MIRA INFORM REPORT

 

 

Report Date :

22.01.2014

 

IDENTIFICATION DETAILS

 

Name :

LI & FUNG (TRADING) LTD.

 

 

Registered Office :

LiFung Tower, 888 Cheung Sha Wan Road, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

06.03.1973

 

 

Com. Reg. No.:

03835715

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Export Trading and Investment Holding like, Men’s, ladies and children’s knit and woven wears, garments, fashion accessories, handicrafts, fireworks and firecrackers, plastic flowers, electronic and metal products, toys and games, sporting goods, timepieces, sundries

 

 

No. of Employees :

500

 

 

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

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

LI  &  FUNG  (TRADING)  LTD.

 

 

Company ADDRESS           

 

LiFung Tower, 888 Cheung Sha Wan Road, Kowloon, Hong Kong.

 

PHONE:                  852-2300 2300,  2300 2333,  2300 5000,  2300 4343

 

FAX:                       852-2300 2000,  2300 2020,  2300 5767

 

E-MAIL:                  biancatang.adm@lifung.com.hk

 

 

MANAGEMENT

 

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

 

 

SUMMARY

 

Incorporated on:             6th March, 1973.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000,200.00

Issued:                          HK$10,000,200.00

 

Business Category:        Trading and Investment Holding.

 

Group Turnover:             US$20,221,806,000  (Year ended 31-12-2012)

 

Company Employees:  500  (Including associates)

 

Group Employees:         28,015.  (As at 30-06-2013)

 

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

Citibank N.A., Hong Kong Branch.

 

Banking Relation:           Very Good.


Company name 

 

LI  &  FUNG  (TRADING)  LTD.

 

 

Company ADDRESS

 

Registered Head Office:-

LiFung Tower, 888 Cheung Sha Wan Road, Kowloon, Hong Kong.

 

Garment Purchasing Division:-

1/F. - 5/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.

 

Mailing Address:-

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

 

Business Name:-

LF Beauty, Hong Kong.  [BR No. 03835715-006]

 

Immediate Holding Company:-

Li & Fung (B.V.I.) Ltd., British Virgin Islands.

 

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., England.

Added Extras LLC, U.S.A.

AGI Logistics (S) Pte Ltd., Singapore

AGI Logistics Foreign Holdings LLC, U.S.A.

Algreta Solutions Ltd., England.

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

Alstersee 158 V V GmbH, Germany.

American Marketing Enterprises Inc., U.S.A.

Appleton Holdings Ltd., British Virgin Islands.

Avanguardia S.r.l., Italy.

Black Cat Fireworks Ltd., England.

Blue Work Trading Co. Ltd., Hong Kong.

Bossini Fashion GmbH, Germany.

Bravado Star Manufacturing LLC, U.S.A.

Briefly Stated Holdings Inc., U.S.A.

Briefly Stated Inc., U.S.A.

British Heritage Brands LLC, U.S.A.

BS Direct Ltd., Hong Kong.

C Group US LLC, U.S.A.

Camberley Enterprises Ltd., Hong Kong.

Camberley Trading Service (Shenzhen) Ltd., China.

Catalyst Direct Sarl, France.

Catalyst Tags Inc., U.S.A.

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.

Covo Design (Dongguan) Co. Ltd., China.

Craftworks Ltd., Hong Kong.

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

Crimzon Rose Asia Ltd., Hong Kong.

Crimzon Rose Inc., U.S.A.

Dana International Ltd., Hong Kong.

Definitive Sourcing (India) Private Ltd., India.

Direct SG Mexico Ltd., Mexico.

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 (Bangladesh) Ltd., Bangladesh.

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, U.S.A.

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

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

Fashion Design NY LLC, U.S.A.

Fashion Lab Ltd., England.

Fenix Fashion Ltd., Hong Kong.

Fireworks Management Inc., U.S.A.

Forrestgrove Ltd., Hong Kong.

Frye Retail LLC, U.S.A.

GB Apparel Ltd., England.

GMR (Hong Kong) Ltd., Hong Kong.

Golden Gate Fireworks Inc., U.S.A.

Golden Horn N.V., Netherlands.

Goodwest Enterprises Ltd., Hong Kong.

GSCM (HK) Ltd., Hong Kong.

GSCM LLC, U.S.A.
[Formerly known as International Sources LLC]

Gulf Coast Fireworks Sales LLC, U.S.A.

Hanson Im-und Export GmbH, Germany.

