmers Boy Ltd., UK.

Flower World Ltd., UK.

Kiddicare.com Ltd., UK.

Neerock Ltd., UK.

Optimisation Developments Ltd., UK.

Safeway Ltd., UK.

Safeway Stores Ltd., UK.

WM Morrison Bananas Ltd., UK.

Wm Morrison Produce Ltd., UK.

 

 

BUSINESS REGISTRATION NUMBER

 

53617898

 

 

COMPANY FILE NUMBER

 

 1552155

 

 

MANAGEMENT

 

Managing Director:        Mr. Nicholas Dieter Chilcott

 

 

CAPITAL

 

Nominal Share Capital: HK$42,000,000.00 (Divided into 42,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$37,000,000.00

 

 

SHAREHOLDER  

 

(As per registry dated 14-01-2013)

Name

 

No. of shares

Wm. Morrison Supermarkets P.L.C.

Hilmore House, Gain Lane Bradford, W. Yorkshire UK BD3 7DL.

 

37,000,000

========

 

 

DIRECTORS  

 

(As per registry dated 14-03-2013)

Name

(Nationality)

 

Address

Nicholas Dieter CHILCOTT

House L19, Siena One, Discovery Bay City, Lantau Island, New Territories, Hong Kong.

 

William Michael CATLEY

Room 11A, Wing Hong Mansion, 60 MacDonnell Road, Mid-Levels, Hong Kong.

 

 

SECRETARY

 

(As per registry dated 14-01-2013)

Name

Address

Co. No.

HT Secretaries Ltd.

4304, 43/F., China Resources Building, 26 Harbour Road, Wanchai, Hong Kong.

0608717

 

 

HISTORY

 

The subject was incorporated on 14th January, 2011 as a private limited liability company under the Hong Kong Companies Ordinance.

 

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of baby products, non-food products, home and leisure products.

 

Employees:                  22.

 

Commodities Imported: China, other Asian countries, etc.

 

Markets:                        UK, other European countries, etc.

 

Group Turnover:            GBP 14,528 million  (Year ended 03-02-2009)

GBP 15,410 million  (Year ended 03-02-2010)

GBP 16,479 million  (Year ended 03-02-2011)

GBP 17,663 million  (Year ended 03-02-2012)

GBP 18,116 million  (Year ended 03-02-2013)

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$42,000,000.00 (Divided into 42,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$37,000,000.00

 

Group Profit For the Period Attributable to the Owners:-

GBP 460 million  (Year ended 03-02-2009)

GBP 598 million  (Year ended 03-02-2010)

GBP 632 million  (Year ended 03-02-2011)

GBP 690 million  (Year ended 03-02-2012)

GBP 647 million  (Year ended 03-02-2013)

 

Profit or Loss:               Making a small profit in 2012.

 

Condition:                     Keeping in a satisfactory manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

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

 

Standing:                      Good.

 

 

GENERAL

 

Having issued 37 million ordinary shares of HK$1.00 each, Wm Morrison (HK) Ltd. is wholly owned by Wm. Morrison Supermarkets P.L.C. [Morrisons] which is a UK-based firm.  Morrison is a listed firm in the United Kingdom.

 

Morrisons is the fourth largest chain of supermarkets in the United Kingdom, headquartered in Bradford, West Yorkshire, England.  The company is usually referred to and is branded as Morrisons, and it is part of the FTSE 100 Index of companies.  Morrisons market share as of August 2013 was 11.3%, making it the smallest of the “Big Four” supermarkets, behind Tesco (30.2%), Asda (17.1%) and Sainsbury’s (16.5%), but ahead of the fifth place Co‑operative Group, which had a share of 4.4%.

 

Founded in 1899 by William Morrison, hence the abbreviation Wm Morrison, it began as ‘an egg and butter stall’ in Rawson Market, Bradford, England.  Until 2004, Morrisons store locations were primarily focused in the north of England, but with the takeover of Safeway in that year, the company now has 498 stores including 16 M Local Stores across the UK.  For the year ended 3rd February, 2013, the Group has 128,705 employees.  These include over 5,000 trained butchers, bakers and fishmongers.  It has over 600 lorries and 150,000 trolleys.

 

The core businesses of Morrisons are food and grocery.  It is the UK’s second largest fresh food manufacturer.

In 2013-14, it plans to open 20 stores and increase its convenience store portfolio to 100.

 

The Morrison family currently owns around 15.5% of the company.

 

The subject is the sourcing arm of Morrisons.  Dalton Philips, Chief Executive of Morrisons, said the subject is playing a vital role in developing the chain’s non-food offerings, by increasing its direct sourcing capability in Asia.

Morrisons believed it could source better products by getting to know the Asian manufacturers.  It is exactly the same model that it employs in the United Kingdom, minimising the involvement of the middleman in order to deliver greater value for its customers.

 

The subject in Hong Kong has 22 staff.

 

For the 53 weeks ended 3rd February, 2013, the turnover of the Group amounted to GBP 18,116 million, grew by 2.6% as compared with GBP 17,663 million in 2011-12.  Profit for the period attributable to the shareholders amounted to GBP 647 million, decreased by 6.2% as compared with GBP 690 million in 2011-12.

 

The financial summary of the interim results of Morrisons for the half year to 4th August 2013:-

  • Profit before tax GBP 344 million (2012/13: GBP 440million)
  • Total store sales up 0.8% (2012/13: up 1.3%). Like-for-like store sales down 1.6% (2012/13: down 0.9%)
  • Total turnover GBP 8.9 billion in line with last year (2012/13: GBP 8.9 billion)
  • Underlying profit down 10% to GBP 401 million (2012/13: GBP 445 million)

 

As the subject is fully supported by Morrisons, consider it good for normal business engagements in small credit amounts as its history is short in Hong Kong.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.69

UK Pound

1

Rs.99.20

Euro

1

Rs.83.69

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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