MIRA INFORM REPORT

 

 

Report Date :

01.10.2014

 

IDENTIFICATION DETAILS

 

Name :

FF GROUP SOURCING LTD.

 

 

Registered Office :

Unit 2-6, 18/F., The Centrium, 60 Wyndham Street, Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

11.02.1998

 

 

Com. Reg. No.:

21798103

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is a garment trader and also engaged in Jewellery, Watches, Leather Goods Sunglasses and Bags.

 

 

No of Employees :

40

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hong Kong

A1

A1

 

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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA


Company name & address

 

FF GROUP SOURCING LTD.

 

 

ADDRESS:       Unit 2-6, 18/F., The Centrium, 60 Wyndham Street, Central, Hong Kong.

 

PHONE:            852-3766 4100

 

FAX:                 852-2422 0669

 

MANAGEMENT:

 

Managing Director:  Mr. Law Chiu Chuen

 

 

SUMMARY

 

Incorporated on:            11th February, 1998.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$160,550,000.00

 

Issued:                         HK$160,517,000.00

 

Business Category:       Garment Trader.

 

Group Turnover:            EUR 887.4 million  (Year ended 31-12-2013)

 

Employees:                  40.  (Hong Kong)

 

Main Dealing Banker:     Bank of China (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:          Good.

 

 

Name

 

FF  GROUP  SOURCING  LTD.

 

 

ADDRESS

 

Registered Head Office:-

Unit 2-6, 18/F., The Centrium, 60 Wyndham Street, Central, Hong Kong.

 

Holding Company:-

Folli-Follie Commercial Manufacturing & Technical Societe Anonyme, Greece

 

Associated Companies:-

Folli-Follie Group of companies

 

 

BUSINESS REGISTRATION NUMBER

 

21798103

 

 

COMPANY FILE NUMBER

 

0636130

 

 

MANAGEMENT

 

Managing Director:  Mr. Law Chiu Chuen

 

 

CAPITAL

 

Nominal Share Capital: HK$160,550,000.00 (Divided into 16,055,000 shares of HK$10.00 each)

 

Issued Share Capital: HK$160,517,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 11-02-2014)

Name

 

No. of shares

Folli-Follie Commercial Manufacturing & Technical Societe Anonyme

Agios Stephanos Attikis, Greece.

 

16,051,699

Georgios KOUTSOLIOUTSOS

 

1

 

 

--------------

 

Total:

16,051,700

========

 


DIRECTORS

 

(As per registry dated 11-02-2014)

Name

(Nationality)

 

Address

Georgios KOUTSOLIOUTSOS

27 Papanastassiou Street, Paleo, Psychico, Athens, Greece.

 

LAW Chiu Chuen

House 132, Seasons Villas, 233 Kam Tin Road, Shek Kong, New Territories, Hong Kong.

 

Dimitrios KOUTSOLIOUTSOS

221-223 Imittou Street, 11673 Athens, Greece.

 

 

SECRETARY

 

(As per registry dated 11-02-2014)

Name

Address

Co. No.

FWT Secretarial Ltd.

Room 3507, 35/F., Tower 2, Lippo Centre, 89 Queensway, Hong Kong.

0764722

 

 

HISTORY

 

The subject was incorporated on 11th February, 1998 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Feather Edge Ltd., name changed to Folli Follie Hong Kong Ltd. on 12th June, 1988 and further changed to the present style on 28th January, 2013.

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

 

 

OPERATIONS

 

Activities:          Garment Trader.

 

Lines:   Jewellery, watches, leather goods, sunglasses, bags

 

Employees:      40.  (Hong Kong)

 

Commodities Imported:  Europe, etc.

 

Markets:           Hong Kong, other Asian countries, etc.

 

Group Turnover:            EUR 809.7 million  (Year ended 31-12-2012)

 

EUR 887.4 million  (Year ended 31-12-2013)

 

Terms/Sales:  COD or as per contracted.

 

Terms/Buying:  Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$160,550,000.00 (Divided into 16,055,000 shares of HK$10.00 each)

 

Issued Share Capital: HK$160,517,000.00

 

Mortgage or Charge:  (See attachment)

 

Group Profit After Tax:  EUR   26.1 million  (Year ended 31-12-2012)

EUR 343.0 million  (Year ended 31-12-2013)

 

Profit or Loss:   Group business is profitable.

 

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:-

Bank of China (Hong Kong) Ltd., Hong Kong.

Citibank, N.A., Hong Kong.

 

Standing:  Good.

 

 

GENERAL

 

FF Group Sourcing Ltd. is a wholly-owned subsidiary of Folli-Follie Commercial Manufacturing & Technical Societe Anonyme [Folli Follie] which is a Greece-based company.