Heusel Textilhandelsgesellschaft mbH, Germany.

Homestead International Group Ltd., U.S.A.

Homeworks (Europe) B.V., The Netherlands.

Homeworks Asia Ltd., Hong Kong.

HTL Fashion (UK) Ltd., England.
[Formerly known as HTL Fashions (UK) Ltd.]

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

HTP Fashion Ltd., Hong Kong.

IDS Group Ltd., British Virgin.

IDS International (Shanghai) Co. Ltd., China.

IDS International USA Inc, U.S.A.

IDS Manufacturing Ltd., Thailand.

IDS Manufacturing Sdn. Bhd., Malaysia.

IDS USA Inc., U.S.A.

Imagine POS Ltd., Hong Kong.

Integrated Distribution Services Group Ltd., Bermuda.

International Sources Trading Ltd., Hong Kong.

JAC TISSOT Solutions GmbH, Germany.

Jackel Cosmetics Ltd., Hong Kong.

Jackel France SAS, France.

Jackel Inc., U.S.A.

Jackel International (Asia) Ltd., Hong Kong.

Jackel International Europe SAS, France.

Jackel International Ltd., Hong Kong.

Jackel Vision Ltd., Hong Kong.

Janco International Trading Ltd., Hong Kong.

JDH Marketing (Thailand) Ltd., Thailand.

Jimlar Corporation, U.S.A.

Jimlar Europe AG ,Switzerland.

Just Jamie and Paulrich Ltd., England.

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, U.S.A.

Kingsbury International Ltd., Hong Kong.

KVZ International Ltd., British.

La Villa Development Ltd., Hong Kong.

LamaLoLi GmbH, Germany.

Lenci Calzature SpA, Italy.

LF (Philippines) Inc., The Philippines.
[Formerly known as IDS (Philippines) Inc.]

LF Accessories Group LLC,U.S.A.

LF Asia (Borneo) Sdn Bhd,Brunei.

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

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

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

LF Asia (Thailand) Ltd., Thailand.
[Formerly known as IDS Marketing (Thailand) Ltd.]

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

LF Asia Ltd., Hong Kong.

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

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

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

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

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

LF Beauty (Shenzhen) Ltd., China.

LF Beauty (UK) Ltd., England.

LF Beauty Inc., U.S.A.

LF Beauty LLC, U.S.A.

LF Beauty Ltd., Hong Kong.

LF Beauty Pte. Ltd., Singapore.

LF Capital (II) 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., England.

LF European Capital Ltd., British Virgin Islands.

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

LF Fashion Pte. Ltd., Singapore.

LF Fashion Service Pte. Ltd., Singapore.

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

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

LF Freight (USA) LLC, U.S.A.

LF Home Ltd., Hong Kong.

LF International Inc., U.S.A.

LF Logistics (Bangladesh) Ltd., Bangladesh.

LF Logistics (Cambodia) Ltd., Cambodia.

LF Logistics (China) Co. Ltd., China.

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

LF Logistics (India) Private Ltd., India.

LF Logistics (Taiwan) Ltd., Hong Kong.

LF Logistics (Thailand) Ltd., Thailand.
[Formerly known as IDS Logistics (Thailand) Ltd.]

LF Logistics (UK) Ltd., England.
[Formerly known as IDS Logistics (UK) Ltd.]

LF Logistics Holdings (UK) Ltd., England.

LF Logistics Pakistan (Private) Ltd., Pakistan.

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

LF Logistics Services Pte. Ltd., Singapore.

LF Men’s Group LLC, U.S.A.

LF National Brands Group LLC, U.S.A.

LF North America Holdings Co. Inc., U.S.A.

LF Performance Services Sdn. Bhd., Malaysia.

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

LF Products (Shanghai) Ltd., China.

LF Products Pte. Ltd., Singapore.

LF Sourcing (Millwork) LLC, U.S.A.

LF Sourcing Sportswear LLC, U.S.A.

LF USA Inc., U.S.A.

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

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

Li & Fung (Bangladesh) Ltd., Bangladesh.

Li & Fung (Brasil) Trading Importacao E Exportacao Ltda, Brazil.

Li & Fung (Cambodia) Ltd., Cambodia.

Li & Fung (Chile) Limitada, Chile.

Li & Fung (Europe) Holding Ltd., England.

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., England.

Li & Fung (Singapore) Private Ltd., Singapore.

Li & Fung (Taiwan) Ltd., Taiwan.

