MIRA INFORM REPORT

 

 

Report Date :

31.10.2013

 

IDENTIFICATION DETAILS

 

Name :

IKEA TRADING (HONG KONG) LTD.

 

 

Registered Office :

Room 1601-1608, 16/F., Tai Yau Building, 181 Johnston Road, Wanchai,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

23.11.1979

 

 

Com. Reg. No.:

06353411

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Buying Office; Finance and Administration of All kinds of furniture, rugs, carpets, textiles, lighting products.

 

 

No. of Employees :

30.  (Office Staff)

 

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

 

IKEA TRADING (HONG KONG) LTD.

 

 

ADDRESS

 

Room 1601-1608, 16/F., Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong.

 

PHONE:            852-2833 2837,  2891 4788

 

FAX:                 852-2834 5723,  2891 9200

 

E-MAIL:            enquiry@ikea.com.hk

ids@ikea.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Leung Tai Yin, Ben

 

 

SUMMARY

 

Incorporated on:             23rd November, 1979.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$1,000,100.00

Issued:                          HK$1,000,100.00

 

Business Category:        Buying Office of furniture and furnishings; Finance and Administration.

 

Group Revenue:             €27,628 million  (Year ended 31-08-2012)

 

Employees:                   30.  (Office Staff)

 

Main Dealing Bankers:   BNP Paribas, Hong Kong Branch.

Credit Agricole Corporate & Investment Bank, Hong Kong Branch.

 

Banking Relation:           Satisfactory.


Company name

 

IKEA TRADING (HONG KONG) LTD.

 

 

ADDRESS

 

Registered Head Office:-

Room 1601-1608, 16/F., Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong.

 

China Representative Offices:  Shenzhen, Qingdao, Shanghai, Wuhan, etc.

 

Holding Company:-

INGKA Pro Holding B.V., Netherlands.

 

Ultimate Holding Company:-

INGKA Holding Europe B.V., Netherlands.

 

Associated/Affiliated Companies:-

IKEA Group of Companies

IKEA Asia Pacific Pte. Ltd., Singapore.

IKEA Belgium, Belgium.

IKEA Damansara, Malaysia.

IKEA Humlebaek, Denmark.

IKEA International A/S, Denmark.

IKEA of Sweden AB, Sweden.

IKEA Trading (I) Pvt. Ltd., India.

IKEA Trading Far East Ltd., Hong Kong.

Inter IKEA Finance S.A., Luxembourg.

Inter IKEA Systems A/B, Sweden.

Inter IKEA Systems B.V., Netherlands.

Swedwood International AB, Sweden.

Swedspan Holding B.V., Netherlands.

Swedspan International s.r.o., Slovak Republic.

etc.

 

 

BUSINESS REGISTRATION NUMBER 

 

06353411

 

 

COMPANY FILE NUMBER

 

0075500

 

 

MANAGEMENT

 

Managing Director:  Mr. Leung Tai Yin, Ben

 

 

CAPITAL

 

Nominal Share Capital: HK$1,000,100.00 (Divided into 100,010 shares of HK$10.00 each)

 

Issued Share Capital: HK$1,000,100.00

 

 

SHAREHOLDERS

 

(As per registry dated 23-11-2012)

Name

 

No. of shares

INGKA Holding Europe B.V.

Hullenbergweg 2, 1101 BL, Amsterdam ZO, Netherlands.

 

10,001

INGKA Pro Holding B.V.

Hullenbergweg 2, 1101 BL, Amsterdam ZO, Netherlands.

 

90,009

 

 

–––––––

 

Total:

100,010

======

 

DIRECTORS

 

            (As per registry dated 23-11-2012)

Name

(Nationality)

 

Address

Lars THORSEN

DB Marina Club, D28 Discovery Bay. Lantau Island, Hong Kong.

 

Michael NIELSEN

Storchenweg 14, 4104 Oberwil BL, Switzerland.

 

LEUNG Tai Yin, Ben

Flat G, 35/F., Block 1, Hoi Sing Court, South Horizons, Ap Lei Chau, Hong Kong.

 

Enar Leif Gunnar JOHANSSON

            (Swedish)

 

Sjögatan 1 Helsingborg 25225, Sweden.

Raj-inder Singh RAI

Flat 1, 4/F., Block B, No. 7 South Bay Close, Repulse Bay, Hong Kong.

 

Erik Johan Magnus HOLMQUIST

Am Muhlebach 12, CH-4104 Oberwil, Switzerland.

 

 

SECRETARY

 

(As per registry dated 23-11-2012)

Name

Address

Co. No.

Sekots Secretarial Services Ltd.