 

The subject belongs to the FF Group.

 

FF Group designs, produces and markets on a global level its two own brands: Folli Follie and award winning British jewellery Links of London. Famed for high quality and breakthrough design, jewellery, watches, accessories and giftware Folli Follie and Links of London have won a place in the hearts of millions of consumers globally.

 

At the same time the Group maintains a leading presence in the department stores field, the retail and wholesale channel within Greece and Europe. “Factory Outlet”, as well as “attica” department stores, are the Group’s department stores in Greece that cover almost 70,000 m2.  Moreover, brands such as Ermenegildo Zegna, Juicy Couture, UGG Australia, Guess, Nike, Converse, G-Star Raw, Franklin & Marshall, Samsonite and Technogym belong to the Group’s brand portfolio.

 

The followings the highlights of the Group in recent years:

 

2010:  Merger of the companies Folli Follie S.A., HELLENIC DUTY FREE SHOPS S.A. and Elmec Sport S.A. all absorbed by HELLENIC DUTY FREE SHOPS S.A.  Creation of the Folli Follie Group of Companies.

 

2012:  The FF Group gains the exclusive distribution and representation of PROCTER & GAMBLE PRESTIGE perfumes in Greece.   In October, FF Group announces that it has signed an agreement to sell 51% of the travel retail business in the Swiss Dufry AG.

 

2013:  In April the sale of the 51% stake of the travel retail business to Dufry AG. is completed. During December, the Group announced the sale of the remaining 49% of the travel retail business to Dufry AG and enters as a strategic investor to Dufry AG.

 

2014:  FF Group announces exclusive wholesale and retail distribution rights for the Juicy Couture brand in all Continental Europe, the UK, Ireland and Cyprus.

 

In Japan and China, Folli Follie has approximately 73 and 200 points of sale respectively, whereas the brand in overall has presence in the most fashionable streets of the world’s major cosmopolitan cities: London (Regent Street), Hong Kong (Central district), New York (Madison Avenue), Dubai, Athens, Beijing, Seoul, Honolulu.

 

Apart from the flagship stores in strategic locations, Folli Follie products are also sold through stand-alone shops and shop-in-shop in famous department stores, such as Isetan and Takashimaya in Japan, Lotte and Hyundai in Korea, Harrods in Great Britain, Corte Ingles in Spain.

 

Folli Follie has a direct control of its international distribution network by vertically integrating its operations from production to retail.  As a result, it has established a direct line of communication with its customers having adopted the required flexibility to respond to their changing demands.

 

In addition, Folli Follie has a strong presence in the travel retail market with points of sale in numerous airports duty free shops around the world, such as Beijing, Hong Kong, Seoul, Athens, Vancouver, Taipei, Hawaii and Guam among others, whereas Folli Follie products are also available in-flight in major international airlines, such as British Airways, Cathay Pacific, Air China, China Eastern, Japan Airlines, EVA Airlines, ANA Airlines, Korean Airlines, Qatar Airways, Singapore Airlines, United Airlines etc. Folli Follie has secured presence in Haitang Bay, Hainan Island, China, the world’s largest duty free shopping centre, with the store expected to open within the second half of 2014.

 

In FY 2013, the turnover of the Group amounted to EUR 887.4 million, profit after tax was EUR 343.0 million.  Business was excellent in the year.

 

FF Group creates fashion globally and has established a strong presence counting more than 850 points of sale worldwide and employing more than 4,700 people worldwide.

 

The subject is fully supported by the Group.

 

As the history of the subject is over 16 years in Hong Kong, on the whole, consider it good for normal business engagements.

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

23-01-2014

Instrument:        Legal Charge/Mortgage

Property:

1,243/102,588th parts or shares of and in Aberdeen Inland Lot No. 414 (Unit 3 on 19/F., Unit 4 on 19/F., Store Rooms on 19/F., Reserved Spaces on 19/F. and Carparking Space No. V13 on Upper Ground Floor Gagage of Hing Wai Centre, Hong Kong.)

Mortgagee:        Citibank N.A., Hong Kong Branch.

To secure general banking facilities in respect of all moneys and interest

23-01-2014

Instrument:        Legal Charge/Mortgage

Property:

2,938/4,000,000th parts or shares of and in Inland Lot No. 8593 (Flat No. 03 on 46/F. & 47/F. of the Apartment Tower on the Western Side of Convention Plaza, Hong Kong.)

Mortgagee:        Citibank N.A., Hong Kong Branch.

To secure general banking facilities in respect of all moneys and interest


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.61

UK Pound

1

Rs.100.27

Euro

1

Rs.78.21

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 


 

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.