Li & Fung (Thailand) Ltd., Thailand.

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.

Lighthouse Asia Ltd., Hong Kong.

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.

Lornamead Acquisitions Ltd., England.

Lornamead GmbH, Germany.

Lornamead Group Ltd., England.

Lornamead Inc., U.S.A.

Lornamead UK Ltd., England.

Lotta Luv Beauty LLC, U.S.A.

Lux Plush Enterprises Ltd., Hong Kong.

Marshall Fireworks Inc., U.S.A.

Match Winner Vertriebs-GmbH, Germany.

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

Meredith Associates Ltd., Hong Kong.

MESH LLC, U.S.A.

Metro Seven LLC, U.S.A.

Midway Enterprises (Guangzhou) Ltd., China.

Mighty Hurricane Holdings Inc., U.S.A.

Miles Fashion Asia Pte. Ltd., Singapore.

Miles Fashion GmbH, Germany.

Miles Fashion Group France EURL, France.

Miles Fashion USA Inc., U.S.A.

Millwork (Hong Kong) Ltd., Hong Kong.

Millwork (Shenzhen) Ltd., China.

Millwork Holdings Co. Inc., U.S.A.

Modium Konfeksiyon Sanayi ve Ticaret Abnonim Sirketi, Turkey.

Nanjing LF Asia Co. Ltd., China.

On-Tip LLC, U.S.A.

P.T. Lifung Indonesia, Indonesia

Pacific Alliance USA Inc., U.S.A.

Paco Trading (International) Ltd., Hong Kong.

PATCH Licensing LLC, U.S.A.

Perfect Trading Inc., Egypt.

Peter Black Footwear & Accessories Ltd., England.

Peter Black Holdings Ltd., England.

Peter Black International Ltd., England.

Peter Black Overseas Holdings Ltd., England.

Phil Henson GmbH, Germany.

Product Development Partners Ltd., Hong Kong.

PromOcean France SAS, France.

PromOcean GmbH, Germany.

PromOcean No 1 Ltd., England.

PromOcean Spain SL, Spain.

PromOcean The Netherlands B.V., The Netherlands.

PromOcean UK Ltd., England.

PT Direct Sourcing Indonesia, Indonesia.

PT. IDS Marketing Indonesia, Indonesia.

PT. LF Asia Manufacturing Indonesia, Indonesia.

PT. LF Services Indonesia, Indonesia.

Ralsey Group Ltd., U.S.A.

Ratners Enterprises Ltd., British Virgin Islands.

Region Giant Holdings Ltd., British Virgin Islands.

Rhodes Ltd., Hong Kong.

Rosetti Asia Ltd., Hong Kong.

Rosetti Handbags and.Accessories Ltd., U.S.A.

RT Sourcing (Shenzhen) Co. Ltd., China.

RT Sourcing Asia Ltd., Hong Kong.

RT Sourcing USA Inc., U.S.A.

RVVW Apparel LLC, U.S.A.

Shanghai IDS Distribution Co., China.

Shanghai IDS Logistics Co. Ltd., China

Shanghai IDS Marketing Co. Ltd., China.

Shanghai LF Asia Healthcare Co. Ltd., China.

Shenzhen Catalyst Trading Co. Ltd., China.

Shiu Fung Fireworks Co. Ltd., Hong Kong.

Shiu Fung Fireworks Trading (Changsha) Ltd., China.

Shubiz Ltd., England.

Shutoo Ltd., England.

Silvereed (Hong Kong) Ltd., Hong Kong.

Simkar 2 Ltd., Cayman Islands.

Simkar Ltd., Cayman Islands.

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.

The Mint Group Pte. Ltd., Singapore.

Toonsland Ltd., Hong Kong.

Toy Island (USA) LLC, U.S.A.

Toy Island Manufacturing Co. Ltd., Hong Kong.

TVM Europe GmbH, Germany.

TVMania Italy S.r.l., Italy.

TVMania UK Ltd., England.

Upsolut Merchandising GmbH & Co. KG, Germany.

Ventana Bekleidungsfabrikation GmbH, Germany.

Visage (Hong Kong) Ltd., Hong Kong.

Visage Group Ltd., England.

Visage Holdings (2010) Ltd., England.

Visage Holdings Ltd., England.

Visage Ltd., England.

VZI Investment Corp., U.S.A.

W S Trading Ltd., Hong Kong.

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

Wilson Textile Ltd., Hong Kong.

Winco Fireworks International LLC, U.S.A.