16/F. - 19/F., Prince’s Building, 10 Chater Road, Central, Hong Kong.

0028739

 

 

HISTORY

 

The subject was incorporated on 23rd November, 1979 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 Buying Office; Finance and Administration.

 

Lines:                           All kinds of furniture, rugs, carpets, textiles, lighting products.

 

Employees:                   30.  (Office Staff)

 

Commodities Imported:   China and other Asian countries.

 

Markets:                       Hong Kong, China, Africa, Europe, Middle East, other Asian countries, North America, etc.

 

Group Revenue: €21,846 million  (Year ended 31-08-2009)

€23,539 million  (Year ended 31-08-2010)

€25,173 million  (Year ended 31-08-2011)

€27,628 million  (Year ended 31-08-2012)

 

Terms/Sales:                 COD or as per contracted.

 

Terms/Buying:               Various terms.

 

 

MEMBERSHIP

 

Swedish Chamber of Commerce in Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$1,000,100.00 (Divided into 100,010 shares of HK$10.00 each)

 

Issued Share Capital:     HK$1,000,100.00

 

Group Net Income:         €2,534 million  (Year ended 31-08-2009)

€2,688 million  (Year ended 31-08-2010)

€2,966 million  (Year ended 31-08-2011)

€3,202 million  (Year ended 31-08-2012)

 

Group Total Assets:       €41,273 million  (As at 31-08-2010)

€41,881 million  (As at 31-08-2011)

€44,748 million  (As at 31-08-2012)

 

Profit or Loss:                Business is profitable.

 

Condition:                       Keeping in an active and normal manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met as contracted.

 

Commercial Morality:     Good.

 

Bankers:-

BNP Paribas, Hong Kong Branch.

Credit Agricole Corporate & Investment Bank, Hong Kong Branch.

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

 

Standing:                      Very Good.

 

 

GENERAL

 

IKEA Trading (Hong Kong) Ltd. [IKEA HK], incorporated in November 1979, was formerly a wholly-owned subsidiary of Inter IKEA Holding S.A. [Inter IKEA] which was a Luxembourg-registered firm.  On 19th October, 2001, Inter IKEA transferred all its shares to INGKA Holding Europe B.V. [INGKA] and INGKA Pro Holding B.V. [INGKA Pro], both are Netherlands‑based firms.  Since then, IKEA HK has been jointly held by INGKA, holding 10% stakes, and INGKA Pro, holding 90%.

In fact, INGKA is the ultimate holding company of the IKEA Group.  INGKA is in turn wholly-owned by Stichting INGKA Foundation which is a non-profit foundation registered in Leiden, the Netherlands.

Currently, INGKA owns the industrial group Swedwood, which sources IKEA furniture, the sales companies that run IKEA stores, as well as purchasing and supply functions, and IKEA of Sweden, which is responsible for the design and development of products in the IKEA range.  The IKEA Group is a private group of companies owned by a Dutch charitable foundation.  It was founded in Älmhult, Sweden in 1943 by Mr. Ingvar Kamprad at the age of 17.  The company name, IKEA, is a composite of the first letters in his name in addition to the first letters of the names of the property and the village in which he grew up — Ingvar Kamprad Elmtaryd Agunnaryd.  In May 2006, the business magazine “The Economist” reported that the foundation was the world’s wealthiest charity with a net worth estimated at exceeding US$36 billion (more than the Bill & Melinda Gates Foundation), although the foundation’s purpose is largely corporate tax‑avoidance and anti-takeover protection for IKEA.

The IKEA Group distributes its goods through its retail outlets, which sell all kinds of contemporary furniture.

Despite IKEA’s Swedish roots, the owner/franchiser of the “IKEA” trademark and concept is a Dutch-registered company, Inter IKEA Systems B.V.  This company is the franchisor of all IKEA stores worldwide - both stores inside the IKEA Group and stores owned and run by franchisees outside the IKEA Group.

IKEA retailers worldwide operate on a franchise basis.  Most of the IKEA retailers belong to the IKEA Group.  The IKEA Group includes most of the IKEA retailers, the product development centre IKEA of Sweden AB and IKEA trading and wholesaling companies.  The IKEA Group activities are coordinated by IKEA International A/S in Denmark.  IKEA of Sweden AB is responsible for the entire IKEA product range on behalf of Inter IKEA Systems B.V.

IKEA is internationally renowned for its worldwide chain of colourful retail outlets, but its operations also span product design, distribution, retailing and purchasing – and rely heavily on computer technology.