Winco Fireworks Mississippi LLC, U.S.A.

Winco of Tennessee LLC, U.S.A.

Wonderful World (HK) Ltd., Hong Kong.

Wonderful World Overseas Ltd., British Virgin Islands.

 

 

BUSINESS REGISTRATION NUMBER

 

03835715

 

 

COMPANY FILE NUMBER

 

0032289

 

 

MANAGEMENT

 

Group Non-Executive Chairman:  Dr. Fung Kwok King, Victor

Group Executive Deputy Chairman:  Dr. Fung Kwok Lun, William

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

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000,200.00 (Divided into 2 Ordinary shares and 100,000 Non-voting Deferred shares of HK$100.00 each)

 

Issued Share Capital: HK$10,000,200.00

 

 

SHAREHOLDERS

 

(As per registry dated 06-03-2013)

Name

 

No. of shares

 

 


Ordinary

Non-voting Deferred

LF Properties Ltd., Hong Kong.

 

1

20

Li & Fung (B.V.I.) Ltd.

P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

 

1

99,980

 

 

––

–––––––

 

Total:

2

=

100,000

======

 

 

DIRECTORS  

 

(As per registry dated 30-06-2013)

Name

(Nationality)

 

Address

Henry CHAN

   (Canadian)

Flat B, 6/F., The Somerset, 67 Repulse Bay Road, Hong Kong.

 

Marc Robert COMPAGNON

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

 

FUNG Kwok King, Victor

   (American)

32A, The Harbourview, 11 Magazine Gap Road, Hong Kong.

 

FUNG Kwok Lun, William   (British)

30 A & B, The Harbourview, 11 Magazine Gap Road, Hong Kong.

 

Spencer Theodore FUNG

32A, The Harbourview, 11 Magazine Gap Road, Hong Kong.

 

Lale KESEBI

House 143, Palm Drive, The Redhill Peninsula, 18 Pak Pat Shan Road, Tai Tam, Hong Kong.

 

LEUNG Wai Ping, Annabella

   (British)

31B, Broadwood Park, 38 Broadwood Road, Hong Kong.

 

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.

 

 

SECRETARY

           

(As per registry dated 06-03-2013)

Name

(Nationality)

 

Address

WAN Mei Chow, Terry

   (Chinese)

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

HISTORY

 

The subject was incorporated on 6th March, 1973 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at 7/F. - 8/F. & 10/F. - 16/F., Lifung Tower, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hong Kong, moved to LiFung Centre, 888 Cheung Sha Wan Road, Kowloon, Hong Kong in early 1998.  The LiFung Centre was renamed as LiFung Tower in June 1999.

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

 

 

OPERATIONS

 

Activities:                                  Export Trading and Investment Holding.

 

Lines:                                       Men’s, ladies and children’s knit and woven wears, garments, fashion accessories, handicrafts, fireworks and firecrackers, plastic flowers, electronic and metal products, toys and games, sporting goods, timepieces, sundries.

 

Trade Mark:                               LI & FUNG.

 

Company Employees:                500  (Including associates)

 

Group Employees:                     28,015.  (As at 30-06-2013)

 

Commodities imported from:       Imported and bought from various sources.

 

Markets:                                   US, Canada, Europe, Australia, South Africa, Japan, etc.

 

Group Turnover:-

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)

US$   20,221,806,000  (Year ended 31-12-2012)

US$     9,128,747,000  (6 months ended 30-06-2013)

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

 

Terms/Sales:                             Various terms.

 

Terms/Buying:                           As per contracted.

 

MEMBERSHIP:                         Federation of Hong Kong Industries, Hong Kong.  [Member No. A0202]

The American Chamber of Commerce in Hong Kong.

The Hong Kong Exporters’ Association, Hong Kong.
[Membership No. 319]

The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKL0066]

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$10,000,200.00 (Divided into 2 Ordinary shares and 100,000 Non-voting Deferred shares of HK$100.00 each)

 

Issued Share Capital: HK$10,000,200.00

 

Alternation of Issued Capital:-

17-04-1973

paid up

HK$  1,000,000.00

30-12-1986

paid up

HK$  9,000,000.00

26-05-1992

paid up

HK$            200.00

 

 

–––––––––––––––

Total:

paid up

HK$10,000,200.00

==============

 

Group Profit Attributable to Shareholders:-

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)

US$    617,416,000  (Year ended 31-12-2012)

US$      96,370,000  (6 months ended 30-06-2013)

 

Group Net Worth:           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)

US$   4,622,192,000  (As at 31-12-2012) - [restated]

US$   4,496,266,000  (As at 30-06-2013)

 

Note:               

 

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

 

Profit or Loss:    Group business is profitable.