During 2012, the IKEA Group opened 11 new stores in 9 countries.  As of 31st August, 2012, the IKEA Group had a total of 298 stores in 26 countries.  The IKEA range consists of approximately 9,500 products.  The Group has operations in 44 countries, 30 Trading offices are located in 25 of these countries.  The Group also had 33 Distribution Centres and 11 Customer Distribution Centres.  In addition, IKEA had 1,084 home furnishing suppliers in 53 countries in 2012.

Now, the IKEA Group has grown into a global retail brand with 139,000 co‑workers.  The “IKEA Catalogue” was printed in more than 212 million copies in 29 languages and 62 editions.

On 17th February, 2011, IKEA announced its plans for a wind farm in Dalarna County, Sweden, furthering it’s goal of running on 100 percent renewable energy.  In mid-August 2012, IKEA announced that it will be establishing a chain of 100 economy hotels in Europe but, unlike its few existing hotels in Scandinavia, they will not carry the IKEA name nor will they use IKEA furniture and furnishings - they will be operated by an unnamed international group of hoteliers.

IKEA headquartered its regional purchasing operations in Hong Kong in the early 1980s.

IKEA HK is responsible for manufacturing and supplying furnishings from such countries as China, Taiwan, Thailand, Indonesia, South Korea, India, Pakistan, Japan, the Philippines and Malaysia.  To support its suppliers and manufacturers (the later manufacture IKEA-designed furnishings under licence), IKEA set up supporting offices in Taipei, Bangkok, New Delhi, Seoul, Shanghai and Qingdao.

IKEA HK’s branches and representative offices are the following three:-

Ikea Trading (Hong Kong) Ltd. India Branch

Ikea Trading (Hong Kong) Ltd. Qingdao Representative Office

Ikea Trading (Hong Kong) Ltd. Shanghai Representative Office

In China, IKEA HK has had associated shops in Beijing, Chengdu, Dalian, Guangzhou, Nanjing, Shanghai, Shenzhen Special Economic Zone, etc.

In Hong Kong, IKEA opened its first retail shop in Chatham Road, Kowloon in 1987.  In 1988, the IKEA retail operation was taken over by Dairy Farm International Ltd. (a member of Jardine Matheson Group), which now holds IKEA exclusive franchise for Hong Kong, Macau and Taiwan in furniture and home accessories retailing.  The combination of IKEA concepts and Jardines management has resulted in business more than doubling since the buy-out.

Now, in Hong Kong, there are three IKEA stores located at Shatin, Kowloon Bay and Causeway Bay with a total retail area of 210,000 sq.ft.  IKEA HK has about 300 staff.

There is also a warehouse in Sheung Shui, New Territories, Hong Kong that offers customers with furniture pick-up or delivery services.

The main function of IKEA HK is to provide finance and administrative services and to act as buying office of furniture and household goods in Asia for IKEA companies in Europe.  IKEA HK is also responsible for the administration of IKEA branches and China representative offices.

For the year ended 31st August, 2012, total sales of the IKEA Group increased to €27.6 billion, up by 9.5% (7.1% adjusted for currency impact) as compared with €25.1 billion in FY2011.  Group net income was €3.2 billion, up by 6.7% as compared with €3.0 billion in FY2011

Some of the biggest growth was in China, Russia and Poland, but the US and Germany also had significant growth.  The growth came both from existing stores (4.6% adjusted for currency impact) and new stores.

It continued to expand by opening another 11 new stores in nine countries, as well as investing heavily in sustainable solutions and in our supply chain.  Investments in existing stores, new stores and relocations amounted to €1.3 billion, while another €0.6 billion were invested in shopping centres, its industrial group and renewable energy.  All investments in the FY2012 were financed out of its own cash flow.  Total assets increased from €41.9 to €44.8 billion, and its strong financial position allows the Group to grow with confidence.

In line with the IKEA strategy for renewable energy, it made major commitments to invest in wind power.  In total, it has 126 wind turbines (including 43 under construction) and solar panels at 75 stores and warehouses around the world.  Currently, IKEA Group total renewable energy production including biomass is equivalent to 34% of IKEA Group energy use in FY2012.

The history of IKEA HK in Hong Kong is about 34 years.

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

 

 

REMARKS

 

Court case:-

Date

Plaintiff

Defendant

Cause

Amount

Dec. 1994

Jebsen & Co. Ltd.

IKEA Trading (Hong Kong) Ltd.

Amount due

HK$167,808

Aug. 1996

Ansen Electronics Co. operated by Shine Profit Development Ltd.

IKEA Trading (Hong Kong) Ltd.

Amount due

US$495,591


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.49

UK Pound

1

Rs.98.71

Euro

1

Rs.84.49

 

 

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.