 

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.

Dah Sing Bank Ltd., Hong Kong.

JPMorgan Chase Bank N.A., Hong Kong Branch.

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

The Royal Bank of Scotland N.V., Hong Kong Branch.

 

Standing:                      Very Good.

 

 

GENERAL

 

Li & Fung (Trading) Ltd. [Li & Fung Trading] is a wholly-owned subsidiary of Li & Fung Ltd. [Li & Fung] which was incorporated in Bermuda on 25th October, 1991 as a holding company of the Li & Fung Group – Export Trading Section, and was listed on The Stock Exchange of Hong Kong Ltd. with 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 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 biggest markets are the United States and Western Europe.

The trading business of the Group is conducted through Li & Fung Trading and its affiliates.  Li & Fung Trading is primarily an exporter of a wide variety of goods manufactured in Hong Kong and acts as a purchasing agent for importer, department stores, chain stores and specialty stores throughout the world and in particular North America and Western Europe.  Its principal exports are ready-to-wear garments and textiles, toys, electronic and mechanical products, artificial flowers, household ware, gift and art items.  It is not substantially dependent on any one of those categories of exports.

In December 2000, Li & Fung successfully acquired the entire issued share capital of Colby Group Holdings Ltd. [Colby], a BVI-registered firm, for a total consideration of up to HK$2,199,993,000.00.  Colby is the holding company of the Colby Group, which commenced business in 1975 and since that time has been principally engaged in the sourcing of apparel and hardline products for retailers.  Today, through its global network, the Colby Group sources apparels and hardline products and monitors the production of such goods with over 4,200 suppliers in 59 countries.

Li & Fung (1937) Ltd., established in Hong Kong in 1937, is the ultimate holding company of the Li & Fung Group which is now controlled by Dr. Victor Fung Kwok King and Dr. William Fung Kwok Lun – the third generation of the founder.  Li & Fung was founded in Guangzhou, China in 1906 as a traditional Chinese family company engaged in trading.  Li & Fung (1937) Ltd. is 100%-owned subsidiary of King Lun Holdings Ltd., a private company incorporated in the British Virgin Islands being the investment arm of the two Fung brothers.  The Li & Fung Group is now a large multinational consumer product trading group comprising three distinct core businesses: Export Trading – conducted by Li & Fung Ltd. group, Retailing – conducted by Li & Fung (Retailing) Ltd. group, and Distribution – conducted by Li & Fung (Distribution) Ltd. group.

As a Supply Chain Manager across many producers and countries, Li & Fung provides the convenience of a one-stop shop for customers through a Total Value-Added Package: from product design and development, through raw material and factory sourcing, production planning and management, quality assurance and export documentation to shipping consolidation.

The Group now services its customers globally through a sourcing network of 80 offices in more than 40 economies.

The Group is also engaged in property investment, including the development of two industrial parks at Panyu and Heshan, China.  Its biggest markets are the United States and Western Europe.  The Group offers a wide range of services to its customers to complement its traditional role as a sourcing and purchasing agent for overseas buyers.

In 2012, Group turnover increased by 1% to US$20,222 million.  However, core operating profit was US$511 million, a decrease of 42% compared to 2011. Profit attributable to shareholders was US$617 million, a decrease of 9% compared to previous year (US$681 million).

In 2011, Li & Fung reorganized its businesses into three distinct Business Networks: Trading, Logistics and Distribution.  This has opened the door to significant growth opportunities from cross selling between the Networks.

The trading business of the Group was resilient in 2012, accounting for approximately 70% of the Group’s turnover and showed a modest value increase over 2011 in a tough trading environment. In its core sourcing business, the Group remains the dominant player in the global sourcing arena.

In the first half of 2013, Group turnover was flat at US$9,129 million (first half of 2012: US$9,128 million).  Core operating profit increased slightly by 0.8% to US$223 million.  Profit attributable to shareholders was US$96 million, a decrease of 69.1% compared to the same period of previous year which was US$312 million.  This was mainly due to the absence of the non-cash gain of US$198 million on the write-back of contingent considerations previous year.  Excluding such non-cash gains, profit attributable to shareholders decreased by 15.5%.

During the first half of 2013, the Group continued to supplement its organic growth strategy with five acquisitions, with an aim to expand its product/service offerings, product expertise and geographical reach.  These five acquisitions were completed with an aggregate consideration of approximately US$432 million, among which initial payments totalled approximately US$135 million, earn-out and earn-up contingent consideration payable totalled US$297 million.  Part of the initial payment was paid in the second half of 2013.

As at 30th June 2013, the Group had a total workforce of 28,015, of whom 4,151 were based in Hong Kong and 23,864 were located overseas and in mainland China.

The Group owns the whole Lifung Tower which is located at 888 Cheung Sha Wan Road, Kowloon, Hong Kong.  Most of the Group’s subsidiaries are located at this building.  The total employees of the Group in this building is about 500.

On the whole, in view of the background and parentage of Li & Fung Trading, consider it good for normal business engagements.

 

 

REMARKS

 

Brief information of the principal directors:-

Dr. Victor FUNG Kwok King (Group Non-Executive Chairman, Chairman of Risk Management and Sustainability Committee), aged 67.  Brother of Dr. William Fung Kwok Lun and father of Mr. Spencer Theodore Fung.  Group Chairman of Li & Fung group companies including Li & Fung and the publicly listed Convenience Retail Asia Ltd. and Trinity Ltd.  A director of King Lun Holdings Ltd. and its wholly owned subsidiary, Li & Fung (1937) Ltd., substantial shareholders of Li & Fung.  Joined the Group in 1973 as Manager and became Managing Director of the Group’s export trading business in 1977.  Became Group Managing Director in 1981 and Group Chairman in 1989.  Holds Bachelor and Master degrees in Electrical Engineering from the Massachusetts Institute of Technology, and a Doctorate in Business Economics from Harvard University.  An independent non-executive director of BOC Hong Kong (Holdings) Ltd. in Hong Kong and Baosteel Group Corporation in the PRC.  An independent non-executive director of Koc Holding A.S. since 7th April, 2011.  Honorary Chairman of International Chamber of Commerce.  A member of Chinese People’s Political Consultative Conference.  A vice chairman of China Centre for International Economic Exchanges.  A member of the Commission on Strategic Development of the Hong Kong Government.  Chairman of the Greater Pearl River Delta Business Council.  From 1991 to 2000, Chairman of the Hong Kong Trade Development Council.  From 1996 to 2003, the Hong Kong representative on the APEC Business Advisory Council.  From 1999 to 2008, Chairman of the Hong Kong Airport Authority.  From 2001 to November 2009, Chairman of The Council of The University of Hong Kong.  From July 2008 to June 2010, Chairman of the International Chamber of Commerce.  From September 2004 to September 2010, Chairman of the Hong Kong-Japan Business Co‑operation Committee.  Awarded the Gold Bauhinia Star in 2003 and Grand Bauhinia Medal in 2010 for distinguished service to the community.

Dr. William FUNG Kwok Lun (Group Executive Deputy Chairman), aged 64.  Brother of Dr. Victor Fung Kwok King and uncle of Mr. Spencer Theodore Fung.  Group Managing Director since 1986 until becoming Executive Deputy Chairman in May 2011.  Joined the Group in 1972 and became a Director of the Group’s export trading business in 1976.  Graduated from Princeton University with a Bachelor of Science degree in Engineering.  Holds an MBA degree from the Harvard Graduate School of Business.  Degrees of Doctor of Business Administration, honoris causa, were conferred by the Hong Kong University of Science & Technology and by the Hong Kong Polytechnic University.  An independent non-executive director of VTech Holdings Ltd., Shui On Land Ltd., Sun Hung Kai Properties Ltd. and The Hongkong and Shanghai Hotels Ltd.  An independent director of Singapore Airlines Ltd.  A non-executive director of various companies within the Li & Fung Group including Convenience Retail Asia Ltd. and Trinity Ltd.  A director of King Lun Holdings Ltd. and its wholly owned subsidiary, Li & Fung (1937) Ltd., substantial shareholders of Li & Fung.  Past Chairman of the Hong Kong General Chamber of Commerce, the Hong Kong Exporters’ Association and the Pacific Economic Cooperation Committee.  Awarded the Silver Bauhinia Star by the Hong Kong Special Administrative Region Government in 2008.

Mr. Bruce Philip ROCKOWITZ (Group President and Chief Executive Officer [CEO]), aged 54.  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.61.54

UK Pound

1

Rs.101.08

Euro

1

Rs.83.38

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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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